Philippine economy projected to grow 5.9% in 2025: UBS Investment Bank

28 Feb '25

1 min read

Philippine economy projected to grow 5.9% in 2025: UBS Investment Bank

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Insights

The Philippine's economic growth is expected to accelerate this year, with its economy projected to grow by 5.9 per cent this year from 5.6 per cent in 2024, Grace Lim, UBS Investment Bank Global Research's senior ASEAN and Asia economist said.
Private investments would recover gradually and easing inflation would allow the central bank to reduce policy rates by 50 bps this year, she said.

The Philippine’s economic growth is expected to accelerate this year due to higher investments and consumption, with its economy projected to grow by 5.9 per cent this year from 5.6 per cent in 2024, according to Grace Lim, UBS Investment Bank Global Research’s senior ASEAN and Asia economist.

"The underlying positive growth delta is driven by domestic demand as both investment and consumption accelerate in 2025," Lim said in a recent virtual briefing.

She said private investments would recover gradually as financial conditions become less restrictive and consumer sentiment gradually picks up.

Solid labour income growth and the easing of food inflation will also help boost consumption growth, she was cited as saying by domestic media reports.

Lim said government spending and the continued growth in services exports would also support economic growth.

In the case of trade tariff escalation, the Philippine peso could also be a relative outperformer in the region she said.

Easing inflation would allow the central bank to reduce policy rates by 50 basis points this year, Lim said. Last year, the BSP reduced policy rates by 75 basis points.

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