The Philippine economy grew 5.5 percent year-on-year in the second quarter of 2025, driven by a strong rebound in agriculture and sustained expansion in services, reinforcing the country’s position among the fastest-growing economies in emerging Asia—just behind Vietnam and India.
According to the Philippine Statistics Authority (PSA), top contributors to the second-quarter growth were Wholesale and retail trade; repair of motor vehicles and motorcycles (5.1 percent), Public administration and defense; compulsory social security (12.8 percent), and Financial and insurance activities (5.6 percent).
All three major economic sectors posted gains: Services led with 6.9 percent growth, Agriculture, forestry, and fishing surged by 7.0 percent, and Industry rose by a modest 2.1 percent.
“The Philippine economy continued to show resilience and stability even as global challenges persist and fuel uncertainty across many fronts,” said Economic Planning and Development Secretary Arsenio Balisacan. “We maintained our place among the fastest growing economies in emerging Asia, behind Vietnam’s 8.0 percent growth…(and) India’s projected 6.5 percent expansion.”
He noted the country outpaced several regional peers, including China (5.2 percent), Indonesia (5.1 percent), Malaysia (4.3 percent), and Thailand (2.4 percent).
On the demand side, household final consumption expenditure rose by 5.5 percent, supported by stable prices and improving labor market conditions. Government spending increased 8.7 percent, gross capital formation edged up 0.6 percent, and exports and imports grew by 4.4 percent and 2.9 percent, respectively.
Balisacan said the government’s efforts to tame inflation and protect household purchasing power are beginning to bear fruit. “Prices have stabilized and employment conditions have improved, allowing Filipino families to spend more confidently,” he said.
Gross National Income (GNI) jumped 8.2 percent year-on-year, boosted by a 32.8 percent surge in Net Primary Income from the Rest of the World.
Quarter-on-quarter, GDP rose by 1.5 percent, led by gains in Public administration and defense, Real estate, and Professional and business services. Services posted the fastest growth at 2.0 percent, followed by Agriculture (1.7 percent) and Industry (0.5 percent).
For the first half of 2025, GDP growth averaged 5.4 percent—underscoring the economy’s solid footing amid global headwinds and domestic transitions.
