MANILA, May 9 (Bernama-PNA) -- The administration of Philippine President Ferdinand Marcos Jr is working to sustain the country’s economic momentum following a stronger-than-expected 5.4 per cent growth in the first quarter of 2025, the Philippines News Agency (PNA) reported.
Malacanang, the official residence and workplace of the President, said the improvement reflects the impact of ongoing reforms and strong domestic demand.
"The administration is pleased to see that the efforts of our officials are beginning to bear fruit,” said Presidential Communications Undersecretary Claire Castro during a briefing at the Palace.
According to the Philippine Statistics Authority (PSA), gross domestic product (GDP) rose 5.4 per cent between January and March, edging out the 5.3 per cent recorded in the final quarter of 2024.
The performance placed the Philippines ahead of several other major regional economies, said Department of Economy Planning and Development (DEPDev) Secretary Arsenio Balisacan.
All major sectors recorded year-on-year growth in the first quarter. Agriculture, forestry and fishing grew by 2.2 per cent, industry by 4.5 per cent, and services by 6.3 per cent.
On the demand side, easing inflation supported stronger household spending, with final consumption accelerating to 5.3 per cent from 4.7 per cent in the same period last year.
Government expenditure surged 18.7 per cent, reflecting early implementation of public programmes ahead of the election-related spending ban.
Gross capital formation also improved, rising 4 per cent compared to 0.8 per cent a year earlier. Exports increased 6.2 per cent, while imports rose 9.9 per cent.
Budget Secretary Amenah Pangandaman said while the 5.4 per cent growth was at the lower end of the government’s 6 to 8 per cent target for 2025, it showed encouraging breadth across sectors.
"This shows progress towards our objective of not only achieving growth, but also driving an inclusive and sustainable economic transformation,” she said.
Pangandaman added that the national budget played a key role in supporting economic activity, even as global headwinds continue to weigh on outlooks.
She cited external pressures such as global economic uncertainty, shifting US trade policies, China's slowdown, geopolitical tensions, and volatile commodity prices.
Despite these risks, she said the government remains confident in achieving its full-year growth target, supported by strong private consumption and sustained public investment.
"With an 8.2 per cent year-on-year increase in capital outlays -- driven by infrastructure rollout -- we’re confident the high-growth trajectory will hold,” she added.v- Bernama-PNA
