Philippine economy expands 5.5% in Q2 on strong agriculture

The Philippine economy grew by 5.5 percent in the second quarter of 2025, buoyed by a strong rebound in the agriculture sector and robust consumer spending.

Economic Planning Secretary Arsenio M. Balisacan announced the figures on Thursday, noting the performance was a slight acceleration from the 5.4 percent growth in the first quarter.

This growth places the Philippines among the fastest-growing economies in Asia, trailing Vietnam (8.0%) but outpacing major economies like China (5.2%) and Indonesia (5.1%).

GROWTH DRIVERS

The agriculture sector surged by 7.0 percent, a sharp reversal from the 2.3-percent contraction in the same period last year.

This was driven by significant improvements in palay and corn harvests, which grew by 14.2 percent and 29.8 percent, respectively.

The services sector, the economy’s main driver, expanded by 6.9 percent, led by real estate and professional services.

In contrast, the industry sector’s growth slowed to 2.1 percent, dragged by declines in refined petroleum products and electronics output.

DEMAND AND SPENDING

On the demand side, household consumption accelerated to 5.5 percent as inflation stabilized and purchasing power improved.

Fixed capital investments also increased by 2.6 percent, fueled by an 11.2 percent surge in private construction.

Government spending rose by 8.7 percent, although public construction slowed due to frontloaded projects before an election ban.

The country’s external trade posted a positive performance, with exports growing by 4.4 percent, faster than the 2.9 percent growth in imports.

ECONOMIC OUTLOOK

Balisacan emphasized that this economic momentum must be felt by ordinary Filipinos.

“But as the President emphasized in his recent State of the Nation Address (SONA), economic growth must translate into genuine improvements in the lives of ordinary Filipinos.”

The economic team will focus on human capital development, improving investment ecosystems, and strengthening governance to ensure inclusive growth.

Balisacan concluded with a message of confidence in the country’s trajectory.

“Our continued economic expansion reflects not only the success of our policies, but also the resilience, creativity, and determination of the Filipino people.”