Moody's Analytics sees 5.9% PH economic growth in 2025

Moody's Analytics forecasts the Philippines' economic growth for 2025 to reach 5.9 percent, a figure that would mark the strongest expansion in three years.

This projection falls short of the government's target of six to eight percent but is supported by robust private consumption and investment, according to Moody's Analytics economist Sarah Tan.

Tan highlighted that the country's domestic economy, boosted by a stable inflation, easing monetary policy, a tight labor market, and remittances, is the primary engine for its growth.

Moody's expects inflation to slow down to 2.8 percent this year from the 3.2-percent average in 2024.

The Bank of the Philippine Islands (BPI) offers a more optimistic outlook, forecasting a GDP growth of 6.3 percent for 2025, anticipating lower inflation and potential interest rate cuts to stimulate private sector investments.

The initial downgrade in the growth outlook was attributed to uncertainties arising from the United States' tariff policies, though this is not elaborated on in the new article.