BSP Governor Expresses Optimism for Philippine Economic Recovery in 2026
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. stated on Wednesday, February 11, 2026, that confidence in the Philippine economy is showing signs of improvement. He expressed strong optimism for a growth rebound anticipated in the second half of the year, highlighting several positive economic indicators that suggest a gradual return to normalcy.
Key Indicators Point to Rising Confidence
Governor Remolona cited the central bank's survey of supply chain managers, which revealed that the index has risen above 50 percent. This significant threshold indicates that confidence is steadily returning among key business stakeholders. This upward movement in the index is a clear signal that economic sentiment is shifting positively, reflecting broader optimism in the market.
Additionally, Remolona pointed to declining yields on bonds issued by the Bureau of the Treasury as another positive sign. These lower yields signal improved investor sentiment, suggesting that investors are becoming more confident in the stability and prospects of the Philippine economy. This trend is crucial for attracting both domestic and foreign investments.
Stock Market Recovery and Economic Projections
Despite a recent dip, the Philippine Stock Exchange index has begun to gain traction. Remolona explained that the main index started sliding in July 2025 due to governance-related concerns but has since shown signs of recovery. "So it looks like it (confidence) is beginning to come back. Not as fast as we would like, but it's coming back", he remarked during his speech at a Management Association of the Philippines event held in Taguig City.
Looking ahead, the BSP Governor projected that the economy will return to normal by the second half of 2026. This forecast is based on current trends and the improving confidence indicators observed across various sectors.
Context of Recent Economic Slowdown
In 2025, the Philippine economy experienced a slowdown in the second half, primarily due to reduced government infrastructure spending. This reduction followed reports on flood control issues, which impacted public investment and overall economic activity. As a result, gross domestic product (GDP) growth eased to 4.4 percent last year, down from 5.7 percent the previous year.
The government has set a growth target of 5 percent to 6 percent for the current year, aiming to steer the economy back on a stronger growth trajectory. This target reflects a commitment to overcoming recent challenges and fostering sustainable economic development.
Governor Remolona's remarks underscore a cautious yet hopeful outlook for the Philippine economy, with key indicators suggesting a gradual recovery and renewed confidence among investors and businesses alike.
