The Philippine Statistics Authority (PSA) revised downward its economic growth estimate for the third quarter of 2025 on Wednesday, reporting that the gross domestic product expanded by 3.9 percent.
The Philippine Statistics Authority (PSA) revised the figure down from an initial estimate of 4.0 percent. The adjustment followed lower-than-expected output across several key sectors, including utilities and services.
It announced the updated figure a day before the release of the fourth-quarter economic growth.
Philippine Institute for Development Studies (PIDS) senior research fellow John Paolo Rivera said the downward revision reinforces a softer growth trajectory in the second half of 2025, on weaker public spending and its dampening effect on economic sentiment.
“While revisions are not unusual, this adjustment can tilt full-year growth expectations slightly lower and raise the likelihood that fourth-quarter will need a strong rebound to meet targets,” he said.
Rivera said the revision also suggests the economy is entering 2026 with less momentum, underscoring the critical need for effective policy execution and confidence restoration.
He said this could prompt markets to become more cautious ahead of the release of fourth-quarter growth data.
Data from the PSA showed that the electricity, steam, water and waste management sector saw the steepest revision, swinging from a preliminary 0.6 percent growth to a contraction of 0.6 percent. Other significant downward adjustments were noted in real estate and ownership of dwellings, which was cut to 4.0 percent from 4.7 percent, and accommodation and food service activities, which fell to 4.8 percent from an initial 5.7 percent.
Broader economic indicators also saw downward shifts in the updated report.
The PSA lowered the growth rate for gross national oncome to 5.4 percent from 5.6 percent. Net primary income from the rest of the world was revised to 16.2 percent from the previously reported 16.9 percent. The agency said these revisions are part of its standard policy, which aligns with international practices for national accounts.
While the revisions represent a slight softening of the initial data, the agency said it continues to monitor the impact of these sector-specific declines on the broader annual economic performance.
National Statistician Claire Dennis Mapa said in a previous briefing that the agency ensures all revisions are based on the latest available data from various sources to maintain the accuracy of the country’s economic profile.
.
