Malacañang said the slowdown in the Philippine economy is temporary after the country’s gross domestic product (GDP) grew by 2.3% in the second quarter of 2026, the weakest growth recorded in five years.
Palace Press Officer Claire Castro said the administration recognizes that the latest GDP growth fell below expectations but maintained that it does not reflect the country’s long-term economic direction.
According to Castro, several unusual events contributed to the weaker economic performance, including the conflict in the Middle East, which affected inflation, oil prices, employment, and remittances.
She also said a temporary slowdown in public construction projects contributed to the lower growth as the government intensified efforts to address corruption in infrastructure spending.
Despite the weaker performance, Castro said the administration remains optimistic that economic growth will accelerate during the second half of the year as government spending and the release of public funds increase.
The Palace also pointed to positive trends in other key economic indicators, including higher exports, manufacturing output, agricultural production, government spending, and tourism.
Castro said the administration will continue to fast-track infrastructure projects, maintain price stability, expand assistance for vulnerable sectors, and implement measures aimed at boosting exports and the digital economy.
The government maintained that these initiatives are expected to support stronger economic activity in the coming months.
The Philippine economy expanded by 2.3% in the April-to-June period, marking its slowest quarterly growth in five years, according to the figures cited by the Palace. Government officials said they expect the pace of growth to recover as public spending increases and economic programs continue in the remainder of 2026.
