Philippine Economy Expands 1.5% QoQ

The Philippine economy expanded 0.6% quarter-on-quarter in the three months to December 2025, picking up from a revised 0.3% in the previous period but falling short of expectations for a 1.3% expansion. Growth accelerated for household consumption (1.3% vs 0.7% in Q3), while government spending rebounded (1.2% vs -0.6%). Net trade also contributed positively, with exports rising 4.8% (vs 2.2%) and imports declining 3.4% (vs 0%). This was partly offset by continued contraction in fixed investments (-2.9% vs -3.8%). Among major sectors, growth picked up in services (1.5% vs 0.8%), while output fell in agriculture, forestry, and fishing (-0.9% vs -2.7%) and in industry (-1% vs -0.1%).

The Philippine economy grew by 0.4% quarter-on-quarter in the three months to September 2025, easing from a 1.5% expansion in the previous period and falling short of expectations for a 0.8% increase. This marked the weakest growth since the contraction in Q2 2020, driven by slower household consumption growth (0.5% vs 1.1% in Q2). Contractions also persisted in government spending (-0.2% vs -2.3%) and fixed investments (-3.6% vs -0.5%). Meanwhile, net trade contributed positively, as exports rose 1.4% following a 0.4% drop in the prior period, while imports continued to decline by 0.7% after a 4.6% fall. Among major sectors, activity slowed in industry (0.1% vs 0.4%) and services (0.9% vs 1.9%), while output fell for the first time in a year in agriculture, forestry, and fishing (-2.9% vs 2.7%).

The Philippine economy grew by 1.5% quarter-on-quarter in the three months ending June 2025, accelerating from a 1.2% expansion in the previous period. The faster growth was driven by a sharper rise in household spending (1.2% vs 0.5% in Q1), supported by moderating consumer inflation. Net trade also contributed positively, as exports declined by 0.6% (vs +2.3%) but were offset by a steeper 4.6% drop in imports (vs -13.7%). Meanwhile, growth in fixed investments slowed to 0.5% (vs 4.1%), and government spending contracted by 2.1% (vs +7.5%)—the first decline in over a year—due to an election-related ban on public disbursements. Among major sectors, activity picked up in services (2% vs 1%), while growth in agriculture, forestry, and fishing (1.7% vs 2.2%) and industry (0.5% vs 1.3%) slowed.