The Philippine economy expanded by 5.4% in the first quarter of 2025, showing a modest uptick from the revised 5.3% growth posted in the last quarter of 2024, according to the Philippine Statistics Authority (PSA).
The growth was supported by steady gains across all major sectors, with Services and Industry leading the way. At constant prices, the country’s gross domestic product (GDP) reached ?5.477 trillion, up from ?5.196 trillion in the same period last year.
While the latest figure marks the fastest pace of growth since the third quarter of 2024, it is slightly below the 5.9% expansion seen in the first quarter of last year. National Statistician Claire Dennis Mapa shared the data during a press briefing held in Quezon City.
Services Sector Remains Growth Driver
The Services sector posted the strongest performance in Q1, expanding by 6.3% year-on-year. This was driven by continued recovery in transportation, retail trade, and business services. The Industry sector also recorded a healthy 4.5% growth, thanks to improvements in manufacturing and construction.
Agriculture, Forestry, and Fishing grew by 2.2%, contributing modestly to overall growth but signaling resilience in rural areas despite seasonal challenges.
Faster Growth Needed for 2025 Targets
Despite the positive start, economic planners say more work is needed to meet this year’s growth targets. The government is aiming for 6% to 7% GDP growth in 2025. To reach even the lower end of that range, the economy must grow by at least 6.2% in the remaining quarters.
Undersecretary Rosemarie Edillon of the Department of Economy, Planning and Development noted that while the Q1 results are encouraging, global uncertainties and domestic risks like inflation still pose challenges to hitting full-year goals.
Still, officials remain cautiously optimistic, citing strong domestic demand and broad-based sectoral growth as reasons for confidence moving forward.
