The economy is expected to have grown by 5.9 percent year-on-year in the third quarter of 2025, faster than the 5.5 percent expansion in the April–June period. The pickup, economists at Moody’s Analytics said, is likely fueled by strong household consumption, supported by lower borrowing costs, easing inflation, and steady remittance inflows. Exports also likely helped, remaining resilient through July and August.
The improvement follows two consecutive quarters of modest growth—5.4 percent in Q1 and 5.5 percent in Q2—with household spending and net trade acting as key drivers. In contrast, government spending has slowed sharply since early this year, following an election-related spending ban and now further weighed down by a corruption scandal affecting public infrastructure projects.
Despite this challenge, analysts say the economy’s average growth of 5.6 percent thus far this year keeps it within the government’s 5.5 percent to 6.5 percent target range, signaling steady, if uneven, momentum heading into year-end.
