The Philippine economy cooled to 4 percent in the third quarter of 2025, down from 5.5 percent in the previous quarter and 5.4 percent in Q1, the Philippine Statistics Authority (PSA) reported Friday.
Average growth for the first nine months reached 5 percent, below the government’s revised target of 5.5 to 6.5 percent. PSA chief Claire Dennis Mapa called it the weakest performance since 2011, excluding the pandemic years.
Economic Planning Secretary Arsenio Balisacan said meeting even the lower end of the target is unlikely, as the economy would need nearly 7 percent growth in the final quarter. He cited typhoon damage, corruption issues, and restrained infrastructure spending as major drags.
Public construction spending plunged 26.2 percent year-on-year—the sharpest decline since 2011—after stricter project vetting following a flood control corruption scandal. Overall construction growth slowed to 0.5 percent from last year’s 9 percent.
Balisacan emphasized that the government is prioritizing the quality of spending over sheer volume. Reforms are underway to bar relatives of officials up to the fourth degree from government contracts and to strengthen transparency laws.
Despite the slowdown, Balisacan said 2025 growth could still average around 5 percent, with a rebound expected in 2026 due to strong fundamentals, low inflation, and stable fiscal and financial conditions.
