Malacañang has attributed part of the Philippines’ slower economic performance to political noise, alleged destabilizers, fake news and the Middle East crisis.
Palace Press Officer Claire Castro said political activity directed against the administration had affected the economy, along with external and domestic factors.
Castro said critics were allegedly seeking to remove President Ferdinand Marcos Jr. from office and described their actions as political noise, destabilization and obstruction.
She also cited the Middle East crisis and various natural disasters affecting the Philippines as factors that added to the country’s economic difficulties.
The Philippine economy grew by 2.3% year on year in the second quarter of 2026, according to the Philippine Statistics Authority. The figure was lower than the 2.8% growth recorded in the first quarter.
The PSA reported that wholesale and retail trade, education, and manufacturing were among the main contributors to second-quarter growth. Agriculture, forestry and fishing grew 2.7%, while services expanded 4.5%. The industry sector, however, contracted 2.4%.
On the demand side, household consumption increased 2.8%, while government consumption, exports and imports also posted growth. Gross capital formation declined 9.2% during the quarter.
The Palace said the Middle East crisis had contributed to economic pressures. The conflict has also raised concerns across Southeast Asia because of the region’s dependence on Middle Eastern energy supplies.
Castro’s remarks came amid discussions over the reasons behind the Philippines’ weaker second-quarter economic performance.
The 2.3% second-quarter GDP growth was the slowest since the COVID-19 pandemic, according to the Philippine News Agency. Malacañang has described the slowdown as temporary and said it expects economic momentum to improve in the second half of 2026.
