The Philippine economy posted weaker-than-expected growth in the final quarter of 2025, reinforcing concerns about slowing momentum and increasing speculation over further monetary policy easing by the central bank. According to the Philippine Statistics Authority, gross domestic product (GDP) expanded by 3% in the fourth quarter compared with the same period a year earlier. This marked a notable slowdown from the downwardly revised 3.9% growth recorded in the previous quarter.
The latest GDP figure fell short of the 4% median forecast in a Reuters poll, highlighting broader challenges facing the Philippine economy as it exited 2025. As a result, full-year economic growth reached only 4.4%, well below the government’s official target range of 5.5% to 6.5% for the year. The underperformance underscores persistent headwinds, including weaker domestic demand, slower public spending, and external uncertainties.
A key factor behind the lackluster economic performance was reduced government expenditure, partly linked to a corruption scandal involving major infrastructure projects. The controversy delayed approvals and implementation, weighing heavily on public investment—traditionally a major driver of Philippine GDP growth. Analysts note that infrastructure spending has been critical to sustaining economic expansion in recent years, making the slowdown particularly impactful.
The softer growth outlook has strengthened expectations that the Bangko Sentral ng Pilipinas (BSP) may consider another interest rate cut. BSP Governor Eli Remolona previously stated that weaker-than-expected fourth-quarter GDP data would play a role in the central bank’s policy decision at its February 19 rate-setting meeting. The central bank has already reduced its benchmark interest rate by a cumulative 200 basis points during the current easing cycle, bringing it to a three-year low of 4.5%.
While Remolona has indicated that the rate-cutting cycle may be nearing its end, the latest economic data suggests policymakers could still have room to act if growth remains subdued. Market participants are closely watching upcoming indicators, as monetary policy decisions will be crucial in supporting economic recovery and restoring confidence in the Philippine economy heading into 2026.


India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady
Thailand Inflation Remains Negative for 10th Straight Month in January
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 



