As the Philippines prepares to host the ASEAN Summit, the gross domestic product (GDP) of the nation slowed down to 2.1% in the 3rd quarter of this year, according to a news report by BusinessWorld. This new development makes the Philippines the economic weakling of the Association of Southeast Asian Nations (ASEAN) for 2026.
To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…
The Philippine economy expanded by 2.1% year on year in the third quarter, unexpectedly slowing from a year ago as agricultural output declined amid El Niño, the Philippine Statistics Authority (PSA) reported on Monday.
Gross domestic product (GDP) growth sharply slowed from the 4% expansion in the same period last year and the revised 2.4% recorded in the second quarter. The third-quarter growth was well-below the 2.7% median forecast in a BusinessWorld poll last week.
This also marked the economy’s weakest performance since the 3.8% contraction in the first quarter of 2021, during the coronavirus pandemic. Excluding the pandemic years, this was the slowest growth in over 16 years, or since the 1.8% expansion in the fourth quarter of 2009.
Agricultural production contracted by 4.8% in the third quarter, from 2.9% growth a year ago, amid bad weather. Industry slipped by 0.003% (from 0.7%), while services growth slowed to 3.7% (from 5.5%).
In the first nine months, the economy expanded by 2.5%, slower than the 4.9% growth recorded in the same period last year.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines will eventual fall into an economic recession in 2027? Do you think the current government has been too focused on the ASEAN Summit and foreign affairs while being negligent on the national economy? Do you think the government’s GDP growth target range of 3.5%-4.5% will still be achieved this year? Do you think there are many foreign investors out there who are staying away from the Philippines? Are you convinced that the Philippines is now in the state of stagflation?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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