Philippine GDP grows 5.9% in Q1, below target

The Philippines' GDP is projected to have grown by 5.9% in the first quarter of 2025, according to a median estimate from economists polled by the Inquirer.

This growth marks an increase from the revised 5.3% recorded in the fourth quarter of 2024 but falls short of the government's target range of 6%-8%. The Philippine Statistics Authority will release preliminary data on May 8.

Consumer spending, which historically accounts for around 70 percent of GDP, was the main driver of growth last quarter, supported by benign inflation and lower borrowing costs from the Bangko Sentral ng Pilipinas (BSP).

Government expenditure surged by 23.89% in the first quarter to P1.477 trillion, reflecting increased infrastructure spending before the release of public funds was restricted starting March 28.

Despite positive factors like reduced inflation and election-related spending, analysts caution that trade tensions and a widening trade deficit may negatively impact growth for the remainder of the year.