The Philippine economy expanded by only 2.8% in the first quarter of 2026, its slowest growth pace since the pandemic period, according to the Philippine Statistics Authority.
PSA chief and National Statistician Claire Dennis Mapa said the January to March growth rate was slower than the 3% recorded in the fourth quarter of 2025 and significantly below the 5.4% growth posted in the same period last year.
The first quarter performance marked the weakest economic expansion since the COVID-19 lockdown period in 2021.
Department of Economy, Planning and Development Secretary Arsenio Balisacan said a combination of domestic and global pressures weighed heavily on economic activity.
“We recognize that this outcome reflects the combined impact of significant domestic and global challenges,” Balisacan said.
He pointed to the lingering impact of the flood control corruption controversy, which he said weakened consumer sentiment and business confidence.
Household spending slowed to 3% during the quarter from 5.3% a year earlier, while investments contracted by 3.3%, reversing earlier gains.
The construction sector also shrank by 4.5%, contributing to the weaker investment performance.
Balisacan also cited delays in the approval and release of the 2026 national budget, which slowed infrastructure rollout and government programs.
Government spending grew by only 4.8%, sharply lower than the 18.7% expansion recorded in the same period last year.
The administration also blamed the ongoing Middle East conflict for driving higher oil prices and renewed supply chain pressures, adding to inflation concerns for the Philippines as a major oil importer.
Among the major sectors, services remained the main growth driver with 4.5% expansion, while agriculture and industry slightly contracted.
Economic managers said the administration is now focusing on restoring public trust, accelerating infrastructure spending, and strengthening transparency measures in government processes.
Balisacan said agencies have been ordered to fast-track major projects under stricter accountability and monitoring systems.
The government is also continuing its UPLIFT program to cushion the impact of rising fuel prices and global disruptions on vulnerable sectors.
