The Philippine economy slowed sharply in the first quarter of 2026, recording its weakest growth in five years as declines in the agriculture and industrial sectors pulled down overall economic performance.
Data released by the Philippine Statistics Authority (PSA) showed that the country’s Gross Domestic Product (GDP) expanded by only 2.8 percent from January to March 2026, significantly lower than the 5.4-percent growth posted during the same period last year.
According to the PSA, the country’s services sector remained the primary driver of economic activity during the quarter.
Among the industries that contributed most to growth were wholesale and retail trade, including repair of motor vehicles and motorcycles, which grew by 4.6 percent. Financial and insurance activities also expanded by 3.4 percent, while public administration and defense, including compulsory social security, posted an 8.6-percent increase.
The services sector overall recorded a 4.5-percent year-on-year growth in the first quarter.
In contrast, agriculture, forestry, and fishing contracted by 0.2 percent, while the industry sector slipped by 0.1 percent during the same period.
On the expenditure side, household final consumption expenditure grew by 3.0 percent, reflecting continued consumer spending despite economic headwinds.
Government spending also increased by 4.8 percent, while exports and imports of goods and services rose by 7.8 percent and 6.1 percent, respectively.
Meanwhile, gross capital formation, which measures investments in fixed assets and inventories, declined by 3.3 percent in the first quarter.
The PSA also reported that Gross National Income (GNI) grew by 3.0 percent year-on-year, while Net Primary Income from the Rest of the World increased by 4.5 percent during the period.