Philippine economic growth to pick up in second half of 2026 — Balisacan

Philippine economic growth is expected to pick up in the second half of the year, as an average growth of at least 3.7% is needed in the second to fourth quarters to achieve the lower end of the government’s already downgraded target range.

According to Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan, the gross domestic product (GDP) should grow by 3.7% in the last three quarters of the year to achieve the lower end of the 3.5%-4.5% target range.

“Our first quarter is only 2.8 (percent), which means that the next three quarters, especially in the second half, have to be much better to achieve that target,” he told reporters in Mandaluyong City.

The first-quarter growth of 2.8% compares with the 5.4% growth the same quarter last year, and is the slowest footing since the 3.8% contraction in the first quarter of 2021 when the COVID-19 pandemic lockdowns were in place.

Balisacan earlier attributed the deceleration to the impact of domestic and global challenges, such as the flood control corruption scandal, and the Middle East crisis that has triggered global fuel prices to skyrocket.

For the second quarter, Balisacan said growth was still likely hit by overseas concerns, as this was the peak of the conflict between the United States and Iran.

“We see that the second-half would be a much more improved situation insofar as the infrastructure and government spending is concerned,” Balisacan said.

The Philippines reached upper-middle-income country status this year, after its gross national income (GNI) per capita reached $4,850, exceeding the World Bank’s $4,636 threshold for the classification. — RSJ, GMA News