Manila: A 5-percent growth for the Philippine economy in 2025 is seen as respectable compared to neighboring countries, despite challenges beyond the government's control, an economic official stated on Monday. Growth up to the third quarter averaged at 5 percent, with quarterly growth since the first quarter recorded at 5.4 percent, 5.5 percent, and 4 percent, respectively.
According to Philippines News Agency, a 7-percent growth in the last quarter is required for the economy to meet the 5.5 percent to 6.5 percent full-year growth target, stated Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan during a briefing on Monday. Balisacan acknowledged the difficulty in achieving this target due to natural disasters and ongoing investigations into questionable flood control projects.
Balisacan admitted that the economic growth has been somewhat affected by investigations into anomalous infrastructure projects, but he emphasized that domestic fundamentals remain strong. He highlighted the importance of sustaining past achievements to protect the gains made so far.
He noted that price increases are manageable with stabilized prices of rice and other basic commodities, the labor market is robust, the banking system is healthy, the local currency remains stable against the U.S. dollar, and the fiscal deficit has narrowed to around 5 percent of domestic output.
Balisacan stressed the need for steady and sound economic policies and a commitment to improving the lives of ordinary Filipinos to maintain public trust in the government. Moving forward, the government will focus on social protection programs to help those affected by recent disasters, which will in turn boost economic growth.
Additionally, the inter-agency Development Budget Coordination Committee (DBCC) will meet on Dec. 9 to review the latest developments and their impact on the government's economic targets. Balisacan emphasized the importance of quickly advancing projects that support the economy and social protection, especially those related to disaster recovery.
He concluded by stating that with strong macroeconomic fundamentals and ongoing structural reforms, the groundwork is being laid for an economy where investments flourish and progress is felt by all Filipinos. Maintaining this trajectory requires credible institutions, transparent governance, and policy environments that foster public trust, as trust is both an outcome and a precondition for development.
