After much anticipation, the full gross domestic product (GDP) growth of the Philippines registered final pace of 4.4% for the whole year of 2025, according to a Manila Standard business news report.
For insight, the 4.4% 2025 GDP growth is even lower than what others anticipated (click here and here). It should be recalled that GDP growth in the 3rd and 4th quarters of last year showed clear signs of economic weakness. The said weakness is connected with the flood control corruption scandal that rocked the nation.
To put things in perspective, posted below is an excerpt from the news report of Manila Standard. Some parts in boldface…
The Philippine economy expanded 4.4 percent in 2025 as a sharp slowdown in the final three months of the year dragged down the annual performance, government data showed on Thursday.
The gross domestic product grew 3.0 percent in the fourth quarter, marking the weakest quarterly expansion in five years. The Philippine Statistics Authority (PSA) said the industrial sector contracted by 0.9 percent during the period, while gross capital formation, a measure of investment, tumbled 10.9 percent.
Wholesale and retail trade, financial activities and public administration remained the primary drivers of growth during the October to December period.
Public administration and defense led the gains with a 7.9 percent increase, followed by financial and insurance activities at 5.6 percent and trade at 4.6 percent.
For the full year, the services sector led the economy with a 5.9-percent expansion, while agriculture, forestry and fishing grew 3.1 percent. The industrial sector recorded a modest 1.5 percent increase for all of 2025.
Consumer spending, which traditionally anchors the Philippine economy, rose 3.8 percent in the fourth quarter and 4.6 percent for the full year. Government spending saw a significant annual jump of 9.1 percent despite the year-end cooling.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will be able to bounce back strongly this year and achieve 5% growth later? Do you think the reforms being implemented by the national government will create positive economic results soon? Are you convinced that the flood control corruption scandal turned off a lot of foreign investors?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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