UA&P sees PH GDP growth slowing to 2.6%

MANILA, Philippines – Philippine economic growth is expected to slow further in the second quarter as persistent inflationary pressures and softer domestic demand continued to hold back the country’s recovery, according to the University of Asia and the Pacific (UA&P).

In its latest market comment, UA&P estimated that gross domestic product (GDP) expanded by 2.6 percent in the second quarter, slower than the 2.8 percent growth recorded in the first three months of the year.

READ: S&P cuts PH growth outlook to 4.1%

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If realized, this would fall below the Marcos administration’s revised full-year growth target of 3.5 to 4.5 percent.

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The Philippine Statistics Authority is scheduled to release the official second-quarter GDP data on Aug. 7.

“Recent indicators suggest that the Philippine economy is posting early signs of recovery momentum, but the outlook remains constrained by elevated inflation and weaker domestic demand,” UA&P said.

READ: OECD cuts 2026 PH GDP growth forecast to 3.2%

”Inflation is likely to stay above target for the rest of the year, keeping the Bangko Sentral ng Pilipinas on a tightening path where we expect an additional 50 basis points of rate hikes,” it added.

Consumer prices eased to 6.8 percent in May from 7.2 percent in April, although it remained among the highest levels in the past three years. INQ

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