Philippine economy grows just 2.3% in Q2, missing forecasts and worst in 17 years
MacroDigital Finance
The Philippine economy expanded by only 2.3% in the second quarter of 2026 compared with a year earlier, below the 2.9% forecast by analysts and slowing from 2.8% in the first quarter. That marks the weakest growth rate since the fourth quarter of 2009, excluding the COVID-19 pandemic period. Investment contracted by 9.2% and household consumption grew just 2.8%, the slowest pace since 2010 outside the pandemic, amid pressure from surging oil prices driven by the conflict in Iran. The peso weakened about 0.4% and the main Philippine stock index fell 0.7% after the data release. The Philippine economic planning secretary said that to achieve the full-year growth target of 3.5% to 4.5%, the economy needs to expand at least 4.4% in the second half of the year, which is a major challenge.
