ECONOMY

MANILA – The Philippine economy expanded at a steady pace in the second quarter of 2025, with the Gross Domestic Product (GDP) growing by 5.5% year-on-year, according to data released by the Philippine Statistics Authority (PSA). The growth was primarily fueled by strong performances in the Services sector and increased government spending.

The Services sector, which includes industries like wholesale and retail trade, financial services, and public administration, was a key driver of the economic expansion, growing by 6.9%. This was supported by significant contributions from Wholesale and retail trade; repair of motor vehicles and motorcycles (5.1%), Public administration and defense; compulsory social security (12.8%), and Financial and insurance activities (5.6%).

On the supply side, all major economic sectors posted positive year-on-year growths. Agriculture, forestry, and fishing (AFF) grew by 7.0%, while the Industry sector saw a more modest increase of 2.1%.

The demand side of the economy also showed resilience. Household final consumption expenditure (HFCE) grew by 5.5%, indicating continued consumer confidence. Government final consumption expenditure (GFCE) saw a robust increase of 8.7%, highlighting the government’s role in stimulating economic activity. Other major expenditure items also contributed to the growth, with Exports of goods and services growing by 4.4% and Imports of goods and services increasing by 2.9%.

In a related development, the Gross National Income (GNI) saw a strong year-on-year growth of 8.2% in the second quarter. This was further bolstered by a significant 32.8% year-on-year growth in Net Primary Income (NPI) from the Rest of the World, reflecting strong remittances and other income from abroad.

The latest GDP figures provide a snapshot of the Philippine economy’s performance, showing a continued, if moderate, expansion supported by key sectors and sustained domestic and government demand.