Philippines GDP forecast exceeds 6% in 2025

BDO Unibank Inc. and the Bank of the Philippine Islands predict that the Philippines' GDP growth will exceed 6% in 2025, driven by tempered inflation and lower interest rates.

Dante Tinga Jr., BDO's Senior Vice President, expects increased investment and consumption due to healthier corporate balance sheets and improved consumer spending on essentials.

Emilio Neri Jr., BPI's Lead Economist, notes that stable commodity prices and China's economic slowdown could ease inflationary pressures, projecting average inflation at 3.5% for 2025.

The Bangko Sentral ng Pilipinas (BSP) is expected to cut interest rates by 50 basis points in the first half of 2025, supporting household spending and further boosting economic growth.

With stable inflation and a favorable outlook, private construction and investments in machinery are anticipated to continue picking up, contributing to sustained economic expansion.