The Department of Economy, Planning, and Development (DEPDev) is confident that the 5.5 - 6.5 percent growth target for 2025 can still be met despite marginal growth in the second quarter.

In a press conference on Thursday, Philippine Statistics Authority (PSA) Undersecretary Claire Dennis Mapa reported that gross domestic product (GDP) grew 5.5 percent year-on-year. The 5.5 percent growth is slightly higher than the 5.4 percent growth in the first quarter.

Last June, the Philippines revised its growth target to 5.5 to 6.5 percent from 6-8 percent for 2025 mainly due to the tariff hikes by the United States.

"In the 5.5 percent growth recorded in the second quarter of 2025, the services sector recorded the highest contribution of 4.3 percentage points, followed by the industry that recorded a contribution of 0.6 percentage points and agriculture, forestry and fishing (AFF) that contributed 0.5 percentage points in the entire GDP," he said.

DEPDev Secretary Arsenio Balisacan said the observers are "seeing the economy to grow close to 6 percent" making the targets for this for this year "very much visible".

"If we want to hit 6.5 (percent) we need to be growing by about 7.5 percent for the second half of 2025. Of course, 7.5 (percent) is high, but it's not impossible," he said.

''We have heard, (Bangko Sentral ng Pilipinas) BSPs, optimism for further policy rate reduction, and we still think that the inflation will remain at that low levels, and that should sustain momentum in domestic consumption and domestic spending,'' he said.

''So with improvement and don't see any major disruptions coming from natural events like floods, serious floods that could destroy our production base. I think that we should see continuing improvement in our agriculture and also in manufacturing. So I think 7.5 is within reach," he added.

Mapa said the agriculture, forestry and fishing (AFF) grew 7 percent year-on-year while services was at 6.9 percent and industry is at 2.1 percent. Robina Asido/DMS