Lackluster GDP to impede property’s recovery

The third quarter gross domestic product (GDP) growth of the Philippines was a disappointing 4% — due mainly to tempered household consumption as well as constricted government infrastructure spending.

- By Joey Roi Bondoc

IN Q3 2025, the Philippine economy expanded by 4%, the slowest since the 3.8% contraction in Q3 2011.

(UNSPLASH/ALEXES GERARD)

The third quarter (Q3) 2025 GDP growth was the weakest quarterly economic expansion recorded since the third quarter of 2011, a period that also saw slower spending due to corruption allegations involving public projects. While Q3 is historically a slow quarter, the sharp slowdown was worse than what economists projected. Average GDP growth for 9M 2025 is now at 5%, even lower than the 5.5% to 6.5% estimate of the country’s economic managers. Hence, it is no longer surprising to see credit rating agencies and multilateral aid agencies also downgrading their growth forecast for the Philippines for 2025.