MANILA — Confidence in the Philippine economy is returning, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said, expressing optimism for a growth rebound in the second half of 2026.

Citing the central bank’s survey of supply chain managers, Remolona said the confidence index has risen above 50 percent, signaling that optimism is returning. He also noted declining yields on Bureau of the Treasury bonds and a recovery in the Philippine Stock Exchange index (PSEi) as signs of improving investor sentiment.

Remolona attributed the stock market slide that began in July 2025 to governance-related concerns but said the main index has started to gain traction.

“So it looks like it (confidence) 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 speech at a Management Association of the Philippines event in Taguig City.

The economy slowed in the second half of 2025, with gross domestic product (GDP) growth easing to 4.4 percent from 5.7 percent the previous year, due in part to reduced government infrastructure spending following flood control issues. The government has set a growth target of 5 to 6 percent for 2026.