The Philippine economy demonstrated resilience in the first quarter of 2025, recording a 5.4% growth in Gross Domestic Product (GDP), according to official reports released on May 8, 2025. This growth positions the Philippines among the fastest-growing economies in the ASEAN region, trailing only Vietnam, which achieved a 6.9% expansion, and tying with China at 5.4%.

This growth outpaces Indonesia's 4.9%, Malaysia's 4.4%, and Thailand's projected 2.8%.

Key to the growth in Q1 2025 was improved government spending, which surged by 18.7%, and private consumption, which grew by 5.3%.

The Bureau of Internal Revenue and the Bureau of Customs reported tax collections of PHP 931.5 billion, a 13.55% increase compared to the same period last year.

Enhanced government expenditure represents the highest growth rate since the pandemic era, reflecting robust fiscal measures despite global economic uncertainties.

On the supply side, the services sector emerged as a significant growth driver, expanding by 6.3%.

Key contributors within the sector included human health and social work activities, financial services, and transportation and storage.

The industry sector also reported a 4.5% growth, significantly supported by advancements in manufacturing, including sectors like leather goods and beverages.

Meanwhile, the agriculture sector rebounded strongly, achieving a 2.2% growth as production increased in poultry and rice.

Despite this growth, net exports fell sharply by 19.9% due to slower goods exports; however, this decline was offset by solid domestic consumption.

In value terms, the country’s GDP reached PHP 6.59 trillion, up from PHP 6.12 trillion in the same quarter last year.

The Department of Agriculture reported that agricultural output improved, with the value of agriculture and fisheries output reaching PHP 437.74 billion, marking a 1.9% increase year-on-year.

The recovery can be attributed to favorable weather conditions and the Department of Agriculture's (DA) ongoing interventions.

The crops subsector, which accounts for 57% of total agricultural output, increased slightly from PHP 247.04 billion to PHP 249.61 billion.

Notably, tobacco production surged by 80.4%, although abaca experienced a production drop of 15.4%.

Poultry, which constitutes 17.2% of agricultural output, saw a 9.4% increase, reflecting positive trends in chicken production and egg yields.

The fisheries sector also reported growth, with production valued at PHP 55.1 billion.

Agricultural Secretary Francisco Tiu Laurel expressed optimism that continued investments in infrastructure, such as cold storage facilities, will bolster agricultural capacity and stabilize food supply amidst inflationary pressures.

The government anticipates that further improvements in the agricultural sector will contribute positively to economic stability in the year ahead.

The government has set a GDP growth target of 6% for 2025, aiming to maintain the momentum through initiatives designed to enhance economic performance and private investment.

The alignment of government spending and recovery in key economic sectors factors into the administration's broader strategic economic goals.