THE Philippine economy posted a 5.5 percent year-on-year growth in the second quarter of 2025, reflecting the country’s continued economic recovery amid global challenges, fuel uncertainty, tighter monetary conditions, and weather-related disruptions.
According to data released Thursday, August 7,2025, by the Philippine Statistics Authority (PSA), the main contributors in country’s growth rate for the second quarter of 2025, which is slightly higher than the 5.4 percent recorded in the first quarter, were wholesale and retail trade; repair of motor vehicles and motorcycles (5.1 percent); public administration and defense; compulsory social security (12.8 percent); and financial and insurance activities (5.6 percent).
All major economic sectors, such as agriculture, forestry, and fishing; industry; and services, posted year-on-year growth in the second quarter of 2025, with 7.0 percent, 2.1 percent, and 6.9 percent, respectively.
In a press conference, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said that with the 5.5 percent growth rate in the second quarter of the year, the Philippines maintained its place among the fastest-growing economies in emerging Asia.
He noted that the Philippines trails Vietnam’s 8.0 percent growth but is ahead of China’s 5.2 percent and Indonesia’s 5.1 percent.
Balisacan added that the country is expected to outpace Malaysia’s 4.3 percent and Thailand’s 2.4 percent projected expansion.
The PSA said that on the demand side, household final consumption expenditure also grew year-on-year by 5.5 percent, with all other major expenditure items posting year-on-year growth:
*Government final consumption expenditure, 8.7 percent;
*Gross capital formation, 0.6 percent;
*Exports of goods and services, 4.4 percent; and
*Imports of goods and services, 2.9 percent
The Gross National Income grew year-on-year by 8.2 percent in the second quarter of 2025, while net primary income from the rest of the world posted a 32.8 percent year-on-year growth during the same period.
“Our strategic, sustained, and coordinated efforts to manage inflation and safeguard purchasing power are clearly making an impact. Prices have stabilized, and employment conditions have improved, allowing Filipino families to spend more confidently. Notably, rice prices, a major concern for households, have been declining steadily in recent months,” said Balisacan.
“The Philippine economy remains strong, steady, and resilient—a testament to the soundness of our economic foundations,” he added.
Balisacan vowed that the government will intensify the rollout of programs and projects that deliver quality public services, especially in education, health, food security, and digital and physical connectivity, closer to the people, in line with President Ferdinand “Bongbong” Marcos Jr.’s pronouncement that economic growth must translate into genuine improvements in the lives of ordinary Filipinos. (TPM/SunStar Philippines)