The Philippine economy expanded four percent in the third quarter of 2025, easing from earlier months and pulling the year-to-date average growth to five percent, below the government’s 5.5 percent to 6.5 percent target, the country’s economic planning chief said in a statement furnished to SunStar Davao, Thursday, November 7, 2025.
Economic Planning Secretary Arsenio Balisacan said the latest figures signal steady economic activity but also highlight the need to accelerate reforms to support faster and more inclusive recovery.
“We understand the pressures Filipino families face,” Balisacan said. “That’s why we’re prioritizing social protection, affordable services, and job creation to ensure inclusive recovery.”
He noted that weaker household spending, tighter public works validation, and delays in payments for government projects weighed on growth. Household consumption eased to 4.1 percent as families postponed purchases amid weather disruptions and concerns over infrastructure spending. Lower disbursement of conditional cash transfers also contributed to slower spending.
Public construction contracted sharply due to stricter requirements under the Department of Public Works and Highways. Private construction held up, though investment in durable equipment weakened.
Balisacan said Typhoon Tino and the recent major earthquakes disrupted work, school, and travel, particularly in Cebu and Davao, dampening tourism and local commerce.
To help communities recover, the government is tapping emergency funds, keeping prices of basic goods in check, and fast-tracking relief and reconstruction in disaster-hit areas. Rehabilitation of damaged bridges, dikes, and roads is being prioritized.
“While we may not be able to fully recover the losses this year, we believe these are temporary setbacks,” Balisacan said, expressing confidence that the economy will rebound in 2026.
The government is also moving to boost trade and tourism. Electronics exports are expected to benefit from stable global demand and exemption from higher U.S. tariffs. Talks for new free-trade deals with the United Arab Emirates, Chile, the European Union, and Canada are ongoing, Balisacan said.
Officials are expanding e-visa access and promoting Muslim-friendly tourism, as well as sports and food tourism. The shift to higher-value business process outsourcing and digital services is expected to be supported by the full implementation of the Konektadong Pinoy Act, which aims to make internet services more competitive and affordable, especially outside Metro Manila.
Balisacan said the government will press agencies to use budget allocations more efficiently. Digital platforms such as the Modernized PhilGEPS Open Data Portal and the DIME monitoring system will be used to strengthen procurement and oversight. He urged the public to report delays and irregularities through feedback channels like Sumbong sa Pangulo.
To further strengthen governance and financial management, the administration is pushing for passage of key reforms, including amendments to bank secrecy and anti-money laundering rules; a national infrastructure masterplan; and a measure barring relatives of public officials from taking part in government contracts.
Balisacan said that fighting corruption is a shared responsibility among the government, the private sector, and civil society. “It takes two to tango,” he said.
Despite the short-term challenges, he said the country’s macroeconomic fundamentals remain solid, citing low inflation, manageable debt, a stable currency and banking system, and a young workforce.
“We are committed to rebuilding investor confidence and restoring public trust,” Balisacan said. “Let us remain united in working toward a matatag, maginhawa, at panatag na buhay for every Filipino.” MLSAbalayan