Finance Secretary Ralph Recto has conceded that the Philippine economy will likely grow by less than 5 percent in 2025, saying that hitting the lower bound of the government’s 5.5 percent target is now “nearly impossible.”
Despite this dimmer outlook, Recto emphasized that the economy remains fundamentally strong. He pointed to resilient domestic demand, particularly strong household spending, as a key source of support.
He also noted that weakened global demand and trade policy risks are major headwinds.
Looking ahead, Recto expects some policy easing: he sees room for a 25-basis-point interest rate cut by the end of the year to help support growth.