Philippine government optimistic on 6-8% GDP target despite 5.4% Q1 growth

Despite weaker-than-expected first-quarter growth of 5.4%, the Philippine government remains committed to its 2025 GDP target range of six to eight percent.

Budget Secretary Amenah Pangandaman attributes this optimism to improving private consumption and increased public infrastructure spending, which should help offset global economic uncertainties.

The Marcos administration's expenditures grew by 18.7% in Q1, with expectations for sustained growth as the government continues to prioritize public projects.

Think tanks BMI and Pantheon Macroeconomics predict a slightly lower GDP growth rate of around five percent this year due to weak global demand and trade tensions.

While acknowledging potential risks, Pangandaman emphasized that household consumption, gross capital formation, and exports all expanded in Q1, indicating promising economic sectors.