The Philippine economy entered 2025 with sustained yet fragile momentum; its gains threatened by persistent inflation, climate-related disruptions, geopolitical uncertainties, and long-standing structural constraints. After a post-pandemic rebound of 7.6% in 2022, the real GDP growth rate slowed to 5.5% in 2023 and 5.7% in 2024, falling below government targets. This report decomposes GDP performance through both expenditure and production lenses, analyzing the underlying drivers and sector-specific developments. Household consumption remains the primary growth engine, though increasingly reliant on remittances and fiscal transfers rather than gains in actual productivity. Government spending has surged in recent years due to post-COVID stimulus policies, the expansion of social services, and election-related spending. These, in turn, have raised concerns about debt sustainability; with debt-to-GDP levels breaching international benchmarks. Gross capital formation posted modest gains, constrained by elevated borrowing costs and investment uncertainty. Exports continued to underperform amidst global trade tensions, while import growth further widened the trade deficit.