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Fiscal deficit seen widening to 6% of GDP
The Freeman
|August 14, 2025
The country's fiscal deficit is expected to widen to six percent of gross domestic product (GDP), signaling a slowdown in fiscal consolidation efforts amid rising global economic headwinds, a study showed.
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A study by BMI Country Risk & Industry Research found that 2025 brought a more challenging external environment, potentially hindering efforts and straining the Philippines' already limited economic policy space.
"Washington is preparing to impose 19 percent tariffs on all imports from the Philippines. If fully implemented, this would further dampen external demand and add to existing structural weaknesses," according to the BMI report.
The Cabinet-level Development Budget Coordination Committee expects the debt-to-GDP ratio to ease to 5.5 percent this year from the 2024 level of 5.7 percent.
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