Steady GDP growth seen despite moderation in H2

The Bangko Sentral ng Pilipinas (BSP) expects the Philippine economy to remain on a firm footing this year despite potential moderation in the second half, with inflation projected to stay below target and monetary policy remaining supportive of growth.

- - Keisha Ta-asan

BSP Deputy Governor Zeno Abenoja said the country’s gross domestic product (GDP) expanded by 5.5 percent in the first half of 2025 and may continue to grow at a similar pace in the coming quarters despite some headwinds.

“I think given the weather disturbance and the disruptions in the quarter, there could be some moderation in the near term, but it will still be a good number,” Abenoja told reporters in a chance interview.

The economy grew by 5.4 percent in the second quarter, bringing first-half growth to 5.5 percent. Abenoja said it remains uncertain whether the third-quarter expansion would slow from the previous quarter, but “it’s possible.”

He noted that the BSP still expects GDP growth to reach at least 5.5 percent this year and six percent in 2026, supported by resilient domestic demand, steady labor market conditions and improving private investment activity.

Abenoja said recent indicators suggest some cooling in manufacturing and services, citing a slowdown in the purchasing managers index (PMI) and fewer companies planning to expand operations.