By Philstar
The Philippine economy grew by only 2.8% in the first quarter of 2026, putting the country well below the pace needed to meet full-year forecasts by multilateral and private-sector analysts.
The first-quarter gross domestic product growth was slower than the 3% recorded in the fourth quarter of 2025 and 4% in the same period last year, based on Philippine Statistics Authority data released Thursday, May 4.
The quarterly GDP is the lowest recorded since the first quarter of 2021, a year after the global COVID-19 pandemic broke out and shut down markets.
The figure also fell short of the growth implied by earlier forecasts. The Asian Development Bank projected Philippine GDP growth of 4.4% for 2026, while private firms’ analysis expected the economy to expand by about 5.2% this year.
BMI, a Fitch Solutions unit, said in February that it expected Philippine growth to accelerate to 5.2% in 2026. But this was before the global oil shock following the United States’ attacks and subsequent actions on Iran.
Services carry growth
The government’s data agency said the main contributors to first-quarter growth were wholesale and retail trade and repair of motor vehicles and motorcycles, which grew 4.6%; financial and insurance activities, 3.4%; and public administration and defense and compulsory social security, 8.6%.
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