Manila: The Philippine economy is on track for robust growth, with Department of Finance (DOF) Secretary Ralph Recto and the International Monetary Fund (IMF) projecting an acceleration in 2025 and 2026.
According to Philippines News Agency, Recto expressed optimism that the country’s economic performance in the fourth quarter of 2024 surpassed the 5.2 percent growth recorded in the third quarter, bringing the full-year growth close to or above 6 percent. Recto conveyed his expectations during a recent briefing, stating, “I think it [fourth quarter growth] will be faster than Q3 (third quarter). Q3 was 5.2 [percent]. I think it will definitely be faster than Q3.”
Recto highlighted the possibility of the fourth quarter reaching a growth rate of 6 percent, a development he would welcome. “Possible. If it hits 6 [percent] in the fourth quarter, I’ll be happy with that,” he said. The Philippine economy grew by 5.2 percent in the third quarter of 2024, bringing the year-to-date gross domestic product (GDP) expansion to 5.8 percent. The Philippine Statistics Authority is set to release the official fourth-quarter and full-year 2024 economic growth data on January 30.
For 2025, Recto is confident that the economy will expand by over 6 percent, with key drivers including strong domestic consumption and investments. The IMF also anticipates domestic demand, particularly consumption and investment, to drive economic growth from 2025 to 2026.
The IMF’s World Economic Outlook retains its economic growth projection at 6.1 percent for 2025 and 6.3 percent for 2026. “Consumption growth will be supported by lower food prices and gradual monetary policy easing,” an IMF spokesperson said in an email. Additionally, investment growth is expected to increase due to sustained public investment, decreasing borrowing costs, and the acceleration of public-private partnerships and foreign direct investment following recent legislative reforms.
The IMF also projects headline inflation to settle at 2.8 percent in 2025 and 3 percent in 2026, both within the government’s target range of 2 to 4 percent.
