Manila: An industry group official on Thursday expressed readiness to work closely with the government, citing the industry sector's weaker contribution to the domestic economy in 2025.
According to Philippines News Agency, data released by the Philippine Statistics Authority (PSA) showed that the industry sector grew by 1.5 percent last year, sharply lower than the 5.6 percent growth recorded in 2024.
In the fourth quarter, the sector contracted by 0.9 percent, reversing the 0.7 percent expansion in the previous quarter. This was traced to lower infrastructure spending by both the government and the private sector amid corruption issues involving several flood control projects.
The industry sector posted the lowest contribution to economic output in 2025, compared with 5.9 percent for services and 3.1 percent for agriculture, forestry, and fishing. While services recorded the fastest growth, Federation of Philippine Industries (FPI) chair Beth Lee said this was not sufficient to sustain overall economic expansion.
She stressed the need to revitalize the industry sector, particularly manufacturing, which grew by only 2.5 percent last year, supported mainly by demand for consumer goods and automotive-related activities. Lee said the contraction of the industry sector last year 'reveals structural weaknesses in construction, mining, and utilities' that are important factors for job creation, infrastructure development, and energy stability.
She added that 'the numbers underscore the urgent need to strengthen the country's industrial base to secure resilience and competitiveness.' 'Without a strong industrial backbone, the economy risks overdependence on services, which cannot fully absorb employment demand or provide the production base for global competitiveness. Revitalizing Industry means making our factories, construction sites, and energy systems resilient to shocks and capable of delivering inclusive growth nationwide,' she said.
Lee said FPI is committed to helping the government and other stakeholders 'to rebuild and fortify the country's industrial base as the Philippines hosts ASEAN 2026.'
The domestic economy grew by 4.4 percent in 2025, below the government's downwardly revised 4.8- to 5-percent target, mainly due to weather-related disturbances, issues surrounding flood control projects, and global economic uncertainties. In the fourth quarter, the economy expanded by 3 percent, slower than the 3.9 percent growth in the previous quarter and the 5.3 percent expansion recorded a year earlier.
Despite this, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort expressed optimism for a recovery, projecting full-year growth of 5.3 to 5.8 percent. He said catch-up spending plans and reform measures are expected to 'improve investor confidence/sentiment and help boost economic/GDP (gross domestic product) growth, since government spending would be a major driver of overall economic growth.'
Ricafort added that if pursued seriously, anti-corruption measures and other priority reforms that raise governance standards would serve as the "missing and remaining important catalyst" to improve investor confidence and sentiment that could attract more foreign and local investments, generate additional jobs and business activity, and support further gains in the local financial markets.
