And despite global uncertainties, the country is expected to remain one of Southeast Asia’s fastest-growing economies, according to officials of the financial firm.
In its 2025 outlook, Unicapital, through its securities brokerage arm Unicapital Securities Inc., projected a 6.3-percent gross domestic product growth, buoyed by consumption rebound, infrastructure investments, and favorable monetary policies.
However, external risks such as geopolitical tensions and potential trade disruptions remain challenges.
Election spending to boost key sectors
With the midterm elections in May, election-related expenditures are expected to drive short-term economic activity. The Philippine Stock Exchange index often rallies during election season, supported by increased liquidity and optimism.
Sectors poised to benefit include consumer goods, construction and infrastructure, media, and telecommunications. Historically, consumer companies report a 5-10 percent revenue increase during election periods as spending on essentials and lifestyle goods rises.
“We see an all-out election spending both on a local and national scale. This, coupled with easing inflation, will boost household spending and ultimately favor economic growth,” said Wendy Estacio-Cruz, Unicapital Securities’ head of research.
Policy shifts and economic outlook
Unicapital expects the Bangko Sentral ng Pilipinas to continue measured monetary easing, depending on global economic developments and US Federal Reserve actions. Lower interest rates would support borrowing and investment, further stimulating growth.
Another key driver is the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law, which is expected to attract domestic and foreign capital inflows.
Despite positive prospects, Unicapital highlighted risks such as global trade uncertainties, potential supply chain disruptions, and external shocks affecting food and oil prices. However, policy reforms and domestic market resilience are expected to mitigate these risks.
PSEi and sector performance
Unicapital forecasts a PSEi target of 7,800, backed by a 10-percent earnings growth in the stock market. Sectors likely to benefit include banking, consumer goods, and real estate due to lower interest rates and higher market liquidity.
The real estate investment trust (REIT) market is also expected to remain strong, offering attractive yields. Meanwhile, the gaming sector continues to expand both locally and internationally, particularly in emerging markets like Brazil.
Ben Thomas Pañares, president and CEO of Unicapital Securities, reaffirmed the company’s commitment to supporting businesses, investors, and regulators in navigating the evolving market landscape.
“Unicapital Securities remains dedicated to empowering mid-cap markets and emerging businesses while educating stakeholders on strategies to achieve financial success,” he stated.
Investment and market opportunities
The telecommunications sector, particularly broadband and prepaid fiber services, is also expected to experience growth. Owen Kiefer Ocampo, Converge ICT’s head of investor relations, emphasized the increasing demand for flexible internet solutions, which will drive the company’s expansion into new residential and enterprise markets.
“With 2025 being a favorable year for the Philippine economy, it is an opportune time for investments,” Estacio-Cruz said.
Unicapital officials said they remain confident that strong financial knowledge and resilient industries will sustain the Philippines’ economic momentum, positioning the country for sustained post-pandemic recovery.
