Philippine economic growth slows to 2.1% in third quarter of 2026

ASM, Philippine Canadian Inquirer
November 09, 2026

Photo courtesy: BusinessWorld

The Philippine economy grew by 2.1% in the third quarter of 2026, slowing from 2.4% in the previous quarter, according to the Philippine Statistics Authority (PSA).

The latest gross domestic product (GDP) figures, released on Monday, November 9, showed weaker economic growth from July to September.

The third-quarter result also marked a slowdown from the same period in 2025, when the economy expanded by 4%.

Meanwhile, the PSA revised second-quarter growth upward from the initial estimate of 2.3% to 2.4% before releasing the latest figures.

Services drive economic growth

The services sector remained the main driver of economic growth, expanding by 3.7% in the third quarter.

Wholesale and retail trade, including vehicle and motorcycle repairs, grew by 3.54%.

Public administration and defense, including compulsory social security, recorded 9.9% growth.

Meanwhile, financial and insurance activities expanded by 3.47%.

These industries were among the largest contributors to overall economic growth during the quarter.

Agriculture contracts as industry stalls

While services continued to expand, agriculture and industry showed weaker performance.

Agriculture, forestry and fishing contracted by 4.8% compared with the same period last year.

Meanwhile, the industry sector recorded a slight decline of 0.003%, indicating almost no change in output.

The contrasting results show that economic performance remained uneven across major sectors.

Household and government spending increase

On the demand side, household consumption grew by 2.4% year-on-year.

This measures spending by Filipino households on goods and services, making it a key indicator of domestic economic activity.

Government spending also increased by 6.8% during the quarter.

Meanwhile, exports of goods and services rose by 8.6%, while imports increased by 7.7%.

However, gross capital formation declined by 0.2%. The measure reflects investment in assets such as buildings, equipment and inventories.

Economic growth continues at a slower pace

The latest figures show that the Philippine economy continued to expand, although at a slower annual rate than in the previous quarter.

GDP measures the value of goods and services produced within a country. A positive growth rate means economic output increased compared with the same period a year earlier.

The PSA also reported that gross national income grew by 2.7% in the third quarter.

Meanwhile, net primary income from the rest of the world increased by 6.6%.