PH GDP Slumps to 2.8%: Bakit Biglang Bumagal ang Ekonomiya
Philippine GDP growth slowed to 2.8% in Q1 2026, the weakest since the pandemic, as oil shocks, inflation, and confidence issues hit the economy.
The Philippine economy hit a sharp slowdown in the first quarter of 2026, with gross domestic product growing by only 2.8%, according to the Philippine Statistics Authority. That is far below the 5.4% growth recorded in the same period last year and marks the country’s weakest performance since the COVID-19 pandemic.
The latest GDP figure also missed the government’s already-lowered 5% to 6% target range and came in below analysts’ expectations of 3.4%. The slowdown comes as Filipinos deal with higher prices, weaker confidence, and the wider economic impact of global uncertainty.
Rappler reported that the Middle East conflict has pushed fuel and food prices higher, squeezing household spending. The flood control corruption scandal has also weighed on consumer sentiment and business confidence, adding another drag on growth.
By sector, services still grew by 4.5%, but agriculture, forestry, and fishing slipped by 0.2%, while industry contracted by 0.1%. The Bangko Sentral ng Pilipinas has also resumed interest rate hikes after its inflation outlook worsened, with inflation now seen averaging 6.3% in 2026.
Economy chief Arsenio Balisacan said the government will continue rolling out UPLIFT, a package meant to support livelihoods, industry, food, and transport, while also preparing for possible El Niño risks and pushing agencies to speed up high-impact infrastructure projects with stronger accountability. Source: Rappler
