A 5% economic growth target for the Philippines in 2025 will be more realistic, Moody’s Analytics said, with the fourth-quarter performance unlikely to push full-year growth to the 5.5% to 6.5% target.
“A growth rate of around 5% will be more manageable for the country,” Moody’s Analytics Assistant Director and Economist Sarah Tan told Money Talks with Cathy Yang on One News on Monday.
In the first nine months, gross domestic product (GDP) averaged 5%, pulled down by weak public spending, consumption and investment in the third quarter.
The Development Budget Coordination Committee (DBCC) will review its macroeconomic assumptions and targets next week.
The DBCC first revised its targets in June, trimming its 2025 growth forecast to 5.5–6.5% and the 2026 outlook to 6–7%, citing “heightened global uncertainties” from the Middle East conflict and US tariffs.
Ms. Tan said fourth‑quarter GDP is likely to come in at 5.2%, which if borne out would represent a slowdown from the 5.3% posted a year earlier. It would also be well below the 6.9% needed to hit the 2025 target.
Asked if holiday spending will lift consumption, she said she is now “cautiously optimistic” after the weak third‑quarter performance.
She added the holiday boost may be overshadowed by weak government spending and still‑soft investment appetite.
Economy Secretary Arsenio M. Balisacan has said that he is counting on private spending to rebound on expectations of increased consumption and remittances during the holidays.
Meanwhile, Ms. Tan said one intervention that could boost the economy is rebuilding public trust by speeding up aid disbursement to calamity‑hit communities.
“Perhaps speeding up public spending would then be a positive signal to both investors and consumers that things are moving again,” she said, while adding transparency and accountability may help restore confidence. — Aubrey Rose A. Inosante