PHILIPPINES PROJECTED TO FALL SHORT OF GOVERNMENT GROWTH TARGET

The UK-based think tank Pantheon Macroeconomics maintains its 2025 GDP growth forecast for the Philippines at 5.3 percent, below the government’s target of 5.5 to 6.5 percent.

The Philippine economy grew 5.5 percent in the second quarter, a slight improvement from the previous quarter but slower than the 6.5 percent expansion recorded in the same quarter last year.

Pantheon economists expect household spending growth to remain gradual and investment recovery to be delayed until at least next year due to lingering pandemic and cost-of-living impacts.

Government spending has also slowed amid the mid-term election season, contributing to the growth slowdown.

Despite these challenges, the Department of Economy, Planning, and Development remains optimistic about improved performance in the latter half of the year, due to easing inflation and anticipated public construction recovery.

Source: PhilNews24 | August 18, 2025