FX.co ★ Philippines Q1 GDP Growth Below Forecasts

In the first quarter of 2025, the Philippines' GDP grew by 5.4% compared to the same period the previous year. This marks a modest increase from the adjusted 5.3% growth seen in the last quarter, although it fell short of the anticipated 5.6%. The expansion was driven by all expenditure sectors, with government spending notably surging by 18.7% following a 9% rise in the prior quarter. Household consumption also gained momentum, increasing by 5.3% from 4.7%, and fixed capital formation grew to 5.9% compared to 5%. However, net trade negatively impacted growth as imports, rising by 9.9%, outpaced the 6.2% increase in exports. Looking at production, the sectors of agriculture, forestry, and fishing showed recovery, growing by 2.2% after a previous quarter contraction of 1.6%. Industry growth was consistent at 4.5%, but the services sector saw a slight deceleration, growing by 6.3% down from 6.7% in the previous quarter.