The Makati Business Club (MBC) flagged economic challenges ahead, including the impact of the planned 17-percent percent US tariff on Philippine products, after the country’s gross domestic product expanded 5.4 percent in the first quarter of 2025.
“We are concerned about the possible effects of the 17-percent tariff imposed by the government of the United States to the Philippines, especially for skilled Filipino workers employed in export sectors. We believe that the government must prioritize reducing the cost of power and building a strong manufacturing base to attract investors,” said MBC executive director Apa Ongpin.
Ongpin said factors had become more relevant in an increasingly uncertain global economy.
Oxford Economics, a UK-based research agency, confirmed that US tariffs would affect the performance of the global economy.
“We expect the central bank to maintain an accommodative monetary policy stance to support growth. But uncertainty around US tariff policies should continue weighing on the growth outlook. We expect GDP to increase by 5.5 percent y/y this year, down from 5.7 percent in 2024,” Oxford Economics said in a statement.
Department of Trade and Industry Secretary Ma. Cristina Roque also acknowledged the external headwinds, emphasizing the need for flexibility and inclusive policy-making.
Roque said the first–quarter GDP growth proved the Philippine economy’s enduring resilience, driven by strong consumer spending and robust industry performance.
“The Q1 2025 GDP figures reflect the Philippine economy’s robust resilience, fueled by strong consumer spending and the dynamic contributions of our industries,” she said.
The Philippine Statistics Authority reported that the GDP grew by 5.4 percent in the first quarter of 2025, slightly higher than the previous quarter’s 5.3 percent expansion.
The growth was largely driven by frontloaded infrastructure projects, expanded social protection programs and increased public sector spending in the lead-up to the elections.
Household spending grew by 5.3 percent, up from 4.7 percent last quarter, supported by easing inflation that improved consumer purchasing power and sustained remittance inflows.
The gross national income grew 7.5 percent in the first quarter of 2025, on the back of a 24.6-percent increase in net primary income from the rest of the world.
The DTI said it would continue to push for strategic initiatives that promote inclusive and sustainable economic expansion.
Among its key priorities are attracting high-quality investments, empowering micro, small and medium enterprises (MSMEs) and enhancing the global competitiveness of Philippine industries, said Roque.
“We are fostering a business-friendly environment that drives innovation, generates quality jobs, and improves market access for local products and services,” Roque said.
