Philippines GDP growth edges up to 5.5% in Q2 2025

Published 07/08/2025, 08:34
Philippines GDP growth edges up to 5.5% in Q2 2025

Investing.com -- The Philippines’ economy grew slightly faster in the second quarter of 2025, with GDP expanding by 5.5% year-on-year, up from 5.4% in the first quarter and exceeding analyst expectations of 5.4%.

Quarter-on-quarter growth accelerated from 1.2% to 1.5%, according to figures released Thursday.

The agricultural sector emerged as the standout performer on the output side, showing a strong rebound compared to the previous quarter.

This helped offset ongoing weakness in industrial sectors, particularly construction, and a slowdown in services.

On the expenditure side, household consumption growth improved marginally from 5.3% to 5.5%, supported by falling inflation and recent interest rate cuts.

Government spending moderated after a strong start to the year but remained a positive contributor to overall growth.

Government spending is expected to provide less support in the second half of 2025 if fiscal tightening plans move forward.

Meanwhile, export growth slowed in the second quarter, with further deceleration likely in coming months due to Trump tariffs and weakening global demand.

The latest figures align with Capital Economics’ full-year growth forecast of 5.5% for 2025, which matches the consensus view and falls within the government’s target range of 5.5-6.5%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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