BSP sees moderate GDP growth near lower target range 2025-2026

The Bangko Sentral ng Pilipinas (BSP) expects moderate economic growth this year and next amid tempered consumption activities due to high commodity prices and global uncertainties.

Real GDP growth is projected to settle near the lower bound of the government's 6-8% target range for both 2025 and 2026, according to the BSP’s latest Monetary Policy Report.

The central bank cited a slower-than-expected fourth quarter 2024 growth outturn driven by a slowdown in services and contraction in agriculture as well as higher global commodity prices dampening economic activity.

Despite monetary policy easing measures implemented by the BSP, uncertainty surrounding proposed US tariffs poses additional risks to domestic growth.

The Philippines' GDP growth rate for the last quarter of 2024 was 5.2%, bringing full-year economic growth to 5.6%—below the government's trimmed target range of 6.0% to 6.5%. This marks the second consecutive year missing its economic targets.