Philippines Q1 GDP Growth Slows to 2.8 Percent in Early 2026
The Philippine economy grew 2.8 percent in the first quarter, missing forecasts due to budget delays. Officials will boost infrastructure spending for growth.
The Philippines economy grew 2.8% in the first quarter, missing analyst estimates as high energy costs and budget delays hampered domestic activity. Economists in a Reuters poll had expected 3.5% growth. Persistent inflation and global supply chain disruptions now threaten the government's ability to maintain its annual growth momentum.
### Budget Delays and Global Headwinds Economic Planning Secretary Arsenio Balisacan said that the slowdown reflected domestic and global challenges. Delays in the passage and release of the 2026 budget restricted government spending during the January-March period. On a seasonally adjusted basis, GDP rose 0.9% quarter-on-quarter, trailing the 1.5% expansion forecast by markets.
