The official economic numbers have been unveiled at last by the Philippine Statistics Authority (PSA) and the results are disappointing as the gross domestic product (GDP) growth of the Philippines for the 3rd quarter of 2025 landed at a disappointing 4%, according to a Malaya Business Insight new report. The results could mean that the Philippine economy could fall short of the 5.5% to 6.5% GDP growth range by the end of this year.
To put things in perspective, posted below is an excerpt from the news report of Malaya Business Insight. Some parts in boldface…
The Philippine economy expanded by 4 percent in the third quarter of 2025, a sharp slowdown from the second quarter and the year earlier as public construction spending eased amid stricter validation measures for government projects.
The third-quarter growth rate in gross domestic product (GDP) marks a deceleration from a 5.49 percent rise in the second quarter.
Data released on Friday by the Philippine Statistics Authority (PSA) also showed growth in the third quarter this year lost some momentum from 5.2 percent in the third quarter of 2024.
For the first nine months to September 2025, GDP grew by an average of 5 percent, easing from a rise of 5.8 percent in the year-earlier period.
Department of Economic Planning and Development (DEPDev) Secretary Arsenio Balisacan said services and industry, on the supply side, posted weaker growth. He pointed out that Department of Public Works and Highways (DPWH) civil works went through stricter validation measures.
Q3 growth drivers – National Statistician and PSA Undersecretary Claire Dennis Mapa said the main contributors to growth during the July-to-September period were wholesale and retail trade, including the repair of motor vehicles and motorcycles (up 5.0 percent); financial and insurance activities (5.5 percent); and professional and business services (6.2 percent).
“All major economic sectors — agriculture, forestry, and fishing; industry; and services — posted year-on-year growths in the third quarter,” Mapa said, citing respective increases of 2.8 percent, 0.7 percent, and 5.5 percent.
On the demand side, household final consumption expenditure grew by 4.1 percent year-on-year, while government spending rose 5.8 percent. Exports of goods and services climbed 7.0 percent, and imports expanded 2.6 percent. In contrast, gross capital formation — the measure of investment in fixed assets — fell 2.8 percent, reflecting caution among businesses and slower project rollouts.
Weaker services and industry – In a separate statement, DEPDev Secretary Balisacan, referring to the easing of the supply side, particularly in the services and industry performance in the nine-month period, cited “a sharp contraction in public construction due to stricter validation measures for DPWH civil works, as well as the implementation of new requirements that delayed billings and disbursements for government projects.”
Despite the slowdown, Balisacan pointed out that private construction “remained respectable,” though investment in durable equipment “was subdued.”
Indeed, the latest GDP growth statistics are disappointing. The national government plans to spend more than P1.3 trillion to boost the economy in the 4th quarter and we will only find out the results of that in early January 2026.
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 does not have enough momentum to achieve the national government’s GDP growth range for 2025? Do you think the ongoing flood control corruption scandal developments have turned away lots 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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