The Philippine economy expanded below the government’s target in the first quarter of this year, settling at 5.4 percent.
To recall. The Development Budget Coordination Committee (DBCC) in December revised its economic growth targets for 2024 to 2028 to take into account the current domestic and global developments. For this year, the DBCC set a gross domestic product (GDP) growth of 6 to percent from the previous 6 to 7 percent.
In a briefing on Thursday, National Statistician Dennis Mapa said Philippine GDP growth slightly picked up to 5.4 percent in the first quarter of the current year from 5.3 percent in the fourth quarter of 2024.
Also, the first quarter growth this year is much lower than the 5.9-percent GDP expansion in the first quarter of 2024.
However, the government is quick to boast that the Philippine economy is still among the top performers in the region.
The Department of Economy, Planning, and Development (DEPDev) said that the Philippines was outpaced by Vietnam that logged a 6.9-percent growth, and equaled by China’s 5.4 percent. On the other hand, the Philippines was ahead of Indonesia’s 4.9 percent, Malaysia’s 4.4 percent while Thailand is forecast to grow at 2.8 percent,
Also, DEPDev Secretary Arsenio Balisacan said while multilateral institutions such as the International Monetary Fund and the World Bank expect the Philippines to remain one of the fastest growing economies in the region this year, the administration of President Ferdinand R. Marcos Jr. will continue to push reforms to sustain growth.
“This is no reason for complacency. On the contrary, the first quarter’s performance reinforces the urgency of strategic policymaking, accelerated structural reforms toward economic diversification, and efficient and effective delivery of programs, projects, as we near the midterm of the Marcos administration,” he said.
According to the Philippine Statistics Authority (PSA), all major economic sectors which include agriculture, forestry, and fishing; industry; and services posted year-on-year growths in the first quarter of 2025 with 2.2 percent, 4.5 percent, and 6.3 percent, respectively.
