The Philippine economy grew 3 per cent in the last quarter of 2025 compared to a year earlier, weaker than the downwardly revised 3.9 per cent expansion for the previous quarter, the country’s statistics agency said on Thursday.
The pace fell below a 4 per cent median forecast in a Reuters poll, and brought full-year GDP growth to 4.4 per cent, missing the government’s 5.5 per cent to 6.5 per cent target for 2025.
The lacklustre performance of the Philippine economy raised the odds of another central bank rate cut, and was caused in part by a corruption scandal tied to infrastructure projects that slowed public spending last year.
Bangko Sentral ng Pilipinas Governor Eli Remolona said last week that if fourth quarter GDP proved to be weaker-than-expected, it would help the central bank decide whether to take action at a rate setting meeting scheduled for February 19.
The central bank has cut its benchmark rate by a cumulative 200 basis points to a three-year low of 4.5 per cent in the current cycle, which Remolona has said was nearing its end.
Reuters
