Philippines Q2 GDP Grows Above Forecasts

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%.