The Philippine economy grew by 4.4% in 2025, marking the slowest annual growth since 2011 if the COVID-19 pandemic period is excluded.

The economy expanded by just 3% in the fourth quarter, highlighting a significant slowdown in the final months of the year.

In an interview on DZRH’s Special on Saturday, Former Finance Secretary Gary Teves confirmed the figures, noting that the annual growth fell short of the government’s original target of 6.5%, which was later revised down to 5.5%.

“Medyo masama dahil normal na takbo ng ating ekonomiya nakuha natin, na-attain natin 5% to 6% pero lumabas napakababa,” Teves said.

“Ang 5.5% hindi naman talaga mababa worldwide, even sa Asia mataas na rin, mas mataas pa tayo sa marami in terms of gross domestic product. Ang nagkakatalo per capita i-divide sa maraming people makikita na nagkakadeperensya na,” Teves explained.

He pointed out that investor confidence and government agencies, particularly those involved in infrastructure, became hesitant after controversies surrounding flood control projects were publicized in the third quarter.

Historically, the country has averaged annual GDP growth of around 5.5% over the past decade.

Teves added that during periods of economic growth, wealthier sectors typically benefit first, which is why expanding the economy further is essential to ensure that lower-income groups and vulnerable sectors also reap the benefits.

“Ang growth target ay nakakatulong sa entire economy at sa bawat tao sa Pilipinas,” he said.

“Ang kailangan palaguin, palakasin ang ating ekonomiya.Kasi normally ang nakakakuha ng benefits ng economic growth, nauuna yung mga mayayaman. So kailangan palakihin nila para pati yung mga poor and underprivileged ay nakakatanggap ng benepisyo ng paglago ng ating ekonomiya,” he emphasized.