2nd Quarter Economic Growth Steady

PHILIPPINES - In Brief 07 Aug 2025 by Diwa Guinigundo

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The signs were known as early as June 2025 that economic growth in the Philippines would remain flat at the lower end of the revised GDP growth for the year 2025 of 5.5-6.5%. The average growth for the last five quarters stood at around 5.5-5.6%.   Source: Philippine Statistics Authority The Philippine Statistics Authority announced today that the country’s second quarter year-on-year economic growth based on gross domestic product (GDP) expanded by 5.5%, almost unchanged from the first quarter GDP growth of 5.4%. GDP growth in the second quarter 2024 rose higher at 6.5%. Guarded optimism characterized the Development Budget Coordination Committee (DBCC) when it decided to downgrade its growth forecasts. Among the risks considered were the unforeseen escalation of hostilities in the Middle East and the imposition of US tariffs. The outbreak of the war in the Middle East could affect overseas Filipino workers remittances given their average annual inflow of nearly $33 billion in the last four years. Higher oil prices could also affect economic prospects including growth and inflation. The Trump tariff, now at 19% on the other hand, could affect Philippine exports to the US amounting to about $15 billion annually. For the second quarter, major drivers of growth were wholesale and retail trade; repair of motor vehicles and motorcycles, 5.1%; public administration and defense, compulsory social security, 12.8%; and financial and insurance activities, 5.6%. All major economic sectors namely agriculture, industry and services recorded year-on-year expansion at 7.0%, 2.1% and 6.9%, respectively. On the demand side, private consumption rose by 5.5% in the second quarter 2025. ...