Philippines GDP Growth Slows to 1-Year Low

The Philippines’ GDP expanded 2.8% year-on-year in Q1 2026, missing expectations of 3.5% growth and slowing from a 3.0% expansion in Q4. This marked the softest growth since the contraction in Q1 2021, as the Middle East war-driven oil shock compounded pressures from a major infrastructure graft scandal, pushing the Philippine economy into one of its weakest stretches in 16 years outside the pandemic period. Growth in household consumption eased (3.0% vs 3.8% in Q4), while fixed investment continued to contract (-2.7% vs -6.4%). Meanwhile, government spending accelerated (4.8% vs 0.7%), and net trade contributed positively, with exports rising 7.8% (vs 13.3%) and imports increasing at a slower 6.1% pace (vs 3.2%). On the production side, activity contracted in agriculture, forestry, and fishing (-0.2% vs 1.0%) and industry (-0.1% vs -0.3%), while growth in the services sector slowed (4.5% vs 4.9%). The latest GDP print came in below the government’s 5% to 6% target range.

The Philippines’ GDP grew 3% year-on-year in Q4 2025, below expectations of 3.8% and slowing from 3.9% in the previous quarter. This marked the softest growth since a contraction in Q1 2021, weighed down by fallout from a high-profile infrastructure corruption scandal, a string of devastating typhoons, and trade pressures that affected the Southeast Asian nation. Growth slowed in both government spending (3.7% vs 5.8% in Q3) and household consumption (3.8% vs 4.1%), while fixed investment fell for the first time in over a year (-7.2% vs 0.5%). Meanwhile, net trade contributed positively, as exports climbed 13.2% (vs 7.4%), while imports rose 3.5% (vs 3.2%). On the production side, activity softened in agriculture, forestry, and fishing (1% vs 2.9%) and in services (5.2% vs 5.4%), while industry output contracted (-0.9% vs 0.7%). For the full year 2025, the Philippine economy expanded 4.4%, missing the government’s target of 5.5%–6.5%.

The Philippines’ GDP grew by 4.4% year-on-year in Q3 2025, missing expectations of a 5.2% expansion and slowing from 5.5% in the previous quarter. This marked the weakest economic growth since the contraction in Q1 2021, as the recent infrastructure scandal curbed public spending and a series of typhoons disrupted activity. Growth slowed sharply for government spending (5.8% vs 8.7% in Q2) and household consumption (4.1% vs 5.3%), while fixed investments barely expanded (0.1% vs 3.1%). Meanwhile, net trade contributed positively to overall GDP, with exports rising 7% (vs 4.7%) and imports growing at a softer 2.6% (vs 3.5%). On the production side, activity weakened across all major sectors, including agriculture, forestry, and fishing (2.8% vs 7%), industry (0.7% vs 2.1%), and services (5.5% vs 7%). The latest GDP print also came in below the government’s 5.5% to 6.5% target range.