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Analysts were expecting the economy to grow 5.5% in the second quarter as slower inflation fuels household spending
MANILA, Philippines – The Philippine economy grew 5.5% in the second quarter of 2025 despite the slowdown of government spending growth, the Philippine Statistics Authority reported on Thursday, August 7.
The latest gross domestic product (GDP) is within the government’s revised target range of 5.5% to 6.5%.
Analysts had expected the economy to grow 5.5%. They expected low inflation, as well as election-related spending and steady remittances, to help fuel household consumption.
Between April and June, inflation averaged at around 1.3%, the lowest since 2019.
The Bangko Sentral ng Pilipinas also continued its easing cycle in June by bringing rates down to 5.25%, in effect lowering borrowing costs and encouraging spending.
Bank of the Philippine Islands lead economist Jun Neri believes the government could meet its revised GDP growth target in 2025, but this outlook may be dampened by delays and losses in production and infrastructure amid the rainy season.
“Downside risks from higher [United States] tariffs may also need to be factored [in] if more changes are announced later this year,” he said. – Rappler.com
