Manila: The Philippine economy is anticipated to experience a "mildly faster" growth rate in the first quarter of the year, primarily driven by improved consumption expenditures, as stated by the University of Asia and the Pacific (UA and P) and the Business Economics Club (BEC).

According to Philippines News Agency, the latest edition of The Market Call from UA and P and BEC predicts that the Philippine economic growth will reach 3.3 percent, which is a slight improvement from the 3 percent gross domestic product (GDP) expansion recorded in the fourth quarter of 2025. Although there remains uncertainty about a substantial economic recovery, the report highlights "some bits of light emerging."

The report notes that with inflation staying in the lowest quarter of the Bangko Sentral ng Pilipinas (BSP) target range, along with declining policy and interest rates and a depreciating peso, consumer spending, residential property sales, car sales, equipment leasing, and other interest-sensitive expenditures are expected to enhance consumption expenditures in the first quarter. Consequently, UA and P and BEC forecast a mildly faster year-on-year GDP growth of 3.3 percent, up from 3 percent, as the government continues to work on increasing its spending.

Additionally, UA and P and BEC expect that inflation will remain within the government's target for the year, despite the possibility of an acceleration in the coming months.