Assessment of the Philippine Economic Situation

Subdued economic momentum driven by weak investor and business confidence in 2025 is highly likely to persist through 2026, and potentially until the 2028 presidential elections. Philippine economic growth is at 5 percent for the first three quarters of 2025, making the 5.5 to 6.5 percent administration growth target of the year difficult to attain, unless the Philippine economy grows by 7.1 percent in the last quarter of the year. The first two quarters of 2025 saw moderate growth for the Philippines at 5.4 percent and 5.5 percent respectively. But this slowed down in the third quarter, with gross domestic product (GDP) growth sliding to a four-year low of 4 percent. This slowdown was attributed to the public infrastructure corruption issue, which dampened government spending, household consumption, and investor confidence.

Read the full assessment here.