Philippine Q2 2026 GDP 2.3% YoY, Slowest Since 2009

The Philippine economy grew at its slowest pace since the global financial crisis outside of the pandemic, expanding just 2.3% year-on-year in the second quarter, according to official data released on August 7. The result fell short of analyst expectations and marked a further deceleration from 2.8% growth in the first quarter, increasing concerns about the country’s economic outlook amid weak government spending, high inflation, and global uncertainties.

The Philippine Statistics Authority reported the slower-than-anticipated growth on Friday. On a quarter-on-quarter basis, the economy grew by a seasonally adjusted 0.6% from April to June, down from the 0.9% expansion in the previous three-month period. This performance represents the weakest growth since the fourth quarter of 2009, excluding the years impacted by the COVID-19 pandemic.

Economists had forecast the economy would match the first-quarter pace, but the latest figures highlight growing headwinds. The government had already cut its 2026 full-year growth target range to 3.5% to 4.5% in June, down from an earlier goal of 5% to 6%. Officials cited the prolonged conflict in the Middle East, which has disrupted oil...