corruption – Author Carlo Carrasco

Philippines Economic Growth May Slow Down To 4.2% This Year

March 10, 2026March 3, 2026carlocarrasco

In the view of the University of Asia and the Pacific (UA&P), the growth of the economy of the Philippines may slow down a bit further this year to 4.2%, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from report of the BusinessWorld. Some parts in boldface…

PHILIPPINE ECONOMIC growth may likely be even slower this year, amid uncertainty over a “meaningful” recovery, the University of Asia and the Pacific (UA&P) said.

In its February The Market Call, UA&P cut its full-year gross domestic product (GDP) growth forecast to 4.2% from the “above 5%” forecast previously.

If realized, this will be even slower than the post-pandemic low of 4.4% GDP growth in 2025 when the flood control scandal dampened government spending and investments.

However, UA&P expects first-quarter GDP growth to pick up to 3.3% from 3% in the fourth quarter of 2025. If realized, it will be slower than 5.4% in the first quarter of 2025.

“More indicators revealed the impact of the flood control scandal, hurting economic growth in 2025 as sentiment points to a ‘muddling through’ scenario for 2026,” it said. UA&P said the government needs to ramp up spending to drive faster growth this year.

“While uncertainty over a meaningful economic recovery remains, we see some bits of light emerging,” it said.

“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,” it added.

Headline inflation picked up to 2% in January from 1.8% in December and 2.9% in the same month last year.

“A more optimistic PMI in January, along with expected increases in exports and remittances from overseas Filipinos, should be supported by the peso’s depreciation,” UA&P said.

The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) rose to a nine-month high of 52.9 in January due to fresh export orders.

Last year, merchandise exports reached $84.4 billion, reflecting a 15.2% increase amid “holiday demand, US agricultural exemptions, and a weaker peso.”

Cash remittances coursed through banks hit an all-time high in December at $3.5 billion, bringing the full-year tally to a record $35.6 billion.

Meanwhile, the UA&P said that it expects further weakening of the peso after the BSP cut its policy rate by 25 basis points (bps) in February.

The Monetary Board lowered the target reverse repurchase rate by 25 bps to 4.25%, the lowest in over three years. This brought the BSP’s total reductions to 225 bps since it began monetary policy easing in August 2024.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you find the latest economic outlook of UA&P believable and precise? Do you think the fallout from the flood control corruption scandal still is dragging down the economic growth of the nation? Do you think the national government will be able to increase its spending this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Philippines To Use ASEAN Influence To Lead Southeast Asian Front Against Trump’s New Global Tariff On Imports

February 27, 2026February 26, 2026carlocarrasco

Months ago, it was announced that the Philippines will temporarily lead the Association of Southeast Asian Nations (ASEAN) as its Chair for 2026. In light of US President Donald Trump’s implementation of a new tariff on imports as a result of the United States Supreme Court’s decision, the Philippines – through its Trade Secretary – announced that it will lead the Southeast Asian front against the said tariff, according to a Manila Bulletin news report.

To put things in perspective, posted below is an excerpt from the Manila Bulletin report. Some parts in boldface…

Manila is preparing to lead a unified Southeast Asian push for a preferential trade agreement with the United States (US) following Washington’s decision to impose a 15 percent global tariff on imports.

Trade Secretary Cristina Roque said the government intends to leverage its 2026 chairship of the Association of Southeast Asian Nations (ASEAN) to safeguard the region’s export competitiveness and navigate the sudden shift in American trade policy.

Roque added that the government will also raise this matter during the upcoming ASEAN Economic Ministers (AEM) Retreat in the coming month.

“Definitely that will be one of the topics that we will be talking about,” she told reporters on the sidelines of the ASEAN Editors and Economic Opinion Leaders Forum.

She, however, said the government has yet to formally discuss the region’s position, given that the US’ new sweeping tariffs were just announced over the weekend.

Finance Secretary Frederick Go, on the other hand, said this is an issue that all ASEAN members “love to talk about when we’re together.”

“What it made clear to us is that we have to open new markets,” said Go.

The US Supreme Court ruled on Feb. 20 that President Donald Trump’s reciprocal tariffs implemented under the International Emergency Economic Powers Act (IEEPA) were unconstitutional.

In the aftermath of the ruling, Trump immediately slapped a 10 percent surcharge on imports to the US, later raising it to 15 percent.

The new global tariff brings another wave of uncertainty that may undermine the exports of ASEAN members and ultimately their respective economic growth.

The Philippines is taking an active role in calling for deeper regional integration to accelerate investment flows and future-proof the region.

As ASEAN chair, Roque said a major priority is to oversee the passage and entry into force of the ASEAN Digital Economy Framework Agreement (DEFA).

DEFA aims to set the region’s common rules on e-commerce, digital trade, cybersecurity, digital payments, emerging technologies, and cross-border data flows.

The agreement is seen doubling the value of ASEAN’s digital economy, which is already on track to reach about $1 trillion by 2030.

“We recognize the complexity of today’s global environment—geopolitical tensions, technological disruption, supply chain shifts, and climate risks. Yet we remain confident in ASEAN’s collective strength. ASEAN bonded together is a force that cannot be ignored,” said Roque.

For the year, Roque said priorities of the ASEAN chairship also include cross-border mobility of digital talent and industrial development of semiconductors and critical minerals.

By observing the attitude of the current administration and its diplomats, the Philippines is acting as if it is a major player on international affairs and world economics. Its chairmanship of the ASEAN is the latest example of this. Clearly the Philippines is afraid of the new global tariff implemented by Trump. Filipino exporters have endured the previous 19% tariff by America. When it comes to economic growth, the Philippines has weakened achieving only 4.4% growth in 2025 and the fallout of the flood control corruption scandal is still being felt socially and economically.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the Philippines will be a very effective leader of the ASEAN this year? Do you think the Philippines is truly standing up for the economic interests of each and every Southeast Asian nation when dealing with Trump tariffs? Is the Philippines leading ASEAN to a potential embarrassment on international affairs and economics?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippine Peso Could Land At P59.70 To The US Dollar By End Of 2026

February 19, 2026February 12, 2026carlocarrasco

With its own analysis of varied economic factors, Metrobank stated that the Philippine Peso could end up at a rate of P59.70 to the US Dollar by the end of this year, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the business news article of BusinessWorld. Some parts in boldface…

THE PESO may settle at P59.70 against the dollar by end-2026 on expectations of an economic rebound driven by improved investor confidence, Metropolitan Bank & Trust Co. (Metrobank) said.

In a commentary dated Feb. 10, Metrobank trimmed its peso forecast for end-2026 to P59.70 a dollar from P60.80 previously. It likewise projects the peso to end 2027 at P58.50 versus the greenback, from its earlier estimate of P58.90.

“(A)n anticipated economic growth rebound and improved investor confidence, thanks to better government spending, could support the peso,” it said.

If the bank’s 2026 forecast holds true, the local unit would end the year weaker than its P58.79 finish against the dollar on the last trading day of 2025.

The lingering effects of the flood control corruption scandal and uncertainties in the global market pushed the peso to test new lows at the start of the year.

On Jan. 15, it closed at P59.46 per dollar, breaking the previous all-time low of P59.44 recorded just the day prior.

However, it has recently strengthened amid a weak dollar. On Wednesday, the local unit hit a near four-month high after closing at P58.29 versus the greenback, up 24 centavos from its P58.53 finish on Tuesday, data from the Bankers Association of the Philippines showed.

Meanwhile, Metrobank noted that the peso could struggle to regain further strength as the country’s current account is projected to remain at a shortfall this year.

“Still, the projected current account deficit this year — although narrower than last year’s — would cap the peso’s strength,” it said.

Based on the latest central bank data, the current account balance stood at a $12.5-billion deficit by the end of the third quarter. This was equivalent to -3.6% of gross domestic product (GDP).

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Peso could perform better against the US Dollar and end up better than what Metrobank estimated? Do you think a weaker Peso would be very helpful to the exporters?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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2025 Foreign Investments Fall Down 50.1%

February 19, 2026February 13, 2026carlocarrasco

With the final economic numbers of 2025 counted, it has been confirmed that approved foreign investments in the Philippines fell down by more than 50%, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the business news article of BusinessWorld. Some parts in boldface…

APPROVED foreign investments in the Philippines plunged by 50.1% year on year to P272.38 billion in 2025, its sharpest fall in five years, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary data from the PSA showed that the value of foreign commitments approved by the country’s investment promotion agencies (IPA) in 2025 was lower than P546.19 billion in 2024.

This was the steepest drop in foreign investments since the 71.3% drop recorded during the pandemic in 2020. By value, this was the lowest amount of approved foreign investments since the P241.89 billion recorded in 2022.

Singapore was the top source of investment pledges for 2025 after committing P92.78 billion, or 34.1% of the total. It was followed by the Netherlands with P35.98 billion (13.2% share) and Japan with P34.03 billion (12.5%).

Analysts attributed the sharp drop in foreign investment pledges to the sluggish investor confidence in the Philippines arising from global trade uncertainties, natural disasters and the flood control corruption scandal.

“In a nutshell, the decline in approved foreign investment pledges in 2025 was driven by a mix of weaker investor confidence due to governance and corruption issues, global economic uncertainties, cautious corporate behavior, and an unusually high base of comparison from the previous year,” said Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development.

Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific, said uncertainty over the US tariffs may have also dissuaded foreign investors from setting up operations in the Philippines.

The United States imposed a 19% tariff on most Philippine goods beginning Aug. 7, 2025.

“Similarly, weaker growth prospects from repeated natural disasters and the flood control scandal may have encouraged foreign companies to scrap or defer their investment plans in the country,” Mr. Agonia said in an e-mail.

The Board of Investments (BoI) approved P150.34 billion worth of investment pledges in 2025, accounting for 55.2% of the total. It was followed by the Philippine Economic Zone Authority (PEZA) with investment pledges worth P107.06 billion (39.3% share), and the Bases Conversion and Development Authority (BCDA) with P7.01 billion (2.6%).

For 2025, about 45% or P122.48 billion of the total approved foreign investments will go to the energy sector, followed by manufacturing with P81.41 billion (29.9% share) and real-estate activities with P26.31 billion (9.7%).

In 2025, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) cornered around P100.43 billion worth of these investment pledges. Central Luzon will get P70.74 billion while the Bicol Region got P50.76 billion.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines still has a lot of work to do and many challenges to resolve before it could convince foreign investors to come in? Do you think the national government is doing good enough to make the country attractive to foreign investors again?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines 2025 GDP Growth Lands At 4.4%

January 30, 2026January 29, 2026carlocarrasco

After much anticipation, the full gross domestic product (GDP) growth of the Philippines registered final pace of 4.4% for the whole year of 2025, according to a Manila Standard business news report.

For insight, the 4.4% 2025 GDP growth is even lower than what others anticipated (click here and here). It should be recalled that GDP growth in the 3^rd and 4^th quarters of last year showed clear signs of economic weakness. The said weakness is connected with the flood control corruption scandal that rocked the nation.

To put things in perspective, posted below is an excerpt from the news report of Manila Standard. Some parts in boldface…

The Philippine economy expanded 4.4 percent in 2025 as a sharp slowdown in the final three months of the year dragged down the annual performance, government data showed on Thursday.

The gross domestic product grew 3.0 percent in the fourth quarter, marking the weakest quarterly expansion in five years. The Philippine Statistics Authority (PSA) said the industrial sector contracted by 0.9 percent during the period, while gross capital formation, a measure of investment, tumbled 10.9 percent.

Wholesale and retail trade, financial activities and public administration remained the primary drivers of growth during the October to December period.

Public administration and defense led the gains with a 7.9 percent increase, followed by financial and insurance activities at 5.6 percent and trade at 4.6 percent.

For the full year, the services sector led the economy with a 5.9-percent expansion, while agriculture, forestry and fishing grew 3.1 percent. The industrial sector recorded a modest 1.5 percent increase for all of 2025.

Consumer spending, which traditionally anchors the Philippine economy, rose 3.8 percent in the fourth quarter and 4.6 percent for the full year. Government spending saw a significant annual jump of 9.1 percent despite the year-end cooling.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will be able to bounce back strongly this year and achieve 5% growth later? Do you think the reforms being implemented by the national government will create positive economic results soon? Are you convinced that the flood control corruption scandal turned off a lot of foreign investors?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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IMF Trims Philippines Economic Growth Projections For 2026 And 2027

January 27, 2026January 20, 2026carlocarrasco

As far as the International Monetary Fund (IMF) is concerned, issues of corruption and climate disruptions are enough to convince them to project economic growth of the Philippines at a slower pace not just for this year but also for next year, according to a Manila Bulletin news report.

To put things in perspective, posted below is an excerpt from the business news report of the Manila Bulletin. Some parts in boldface…

Washington-based multilateral lender International Monetary Fund (IMF) has tweaked downwards its economic growth projections for the Philippines this year and the next, following its more somber outlook for 2025 amid corruption allegations and climate disruptions.

According to the IMF’s updated World Economic Outlook (WEO), Philippine gross domestic product (GDP) is now seen expanding at a slower 5.1 percent, down from its earlier forecast of 5.4 percent—both of which fall short of the country’s already lowered target of at least 5.5 percent.

Despite the cut, the IMF’s forecast remains slightly more optimistic than the Bangko Sentral ng Pilipinas’ (BSP) assumption of a 4.6 percent growth rate, which the central bank has attributed to a loss of confidence tied to governance concerns.

For 2026 and 2027, the IMF also trimmed its growth forecasts to 5.6 percent from a previous 5.8 percent, and to 5.8 percent from 6.1 percent, respectively. The central bank’s projection of 5.4 percent for 2026 stands lower than the IMF’s forecast, while its 6.2 percent forecast for 2027 is higher.

These projections still fall within the revised targets, based on National Socioeconomic Planner Arsenio M. Baliscan’s lower growth assumptions. Baliscan expects growth to clock in at five to six percent in 2026, and 5.5 to 6.5 percent in 2027—both lowered from the earlier goals of six to seven percent.

According to the IMF, the downward adjustment for 2026 and 2027 “reflects the carryover impact from a downward revision in the IMF’s growth forecast for 2025—from 5.4 to 5.1 percent—and a slower pace of capital accumulation.”

It noted that the slashed GDP growth forecast for 2025 reflects the output slump in the third quarter of 2025 “amid recent corruption allegations and climate shocks impacting economic activity in the second half of the year.”

To recall, the Philippine economy expanded by four percent in the third quarter of 2025—the weakest in four and a half years.

Looking ahead, output expansion could accelerate slower than expected mainly due to the potential “escalation of trade restrictions and prolonged uncertainty, geopolitical tensions, and disruptive financial market corrections.”

“On the upside, accelerated implementation of structural and governance reforms can boost investment and foreign direct investments (FDI), increase fiscal multipliers and boost potential growth,” the lender said.

What would drive the economy in the medium term is robust private consumption and higher investment, the IMF said, “supported by monetary policy easing and the authorities’ recent policy initiatives to support private investment.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines can somehow grow faster than what the IMF projected for 2026 and 2027? Do you think foreign investors have been turned off by the flood control corruption scandals?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines Attracted 5.94 Million Foreign Tourists And 543K Overseas Filipinos In 2025

January 22, 2026January 22, 2026carlocarrasco

Finally, the Department of Tourism (DOT) revealed that 5.94 million foreign tourists and over 543,000 returning overseas Filipinos arrived in the Philippines in 2025 resulting in tourism revenue of P694 billion, according to a news release by the Philippine News Agency (PNA).

For insight, the Philippines attracted 5,940,975 foreign visitors in 2025 which is 8,375 less compared with 2024’s foreign visitors. Ultimately, the Philippines is still behind many of its Southeast Asian neighbors on international tourism for 2025.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

The Philippines recorded 6.4 million foreign visitors and returning overseas Filipinos in 2025, generating an estimated PHP694 billion in tourism receipts, the Department of Tourism (DOT) said Tuesday.

Citing Bureau of Immigration data, the DOT said 5,940,975 were foreign visitors, including cruise passengers and categories not fully captured in eTravel.

Another 543,085 were returning overseas Filipinos, bringing total inbound arrivals to 6,484,060.

The DOT said preliminary international visitor spending was estimated at PHP694 billion.

While arrivals remain below pre-pandemic levels in 2019, the DOT said the outcome was achieved despite global and domestic challenges, including travel alerts from key markets and fiscal constraints.

The agency said tourism performance should not be measured by arrivals alone, citing strong domestic travel, value creation and job generation.

Guided by the National Tourism Development Plan 2023–2028, the DOT said it remains focused on improving connectivity, safety, workforce skills and service standards.

For insight as to why the Philippines is having a lot of trouble attracting visitors from abroad, watch the YouTube videos below.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you agree with the Department of Tourism’s claim that tourism performance should not be measured by arrivals alone while the Philippines keeps on falling behind its Southeast Asian neighbors that attracted a lot more foreign tourists? Do you think the DOT should examine closely how satisfied or dissatisfied foreign tourists really are before they leave the country? Are you tired of seeing the Philippines failing to hit its annual international tourist arrival targets?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Fitch Ratings Says Flood Control Corruption Scandal Imperils Philippines’ Credit Rating

December 23, 2025December 16, 2025carlocarrasco

It has been months since the flood control corruption scandal rocked the entire Philippines and the economic situation has turned for the worse along the way (click here, here and here). In the view of Fitch Ratings, the scandal puts the nation’s credit rating at risk, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…

THE Philippine economy continues to bear the brunt of the ongoing flood control corruption scandal, Fitch Ratings said, noting that further unrest could spill over to the country’s credit rating.

Fitch Ratings Head of Asia-Pacific Sovereigns Thomas Rookmaaker said the controversy surrounding the anomalous government flood control projects threatens the country’s political stability, fiscal policy implementation, as well as business and consumer confidence.

“We believe that the flood control corruption scandal in the Philippines poses an ongoing risk to political stability, fiscal policy execution, and business and consumer confidence,” Mr. Rookmaaker told BusinessWorld in an e-mail.

Government officials, lawmakers and contractors have been accused of getting billions of pesos in kickbacks from substandard or nonexistent flood control projects. This has triggered widespread protests, slowed government spending, and hurt investor and consumer sentiment.

“The overall impact the scandal will have on the Philippines’ public finances is still uncertain,” Mr. Rookmaaker said.

“Public investment spending is likely to remain weak for quite some time, but continued social unrest could simultaneously lead to spending pressures to head off public discontent.”

In October, government spending fell for a third straight month to P430.6 billion, down 7.76% from P466.8 billion a year ago. Revenues likewise slipped by 6.64% to P441.7 billion from P473.1 billion last year.

Mr. Rookmaaker noted that the immediate impact of the scandal was reflected in the sharp economic slowdown in the third quarter.

Philippine gross domestic product (GDP) expanded by an over four-year low of 4% in the third quarter, as household final consumption expenditure and government spending slowed amid the corruption mess.

For the first nine months, GDP growth averaged 5%, well-below the government’s 5.5-6.5% full-year target. Public investments likewise took a hit from the corruption issues, he added.

In the third quarter, foreign investment pledges approved by investment promotion agencies plunged by 48.7% to P73.68 billion, Philippine Statistics Authority data showed.

“Persisting social tensions could become more of a drag on growth if confidence among foreign and domestic investors suffers,” the Fitch analyst said. “Tensions could also serve as a distraction for policymakers, impeding the passage of reforms that have the potential to enhance economic productivity and competitiveness.”

Mr. Rookmaaker said implementing reforms to enhance accountability and governance could bolster private investments and promote growth in the medium term.

Let me end this post by asking you readers: What is your reaction to this recent development? Did you think Fitch Ratings is correct with its economic analysis of the Philippines and the flood control corruption scandal? Do you think foreign investors have been turned off by the scandals and social unrest?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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World Bank Sees Philippine Economy Gradually Recovering In 2026 And 2027

December 11, 2025December 10, 2025carlocarrasco

The World Bank (WB) sees the economy of the Philippines making a gradual recovery in 2026 and 2027 fueled by strong domestic demand, according to a news report by BusinessWorld. The WB also stressed that corruption is unacceptable.

To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…

THE WORLD BANK (WB) sees a gradual recovery for the Philippines in 2026 and 2027, after growth slowed this year due to weaker investment and sluggish consumption, compounded by a corruption scandal and a string of natural disasters.

In its latest Philippines Economic Update released on Tuesday, the multilateral lender trimmed its Philippine gross domestic product (GDP) growth forecast to 5.1% for this year from 5.3% in its June report. For 2026, it lowered its Philippine GDP growth forecast to 5.3% from 5.4% previously.

The World Bank also cut its Philippine GDP growth projection for 2027 to 5.4% from 5.5% previously.

These latest projections are below the government’s 5.5-6.5% growth goal for this year and the 6-7% target for 2026 to 2028.

“To borrow from Torsten Slok, chief economist at Apollo (Management), it’s a Nike swoosh pattern. He describes the US economy, and I’m describing our forecast for the Philippines as a kind of Nike swoosh. We have a dip in 2025, and then we have a gradual recovery in 2026 to 2027,” World Bank Senior Economist Jaffar Al-Rikabi said during a briefing.

He noted the average growth of the Philippines over 2025 to 2027 will be lower than 2024 when GDP expanded by 5.7%.

“For 2025… the growth is largely weighed down by domestic factors. In particular, lower construction activity and weaker consumption growth,” he said.

The Philippine economy expanded by a weaker-than-expected 4% in the third quarter, bringing nine-month growth to 5%, as the pace of household final consumption expenditure and government spending slowed amid a corruption scandal.

Mr. Al-Rikabi also noted the deceleration in fixed investment and private consumption due to higher-than-expected number of natural disasters that hit the Philippines this year.

“But for 2026 to 2027, we think that it’s likely that external factors will weigh more heavily on growth, largely slower export demand,” Mr. Al-Rikabi said.

The US imposed a 19% tariff on most goods from the Philippines starting August, dampening export demand.

The World Bank said the Philippine economy’s growth will pick up in 2026 and 2027, fueled by strong domestic demand.

“Private consumption is projected to strengthen as inflation stays low, employment remains robust, and monetary easing lowers interest rates, making it easier for businesses and households to borrow,” it said in the report.

According to the World Bank, private consumption, which accounts for more than 70% of the economy, is projected to expand by 4.8% this year, slowing from 4.9% in 2024. This is expected to pick up to 5.3% in 2026 and 5.4% in 2027.

The World Bank said investment is likely to recover as public infrastructure projects regain momentum, while recent liberalization reforms in telecommunications, transport, logistics and renewable energy improve the business climate.

The multilateral lender also expects headline inflation to average 1.8% this year, describing the pace as “very moderate” and a key source of resilience. This forecast is slightly above the Bangko Sentral ng Pilipinas’ (BSP) 1.7% projection for 2025 and the 1.6% average recorded in the first 11 months.

‘CORRUPTION IS UNACCEPTABLE’ – Even as the Philippine economy will see a gradual recovery in the next two years, Mr. Al-Rikabi noted risks are tilted to the downside, with “more prominent” domestic drivers.

“There is a continued challenge of heightened perceptions around governance risks. This could, if it continues, erode investor confidence. It could delay public investment execution, and it could weaken growth,” he said.

The World Bank economist also noted there may be delays in fiscal and structural reforms amid the current domestic environment, “which could slow consolidation and weigh on growth over the medium term.”

A corruption scandal involving anomalous flood control projects has already triggered protests, slowed economic activity, and shaken investor confidence in the country.

“From the World Bank perspective, corruption is unacceptable,” World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said during the same briefing.

“The World Bank considers it detrimental to any country and has been fighting against corruption in all the member countries that we operate in,” he added.

Mr. Mustafaoğlu said the Philippine government could take this opportunity to increase transparency and modernize its budget execution system “that could actually support longer-term growth and can increase investment confidence (and) can increase long-term potential growth,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Did you think the national economy will recover gradually in 2026 and 2027 as the World Bank predicted? With inflation being low, do you feel confident about spending for your needs and wants in the short term?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Business Groups Reaffirm Commitment To National Economy

November 25, 2025November 18, 2025carlocarrasco

With the weakening economic growth and growing socio-economic uncertainty affecting the entire Philippines, prominent business groups reaffirmed their commitment to invest and create jobs in the country, according to a Manila Bulletin news report.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

Six prominent groups representing the business sector reaffirmed their commitment to invest and create jobs in the Philippines amid weakening sentiment in the economy, which is fueled by what they described as a “political turmoil” stemming from the ongoing corruption scandal.

In a rare joint statement sent to the media moments after a pivotal reshuffle in the administration’s economic team, the business groups emphasized that they remain committed to supporting the Philippine economy.

“While the current political turmoil raises understandable concerns, we stress that the country’s long-term fundamentals remain strong; anchored by a well-regulated financial system, a stable banking sector, and companies that continue to invest in and believe in the Philippines,” the groups said on Monday, Nov. 17.

The statement was signed by Makati Business Club (MBC), Management Association of the Philippines (MAP), Philippine Chamber of Commerce and Industry (PCCI), Financial Executives Institute of the Philippines (FINEX), Philippine Finance Association, and Institute of Corporate Directors (ICD).

In a statement that essentially serves as a pitch to potential investors, the six business groups said that the institutions safeguarding local markets “continue to operate independently and rigorously.”

The groups cited the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) as among the most reliable government partners when it comes to businesses.

Both the BSP and the SEC uphold regulatory frameworks aligned with global standards, ultimately ensuring market integrity, prudent risk management, and strong investor protection, they said.

“The Philippines continues to meet international benchmarks on capital adequacy, disclosure requirements, and corporate governance,” the groups said.

The business groups also took note of the corporate earnings of publicly listed companies, which reflect the economy’s underlying strength.

They noted that even during periods of global instability, such as the Covid-19 pandemic, companies continued to demonstrate resilience with growing revenues and stable margins.

Further, the groups said that investment sentiment in the country remains robust, with gross fixed capital formation ranging between 22 percent and 27 percent of gross domestic product (GDP) over the last 10 years.

“This ongoing level of capital spending, mainly driven by business growth, clearly indicates that Philippine companies continue to build capacity, expand operations, and invest in the country’s long-term prospects,” the statement read.

While upholding optimism, the six business groups stressed that investor confidence is influenced not only by economic fundamentals but also by governance.

Let me end this post by asking you readers: What is your reaction to this recent development? Does the joint statement of the prominent business group boost your confidence about the future of the country? Do you think the Philippine economy will be able to bounce back strongly next year? Does the continuing media coverage of the flood control corruption scandals and investigations continue to bother you?

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