DEPDev: Philippines misses 2025 growth target

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December 2, 2025 | 12:00am

MANILA, Philippines — The Philippines is expected to miss its growth target for the year, following the sharp slowdown in third quarter economic growth and challenges including governance issues that continue to affect investor sentiment, according to the Department of Economy, Planning and Development (DEPDev).

In a press conference yesterday, DEPDev Secretary Arsenio Balisacan said achieving the government’s 5.5 to 6.5 percent growth goal for the year is “very unlikely.”

“We need to grow roughly seven percent in the fourth quarter to achieve a 5.5-percent growth for the year. Given the situations and the data that are coming out, that’s quite unlikely,” he said.

Economic growth in the third quarter stood at four percent, a four-year low. This brought average economic growth from January to September to five percent.

“If we can sustain that five percent (growth) for the year, that still, to me, is quite respectable growth,” Balisacan said, noting that it would place the Philippines in the middle of the pack in Southeast Asia.

He said that if the economy posts five percent growth and indicators such as the exchange rate and inflation in the Philippines and other countries do not change much, the country may achieve upper-middle income status this year.

Data released by the World Bank last July showed that the Philippines’ gross national income per capita stood at $4,470 in 2024, only $26 short of the benchmark GNI per capita for upper middle-income countries.

In the last two years, the Philippines fell short of its economic growth targets.

In particular, the economy grew by 5.7 percent last year, below the six to 6.5 percent growth target.

In 2023, the economy posted 5.5 percent growth, also lower than the six to seven percent growth goal for that year.

“The year 2025 brought both challenges and opportunities. We faced global uncertainties, disasters and extreme weather events and more recently, governance issues affecting our institutions,” Balisacan said.

Corruption issues in the government’s flood control projects have led to Filipinos’ calls for accountability and good governance.

Amid governance issues, Balisacan said it is necessary for the country to pursue transparency and accountability while protecting gains.

Recognizing the importance of sound governance in strengthening investor confidence, he said the government has adopted 44 priority legislative measures covering structural reforms, progressive budgeting, access to information and digital cybersecurity under the 20th Congress.

Proposed bills that aim to put in place reforms to promote good governance are the Right to Information Act, the Department of Water Resources Bill, amendments to the Bank Deposits Secrecy Law, Progressive Budgeting for Better and Modernized Governance Act, amendments to the Local Government Code, General Tax Amnesty, Master Plan for Infrastructure and National Development, Requiring Civil Servants to Waive Bank Secrecy Law and amendments to the Anti-Money Laundering Act.

DEPDev Undersecretary Glenda Rumohr said they also support the call of Rep. Leila de Lima to strengthen the Independent Commission for Infrastructure, through a bill that aims to grant the ICI the authority to conduct investigations, issue contempt and hold-departure orders, file cases and recommend the prosecution of officials involved in infrastructure corruption, among others.

“We look forward to the enactment of these priority measures and we trust that with these reforms, governance will be improved and it will enhance the efficiency and transparency of public service delivery,” Rumohr said.

While the country is unlikely to achieve the economic growth target for the year, Balisacan said the aim is to move back and be part of the fastest-growing economies in the region next year.

For the DEPDev, the country’s Association of Southeast Asian Nations’ chairmanship next year is expected to provide a boost to the economy.

“When a country hosts events like this, it gives us an opportunity to push to improve our infrastructure, the quality of our infrastructure. So we are lining up our programs to make sure we are able to provide our visitors a good experience and confidence that we can be a good destination not just for tourists, but also for investors,” Balisacan said.