Philippines GDP Growth Slowest in Over 4 Years

The Philippines’ GDP grew 3% year-on-year in Q4 2025, below expectations of 3.8% and slowing from 3.9% in the previous quarter. This marked the softest growth since a contraction in Q1 2021, weighed down by fallout from a high-profile infrastructure corruption scandal, a string of devastating typhoons, and trade pressures that affected the Southeast Asian nation. Growth slowed in both government spending (3.7% vs 5.8% in Q3) and household consumption (3.8% vs 4.1%), while fixed investment fell for the first time in over a year (-7.2% vs 0.5%). Meanwhile, net trade contributed positively, as exports climbed 13.2% (vs 7.4%), while imports rose 3.5% (vs 3.2%). On the production side, activity softened in agriculture, forestry, and fishing (1% vs 2.9%) and in services (5.2% vs 5.4%), while industry output contracted (-0.9% vs 0.7%). For the full year 2025, the Philippine economy expanded 4.4%, missing the government’s target of 5.5%–6.5%.

The Philippines’ GDP grew by 4.4% year-on-year in Q3 2025, missing expectations of a 5.2% expansion and slowing from 5.5% in the previous quarter. This marked the weakest economic growth since the contraction in Q1 2021, as the recent infrastructure scandal curbed public spending and a series of typhoons disrupted activity. Growth slowed sharply for government spending (5.8% vs 8.7% in Q2) and household consumption (4.1% vs 5.3%), while fixed investments barely expanded (0.1% vs 3.1%). Meanwhile, net trade contributed positively to overall GDP, with exports rising 7% (vs 4.7%) and imports growing at a softer 2.6% (vs 3.5%). On the production side, activity weakened across all major sectors, including agriculture, forestry, and fishing (2.8% vs 7%), industry (0.7% vs 2.1%), and services (5.5% vs 7%). The latest GDP print also came in below the government’s 5.5% to 6.5% target range.

The Philippines’ GDP grew by 5.5% year-on-year in Q2 2025, slightly above the 5.4% expansion in the previous quarter and market expectations. This marks the strongest growth since Q3 2024, driven by faster household spending (5.5% vs 5.3% in Q1), supported by easing consumer inflation. Net trade also contributed positively, with exports rising 4.4% (vs 7.1%) and outpacing the 2.9% increase in imports (vs 10.3%). Meanwhile, growth in government spending slowed significantly (8.7% vs 18.7%) due to an election-related ban on public disbursements. Fixed investments also rose at a softer pace of 2.6%, compared to 6.5% previously. On the production side, activity improved in agriculture, forestry, and fishing (7% vs 2.2%), as well as in services (6.9% vs 6.2%), while growth in industry slowed to 2.1% from 4.6%. The latest GDP figures fall within the government’s revised target range of 5.5% to 6.5%.