Finance Secretary Ralph Recto expects the Philippine economy to post stronger growth in the second half of 2025, following a 5.4-percent expansion in the first quarter, according to the Philippine News Agency.
Recto said household consumption and government spending would remain the main drivers of growth.
Despite the upbeat outlook, Recto said full-year growth is likely to hit the lower end of the government’s revised target range of 5.5 percent to 6.5 percent, with estimates now around 5.7 percent to 5.8 percent.
He cited ongoing global uncertainties, particularly in trade policy, as key risks to the growth outlook.
The government earlier updated its 2025 gross domestic product (GDP) growth target to 5.5 percent to 6.5 percent, from an earlier projection of 6 percent to 8 percent, due to heightened global volatility.
The Development Budget Coordination Committee (DBCC) also reviewed and updated its medium-term macroeconomic assumptions, growth targets and fiscal program for 2025 to 2028.
