Philippine Economy Expands 0.9% QoQ

The Philippine economy expanded 0.9% quarter-on-quarter in Q1 2026, missing expectations of 1.5% growth but slightly accelerating from a 0.6% expansion in Q4. Growth in household consumption slowed (0.7% vs 1.0% in Q4), while net trade weighed heavily on the economy as imports surged 13.5% (vs -2.2%) and export growth eased to 1.2% (vs 5.4%). Meanwhile, government spending accelerated (6.0% vs 1.0%), while fixed investment rebounded (0.9% vs -2.3%). Among major sectors, services growth eased (0.9% vs 1.3%), while activity rebounded in agriculture, forestry, and fishing (0.6% vs -0.6%) and industry (1.2% vs -0.6%).

The Philippine economy expanded 0.6% quarter-on-quarter in the three months to December 2025, picking up from a revised 0.3% in the previous period but falling short of expectations for a 1.3% expansion. Growth accelerated for household consumption (1.3% vs 0.7% in Q3), while government spending rebounded (1.2% vs -0.6%). Net trade also contributed positively, with exports rising 4.8% (vs 2.2%) and imports declining 3.4% (vs 0%). This was partly offset by continued contraction in fixed investments (-2.9% vs -3.8%). Among major sectors, growth picked up in services (1.5% vs 0.8%), while output fell in agriculture, forestry, and fishing (-0.9% vs -2.7%) and in industry (-1% vs -0.1%).

The Philippine economy grew by 0.4% quarter-on-quarter in the three months to September 2025, easing from a 1.5% expansion in the previous period and falling short of expectations for a 0.8% increase. This marked the weakest growth since the contraction in Q2 2020, driven by slower household consumption growth (0.5% vs 1.1% in Q2). Contractions also persisted in government spending (-0.2% vs -2.3%) and fixed investments (-3.6% vs -0.5%). Meanwhile, net trade contributed positively, as exports rose 1.4% following a 0.4% drop in the prior period, while imports continued to decline by 0.7% after a 4.6% fall. Among major sectors, activity slowed in industry (0.1% vs 0.4%) and services (0.9% vs 1.9%), while output fell for the first time in a year in agriculture, forestry, and fishing (-2.9% vs 2.7%).