Economic activity expanded across all regions in 2025, with Philippine Statistics Authority (PSA) data showing broad-based growth despite a slowdown at the national level.

Western Visayas emerged as the fastest-growing regional economy, posting a 6.4 percent increase, followed by Caraga and the Negros Island Region. Several other regions, including Davao Region, CALABARZON and Central Luzon, also outpaced the national growth rate.

GDP grew 4.4% in 2025

At the national level, gross domestic product grew by 4.4 percent in 2025, easing from 5.7 percent in the previous year.

Growth was largely driven by services tied to social needs, with human health and social work activities expanding by 11.6 percent, followed by education at 7.8 percent and public administration at 6.8 percent.

On the spending side, government expenditure and exports led expansion, rising by 8.4 percent and 8.2 percent, respectively.

Uneven regional output

Regional output remained uneven across sectors. Central Luzon accounted for the largest share in agriculture, forestry and fishing, while CALABARZON dominated industry output. The National Capital Region continued to lead the services sector, reflecting its role as the country’s economic hub.

Consumer demand also strengthened nationwide. Household spending grew in all regions, with Caraga posting the fastest increase at 6.7 percent. Government spending showed strong gains as well, led by the Ilocos Region.

Investment activity shows weakness

However, investment activity showed signs of weakness. Gross capital formation declined by 1.7 percent nationally, with several regions posting contractions, signaling caution among businesses.

Despite these mixed signals, income levels improved. Per capita GDP rose by 3.5 percent nationwide, with Western Visayas again leading regional gains.