Key facts
- The Philippine economy grew 2.3% year-on-year in the second quarter.
- Economists had forecast 2.8% growth for the second quarter.
- Quarterly growth slowed to 0.6% in Q2 from 0.9% in Q1.
- Annual inflation eased to 6.2% in July.
- The government cut its full-year growth forecast to 3.5%-4.5%.
The Philippine economy expanded 2.3% year-on-year in the second quarter, falling short of the 2.8% growth predicted by economists in a Reuters poll. On a seasonally adjusted quarter-on-quarter basis, the economy grew 0.6% in the April-June period, a slowdown from 0.9% in the previous quarter. Annual inflation eased for a third consecutive month in July to 6.2% from 6.4% in June, primarily due to a slower increase in transport costs. The government has revised its full-year growth forecast downwards to between 3.5% and 4.5%, citing the Middle East crisis and a corruption scandal that has hampered public spending. The budget planning committee has set a GDP growth target of 5% to 6% for the period between 2027 and 2030.