This Budget Brief assesses the Philippine economy’s macroeconomic performance and outlook for 2026 as an input to the analysis of the proposed FY 2027 National Budget. It highlights the sharp slowdown in economic growth, persistent weakness in household consumption and investment, and renewed inflationary pressures driven by food, energy, transport, and external supply shocks. The brief also examines revised growth and inflation assumptions, CPBRD projections, and key external and domestic risks—including geopolitical instability, global financial tightening, weak confidence, governance gaps, agricultural vulnerability, rising debt, and political uncertainty—underscoring the need for timely, targeted, and coherent policy responses.