The Philippines' economy expanded 2.3% year on year in Q2 2026, missing a Reuters poll forecast of 2.8% and slowing from 2.8% in the first quarter. Seasonally adjusted quarter-on-quarter growth eased to 0.6% from a revised 0.9%, July inflation slowed for a third straight month to 6.2%, and the government had already cut its 2026 growth forecast to 3.5%-4.5% because of the Middle East crisis and an infrastructure-related corruption scandal that curbed spending. The budget planning committee is targeting 5%-6% GDP growth for 2027-2030.