Q1 2026 Philippine GDP growth: 2.8%. The softest in five years, missing the 3.5% forecast.
Full-year 2025 came in at 4.4%, below the government's 5.5–6.5% target. Fixed investment fell 7.2% — the first decline in over a year. And for the first time in a rare stretch, both industry and agriculture contracted in the same quarter.
Two shocks are driving it: a corruption scandal that curbed public infrastructure spending, and an oil shock that pushed Brent crude past $107/barrel (the Philippines imports ~98% of its crude from the Middle East).
For businesses, that means tighter budgets and frozen discretionary spend — including new headcount.
This is exactly the environment fractional HR & Payroll was built for: scoped monthly cost instead of fixed salary + benefits, days to start instead of weeks to hire, and a 3-month minimum term instead of an indefinite commitment.
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