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The Philippine economy expanded 5.5% in the second quarter of 2025, slightly faster than the 5.4% growth in the first quarter but slower than the 6.5% expansion recorded year-on-year
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Main growth contributors were the wholesale and retail trade; repair of motor vehicles and motorcycles, public administration and defense; compulsory social security; and financial and insurance activities
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The services sector expanded by 6.9% while industry growth slowed to 2.1%
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Despite global uncertainties, exports grew by 4.4%, outpacing import growth of 2.9%
The Philippine economy expanded 5.5% in the second quarter of 2025, slightly faster than the 5.4% growth in the first quarter but slower than the 6.5% expansion recorded year-on-year.
The main contributors to growth were the wholesale and retail trade; repair of motor vehicles and motorcycles, which grew 5.1%; public administration and defense; compulsory social security, 12.8%; and financial and insurance activities, 5.6%, according to the Philippine Statistics Authority.
Socioeconomic Planning Secretary Arsenio Balicasan in a statement said the latest gross domestic product growth is still among the fastest in Asia, behind Vietnam’s 8%, but ahead of China’s 5.2% and Indonesia’s 5.1%.
On the production side, agriculture posted a strong 7% growth from a 2.2% improvement in the first quarter, a turnaround from the 2.3% contraction in the second quarter of last year. Balisacan said this was largely driven by improved harvests of palay (up 14.2% from 1.1%) and corn (up 29.8% from -3%).
The services sector, the Philippine economy’s largest and strongest driver, expanded by 6.9%, with notable gains in real estate (6.1% from 3.7%) and professional and business services (5.8% from 5.2%).
Industry growth slowed to 2.1% from 4.6% in the first quarter, affected by declines in output for coke and refined petroleum products (-12.2%), chemical products (-6.6%), and computer and electronics (-2.5%).
Still, food manufacturing remained strong, growing by 9.3%, though this was slightly below the 10.8% recorded in the previous quarter.
On the demand side, household consumption remained solid, accelerating to 5.5% in the second quarter.
Fixed capital investments rose by 2.6%, led by private construction, which surged by 11.2% (up from 6.6% in the first quarter), and investments in durable equipment, which grew by 10.6% (from 8.3%).
Government final consumption expenditure also rose by 8.7%. As expected, public construction slowed to -8.2%, due to frontloaded infrastructure activities ahead of the election ban.
Despite global uncertainties, Balisacan noted that exports grew by 4.4%, outpacing import growth of 2.9%.
Merchandise exports were particularly strong, rising 13.6%, driven by semiconductors, which posted a 10.8% increase.
Earlier, the Development Budget Coordination Committee lowered its growth forecast for the Philippine economy to 5.5% to 6.5% in 2025 from 6% to 8% previously.
