The Philippine economy recorded slower growth in Q4 2025, expanding by only 3.0%, down from 3.9% in the previous quarter and 5.3% a year earlier. This brings full year growth to an average of 4.4% in 2025, down from 5.7% in 2024, falling short of the government’s 5.5% to 6.5% target range. This slowdown follows a sharp pullback in infrastructure-related projects, which may weigh on fiscal spending, alongside rising tariffs and weaker global demand that continue to dampen exports and investments. Despite these headwinds, long-term gains are anticipated from reforms to the national budget framework, supported by stronger household consumption driven by low inflation and further expected rate cuts by the Bangko Sentral ng Pilipinas.
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