Philippines Q2 2026 economy slows to 2.3% as agriculture rebounds

The Philippine economy recorded a 2.3% annual growth rate in the second quarter of 2026, the weakest pace since 2021. Growth was dragged down by a 14.8% contraction in construction and softer household spending, while inflation averaged 5% over the first seven months, above the government’s 3% target. Economic Planning Secretary Arsenio Balisacan attributed the slowdown partly to a corruption scandal involving flood‑control projects and said the government expects infrastructure spending to pick up later in the year.

In contrast, agricultural output rebounded, expanding 2.9% to a value of P452.22 billion in the April‑June period. Crop production rose 1.6%, led by a 5.7% increase in rice, while livestock grew 3.6% and poultry surged 6.3%. Fisheries output also rose 2.7%. The Philippine Statistics Authority highlighted the turnaround from a 0.3% contraction in the first quarter, indicating a recovery in the sector despite the broader economic slowdown.