Economic growth in the Philippines slowed to 2.3% in the first quarter of 2025, according to recent data. The slowdown was driven by elevated inflation and weak investment, despite strong performance in exports and energy spending.
Inflation remained a key challenge, with prices rising due to higher global commodity costs and domestic supply constraints. This affected consumer spending and business confidence. Investment in key sectors such as manufacturing and infrastructure also lagged, limiting overall economic expansion.
While exports and energy spending provided some support, they were not enough to offset the drag from inflation and weak investment. The government has called for measures to boost private sector participation and improve supply chain efficiency.
The slower growth highlights ongoing challenges in achieving sustained economic expansion, even as the country remains a regional growth hub.
