The Philippine economy recorded its weakest quarterly growth since the pandemic in the second quarter of 2026, expanding just 2.3% year-on-year, as construction and investment contracted sharply and household consumption lost momentum.
On August 7, 2026, the Philippine Statistics Authority (PSA) reported that gross domestic product growth between April and June slowed from 5.5% in the second quarter of 2025 and 2.8% in the first quarter of 2026. The economy consequently expanded by only 2.6% during the first half, below the government’s 3.5%-4.5% growth target for 2026.
The PSA, headed by National Statistician Claire Dennis S. Mapa, reported the result as economic activity weakened across key sectors. Construction contracted 14.8%, while investment fell 9.2%, marking a fourth consecutive quarter of decline. Household consumption increased just 2.8%, under pressure from inflation and higher costs. Arsenio M. Balisacan, Secretary of the Department of Economy, Planning, and Development, attributed part of the weakness to delays in public infrastructure resulting from reviews of flood-control projects. The government also identified pressures from the Middle East conflict affecting fuel costs, prices, employment and remittances.
The economic slowdown coincided with a sharp deterioration in revenue at the Philippine Amusement and Gaming Corporation (PAGCOR), headed by Chairman and CEO Alejandro H. Tengco. The state gaming regulator and operator generated Php43.3 billion (US$705 million) in first-half revenue, down 26.6% year-on-year.
- PAGCOR plunges 26.6% and iGaming revenue collapses
The steepest contraction came from eGames, eBingo and bingo operators, with PAGCOR’s revenue from the segment falling 41.9% to Php18.6 billion (US$303 million). Casinos proved considerably more resilient. PAGCOR revenue derived from privately licensed casinos declined 3.9%, while revenue from properties directly operated under the Casino Filipino network fell 8.7%.
Major private integrated resorts regulated by PAGCOR include Okada Manila, Solaire Resort Entertainment City, City of Dreams Manila and Newport World Resorts, although the published figures do not attribute the decline to individual properties. The government expects the slowdown to be temporary and plans to accelerate budget execution and infrastructure while supporting price stability, exports, the digital economy and artificial intelligence during the second half of 2026.
