BUSINESS
Advocates Philippines
Philippine Economy Grows 5.5% In Second Quarter Of 2025
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The Philippine economy expanded by 5.5 percent in the second quarter of 2025, signaling continued growth across key sectors despite persistent global and domestic challenges. The latest figures, released on August 7 by the Philippine Statistics Authority, reflect a steady year-on-year performance and highlight broad-based economic resilience.
Among the top contributors to this quarter’s expansion were wholesale and retail trade—including the repair of motor vehicles and motorcycles—which grew by 5.1 percent. Public administration and defense, along with compulsory social security, also posted notable growth at 12.8 percent. Meanwhile, the financial and insurance sector maintained momentum with a 5.6 percent increase.
Growth was recorded across all major industries. The agriculture, forestry, and fishing sector led the way with a 7.0 percent rise, while services expanded by 6.9 percent. Industry, though trailing behind, still posted positive growth at 2.1 percent, reflecting cautious but stable recovery.
On the demand side, household final consumption expenditure remained a strong pillar of the economy, increasing by 5.5 percent. Government spending saw a sharper rise of 8.7 percent, reflecting continued public sector investments. Gross capital formation posted modest growth at 0.6 percent, while exports and imports of goods and services rose by 4.4 percent and 2.9 percent, respectively.
Gross National Income (GNI) recorded a year-on-year increase of 8.2 percent. A significant factor behind this was the 32.8 percent jump in Net Primary Income from the Rest of the World, suggesting stronger remittance flows and improved earnings from overseas investments.
The 5.5 percent GDP growth in the second quarter places the Philippines in a steady trajectory for the rest of the year, underpinned by consumer spending, government expenditure, and improving external demand. While global uncertainties remain, the breadth of growth across sectors offers cautious optimism moving forward.
Among the top contributors to this quarter’s expansion were wholesale and retail trade—including the repair of motor vehicles and motorcycles—which grew by 5.1 percent. Public administration and defense, along with compulsory social security, also posted notable growth at 12.8 percent. Meanwhile, the financial and insurance sector maintained momentum with a 5.6 percent increase.
Growth was recorded across all major industries. The agriculture, forestry, and fishing sector led the way with a 7.0 percent rise, while services expanded by 6.9 percent. Industry, though trailing behind, still posted positive growth at 2.1 percent, reflecting cautious but stable recovery.
On the demand side, household final consumption expenditure remained a strong pillar of the economy, increasing by 5.5 percent. Government spending saw a sharper rise of 8.7 percent, reflecting continued public sector investments. Gross capital formation posted modest growth at 0.6 percent, while exports and imports of goods and services rose by 4.4 percent and 2.9 percent, respectively.
Gross National Income (GNI) recorded a year-on-year increase of 8.2 percent. A significant factor behind this was the 32.8 percent jump in Net Primary Income from the Rest of the World, suggesting stronger remittance flows and improved earnings from overseas investments.
The 5.5 percent GDP growth in the second quarter places the Philippines in a steady trajectory for the rest of the year, underpinned by consumer spending, government expenditure, and improving external demand. While global uncertainties remain, the breadth of growth across sectors offers cautious optimism moving forward.
Aug 7, 2025
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