Even with the weaker-than-expected gross domestic product (GDP) growth figures last year and in recent quarters, the Department of Finance (DOF) argued that the Philippine economy grew at an average rate of 5.9 percent—among the fastest-growing Asian economies—since President Ferdinand Marcos Jr. assumed power in 2022.

On the day of Marcos’ third State of the Nation Address (SONA) on Monday, July 28, the DOF released a review of the administration’s performance on the economic and development front, reporting that since 2022, Philippine GDP grew at a pace faster than most of its peers.

“The Philippine economy has expanded by an average of 5.9 percent since the Marcos Jr. administration took office in 2022, making it one of the fastest-growing economies in Asia,” the DOF said.

As per the DOF’s first-quarter data, the Philippines’ 5.4-percent growth rate ranked second to Vietnam’s seven-percent expansion. It matched China’s performance, while outpacing most of its Association of Southeast Asian Nations (ASEAN) neighbors, including Indonesia (4.9 percent), Malaysia (4.4 percent), Singapore (3.8 percent), and Thailand (3.1 percent).

It can be recalled that Philippine GDP growth in the first quarter was modestly faster than the previous quarter but far slower than the 5.7 percent in the same period last year, data from the Philippine Statistics Authority (PSA) showed.

The Department of Economy, Planning, and Development (DEPDev) said earlier that while the first-quarter pace “falls short of our initial expectations, it reflects developments from the broader global context of tempered economic activity amid persistent uncertainties.”

Among these uncertainties are the reciprocal tariffs that the United States (US) has imposed and reimposed on goods from its trading partners, including the Philippines. In the most recent trade talks, both the US and the Philippines agreed that Philippine exports will be slapped with a 19-percent tariff starting Friday, Aug. 1.

Nomura, Japan’s largest investment bank and brokerage group, believes the higher-than-expected US tariffs on Philippine exports could massively weigh on growth, noting that even a five-percent economic expansion could be more difficult to achieve this year.

To recall, the local economy shrank by 9.5 percent in 2020, at the height of the Covid-19 pandemic. It rebounded in 2021 with a full-year growth rate of 5.6 percent. This further accelerated to 7.6 percent in 2022, moderated to 5.6 percent in 2023, and inched up to an almost stagnant annual rate of 5.7 percent in 2024.

Last month, the Cabinet-level Development Budget Coordination Committee (DBCC) adjusted downwards its GDP growth target to 5.5 to 6.5 percent from six to 6.5 percent previously, due to increased external uncertainties.

The economic team had also narrowed the growth target range for 2026 to 2028 to six to seven percent, from the previously more ambitious six to eight percent.