The Philippine economy grew by 2.1 percent in the third quarter of 2026, data released by the Philippine Statistics Authority on Monday, Nov. 9, showed.
The rate was slower than the revised 2.4 percent reported in the previous quarter, based on PSA data.
According to Department of Economy, Planning and Development Secretary Arsenio Balisacan, three factors contributed to the "weakness."
He said first were the high food and energy prices that "constrained household spending," which grew by 2.4 percent, down from the 2.9 percent from the previous quarter.
He said the Middle East conflict raised fuel costs, affecting transport, electricity, and production.
Second, he said, was agriculture, which contracted by 4.8 percent, with tropical cyclones and the enhanced southwest monsoon disrupting production.
"Palay and corn output fell by more than 17 percent, reducing rural incomes and adding to food supply pressures," he said.
The third factor, he said, was investment, which "remained subdued."
"Public construction declined for the sixth consecutive quarter, although its contraction eased to 15.1 percent from 33.4 percent. Private construction barely expanded, while investment in durable equipment fell by 7.8 percent," he said.
He said "weather disruptions and delays in project validation and payments constrained infrastructure delivery," with these delays "affecting contractors' capacity to pay workers, purchase materials, and undertake further work."
"Governance concerns and uncertainty also weighed on confidence," he added.
He said the "pressures help explain why industry recorded no growth and services slowed to 3.7 percent."
Despite the weaknesses, Balisacan noted there were "areas of strength."
He cited exports, which grew by 8.6 percent, with electronics exports expanding by 19.4 percent amid the demand for AI-related products.
Business services exports, he said, also gained momentum, while "government consumption supported activity."
