On August 7, the Philippine Statistics Authority reported that the economy grew by a measly 2.3% in the second quarter of 2026, down from 2.8% in the first quarter.
Save for the pandemic contraction, that is our weakest quarterly growth in 16 years. A BusinessWorld poll of 21 analysts had expected 2.8%, so the actual print also undershot even the already gloomy consensus.
The regional comparison also hurts a lot. In the same quarter, Vietnam grew by a robust 8.4%, while Malaysia grew by 5.8%, Singapore by 5.7%, and Indonesia by 5.3%. Even China, weighed down by a property slump and trade tensions, managed to eke out 4.3%.
That leaves the Philippines last among nearby economies that have reported so far. (Thailand’s second-quarter data are not yet out.)
Not too long ago, government officials routinely described the Philippines as one of Asia’s fastest-growing economies. That claim no longer seems tenable. Growth has substantially slowed for four consecutive quarters: from 5.4% in the second quarter of 2025 to 4%, 3%, 2.8%, and now 2.3%.
