MANILA — The Philippine economy is projected to record a slightly faster growth in the first quarter of 2026, driven by improved consumption, the University of Asia and the Pacific (UA&P) and the Business Economics Club (BEC) said.

In the latest issue of The Market Call, UA&P and BEC forecast economic growth at 3.3 percent, up from the 3 percent gross domestic product (GDP) expansion in the fourth quarter of 2025.

The report noted that while uncertainty over a broad economic recovery remains, “some bits of light” are emerging.

“With inflation remaining in the lowest quarter of BSP (Bangko Sentral ng Pilipinas) target range, policy and interest rates declining, and the peso depreciating, consumer spending, residential property sales, car sales, equipment leasing and other interest-sensitive spending should provide better consumption expenditures in Q1,” the report said.

“Thus, we expect a mildly faster Q1 GDP growth of 3.3% yoy (year-on-year) from 3% since the government still needs to ramp up its spending.”

UA&P and BEC also said inflation is expected to stay within the government’s target for the year, despite a possible acceleration in the coming months.