Battered by global oil shocks, the Philippine economy as measured by Gross Domestic Product (GDP) grew by 2.8 percent in the first quarter of 2026, a notable slowdown compared to previous periods, based on a report by the Philippine Statistics Authority (PSA).
The 2.8 percent GDP growth in the first three months this year is lower than the 3 percent expansion seen in the fourth quarter of 2025. It is also a sharp decline from the 5.4 percent growth recorded in the same period last year (Q1 2025).
The government targets to achieve a 5 percent to 6 percent GDP for 2026.
The main contributors to the first quarter 2026 year-on-year growth were Wholesale and retail trade; repair of motor vehicles and motorcycles, 4.6 percent; Financial and insurance activities, 3.4 percent; and Public administration and defense; compulsory social security, 8.6 percent.
Among the major economic sectors, Services posted a year-on-year growth of 4.5 percent in the first quarter of 2026. Meanwhile, Agriculture, forestry, and fishing; and Industry declined year-on-year in the same period with 0.2 percent and 0.1 percent, respectively.
On the demand side, Household final consumption expenditure grew year-on-year by 3.0 percent in the first quarter of 2026.
Similarly, government final consumption expenditure, exports of goods and services, and imports of goods and services posted growths of 4.8 percent, 7.8 percent, and 6.1 percent, respectively.
Meanwhile, the gross capital formation posted a decline of 3.3 percent in the same period.
The gross national income grew year-on-year by 3.0 percent in the first quarter of 2026.
Likewise, net primary income from the rest of the world posted a year-on-year growth of 4.5 percent during the period.
