Arthur Fuentes

The Pasig skyline as seen from the Metro Manila Development Authority (MMDA) Command Center  in Pasig City on July 7, 2025.  Jonathan Cellona, ABS-CBN News

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Skyline

Benise Balaoing

ABS-CBN News

<div> </div>MANILA (UPDATE 2) — The Philippine economy posted faster growth in the second quarter, the Philippine Statistics Authority said on Thursday. Gross domestic product expanded 5.5 percent in the April to June period, which was faster than the 5.4 percent growth in the first quarter. The PSA said all major economic sectors, namely agriculture, forestry, and fishing, industry, and services posted year-on-year growths. Household and government consumption also grew by 5.5 percent and 8.7 percent, respectively. The Department of Economy Planning and Development (DEPDev) said the second quarter growth kept the Philippines&#x27; place among the fastest-growing economies in emerging Asia. DEPDev Secretary Arsenio Balisacan said the Philippines is only behind Vietnam&#x27;s 8 percent growth, but ahead of China&#x27;s 5.2 percent and Indonesia&#x27;s 5.1 percent. &quot;While our growth is lower than India&#x27;s projected 6.5 percent expansion, we are expected to outpace Malaysia&#x27;s 4.3 percent and Thailand&#x27;s 2.4 percent.   Balisacan noted that agriculture grew 7 percent, which was a significant improvement from 2.2 percent in the first quarter, as palay harvests grew 14.2 percent from 1.1 percent previously. He also noted that the services sector, which is the economy&#x27;s largest and strongest driver, expanded by 6.9 percent, with notable gains in real estate, and professional and business services.Industry growth, however, slowed to 2.1 percent, from 4.6 percent in the first quarter. Construction also contracted 8.2 percent as infrastructure projects were front-loaded ahead of the election construction ban.   Balisacan said government efforts to control inflation were bearing fruit, and the interest rate cuts by the Bangko Sentral ng Pilipinas were starting to be felt. These factors would make it easier for the country to hit the lower end of the government&#x27;s 5.5 to 6.5 percent target growth range.He also said he expects investments to have rebounded in the second quarter, as the election ban is over. “The domestic investment climate is improving, as seen in the continuing decline in interest rates, and those declines in interest rates in the past…quarters should now be increasingly felt,” he said. The country&#x27;s chief economist also noted that the government has been exerting efforts to improve the ease of doing business in the Philippines.“In addition to the continuing push for investment, and we continue to invest five to 6 percent of our GDP for infrastructure, and the digital connectivity is highly recognized as a major driver for the economy, especially for the e-commerce and digital services.” “So digitalization is a big push in this government, in this administration, so we expect to get the benefits of the recent past three years of pushing us in that area In the coming three years,” he said.The Development and Budget Coordination Committee earlier revised its economic growth range to 5.5 to 6.5 percent. In December last year, the target for 2025 was set at 6 to 8 percent. The DBCC said the revised, lower target is in line with the forecasts of private sector analysts and international financial institutions. To achieve 6.5 percent growth, which is the higher end of the target range, the country would need to grow 7.5 percent in the second half, according to PSA Undersecretary and National Statistician Claire Dennis Mapa Balisacan said 7.5 percent was &quot;high but not impossible.&quot;

The Philippine economy posted faster growth in the second quarter, the Philippine Statistics Authority said on Thursday.

The Philippine economy posted faster growth in the second quarter, the Philippine Statistics Authority said on Thursday.

Philippine GDP growth quickens to 5.5 percent in second quarter

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Philippine GDP growth quickens to 5.5 percent in second quarter

Arthur Fuentes,

Benise Balaoing,

ABS-CBN News

Published Aug 07, 2025 10:09 AM PHT

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Updated Aug 08, 2025 05:48 PM PHT

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