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

The Philippine economy grew by 4% in the third quarter of 2025, a slowdown from the 5.5% growth in the second quarter and below the government's target of 5.5-6.5%.

This deceleration is attributed to reduced public spending, which plunged by -26.2% amid an ongoing flood control scandal and stricter validation measures for public works.

The scandal also dampened investor and consumer confidence, with household spending growing by only 0.5%.

The services sector led growth with a 5.5% increase, followed by agriculture, forestry, and fishing at 2.8%, while the industry sector grew by a mere 0.7%.

This marks the slowest economic growth for the Philippines since the first quarter of 2021.