The Philippine economy grew by 5.4 percent in the first quarter of 2025, according to the Philippine Statistics Authority—a modest yet steady performance amid ongoing global uncertainty.
Economic Planning Undersecretary Rosemarie Edillon said in a news briefing Thursday that although the first-quarter growth was slower than the 5.9 percent expansion recorded in the same period of 2024, it signaled building momentum that began in the third quarter of last year.
“This is a measured start,” said Edillon, who heads the policy and planning group of the Department of Economy, Planning and Development. “While this pace falls short of our initial expectations, it reflects broader global developments and tempered economic activity amid persistent uncertainties,” she added.
She noted that the Philippines posted the second-fastest growth in Asia for the period, behind Vietnam—underscoring the local economy’s resilience despite external headwinds.
Growth was supported largely by strong domestic demand and sustained expansion across key sectors.
The Services sector led the way with a 6.3 percent increase, driven by Wholesale and retail trade (6.4 percent), Financial and insurance activities (7.2 percent), and Manufacturing (4.1 percent). Agriculture, forestry, and fishing expanded by 2.2 percent, while Industry grew by 4.5 percent, signaling a broad-based recovery.
On the demand side, Household Final Consumption Expenditure—which comprises the bulk of GDP—grew by 5.3 percent. Government spending surged 18.7 percent, reflecting increased public investment and social support. Gross capital formation, a proxy for investment, rose by 4.0 percent, indicating cautious business optimism.
Exports grew 6.2 percent, while imports climbed 9.9 percent, pointing to robust domestic consumption and capital goods demand.
Gross National Income rose 7.5 percent, outpacing GDP growth, buoyed by a 24.6 percent increase in Net Primary Income from the Rest of the World—mainly remittances and overseas earnings.
Despite signs of resilience, the first-quarter performance falls short of the government’s 6–7 percent full-year growth target, highlighting the need for calibrated fiscal and monetary measures to sustain momentum.
