The Philippine economy recorded a year-on-year Gross Domestic Product (GDP) growth of 2.8 percent during the first quarter of 2026, according to the latest national data.
Key Contributors to Growth
Several sectors played a significant role in driving this expansion. To begin with, Wholesale and retail trade, along with the repair of motor vehicles and motorcycles, grew by 4.6 percent. Furthermore, Financial and insurance activities posted a solid increase of 3.4 percent. Additionally, Public administration and defense, including compulsory social security, registered the highest growth among contributors at 8.6 percent.
Performance Across Major Economic Sectors
Looking at the three major economic sectors, Services emerged as the strongest performer. Specifically, this sector expanded by 4.5 percent year-on-year in the first quarter of 2026.
In contrast, both Agriculture, forestry, and fishing, as well as Industry, experienced slight contractions. As a result, these sectors declined by 0.2 percent and 0.1 percent, respectively, during the same period.
Demand-Side Performance
On the demand side, Household final consumption expenditure increased by 3.0 percent year-on-year. Likewise, Government final consumption expenditure rose by 4.8 percent. Moreover, Exports of goods and services grew by 7.8 percent, while Imports of goods and services posted a 6.1 percent increase.
However, Gross capital formation told a different story. In particular, this component declined by 3.3 percent in the first quarter of 2026.
National Income Indicators
Finally, the Gross National Income (GNI) grew by 3.0 percent year-on-year. Similarly, Net Primary Income from the Rest of the World posted a 4.5 percent increase during the same period.
