The Philippine economy expanded at an annualized rate of just 2.3% in the second quarter, marking the weakest growth pace since the pandemic era.
The sluggish performance was driven by persistent weakness in government spending and the broader economic fallout from escalating conflict in the Middle East.
5% annualized expansion in the same period, the Philippines' figures highlight the specific challenges faced by economies reliant on stable external trade routes and consistent fiscal stimulus.
The data underscores the vulnerability of emerging markets to external geopolitical shocks and domestic fiscal constraints.
With public investment failing to provide a counterweight to private sector caution, the growth trajectory has softened significantly compared to earlier recovery phases.
This development adds to a global narrative of uneven economic momentum.
While the US economy also showed signs of deceleration with a 1.5% annualized expansion in the same period, the Philippines' figures highlight the specific challenges faced by economies reliant on stable external trade routes and consistent fiscal stimulus.