Lates News

Due to the intensification of conflicts in the Middle East leading to inflation, which has been a drag on consumer spending and investment, the Philippines experienced a significant slowdown in economic growth in the second quarter, falling far below expectations. Data released by the Philippine Statistics Authority on Friday indicated that from April to June this year, the countrys GDP grew by only 2.3% year-on-year, a figure well below the median forecast of 2.9% by economists and lower than the 2.8% growth in the previous quarter. This marks the slowest growth rate since the fourth quarter of 2009, excluding the pandemic period. The Philippines relies almost entirely on oil imports from the Middle East and is one of the countries most severely affected by supply disruptions caused by the war in Iran. Rising energy costs and currency depreciation have driven up food and fuel prices, weakening household incomes. With concerns about uncertainty, businesses have also cut back on capital expenditures.