‘Economy expanded in Q2’
But Recto says 2025 growth below 6%
MANILA, Philippines — Finance Secretary Ralph Recto expressed optimism that the Philippine economy performed better in the second quarter compared to the first, but said full-year growth may still settle below six percent.
Recto told reporters that economic growth is mainly driven by increased government spending and sustained household consumption across key sectors.
“I think second quarter growth will be better than the first,” he said. “Hopefully, significantly better than the first.”
The Philippine Statistics Authority (PSA) reported that the country’s gross domestic product (GDP) grew by 5.4 percent in the first quarter, reflecting moderate economic expansion during the period.
The figure was slightly higher than the 5.3 percent growth posted in the fourth quarter of 2024, but slower compared to the 5.9 percent expansion recorded in the first quarter of the same year.
Recto said a full-year growth rate below six percent is “realistically” possible, citing lingering uncertainties in global trade policies as a key downside risk.
“Realistically, probably 5.7 percent or 5.8 percent for the year. But there’s still a possibility. It depends because there’s a lot of uncertainty with trade policy. Wala pang final dyan,” he said.
Amid heightened global uncertainties, the Development Budget Coordination Committee lowered its 2025 growth target to a range of 5.5 to 6.5 percent, down from the earlier projection of six to eight percent.
The United States recently imposed a 20-percent tariff on goods from the Philippines, which remains lower compared to tariffs faced by Southeast Asian peers.
Trade discussions and economic cooperation are expected to be part of President Marcos’ upcoming visit to Washington from July 20 to 22.
The PSA is scheduled to release the official second-quarter GDP data on Aug. 7.
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