Remolona sees economic rebound in 2H 2026

Confidence in the Philippine economy is showing signs of recovery, BSP Governor Eli Remolona Jr. said Wednesday, projecting a growth rebound in the second half of 2026.

Citing the central bank’s survey of supply chain managers, Remolona noted that the confidence index has risen above 50 percent, signaling improving sentiment. He also pointed to declining yields on Bureau of the Treasury bonds and the Philippine Stock Exchange index (PSEi) gaining traction despite earlier dips.

“The main index began sliding in July 2025 due to governance-related concerns but has since started to recover. So it looks like it is beginning to come back. Not as fast as we would like, but it’s coming back. In our projections, we think that we’ll be back to normal by the second half of 2026,” he said during a Management Association of the Philippines event in Taguig City.

The economy slowed in the latter half of 2025 due to reduced government infrastructure spending amid flood control issues, with GDP growth easing to 4.4 percent from 5.7 percent in 2024. The government targets 5 to 6 percent growth for 2026.