Economy grew 5.8% in Q2, driven by consumption

An economist from the Bank of the Philippine Islands predicts that the Philippine economy grew by 5.8 percent in the second quarter of 2025, driven by election-related spending and easing inflation.

Household consumption was the main growth driver, supported by lower rice prices and strong consumer lending.

While food exports improved due to better weather conditions, government spending slowed down because of an election spending ban.

Neri noted that softer electricity sales may have slightly dampened industrial activity but still sees a feasible path for the government's revised growth target of 5.5 percent to 6.5 percent.

However, potential risks include delays and damage from recent typhoons as well as possible higher US tariffs affecting economic performance.