This report assesses the Philippine economy's performance in 2025 and presents the outlook for 2026. Economic growth slowed to 4.4%, reflecting weaker industrial activity and a sharp contraction in public infrastructure spending despite a recovery in agriculture and continued expansion of the services sector. Household consumption remained the primary driver of economic activity, supported by easing inflation and steady remittances from overseas Filipino workers, while government spending increased ahead of the election ban. However, declining investment and heightened global uncertainty weighed on overall economic momentum. Fiscal pressures also persisted as debt and deficit ratios remained elevated. Looking ahead, geopolitical tensions and external volatility pose risks to the country’s growth and inflation outlook, underscoring the need for timely policy measures to restore investment momentum and sustain economic resilience.