Manila: The Philippine Statistics Authority (PSA) on Wednesday reported a downward revision of the economy's third-quarter 2025 growth output to 3.9 percent from the preliminary 4 percent estimate.
According to Philippines News Agency, the PSA said the major contributors to the downward revision were electricity, steam, water and waste management, from 0.6 percent to -0.6 percent; real estate and ownership of dwellings, from 4.7 percent to 4.0 percent; and accommodation and food service activities, from 5.7 percent to 4.8 percent.
"Downward revisions were also observed in the third quarter of 2025 in the Gross National Income from 5.6 percent to 5.4 percent, and the Net Primary Income from the Rest of the World, from 16.9 percent to 16.2 percent," the PSA added.
Changes in the preliminary estimates on the gross domestic product (GDP)-related figures are announced a day before the PSA releases the report for the succeeding quarter. The government's 2025 growth target has been revised to a range between 4.8 to 5 percent.
Jonathan Ravelas, senior adviser at Reyes Tacandong and Co, said the changes will not affect his growth forecasts for the last quarter and full year 2025. Ravelas projects fourth-quarter growth of 4.7 percent and full-year growth of 5.3 percent.
Rizal Commercial Banking Corporation chief economist Michael Ricafort projects fourth quarter 2025 growth at 4.8 percent and full-year growth at 4.9 percent. For this year, he forecasts the domestic economy to expand between 5.3 to 5.8 percent, aligning with the revised government target of between 5-6 percent.
Ricafort emphasized the necessity of a 'catch up government spending plan starting 1Q 2026 to make up for the underspending in 3Q 2026 based on anti-corruption measures and other reforms to further improve governance.' He stated that such measures would improve investor confidence and sentiment, boosting economic and GDP growth.
He added that if anti-corruption measures and related priority reforms are taken seriously, they would serve as crucial catalysts to enhance investor confidence and sentiment. This, in turn, would lead to increased investments, job creation, and economic activities, while supporting gains in local financial markets.
