FX.co ★ Philippine GDP Growth Hits Weakest Since 2009 Ex-Covid

The Philippines’ GDP grew 2.3% year-on-year in Q2 2026, below expectations that it would match Q1’s 2.8%. Excluding the COVID-19 period, this was the weakest expansion since Q4 2009, as the economy continued to grapple with an energy shock triggered by the Iran war and exacerbated by a major corruption scandal.

Household consumption growth eased to 2.8%, down from 3.0% in Q1. Fixed investment fell sharply, contracting 13.7% compared with a 2.5% decline in the previous quarter, the steepest drop in more than five years. By contrast, government spending accelerated, rising 8.3% versus 4.8% in Q1.

Net trade made a positive contribution to overall growth. Exports surged 12.2%, up from 0.8% in Q1, while imports grew at a more moderate 5.5%, compared with 6.8% previously.

On the production side, industrial output shrank 2.4% after a marginal 0.1% decline in Q1. Services growth edged down to 4.5% from 4.6%. Meanwhile, output in agriculture, forestry, and fishing rebounded, expanding 2.0% after a 0.3% contraction in the previous quarter.

Overall, the latest GDP figures remained below the government’s 5%–6% growth target.