PIDS projects 5% PH economic growth in Q4, misses full-year target

The Philippine economy is projected by the Philippine Institute for Development Studies (PIDS) to grow by five percent in the fourth quarter of 2025, an improvement from the previous quarter's performance.

Despite the anticipated Q4 growth, the PIDS now forecasts that the full-year economic expansion for 2025 will be five percent, falling short of the government's target of 5.5 to 6.5 percent.

The third quarter of 2025 saw a growth of four percent, which was the slowest pace recorded in four years.

Economic growth from January to September 2025 averaged five percent.

A contraction in public construction, influenced by corruption issues in flood control projects, was cited by the Department of Economy, Planning and Development Secretary Arsenio Balisacan as a factor in the slower third-quarter performance.

PIDS also expects the Philippine economy to grow 5.3 percent in 2026, below the government's goal of 6 percent to 7 percent.