Philippine economy grows 4% in Q3, slowest since Q1 2021

The Philippine economy grew by 4% in the third quarter of 2025, its slowest pace since the first quarter of 2021, down from 5.5% in the previous quarter and 5.2% in the same quarter last year.

This deceleration is attributed to reduced public spending, which contracted significantly amid an ongoing flood control scandal that also dampened investor and consumer confidence.

Household spending grew by only 0.5%, while the services sector grew by 5.5% and the industry sector saw a minimal growth of 0.7%.

Typhoons also disrupted economic activity during this period.

The average GDP growth from January to September is now 5%, falling below the government's target of 5.5 to 6.5% for the year.

Secretary Arsenio Balisacan of the Department of Economy, Planning and Development stated that the fourth quarter growth would need to accelerate to at least 6.8% to meet the lower end of the target.

The Development Budget Coordination Committee will review the targets for the year until 2026, with changes likely ahead.