29.01.202602:25:58UTC+00Philippines GDP Growth Misses Expectations

The Philippines experienced GDP growth of 3% in the fourth quarter of 2025 compared to the same quarter the previous year. This growth fell short of the anticipated 3.8% and slowed from the 3.9% growth witnessed in the prior quarter. This period marked the most sluggish growth since a contraction in the first quarter of 2021, influenced by the repercussions of a prominent infrastructure corruption scandal, a series of destructive typhoons, and trade challenges impacting the Southeast Asian economy. Both government spending and household consumption experienced deceleration, with government expenditure growing by 3.7% compared to 5.8% in the third quarter, and household consumption rising by 3.8% as opposed to 4.1%. For the first time in over a year, fixed investments saw a decrease, dropping by 7.2% compared to a 0.5% increase previously. On a more positive note, net trade made a favorable contribution; exports surged by 13.2%, up from 7.4%, while imports increased by 3.5% versus the earlier 3.2%. The production sector witnessed declines, with activity in agriculture, forestry, and fishing slowing to 1% from 2.9% and the service sector easing to 5.2% from 5.4%. Industrial output contracted by 0.9%, a decline from the previous 0.7% expansion. Over the course of 2025, the overall Philippine economy grew by 4.4%, which was below the government’s target range of 5.5% to 6.5%.