The Philippine economy expanded at its slowest pace in the second quarter of 2026, growing 2.3 percent, the Philippine Statistics Authority reported Friday. The figure was slower than the 2.8 percent in the first quarter and well below the government's downgraded 3.5-to-4.5 percent annual target, marking the weakest performance in 16 years outside the pandemic period.

War-driven inflation eroded household consumption, a key growth driver. Consumer prices peaked at 7.2 percent in April, well above the government's 3 percent target. Household consumption growth slowed to 2.8 percent from 5.2 percent a year earlier, while government spending fell to 8.3 percent from 8.7 percent and infrastructure disbursements contracted 9.2 percent, Inquirer business (PH) reports.