The Philippines’ gross domestic product (GDP) expanded by 5.5 percent year-on-year in the second quarter of 2025, the Philippine Statistics Authority (PSA) said Thursday.
This is faster than the 5.4-percent growth in the first quarter.
Data showed that all major economic sectors—agriculture, forestry, and fishing; industry and services—posted year-on-year upticks in the second quarter of 2025 with 7.0 percent, 2.1 percent, and 6.9 percent, respectively.
“With this performance, we maintain our place among the fastest-growing economies in emerging Asia, behind Vietnam’s 8.0 percent growth, but ahead of China’s 5.2 percent and Indonesia’s 5.1 percent. While our growth is slower than India’s projected 6.5-percent expansion, we are expected to outpace Malaysia’s 4.3 percent and Thailand’s 2.4 percent,” Department of Economy, Planning and Development Secretary Arsenio Balisacan said.
He said the Philippine economy remained strong, steady, and resilient, deemed a testament to the soundness of national economic foundations.
“The government is intensifying the rollout of programs and projects that bring quality public services, especially in education, health, food security, and digital and physical connectivity closer to the people,” he said.
“The economic team is focused on enabling more Filipinos to participate fully and productively in our economy by making essential goods more affordable, supporting the creation of high-quality jobs, and keeping our growth engines running efficiently,” Balisacan said.
The main contributors to the second quarter growth were wholesale and retail trade; repair of motor vehicles and motorcycles accounting for 5.1 percent; public administration and defense; compulsory social security, 12.8 percent; and financial and insurance activities, 5.6 percent.
Household final consumption expenditure grew 5.5 percent in the second quarter of 2025. All other major expenditure items also posted year-on-year growths from April to June.
Government final consumption expenditure rose 8.7 percent; gross capital formation, 0.6 percent; exports of goods and services, 4.4 percent; and imports of goods and services, 2.9 percent.
The gross national income grew 8.2 percent year-on-year in the second quarter of 2025 as net primary income from the rest of the world increased 32.8 percent during the period.
The Makati Business Club (MBC) noted the significant increase in the share of agriculture in the economy.
“Agriculture is one of MBC’s core advocacies. MBC collaborates with a wide spectrum of partners to bring the business community’s resources and expertise into agricultural development. We also congratulate the President’s economic team, especially the Department of Agriculture. By driving private sector involvement and championing modern, scalable, and inclusive models, MBC aims to foster a food-secure future built on farmer prosperity and consumer benefit,” the MBC said in a statement.
The Philippine Chamber of Commerce and Industry (PCCI) expressed confidence in the country’s economic momentum despite second quarter growth falling slightly short of government targets, citing stronger collaboration between the public and private sectors.
Reacting to the 5.5 percent GDP growth recorded in the second quarter of 2025,
PCCI president Enunina Mangio said the business community remains optimistic that the Philippines can still meet its goals.
“Even if we were not able to hit our target in this quarter, I think with our collective effort, we can reach the government target,” Mangio said in an interview Thursday.
She adverted to President Marcos’ recent State of the Nation Address which she described as “very sincere” in its intent to curb corruption and support key development areas like education and micro, small, and medium enterprises (MSMEs).
Mangio added that the strengthened alignment between the government and business sector has been a key to improving investor confidence.
“The government and the business sectors are working together this time to address all issues affecting our investors. And because of that, we’re looking forward to more investors in the coming months and the coming years,” she said.
The 5.5-percent second quarter GDP growth was a modest pickup from the 5.4 percent in the first quarter of 2025, though still slower than the 5.9 percent recorded in Q2 2024.
While it slightly exceeded some analyst forecasts, it remains below the lower end of the government’s target range.
Editor’s Note: This is an updated article. Originally posted with the headline: “Philippines’ GDP grew 5.5% in second quarter of 2025”
