Philippine Economy Grows 4.4% in 2025, Slowest Since COVID

MANILA, Philippines - The Philippine economy expanded by 4.4 percent in 2025, its slowest full-year growth since the COVID-19 recession, as fourth-quarter gross domestic product rose just 3.0 percent year-on-year, official data showed Thursday. The figures fell short of the government's revised target of 5.5 to 6.5 percent and marked the second straight quarter of missed growth goals, hampered by a major corruption scandal and weather-related disruptions.

The fourth-quarter performance, the weakest since the first quarter of 2021, came in below a median forecast of 4.0 percent from economists surveyed by Reuters. It followed a downwardly revised 3.9 percent expansion in the third quarter, reflecting broader slowdowns across key sectors. Household consumption, a major driver of growth, eased to 3.8 percent from 4.1 percent in the prior quarter, while government spending grew 3.7 percent, down from 5.8 percent. Investments contracted sharply, with gross capital formation dropping 10.9 percent compared to a 2.8 percent decline previously.

Economic Planning Secretary Arsenio Balisacan attributed the subdued pace to a combination of factors, including climate-induced challenges and a...