Philippine ...
Philippine Economy Projected to Achieve 6% Growth in Q1 2025 Amidst Domestic and Global Challenges
Analysts anticipate that the Philippine economy will register a solid 6% growth in the first quarter of 2025, driven by robust domestic demand, increased public spending, and a resilient services sector. This projection aligns with the government's growth target range of 6% to 8% for the year, reflecting optimism despite prevailing global uncertainties.
The University of Asia and the Pacific (UA&P) forecasts a 6.5% GDP expansion for Q1 2025, attributing this to factors such as election-related expenditures, sustained infrastructure projects, and a favorable inflation environment. The construction sub-sector, in particular, is expected to lead growth within the industry sector, while services continue to play a pivotal role in economic expansion
Financial institutions like the Bank of the Philippine Islands (BPI) and Nomura Global Markets Research echo these positive sentiments. BPI projects a 6.3% growth for 2025, citing strong household consumption supported by steady remittance inflows and a low unemployment rate. Nomura highlights the impact of aggressive infrastructure spending and the upcoming midterm elections as key drivers of economic activity.
The ASEAN+3 Macroeconomic Research Office (AMRO) also maintains a favorable outlook, forecasting a 6.3% growth for the Philippines in 2025. AMRO attributes this to continued government expenditure and growth in services exports, positioning the country among the fastest-growing economies in the region.
However, challenges persist. The economy's performance in the latter part of 2024 was affected by adverse weather conditions and subdued global demand, leading to a full-year growth of 5.6%, below the government's target. Despite these setbacks, the Philippine government remains confident in achieving its 2025 growth objectives, emphasizing the importance of sustained public investment and domestic consumption in driving economic resilience.
Market Philippines - News Service
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