The Philippine economy grew by 2.3% in the second quarter of 2026, the Philippine Statistics Authority (PSA) reported during a press conference on Friday, August 7.
The second quarter economic growth is slower than the first quarter expansion of 2.8%, and the 5.4% growth recorded in the same period last year.
The statistics agency said the top contributors to the recent growth are the wholesale and retail trade and repair of motor vehicles and motorcycles, with 4.6% growth rate, followed by education with 12.7%, and manufacturing with 2.6%.
The gross national income (GNI), meanwhile, recorded an increase of 2.2%.
The GDP refers to how much is earned by the country inside its borders, while the GNI refers to the income made by the country regardless of where it is made, including foreign investments and remittances from overseas Filipino workers.
Investments declined due to flood control scandal
Meanwhile, Department of Economy, Planning, and Development Secretary Arsenio Balisacan confirmed in the same press conference with the statistics agency that the lack of public construction due to flood control corruption scandal contributed to the decline in investments.
‘To confirm the sharp decline in public construction was the main contributor to the decline in investment by 9.2%,’ Balisacan said.
Balisacan added that a growth of 4.4% is needed in the second semester to meet the government’s annual growth target of 3.5% to 4.5%,