Manila: Confidence in the Philippine economy is improving, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said Wednesday, expressing optimism for a growth rebound in the second half of the year. Citing the central bank's survey of supply chain managers, Remolona stated that the index has risen above 50 percent, indicating that confidence is returning.

According to Philippines News Agency, Remolona mentioned that yields on bonds issued by the Bureau of the Treasury (BTr) are declining, signaling improved investor sentiment. Despite a recent dip, the Philippine Stock Exchange index (PSEi) has gained traction. Remolona noted that the main index began sliding in July 2025 due to governance-related concerns but has since started to recover.

Remolona expressed that it appears confidence is beginning to return, albeit not as quickly as desired, but with expectations to be back to normal by the second half of 2026. He shared this perspective during a Management Association of the Philippines event in Taguig City.

In 2025, the economy slowed in the second half due to reduced government infrastructure spending following reports on flood control issues. Gross domestic product (GDP) growth eased to 4.4 percent last year from 5.7 percent the previous year. The government has set a growth target of 5 percent to 6 percent for this year.