Philippine Economy Slows to 4.4% Growth in 2025

Economy Slows to 4.4% Growth

Philippine: The Philippine economy slows to 4.4% in 2025, marking its slowest growth in five years, as a corruption scandal linked to infrastructure projects, trade headwinds, and a series of typhoons weighed heavily on activity. The Philippine Statistics Authority said gross domestic product grew 3% in the fourth quarter, down from a revised 3.9% in the third quarter, making it the weakest quarterly performance since the 3.8% contraction recorded in early 2021 during pandemic lockdowns. The full-year outcome fell short of the government’s 5.5–6.5% target and marked the third consecutive year of undershooting under President Ferdinand Marcos Jr., while also slowing from 5.7% growth in 2024 and representing the weakest annual expansion since 2011, excluding the pandemic-driven slump in 2020.

Growth was dampened by reduced public spending amid a graft investigation into infrastructure projects, while multiple typhoons hit agriculture and disrupted supply chains, alongside persistent trade pressures that kept momentum subdued across sectors. The weak performance has increased expectations of another interest rate cut by the Bangko Sentral ng Pilipinas (BSP), with Governor Eli Remolona saying last week that the soft fourth-quarter result would factor into discussions at the Feb. 19 policy meeting. The BSP has already lowered its benchmark rate by a cumulative 200 basis points to a three-year low of 4.5%, although Remolona has indicated that the easing cycle is nearing its end.

Source: Nikkei