Ocean economy’s share in GDP slips to 4-year low

By Isa Jane D. Acabal, Researcher

OCEAN-BASED INDUSTRIES’ contribution to the Philippine economy dropped to a four-year low in 2025, weighed down by a decline in fishery production amid softer global trade, weather disruptions and higher operating costs, analysts said.

Preliminary data from the Philippine Statistics Authority (PSA) showed the ocean economy accounted for 3.8% of the gross domestic product (GDP) at current prices in 2025, slipping from the revised 3.9% in 2024.

The sector’s share of GDP was the lowest since the 3.7% posted in 2021.

In terms of gross value added (GVA), the ocean economy grew by 5.3% to P1.08 trillion in 2025 from P1.02 trillion a year earlier. This was slower than the 6.2% expansion in 2024, and marked the weakest growth in five years, or since the 25.6% contraction in 2020 at the height of the pandemic.

“The slightly lower share of the ocean economy in GDP in 2025 can be attributed to ongoing declines in commercial fisheries and marine municipal fishery production brought about by fish stock depletion and habitat degradation,” Cid L. Terosa, an associate professor of economics at the University of Asia and the Pacific, said in an e-mail.

According to the PSA’s Fisheries Situation Report, fishery production reached 3.96 million metric tons (MT) in 2025, down 2.5% from 4.06 million MT in 2024.

“While ocean-based industries continued to grow by a healthy 5.3%, they faced headwinds from softer global trade, weather-related disruptions, and higher operating costs, which tempered growth compared with previous years,” Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message.

Among ocean-based activities, ocean fishing accounted for the biggest share of the total ocean economy at 24.1%, equivalent to P259.59 billion.

This was followed by manufacture of ocean-based products (21.3% share or P229.03 billion), sea-based transportation and storage (16.3% or P175.74 billion), and coastal accommodation and food and beverage service activities (12.1% or P130.27 billion).

Maritime safety, surveillance, and resource management posted the highest growth year on year at 31.7%, amounting to P63.87 billion in 2025 from P48.49 billion a year ago.

Marine insurance expanded by 29.6% to P16.32 billion, while sea-based transportation and storage grew by 10.8%.

Meanwhile, coastal recreation logged the biggest decline at 16.4% to P52.85 billion, a reversal of the 6.6% growth in 2024.

In 2025, the ocean economy generated 2.46 million jobs, up by 3.4% from 2.38 million in 2024. It accounted for 5% of total employment in the country last year.

By activity, ocean fishing had the largest share in the total ocean-based employment at 37.8% or 928,000 persons employed, followed by sea-based transportation and storage (23.6% or 580,000), and coastal accommodation and food and beverage service activities (21.7% or 534,000).

Mr. Terosa expects moderate overall performance for the country’s ocean economy this year.

“Fuel-dependent maritime production activities will be constrained by high energy costs due to the Middle East war. Commercial and ocean fishing will continue to underperform due to climate-related risks, weather disturbances, and resource depletion,” he said.

“Meanwhile, sea-based transportation and storage activities, coastal construction, and maritime tourism will continue to ride the wave, benefiting from a strong momentum that started in late 2025,” he added.

Mr. Ravelas said continued investments in ports, logistics, tourism, aquaculture, and other blue economy initiatives will drive growth in the sector.