Philippine economy poised for growth 

The Philippine economy is expected to sustain its growth momentum this year despite political uncertainties, geopolitical tensions, and global trade challenges, according to an economist.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort said on Friday that recent political events, including the arrest of former President Rodrigo Duterte, have had minimal impact on the country’s economic outlook.

“The recent political noises are manageable so far, as the relatively orderly process on March 11, 2025, could still send positive signals on respect for rule of law and institutions locally and internationally,” Ricafort told the Philippine News Agency.

He noted that the country’s investment-grade credit ratings, which remain 1-3 notches above the minimum investment level, reflect strong economic fundamentals despite political and geopolitical risks.

Ricafort emphasized that the Philippines remains one of the fastest-growing economies in the region, supported by a young and growing workforce, stable business conditions, and increasing infrastructure investments.

“As long as business and economic fundamentals are intact, which would allow foreign investors to be profitable, the government’s bid to attract more investors would likely not be affected,” he said.

However, Ricafort warned that the bigger threat to economic growth comes from external factors, particularly US President Donald Trump’s protectionist policies, which could affect overseas Filipino worker (OFW) remittances, global trade, and employment.

Despite these risks, Ricafort remains optimistic that the Philippines can meet the lower end of its 6 to 7 percent economic growth target for 2025.

“It is possible to sustain GDP near 6 percent levels in the coming quarters due to favorable demographics and the continued recovery of some businesses,” he said, adding that increased government spending in the lead-up to the May 2025 elections and ongoing infrastructure development would further drive growth.

With resilient economic fundamentals and continued investor confidence, the Philippines is expected to navigate political uncertainties while maintaining its economic trajectory.