The Philippine economy grew by 3.0 percent year-on-year in the fourth quarter of 2025, slower than the 5.3 percent expansion recorded in the same period last year, according to data released by the Philippine Statistics Authority (PSA). The latest figure brought the country’s full-year 2025 gross domestic product (GDP) growth to 4.4 percent.

PSA said the main drivers of economic growth in the fourth quarter were wholesale and retail trade, including repair of motor vehicles and motorcycles, which grew by 4.6 percent; financial and insurance activities at 5.6 percent; and public administration and defense, including compulsory social security, which expanded by 7.9 percent.

For the entirety of 2025, the biggest contributors to growth were wholesale and retail trade at 5.2 percent, financial and insurance activities at 5.8 percent, and manufacturing at 2.5 percent, reflecting continued strength in consumer-related and service-oriented industries.

By sector, agriculture, forestry, and fishing (AFF) posted a 1.0 percent growth in the fourth quarter, while the services sector expanded by 5.2 percent. In contrast, the industry sector contracted by 0.9 percent during the same period. For the full year, AFF grew by 3.1 percent, industry by 1.5 percent, and services by 5.9 percent.

On the demand side, household final consumption expenditure (HFCE) rose by 3.8 percent in the fourth quarter of 2025, supported by increased consumer spending. Government final consumption expenditure (GFCE) also grew by 3.7 percent, while exports of goods and services surged by 13.2 percent. Imports increased by 3.5 percent, while gross capital formation declined sharply by 10.9 percent, indicating weaker investment activity.

For the full year, HFCE grew by 4.6 percent, GFCE by 9.1 percent, exports by 8.1 percent, and imports by 5.1 percent, while gross capital formation recorded an annual contraction of 2.1 percent.

Meanwhile, gross national income (GNI) increased by 3.9 percent in the fourth quarter, bringing full-year GNI growth to 6.1 percent. Net primary income from the rest of the world also rose by 10.9 percent in the fourth quarter and by 19.1 percent for the entire year, reflecting higher income flows from abroad.

Economic analysts noted that while growth remained positive, the slowdown in the fourth quarter highlights challenges such as weaker investment and softer industrial output, underscoring the need to sustain consumption, exports, and public spending to support economic momentum.