Philippines Q1 GDP up 2.8% on Year, Lower than Expected
Growth slowed as higher fuel costs, delayed budget spending and weaker investment held back demand, with quarterly GDP rising just 0.9% from the prior quarter.
- On Thursday, May 7, the Philippine Statistics Authority reported the country's gross domestic product grew 2.8% in the first quarter of 2026, considerably lower than the 5.4% growth recorded in the same period of 2025.
- Economic Planning Secretary Arsenio Balisacan attributed the slow expansion to "significant domestic and global challenges," citing delays in the 2026 budget passage and rising fuel costs stemming from the Middle East conflict.
- Services grew 4.5%, though agriculture and forestry declined 0.2% and industry contracted 0.1%, while annual inflation surged to 7.2% in April, exceeding The Bangko Sentral's forecast range of 5.6% to 6.4%.
- To address the slowdown, Balisacan directed agencies to accelerate high-impact infrastructure projects and continue implementing UPLIFT to shield vulnerable households from soaring prices.
- Government officials will adjust growth targets downward due to global uncertainty, while Balisacan warned that coming months could bring dry spells and droughts, further straining agriculture, energy supply, and water resources.
12 Articles
12 Articles
Philippines: Economic growth at five-year low due to Mideast war
MANILA, Philippines — The Middle East war and a major corruption scandal drove Philippine economic growth to a five-year low, officials said Thursday, adding future targets would be lowered. Gross domestic product expanded 2.8 percent for the three months to March, sharply down from the 5.4 percent in the same period last year, the Philippine Statistics Authority said. READ: PSEi slump persists on rate hike, inflation fears It was also a dip fr…
Oil shock, corruption scandal drag Philippine economy's growth to 2.8% in Q1 2026
MANILA, Philippines – The Philippine economy grew at a much slower pace in the first quarter of 2026 as price shocks brought by the Middle East conflict dampened household spending and the flood control corruption scandal continued to weigh on consumer sentiment and business confidence. The Philippine Statistics Authority said on Thursday, May 7, that the country’s gross domestic product (GDP) grew by only 2.8% in the first quarter of 2026, cons…
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