The Philippine economy expanded by 2.3 percent in the second quarter of 2026, reflecting a slower pace of growth amid a decline in industrial output, according to data released by the Philippine Statistics Authority (PSA).
The latest figure was lower than the 2.8 percent growth recorded in the first quarter of 2026 and the 5.4 percent posted during the same period last year.
On the demand side, household final consumption expenditure increased by 2.8 percent from April to June, while government final consumption expenditure grew by 8.3 percent.
Exports of goods and services rose by 12.2 percent, while imports expanded by 5.5 percent. However, gross capital formation, a measure of investments in the economy, contracted by 9.2 percent during the quarter.
PSA data showed that the country's economic growth was driven mainly by wholesale and retail trade, including the repair of motor vehicles and motorcycles, which expanded by 4.6 percent. The education sector grew by 12.7 percent, while manufacturing increased by 2.6 percent.
Among the major economic sectors, agriculture, forestry, and fishing recorded a 2.7-percent increase, while the services sector expanded by 4.5 percent. In contrast, the industry sector posted a 2.4-percent decline from the previous year.
National Economic and Development Authority Secretary Arsenio Balisacan said the country nevertheless continued to show signs of resilience despite the slowdown.
"There were also clear areas of strength. Agricultural output recovered with the help of favorable weather conditions. Manufacturing growth improved, while exports of goods and services gained momentum. Stronger semiconductor exports, supported by global demand for AI-related products, helped net exports rebound during this semester," Balisacan said.
For the first half of the year, the country's gross domestic product growth averaged 2.6 percent.
Balisacan said the economy would have to grow by 4.4 percent in the second half of 2026 to achieve the government's annual growth target of 3.5 percent to 4.5 percent.
Gross domestic product measures the total value of goods and services produced within a country and serves as one of the primary indicators of economic performance.
