The Philippine economy grew by 4 percent in the third quarter of 2025, the slowest pace recorded in four years, according to data released by the Philippine Statistics Authority (PSA) on Friday.
The growth rate was lower than the 5.5 percent posted in the previous quarter and the 5.2 percent recorded during the same period last year. It also fell short of the government’s full-year target range of 5.5 to 6.5 percent.
The PSA said the slowdown was mainly due to reduced government spending as several infrastructure projects were delayed following an investigation into alleged irregularities in flood-control programs. The agency added that a series of typhoons that hit the country between July and September also disrupted agricultural production and business operations.
By industry, the services sector posted the highest expansion at 5.5 percent, led by wholesale and retail trade, financial and insurance activities, and professional services. The agriculture, forestry, and fishing sector grew by 2.8 percent, while the industry sector inched up by 0.7 percent.
Household consumption increased by 4.1 percent, slower than in previous quarters, as storm damage and weather disruptions affected spending patterns.
The PSA reported that the 4 percent third-quarter growth brought the country’s year-to-date average to 5 percent.
Bangko Sentral ng Pilipinas noted that the lower growth rate, together with the October inflation rate of 1.7 percent, may influence monetary policy discussions in its next meeting on November 20.
