The Philippine economy expanded by 2.8% in the first quarter of 2026, marking a slowdown from the previous quarter, according to data released by the Philippine Statistics Authority (PSA) on Thursday.

According to PSA, the latest gross domestic product (GDP) figure is lower than the 3.0% growth recorded in the fourth quarter of 2025 and significantly below the government’s revised full-year target range of 5 to 6%, which was earlier reduced from 6 to 7%. It also lags behind the 5.4% expansion posted in the same period in 2025.

PSA reported the main contributors to year-on-year growth were;

• Wholesale and retail trade, including repair of motor vehicles and motorcycles, which grew 4.6%;
• Financial and insurance activities, up 3.4%, and;
• Public administration and defense, which expanded by 8.6%

Among major economic sectors, services recorded a 4.5 percent growth in the first quarter of 2026.

In contrast, agriculture, forestry, and fishing contracted by 0.2%, while the industry sector declined by 0.15.

On the demand side, household final consumption expenditure grew by 3.0%. Government spending also increased by 4.8%, while exports of goods and services rose by 7.8 percent and imports by 6.1%. Gross capital formation, however, declined by 3.3 percent during the period.

The PSA also reported that Gross National Income grew by 3.0% year-on-year in the first quarter of 2026. Net primary income from the rest of the world increased by 4.5% over the same period.