Ren茅 Muschter
Research Expert covering Industry & Mobility
Construction sector in the Philippines - statistics & facts
The construction sector plays a vital role in the Philippine economy, contributing approximately seven percent of the country鈥檚 gross domestic product (GDP) in 2024. Fueled by the national government鈥檚 infrastructure program, the sector attracted about 1.5 billion Philippine pesos in foreign investments and generated employment opportunities for thousands of Filipinos. Despite challenges from the COVID-19 pandemic, the sector is poised for growth as the economy recovers, aided by easing inflation rates.
The Philippine construction sector has shown clear signs of recovery since the pandemic, with increasing private construction activity and gradual completion of public projects. Slower increases in material prices further support this positive trend.
Improving the Nation鈥檚 Infrastructure with 鈥淏uild Better More鈥
The Philippine government鈥檚 flagship infrastructure program, 鈥淏uild Better More鈥 (BBM), supersedes the previous 鈥淏uild! Build! Build!鈥 initiative. As of the first quarter of 2025, the National Economic and Development Authority (NEDA) reported that 35 percent of the 207 identified projects are ongoing, with less than five percent completed. The BBM program, estimated at nine to 10.4 trillion Philippine pesos, includes 198 high-impact infrastructure flagship projects (IFPs), 73 of which were carried over from the former program. Its focus spans physical connectivity, water resources, and agriculture, with funding from official development assistance (ODA), the General Appropriations Act (GAA), and public-private partnerships (PPP). Government spending on infrastructure has increased by over 512 percent in the last decade. Major projects include the Metro Manila Subway, North-South Commuter Railway Extensions, the Bataan-Cavite Interlink Bridge, Panay-Guimaras-Negros Bridge, Taguig Integrated Terminal Exchange, and the New Manila International Airport.Easing Inflation Supports Sector Recovery
The COVID-19 pandemic caused significant delays and cancellations in both private and public construction projects due to disrupted supply chains and workforce challenges. As restrictions eased, construction activity resumed, with non-residential building construction peaking in 2024, driven primarily by commercial projects. Residential construction volumes, however, remain below 2019 levels. The inflation rate dropped to 3 percent in 2024, despite continued increases in the average nominal bank lending rates to their highest since 2017. Prices for construction materials also showed slower growth at both wholesale and retail levels.The Philippine construction sector has shown clear signs of recovery since the pandemic, with increasing private construction activity and gradual completion of public projects. Slower increases in material prices further support this positive trend.
