News about budget deficit

The column reflects on how the Philippines has repeatedly faced economic crises tied to political turmoil, from the 1983 debt crisis to coups and leadership changes, and now faces added pressure from a global geopolitical crisis. Citing First Metro Securities' Estella Villamiel, GDP growth averaged 2.6% year-to-date in 2026, one of the weaker periods outside the pandemic era. Household consumption remains the main driver but its contribution has moderated, capital formation is the primary drag on growth, and government spending and exports provide support. The fiscal deficit reached 5.8% of GDP in the first half, government debt is about 66% of GDP, and international funding is getting harder to secure. Household demand has softened in recent quarters, according to consumer sentiment, retail and vehicle sales data.