The Philippine economy sharply slowed in the second quarter as the Middle East conflict drove up inflation and weighed on household spending and investments. Gross domestic product (GDP) grew by 2.3% in the second quarter from a year earlier, slowing from the 5.4% expansion in the same quarter last year and the 2.8% growth in the first quarter. Exports of goods and services; and imports of goods and services expanded by 12.2%, and 5.5%, respectively. For the first semester, GDP growth averaged 2.6%. Mr. Balisacan said Philippine GDP must grow by 4.4% in the second half to reach the 3.5-4.5% growth target for 2026.