Gov’t working harder to sustain PH economic growth, says Palace

By Ruth Abbey Gita-Carlos, Philippine News Agency

According to the Philippine Statistics Authority (PSA) report released on Thursday, Philippine economic growth slightly picked up to 5.4 percent from January to March 2025, higher than the 5.3 percent logged in the fourth quarter of 2024. (Pexels Photo)

MANILA – The administration of President Ferdinand R. Marcos Jr. is doubling its efforts to sustain the strong growth momentum of the Philippine economy, Malacañang said on Friday.

Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro made the assurance as she welcomed the “good news” of the country’s improved economic growth in the first quarter of 2025.

“Natutuwa po ang ating Pangulo, lalung-lalo na po, of course, ang administrasyon dahil nakikita na po at nababanaag, nagma-manifest na po ang mga pagsisikap ng ating mga opisyales para po mapaangat po talaga ang ekonomiya ng bansa (President Ferdinand R. Marcos Jr. is happy, especially, of course, the administration because the efforts of our officials are now visible, manifesting themselves to really lift the country’s economy),” Castro said in a Palace press briefing.

“Lalong pagbutihin ang trabaho, lalong maging concerned sa mga pangangailangan ng taumbayan (Work will be improved, and we will be more concerned about the needs of the people),” she added.

According to the Philippine Statistics Authority (PSA) report released on Thursday, Philippine economic growth slightly picked up to 5.4 percent from January to March 2025, higher than the 5.3 percent logged in the fourth quarter of 2024.

The gross domestic product (GDP) expansion enabled the Philippines to surpass other major economies in the region, Department of Economy Planning, and Development (DEPDev) Secretary Arsenio Balisacan said.

Budget Secretary Amenah Pangandaman stressed that while the 5.4-percent GDP growth rate for the first quarter of 2025 is at the low end of the 6 to 8 percent target for the year, the growth in all major economic sectors during the first quarter is “both notable and promising.”

“This shows progress towards our overriding objective of ensuring that we achieve not only growth but, more importantly, an economic transformation that is inclusive and sustainable,” Pangandaman said in a statement.

Pangandaman said the national budget also played a substantial role stimulating the Philippine economy, especially amid the expected slowdown in global growth due to increasing economic uncertainty, United States’ trade policy changes, slowdown in China’s economy, persistent geopolitical tensions, and fluctuations in commodity prices.

She said the government is expecting the country’s growth to accelerate throughout the year, noting that domestic demand strengthens and public investments are sustained.

She expressed optimism that the 6 to 8 percent growth target for 2025 would be achieved, given the government’s strong commitment to achieving medium-term plans and long-term vision.

“This is even amidst global uncertainty, as domestic growth prospects supported by improving private consumption, including government infrastructure spending, provide a buffer against external headwinds,” Pangandaman said.

“Given the substantial 8.2 percent (year-on-year) growth registered by the capital spending of the government — a testament to the successful implementation of public infrastructure projects — we are certain we can sustain our high growth trajectory,” she added.

The PSA report showed that all major economic sectors, which include agriculture, forestry, and fishing; industry; and services, posted year-on-year growths in the first quarter of 2025 with 2.2 percent, 4.5 percent, and 6.3 percent, respectively.

On the demand side, easing inflation helped boost household final consumption expenditure which accelerated to 5.3 percent from 4.7 percent in 2024.

Government final consumption expenditure also expanded at a faster pace of 18.7 percent, reflecting the front-loading of public programs in anticipation also of the election ban.

Gross capital formation picked up to 4 percent from 0.8 percent in same period last year.

Exports of goods and services also grew by 6.2 percent, while imports rose by 9.9 percent.