Philippine Economy Grows 2.3% in Q2 2026, Missing Previous Quarters' Pace

MANILA, Philippines — The Philippine economy grew by 2.3% in the second quarter of 2026, according to a report released by the Philippine Statistics Authority (PSA) on Friday, August 7. This growth rate is slower than the 2.8% expansion in the first quarter and the 5.4% growth recorded in the same period last year. The statistics agency stated that the top contributors to the recent growth were the wholesale and retail trade and repair of motor vehicles and motorcycles, which saw a 4.6% growth rate, followed by education with 12.7%, and manufacturing with 2.6%. Meanwhile, the gross national income (GNI) recorded an increase of 2.2%. While GDP measures income earned within a country's borders, GNI accounts for income earned by a country's residents regardless of where it is generated, including foreign investments and remittances from overseas Filipino workers. Department of Economy, Planning, and Development Secretary Arsenio Balisacan confirmed during the same press conference that the lack of public construction contributed to the 9.2% decline in investments. "The sharp decline in public construction was the main contributor to the decline in investment by 9.2%," Balisacan stated, attributing the slowdown to a corruption scandal related to flood control projects. To meet the government's annual growth target of 3.5% to 4.5%, Balisacan added that a growth of 4.4% is needed in the second semester.