Philippine economic growth slowed to 2.1% in third quarter

China News Service, Manila, November 9 (Reporter Zhou Jing) Data released by the Philippine Statistics Authority on the 9th showed that the Philippines’ gross domestic product (GDP) in the third quarter of 2026 increased by 2.1% year-on-year, lower than the 2.4% in the second quarter and 4% in the same period last year.

After seasonally adjusting, the Philippines' GDP in the third quarter increased by 0.1% from the previous quarter, lower than the 0.6% in the second quarter, indicating that economic growth momentum has further weakened.

Judging from historical performance, the Philippines' year-on-year GDP growth rate in the third quarter was the lowest since the first quarter of 2021. If the economic fluctuations during the new crown epidemic are excluded, it is the lowest level since the fourth quarter of 2009.

Dennis Mapa, director of the Philippine Bureau of Statistics and national statistician, said at a press conference that day that the weak performance of the agricultural and industrial sectors in the third quarter offset the growth of the service industry and weighed on the overall economic growth.

In terms of industries, agriculture, forestry and fishery fell by 4.8% year-on-year in the third quarter, while growing by 2.9% in the same period last year; industry fell slightly by 0.003%, basically the same as the same period last year, growing by 0.7%; the service industry grew by 3.7% year-on-year, lower than 5.5% in the same period last year.

In terms of expenditure structure, residents' final consumption expenditure increased by 2.4% year-on-year in the third quarter, and gross capital formation decreased by 0.2%. Government final consumption expenditure, exports and imports of goods and services increased by 6.8%, 8.6% and 7.7% respectively.

In addition, the Philippines’ gross national income (GNI) increased by 2.7% year-on-year in the third quarter.

The Philippine government has previously lowered its economic growth target for 2026 from 5% to 6% to 3.5% to 4.5%. Economic growth in the first three quarters was weak, and the Philippines faces greater pressure to achieve its full-year economic growth target. (over)