Philippine Q1 GDP grows 5.4%, misses forecast

The Philippine economy's growth slowed to 5.4% year-on-year in the first quarter of 2025, falling short of forecasts.

Lower inflation contributed to this slower economic pace compared to the 5.9% growth recorded in the same period in 2024.

Finance Secretary Ralph Recto and Department of Economy, Planning, and Development Secretary Arsenio Balisacan had earlier predicted a higher growth rate of at least 6%, citing increased consumer spending due to reduced inflation and interest rate cuts.

Despite these expectations, the government has not met its economic targets for two consecutive years, with GDP growth rates of 5.6% in both 2023 and 2024.

The administration aims for a growth range of 6% to 8% in 2025, but recent data indicates that the economy is still below these goals.