Philippine Economy Posts 6% Growth in Q2, Driven by Consumer and Government Spending

MANILA — The Philippine economy experienced a growth rate of 6 percent in the second quarter of this year, according to Rizal Commercial Banking Corporation’s chief economist, Michael Ricafort. This growth continues the positive trajectory seen in the first quarter and is bolstered by strong consumer and government expenditures.

According to Philippines News Agency, the significant factors contributing to this growth include increased consumer spending, which represents over 70 percent of the economy, and heightened government spending, especially in infrastructure. “Faster consumer spending has been critical as many businesses and industries have continued to recover with the lifting of COVID-19 restrictions since June 2023,” Ricafort explained. Additionally, government expenditures have risen in anticipation of the May 2025 midterm elections, with agencies accelerating project implementations before the electoral ban.

The Philippine Statistics Authority is scheduled to release the official economic growth data for the second quarter next week. In the first quarter, the economy grew by 5.7 percent.

Looking ahead, Ricafort projected that economic growth could sustain its near 6 percent level in the upcoming quarters due to favorable demographics and ongoing recovery in sectors such as tourism. Key factors expected to drive growth include easing inflation, potential reductions in interest rates, further recovery in the tourism sector, continued growth in overseas Filipino remittances, and the expansion of the business process outsourcing (BPO) industry, which is anticipated to increase from USD 35 billion in 2023 to USD 39 billion in 2024.