MANILA — The Philippine economy is projected to grow by 5 percent in 2025, a figure considered respectable compared with neighboring countries despite challenges beyond government control, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said.

As of the third quarter, the economy grew by 5 percent, following quarterly growth of 5.4 percent, 5.5 percent, and 4 percent since the start of the year. To meet the full-year target of 5.5 percent to 6.5 percent, a 7-percent growth is needed in the final quarter, Balisacan said.

He noted that natural disasters and ongoing investigations into questionable flood control projects have affected growth, but domestic fundamentals remain strong. “Only by keeping our growth momentum through steady and sound economic policies and steadfast commitment to uplift the lives of ordinary Filipinos can we earn and maintain our people’s trust in government,” he said.

Balisacan highlighted that price increases remain manageable as rice and other basic commodity prices have stabilized, the labor market is robust, the banking system is healthy, the local currency remains broadly stable against the U.S. dollar, and the fiscal deficit has narrowed to around 5 percent of domestic output.

Moving forward, the government will focus on social protection programs to help those affected by recent disasters and initiatives that boost economic growth. The inter-agency Development Budget Coordination Committee (DBCC) will meet on Dec. 9 to review developments and their impact on economic targets.

“What we want to ensure (is) that the projects, particularly those projects that are very supportive of the economy and social protection, particularly projects that involve recovery from those disasters, typhoons, would have to move quickly,” Balisacan said.

He added that strong macroeconomic fundamentals, coupled with ongoing structural reforms, are laying the groundwork for an economy where investments flourish and progress is felt by all Filipinos. “Maintaining this trajectory requires credible institutions, transparent governance, and policy environments that foster public trust—because trust is not just an outcome of development; it is a precondition for it.”

(PNA)