By the staff
The Philippine Statistics Authority (PSA) lowered the country’s third-quarter 2025 GDP growth to 3.9 percent from a preliminary 4 percent, citing weaker performance in utilities, real estate, and hospitality.
Electricity, steam, water and waste management contracted 0.6 percent, down from 0.6 percent, while real estate and ownership of dwellings eased to 4.0 percent from 4.7 percent. Accommodation and food services slowed to 4.8 percent from 5.7 percent.
“Downward revisions were also observed in the third quarter of 2025 in the Gross National Income from 5.6 percent to 5.4 percent, and the Net Primary Income from the Rest of the World, from 16.9 percent to 16.2 percent,” the PSA said.
The government’s 2025 growth target has been revised to 4.8-5 percent.
Analysts said the adjustments are unlikely to alter full-year expectations. Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., maintained his forecast of 4.7 percent growth for the fourth quarter and 5.3 percent for the full year.
Rizal Commercial Banking Corp. chief economist Michael Ricafort projected 4.8 percent growth for Q4 and 4.9 percent for the year. He highlighted that underspending by the government, a key growth driver, held back GDP in the latter part of 2025.
“Catch up government spending plan starting 1Q 2026 to make up for the underspending in 3Q 2026 based on anti-corruption measures and other reforms to further improve governance would improve investor confidence/sentiment and help boost economic/GDP growth,” Ricafort said.
He added that effective anti-corruption and governance reforms could further spur local and foreign investment, job creation, and broader economic activity, supporting gains in financial markets.
