08-05-2025
Philippine Economy Slows In Q1, With Growth Below Expectations
Credits to eLegal Philippines
The Philippine economy grew by 5.4% in the first quarter of 2025, slower than the expected 5.7%, according to data from the statistics agency. Despite this miss, the growth still outpaced the 5.3% expansion recorded in the final quarter of 2024.
Consumption, driven by the nation's 114 million people, remains the key engine of growth. However, uncertainties stemming from the US-China trade war and global market volatility pose risks to the economy. The country's government, led by President Ferdinand Marcos Jr., has set a target of at least 6% growth for this year.
The weaker-than-expected performance strengthens the case for additional rate cuts by the Bangko Sentral ng Pilipinas. Governor Eli Remolona indicated that the central bank could lower interest rates by another 75 basis points as inflation continues to slow.
Compounding the situation, the Philippines faces a midterm election next week, adding to the uncertainty surrounding the country's economic outlook.
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