The Philippine economy experienced its slowest growth in five years, registering 2.8% in the first quarter of 2026. This marks a significant deceleration from the 5.4% growth seen in the same period of the previous year and is slightly below the 3.0% expansion in the fourth quarter of 2025. Department of Economy, Planning and Development Secretary Arsenio Balisacan attributed this slowdown to a combination of domestic issues, including the impact of the flood control corruption scandal on confidence and delays in the national budget's passage, and external factors like the conflict in the Middle East which elevated oil prices and disrupted supply chains. While services grew by 4.5%, the agriculture and industry sectors contracted. The government aims for a 5% to 6% full-year growth, but analysts suggest a steeper quarterly rebound is necessary to meet this target given current economic conditions.