PH GDP grows 5.1% in first quarter

PH economy grew faster by 5.4% in Q1 2025 — PSA

Story by TED CORDERO
GMA Integrated News 
08 May 2025

The Philippine economy expanded faster in the first three months of 2025 —described as a “measured start”— amid the growth seen in services, industry, and agriculture sectors, according to the Philippine Statistics Authority (PSA).

The country’s gross domestic product (GDP) —the value of goods and services produced in a period— grew faster by 5.4% in the first quarter of 2025, higher than the upwardly revised growth rate of 5.3% in the last quarter of 2024, PSA chief and National Statistician Claire Dennis Mapa reported at a press conference in Quezon City on Thursday.

This was also the fastest GDP growth rate seen since the third quarter of 2024, albeit slower than the 5.9% growth recorded in the first quarter of 2024.

At constant prices, the economy reached a value of P5.477 trillion during the period, up 5.4% from P5.196-trillion GDP seen in the same quarter last year.

Department of Economy, Planning and Development Undersecretary Rosemarie Edillon said the country’s GDP needs to increase by 6.2% in the remaining quarters of 2025 to hit at least the lower-end of the. government’s growth target of 6% to 7% for the year.

“Our concise description of the first quarter economic performance is a ‘measured start,’” Edillon said.

The Philippines, so far, ranked second among its Asian peers that have already released their first quarter figures.

The country fell behind Vietnam, which grew by 6.9% and tied up with China with the same growth rate of 5.4%.

Nonetheless, the Philippines outpaced Indonesia, Malaysia, and Thailand, which grew by 4.9%, 4.4%, and 2.8%, respectively, according to the DEPDev official.

“This performance underscores the relative resilience of our economy in the face of global volatility,” she said.

“The Philippine economy continues to show signs of a steady growth,” the DEPDev official said.

Major sectors

The economic performance was on the back of the year-on-year growths posted by all of the country’s major economic sectors.

In particular, the Agriculture, Forestry, and Fishing expanded by 2.2%; while Industry and Services sectors grew by 4.5% and 6.3%, respectively. 

“Sa naitalang pagtaas ng GDP na 5.4% sa unang quarter ng taong 2025, ang Services ay nagtala ng pinakamataas na kontribusyon na mayroong 3.9 percentage points. Ito ay sinundan ng Industry na nagtala ng kontribusyon na 1.3 percentage points; at Agriculture, Forestry, and Fishing na nakapag-ambag ng 0.2 percentage point,” Mapa said.

(With the 5.4% GDP growth rate seen in the first quarter of 2025, the Services sector accounted for the biggest contribution of 3.9 percentage points. This was followed by Industry with a share of 1.3 percentage points; and Agriculture, Forestry, and Fishing which contributed 0.2 percentage point.)

The main activities that contributed to the January to March 2025 GDP growth were Wholesale and Retail Trade; Repair of Motorcycles Vehicles and Motorcycles; Financial and Insurance Activities; and Manufacturing with annual growth rates of 6.4%, 7.2%, and 4.1%, respectively.

On the demand side, Household Financial Consumption Expenditure posted a growth of 5.3%.

“Easing food inflation supported household final consumption, which grew by 5.3%, year on year, faster than the 4.7% growth recorded in the fourth quarter 2024,” Edillon said.

Government Final Consumption Expenditure also grew by 18.7%, while Gross Capital Formation posted rose by 4%.

The DEPDev official said the growth in state spending has reflected “the front-loading of public programs in anticipation also of the election ban.”

Moreover, exports of goods and services recorded a surge of 6.2%, while imports of goods and services posted a 9.9% growth rate.

Strategic imperatives

Edillon highlighted the government’s “strategic imperatives” for sustained growth.

“We should note that amid the ongoing trade war, multilateral institutions such as the International Monetary Fund and the World Bank consistently project the country to remain one of the fastest-growing economies in the region this year. However, this is no reason for complacency,” she said.

“On the contrary, the first quarter's performance reinforces the urgency of strategic policymaking, accelerated structural reforms toward economic diversification, and efficient and effective delivery of programs and projects as we near the mid-term of the Marcos Administration,” she added.

The DEPDev official said that managing inflation remains a top priority to ensure that consumer prices remain affordable. 

“The April 2025 inflation rate of 1.4% indicates that our interventions are working,” Edillon said.

The Economic Department official said the government must accelerate its efforts to expand trade partnerships with key economies such as the European Union, United Arab Emirates, United States, and other potential markets amid the global realignment of trade and investments.

“Such engagements will allow us to diversify our export markets, secure broader market access, ensure our businesses (particularly our micro, small, and medium enterprises) to become part of global value chains, and ensure food availability and affordability,” Edillon said.

“On the supply side, we can and must support and capitalize on higher value-added activities in the services sector, a sector in which we have found comparative advantage, especially as digital technologies, including artificial intelligence, gain greater momentum for adoption and industries undergo workforce transition periods,” she added.

Continued strength

Finance Secretary Ralph Recto said that the first quarter performance highlights the continued strength and resilience of the Philippine economy, even amid rising global uncertainties.

“Our growth is strong, inflation continues to ease, private consumption is rising, and our job market remains vibrant. These are clear signals of accelerating domestic demand ahead, which is our strongest shield against external headwinds and trade wars,” he said.

The Finance chief expressed confidence that the government will hit its 6% growth goal for 2025, citing steady fiscal consolidation, easing inflation, and progress in trade negotiations with key partners, among other initiatives. 

“The national government’s revenue collections for the first quarter 2025 remain on track due to the strong performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), which drove tax collections to PHP 931.5 billion, a double-digit increase of 13.55% compared to the same period last year,” Recto said.

He added that as inflation continues to cool down, private spending is expected to further improve. 

The lower-than-expected inflation rate of 1.4% in April 2025 also provides more room for the BSP to further cut policy interest rates to help boost the spending power of Filipinos, drive in more investments, and grow the economy, according to Recto.

Recto added that private investments are expected to increase with the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

Likewise, Trade Secretary Cristina Roque said the administration’s focus remains on attracting high-quality investments in key sectors, ensuring consumer protection and empowering micro, small, and medium enterprises and local industries. 

Global uncertainties

Both the Finance and Trade chiefs  raised the ongoing global economic uncertainties, especially the reciprocal tariff policy of US President Donald Trump.

“We recognize the current global economic complexities, and we are responding with strategic focus and a commitment to open communication. The DTI will continue to monitor trends, engage stakeholders, and adapt policies to ensure sustained growth that leaves no one behind,” Roque said.

“On the other hand, significant progress has been achieved by the government in its trade negotiations with the United States. The Philippine government also continues to actively pursue new and expanded free trade agreements with economies like the United Arab Emirates, the European Union, Chile, and Canada to diversify export markets,” Recto said.

Trump, last month, announced a sweeping reciprocal tariff policy on its trading partners, including the Philippines which would be facing a 17% tariff on its imports to the US.

Although it is lowest among its Southeast Asian peers, still the Philippine government was prompted to send a delegation to Washington to seek dialogue with US officials while a 90-day pause in implementing the trade policy was ongoing.

On May 2, Roque, along with Economic Affairs adviser Frederick Go and Philippine Ambassador to the United States Jose Manuel Romualdez, met with US Trade Representative Jamieson Greer and tackled “mutually beneficial ways to strengthen the bilateral relations” amid the 17% tariff rate imposed by the US on Manila. 

A series of meetings would follow after Philippine trade and economic officials met with the Office of the United States Trade Representative (USTR) in Washington, D.C. earlier this month for a trade dialogue concerning the planned 17% tariff to be slapped on the country’s goods entering the US.— RSJ/VAL/BM GMA Integrated News

S & P optimistic on credit rating upgrade

S&P optimistic on Philippines credit rating upgrade

Louise Maureen Simeon 
The Philippine Star
May 7, 2025

Despite US tariffs

MANILA, Philippines — S&P Global Ratings is optimistic on the Philippines’ credit rating upgrade despite the impacts of the reciprocal tariffs imposed by the United States, as the country remains among the least affected in the region.

In a webinar yesterday, the New York-based rating agency maintained that it continued to have a positive outlook on the Philippines even after US President Donald Trump imposed reciprocal tariffs during its Liberation Day last month.

S&P Sovereign and International Public Finance Ratings for Asia director Rain Yin said that the Philippines is going to be less affected than other countries in the region considering that it has one of the lower initial reciprocal tariff of 17 percent.

The country also does not have very large bilateral trade supplies with the US, as a substantial portion of its exports is in services.

“With the current positive outlook, we are expecting that the constructive trends that we are seeing in the Philippines, namely its strong growth trajectory, narrowing current account deficits and fiscal consolidation, will enable us to raise the rating in the next one or two years,” Yin said.

Last November, S&P raised the Philippines’ credit rating outlook to positive from stable, increasing the possibility of an upgrade in the next 12 to 24 months.

“However, if downside risks are very significant and derail our expectations on those constructive trends, then the outlook can possibly go back to stable,” Yin said.

Nonetheless, S&P noted that economic growth would still be affected by Washington’s protectionist policies as it penciled in a 0.3-percentage point decline in gross domestic product.

“What will it take to remove the positive outlook? It really comes down to a judgment of the size of the negative tariff impact on growth, fiscal, debt and external positions,” Yin said.

According to S&P, the US tariffs could affect sovereign ratings of emerging Asian economies, including the Philippines, through economic growth outcome, fiscal stimulus that could worsen fiscal and debt metrics and trade slowdown that could weaken external positions and strain reserves.

On fiscal stimulus, the debt watcher said no large ones have been rolled out by economies as many governments are still negotiating with the US for tariff relief.

Following the large stimulus during the pandemic, it added that many governments are also in a fiscal consolidation phase and may not easily roll out new measures.

However, S&P warned that a few sovereigns such as Indonesia, Malaysia and the Philippines are having more elevated interest burdens.

“A combination of higher debt and potentially higher interest rates could increase this ratio further, which would increase the downside risk to the rating,” Yin said.

“But it’s also likely for monetary policies to ease further due to a combination of debt growth and disinflationary pressures. So, this could help to alleviate the interest burden, even if debt levels would increase,” she said.

Philippines rises in World Press Freedom Index

Philippines rises in World Press Freedom Index

Krsitina Maralit
Manila Times
05 May 2025

THE Presidential Task Force on Media Security (PTFOMS) welcomed the Philippines' highest ranking in the World Press Freedom Index in 21 years, crediting it to the present administration's boosted efforts to enhance the safety and security of media workers in the country.

The index, released by Reporters Without Borders (RSF), showed the Philippines at 116th place out of 180 countries and territories. This is a notable rise from the 134th spot in 2024, signaling significant enhancements in press freedom.

PTFOMS Executive Director Jose Torres Jr. said that the RSF report highlights substantial improvements in the safety and legal frameworks for Philippine media.

The nation's overall score climbed by 6.2 points to 49.57 in 2025, reflecting progress across various contextual indicators.

"This ranking is a welcome development on the eve of World Press Freedom Day and a boost to our efforts to address media-related threats and attacks," Torres said in a statement.

Earlier, the Committee to Protect Journalists noted that 2024 marked the first year in two decades without a journalist fatality in the Philippines, a historic achievement that underscores enhanced safety for media workers. Reports also indicate a decline in legal harassment cases, reflecting an improving legal environment for journalists.

"This progress is a testament to our collective efforts in protecting press freedom. It demonstrates that our proactive initiatives are yielding results," the official noted.

"With the cooperation of government agencies like the Department of Justice and the Philippine National Police, as well as our media partners, we will remain vigilant in defending press freedom and ensuring the safety of journalists," he added.

The PTFOMS chief likewise acknowledged the challenges being faced by the Philippine media.

"We recognize the difficulties we continue to face, including the recent killing of veteran journalist Juan Dayang. We are deeply saddened by this incident. No Filipino, whether journalist or not, should suffer the fate of Mr. Dayang," he said, vowing to leave no stone unturned in the investigation to "determine the motive behind the attack."

Torres also called on the public to join efforts in protecting press freedom.

"A free and independent press is the cornerstone of democracy, guaranteeing transparency and accountability in governance. Every voice is crucial in defending journalistic freedom," he said.