This steady performance keeps us among the faster-growing economies in the Asia-Pacific region, modestly ahead of Indonesia (5.1 percent) and China (5.2 percent), giving us confidence that we are still on the right path toward social and economic transformation.
We, at the Department of Budget and Management, are committed to sustaining this growth momentum by ensuring the timely implementation of priority government programs, especially in education, health, social protection, food security, and infrastructure development. Efficient budget execution will remain central to our strategy for sustaining inclusive and resilient economic development amidst global uncertainty.
This growth was supported by improvements in all major economic sectors. The Industry sector grew by 2.1 percent, while the Services sector expanded by 6.9 percent, supported by strong performance in real estate and professional and business services. Notably, the Agriculture, Forestry, and Fishing sector rebounded sharply to 7.0 percent from 2.2 percent in the first quarter, driven by improved palay and corn production and bolstered by productivity-enhancing initiatives such as the Department of Agriculture’s Agri-Puhunan at Pantawid Program.
On the demand side, government spending remained a key growth driver, with Government Final Consumption Expenditure (GFCE) increasing by 8.7 percent, reflecting the timely rollout of government programs and projects. Meanwhile, household consumption remained strong at 5.5 percent, reflecting the gains of our continued efforts to maintain price stability.
We anticipate growth to accelerate in the second half of the year and settle within the 5.5 to 6.5 percent target range by the end of the year, driven by strong domestic demand and sustained public investment. To support this, the government will focus on three priorities: first, advancing human capital development and promoting quality education, accessible healthcare, and food security; second, strengthening investment, trade, and innovation through infrastructure development and boosting productivity; and third, enhancing bureaucratic efficiency and good governance through well-coordinated public service delivery.
