Philippine government spending drives unsustainable economic growth

The Philippine economy grew by 5.4% in the first quarter, primarily driven by government spending, but this growth is unsustainable due to rising public debt. Government consumption and infrastructure spending significantly outpaced overall economic growth, while household consumption and investment lagged. Agriculture rebounded, and manufacturing improved, but imports outpaced exports. Despite export growth, faster import growth and record government debt of P16.7 trillion raise concerns about the long-term sustainability of the current economic trajectory.