Economy Grew at Faster Pace in Q2

The Philippine economy likely picked up speed in the second quarter, posting faster growth than the previous quarter, driven by consumer spending and exports, according to economists' estimates.

- By Louella Desiderio and Keisha Ta-asan

Jonathan Ravelas, senior adviser at professional services firm Reyes, Tacandong & Co., said in a Viber message that he expects the Philippine economy to have grown by 5.6 percent in the second quarter.

This forecast is faster than the previous quarter's 5.4 percent growth, but slower than the 6.5 percent expansion in the second quarter of 2024.

Ravelas said gross domestic product (GDP) growth in the second quarter was likely driven by "recovery of consumer spending aided by election spending."

Filipino voters went to the polls on May 12 to elect local officials, senators and members of the House of Representatives.

Emmanuel Lopez, professorial lecturer at the University of Santo Tomas Graduate School, said in an email that he is also forecasting a 5.6-percent growth for the second quarter.

For Lopez, the modest improvement is due to a slowdown in investment amid weak investor confidence in relation to political concerns.

He said the impending US tariff on Philippine exports is also a concern.

US President Donald Trump signed an executive order last week that lists the reciprocal tariffs for countries, including those set as part of trade agreements. The order also pushes back the date of implementation of the new tariff rates to Aug. 7 from Aug. 1.