Philippine GDP Growth Slows in Q1
2026-05-07 02:13
By
Kyrie Dichosa
1 min. read
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.