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Subpar growth amid robust spending
Manila Bulletin
|March 27, 2025
While the Philippines is poised to be among the region's growth leaders, Moody's Analytics expects this year's economic expansion would not reach even the lower end of the government's target.
"I think the Philippines kind of stands out as one of the fastest-growing economies in Southeast Asia," Moody's Analytics economist Sarah Tan said during the Moody's Corp. subsidiary's Asia-Pacific economic outlook virtual report on Wednesday, March 26.
Despite this, Moody's Analytics lowered its forecast for the country's gross domestic product (GDP) growth performance this year, which Tan sees at 5.9 percent. She expects this growth to move even slower in 2026, at 5.8 percent.
"While the expected growth is shy of the government's target [of six to eight percent], it will mark the strongest expansion in three years," Tan noted. Last year, the country's GDP expanded by 5.6 percent, unchanged from the 2023 figure.
Previously, Moody's had forecast the local economy to grow by six percent, falling within the lowest end of the target.
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