Goldman Sachs sees 5.6% expansion in Q2

The Philippine economy is enjoying low inflation and accelerated growth amid a manufacturing rebound plus improved consumer spending in the second quarter of 2025, according to global investment banking giant Goldman Sachs.

- By BEN ARNOLD DE VERA

In an Aug. 1 report obtained by Manila Bulletin, Goldman Sachs Economics Research forecasts the Philippines’ second-quarter gross domestic product (GDP) to have grown by 5.6 percent, faster than the 5.4 percent posted in the first quarter. If Goldman Sachs’ forecast is realized, first-half GDP growth would average 5.5 percent, hitting the lower end of the government’s downgraded full-year target.

The government will report on second-quarter GDP performance on Thursday, Aug. 7.

“High frequency data suggest a rebound in manufacturing production in April and May relative to the first quarter alongside improvement in manufacturing PMI [purchasing managers’ index]. Goods exports volume growth contracted less than goods imports growth, which results ina net boost to the economy,” Goldman Sachs said.