economic growth – Author Carlo Carrasco

Moody’s Analytics Cuts Philippines 2026 GDP Growth Forecast to 3%

September 1, 2026August 27, 2026carlocarrasco

By citing key factors like weak consumption, Middle East oil shock and the collapse in private investment, Moody’s Analytics officially slashed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 3%, according to a news report by BusinessWorld.

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

MOODY’S ANALYTICS slashed its 2026 growth forecast for the Philippines, amid weak consumption and a collapse in private investment.

In its latest Asia-Pacific Outlook report dated Aug. 24, the analytics firm said it now sees Philippine gross domestic product (GDP) expanding by 3% this year, slower than its 4% projection in June.

“We lowered our 2026 GDP growth forecast to 3% from 4% in the June vintage after incorporating the second-quarter GDP result, which was far weaker than expected,” Moody’s Analytics Assistant Director and Economist Sarah Tan said in an e-mailed reply to questions.

The Philippine economy slumped to its worst post-pandemic growth of 2.3% in the April-to-June period, as investments and public construction continued to reel from last year’s flood control corruption scandal. Rising prices from the Middle East war-driven oil shock also strained household spending.

“The economy expanded by just 2.3% year on year, with private consumption showing notable weakness and private investment collapsing,” Ms. Tan noted. “This points to softer underlying domestic demand than we had previously anticipated.”

As of the first half of 2026, the country’s GDP growth averaged 2.6%, well below the government’s 3.5%-4.5% full-year target.

If Moody’s Analytics’ forecast holds true, the government will miss its growth target for a fourth year in a row. The economy would also further soften from last year’s post-pandemic low growth of 4.4%.

Economists earlier said that reaching even the bottom end of the government’s target entails a steep climb, as it means the economy must grow by at least 4.4% in the second half.

Moody’s Analytics sees growth recovering over the next two years to 4.6% in 2027 and 5.1% in 2028. The government wants full-year expansion to be between 5% and 6% from 2027 to 2030.

Meanwhile, GlobalSource Partners Country Analyst Diwa C. Guinigundo noted that the Philippines could face a more complicated path toward fiscal consolidation if growth remains below potential.

“Slower growth would make fiscal consolidation and debt reduction more difficult,” he said in a Viber message. “The issue is not simply that government revenues would grow more slowly; a weaker economy also means a smaller denominator for the debt-to-GDP ratio.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think 2026 will end up as a very disappointing year of economic growth for the Philippines? Do you think the economy of the Philippines could still fall into a recession in 2027 or in the first half of 2028? Are you convinced that the Philippines has nothing to gain economically from hosting the ASEAN Summit?

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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BCDA To Ensure Philippines Will Benefit A Lot From Pax Silica

August 24, 2026August 19, 2026carlocarrasco

The Bases Conversion and Development Authority (BCDA) recently announced that it will ensure the Philippines will benefit a lot from the ambitious Pax Silica project as they negotiate with the United States on the final framework, according to a GMA News report.

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

The Bases Conversion and Development Authority (BCDA) on Wednesday said it will ensure that the Philippine side, negotiating with the US on the final framework agreement to hit the ground running for the Pax Silica project in New Clark City, Tarlac, will push for a deal that would be most beneficial for the country.

At the Kapihan sa Manila Hotel, BCDA President and CEO Joshua “Jake” Bingcang said that the government is eyeing to sign the comprehensive framework agreement for the Pax Silica initiative with the US by November.

However, Bingcang admitted that “negotiations can always take longer,” noting that the target signing “is not cast in stone as long as the two [parties] will come up with mutually agreed arrangement.”

Nevertheless, the BCDA chief said the Philippines is pushing for terms that would “most beneficial sa’tin (to us)” as negotiations for the framework deal are ongoing.

“It’s a business contract, normally it is favorable to the host country,” he said.

Bingcang said the government has also made clear that the project will operate under the BCDA’s governing legal framework and applicable investment laws.

“It would be covered by two Philippine laws —the BCDA law and CREATE MORE so the incentives provided will be covered by these two laws,” he said.

“Never in that initial arrangement that we are going to adopt anything other than the two laws,” he added.

Pax Silica is the US Department of State’s flagship initiative on artificial intelligence and supply chain security, aimed at advancing a new economic security framework among allies and trusted partners.

The Philippines in April officially joined the Pax Silica initiative, cementing its place among other 23 global signatories, including the European Union, Japan, India, Singapore, South Korea, and the United Kingdom.

As part of the initiative, Manila and Washington are working to establish a 4,000-acre industrial hub that is envisioned as a new model for AI-focused investment within the Luzon Economic Corridor.

The BCDA chief earlier clarified that the Pax Silica hub is not envisioned as a cluster of hyperscale data centers but as an industrial hub that would include the manufacturing of semiconductors and microchips used in computers, laptops, electric vehicles, and other technologies.

Bingcang said that through Pax Silica, the Philippines and its partners see an opportunity to process raw materials domestically instead of exporting them in unprocessed form.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you feel confident that the BCDA will be able to secure an agreement with the Americans to ensure the Philippines will benefit from Pax Silica economically? Do you realize Pax Silica’s potential to boost manufacturing jobs and the processing of raw of materials in the Philippines?

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 Attracts FDI Worth $210 Million in May 2026

August 18, 2026August 15, 2026carlocarrasco

The Philippines, which hosted the summit of the Association of Southeast Asian Nations (ASEAN) and other related conferences, failed once again on attracting significant foreign direct investment (FDI) as the May 2026 FDI net inflow was counted at $210 million only making it the lowest in eleven years, according to a news report by the Manila Bulletin.

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

Foreign direct investment (FDI) net inflows into the Philippines plunged to $210 million in May, the lowest monthly total in more than 11 years as global economic volatility and geopolitical tensions prompted foreign companies to delay capital commitments.

According to the latest data from the Bangko Sentral ng Pilipinas (BSP), released on Monday, Aug. 10, the May figure represents a 64.7 percent contraction from the level recorded in May 2025 and falls below the previous record low of $200.43 million seen in March 2015.

The sharp monthly drop dragged total net inflows for the first five months of 2026 to $2.18 billion, a 33.4 percent decline from the $3.27 billion recorded in the same period last year.

According to the BSP, the cumulative decline was “driven by lower foreign net investments in debt instruments and reinvestment of earnings, which more than offset the increase in net equity capital investments (other than reinvestment of earnings).”

The central bank added that this trend “reflected lower intercompany borrowings from foreign direct investors and reduced earnings retained for reinvestment during the period.”

Among its components, the primary driver of the May shrinkage was the sharp fall in net investments in debt instruments, which tumbled 92.1 percent to $35 million from $440 million a year earlier.

As of end-May, debt instruments—which “consist mainly of intercompany borrowing or lending between foreign direct investors and their subsidiaries or affiliates in the Philippines”—totaled $1.25 billion, dropping by nearly half from the $2.48 billion recorded in 2025.

This five-month performance follows a challenging 2025, during which annual net inflows plunged to $7.79 billion from $9.40 billion in 2024. The BSP forecasts inflows to clock in lower at $7 billion before rebounding to $8 billion in 2027.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think hosting the ASEAN Summit will lead the Philippines to economic miracles and stronger FDI in the near future?

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 Attracts 3.7 Million International Visitors in First 7 Months of 2026

August 15, 2026August 12, 2026carlocarrasco

The Philippines, which has been struggling with weak economic growth and high inflation, attracted 3.7 million international visitors in the first 7 months of this year, according to a news report by BusinessWorld.

Be mindful that the words “international visitors” includes both foreign tourists as well as Filipinos who are based abroad who happened to return to the country as “balikbayan”. For insight, the Philippines attracted 5.9 million foreign tourists in 2025 plus over half-a-million Filipinos from overseas which combines for 6.4 million international visitors for the year. For the first half of 2026, the nation attracted 2.9 million foreign tourists.

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

The number of Philippine international visitors grew to around 3.7 million as of July, buoyed by more relaxed visa policies, with growing markets seen in China, India, and Taiwan, according to the Department of Tourism (DoT) on Friday.

DoT Undersecretary Verna Esmeralda C. Buensuceso cited the figure, noting a 4.25% increase in tourist arrivals compared to last year.

“From January to July this year, the Philippines welcomed approximately 3.7 million international visitors, representing a 4.25% increase in visitor arrivals compared to the same period last year,” Ms. Buensuceso said during the launch of the 4th Travel Sale Expo 2026.

“We are seeing good growth from markets like China at 67%, India at 34%, and Taiwan at 11.21% growth, buoyed in large part by more liberal visa policies,” she added.

The tourism Undersecretary also noted sustained growth trajectories from the country’s traditional foreign markets such as the United States of America, Canada, and Japan, driven by additional flights.

The country is also experiencing double-digit to triple-digit growth in international arrivals from our Southeast Asian peers, such as Indonesia, Vietnam, Myanmar, Cambodia, Laos, and Timor-Leste, due to the ongoing ASEAN Summit 2026 where the Philippines serves as the host country.

“These are encouraging signs, but let me emphasize that our goal is not simply to increase the number of arrivals,” Ms. Buensuceso said.

“Our real goal is to increase the value of tourism. We want tourism to create more jobs, attract more investments, and generate more opportunities that reach communities across the country,” she added.

The tourism industry contributed 8.1% to the country’s gross domestic product (GDP) in 2025, down from 8.7% in the previous year, according to the Philippine Statistics Authority (PSA). It also employed around 7.70 million Filipinos in 2025.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the DOT is padding the numbers on tourist arrivals to avoid embarrassment in the near future? Do you think the Philippines will be able to surpass 2025’s 5.9 million foreign tourist count by the end of this year? Do you believe that hosting the ASEAN Summit is actually helping the Philippine attract more tourists from its Southeast Asian neighbors?

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 Economic Weakness Continues As 2nd Quarter GDP Growth Lands At 2.3%

August 9, 2026August 7, 2026carlocarrasco

The economy of the Philippines slowed down even further in the 2^nd quarter of 2026 landing at 2.3%, according to a news report by GMA News. Embarrassingly, this made the Philippines an economic weakling among the members of the Association of Southeast Asian Nations (ASEAN).

By comparison, the economy of the Philippines achieved only 2.8% growth in the 1^st quarter of this year. The nation’s economic growth for 2025 was at 4.4%

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

The Philippine economy continued to slow down in the second quarter of 2026, still due to a subdued investor and consumer sentiment amid the lingering effects of the flood control corruption scandal and the inflationary pressure brought by Middle East crisis-induced global fuel price shocks, the Philippine Statistics Authority (PSA) reported on Friday.

At a press conference, PSA chief and National Statistician Claire Dennis Mapa said the economy, as measured by gross domestic product (GDP)—the value of goods and services produced in a period— grew 2.3% in the April to June 2026 period, slower than the 2.8% growth seen in the first quarter of 2026.

This is the economy’s weakest footing since the fourth quarter of 2009 —excluding the contraction seen during the COVID-19 pandemic years— when the GDP growth rate was at 1.8%.

The 2.8% second quarter GDP growth put the Philippines behind its neighbors in Southeast Asia that already released their April to June economic growth rates such as Indonesia at 5.29%, Vietnam at 8.39%, and Singapore at 5.7%.

The first half of 2026 GDP growth rate stood at 2.6%, still behind the government’s downwardly revised target of 3.5% to 4.5% for the entire year.

Despite the economic slowdown, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said, “What we are experiencing right now, I believe, is transitory, temporary.”

“Domestic demand remained subdued, mainly because total investment continued to contract as public construction declined. Household consumption growth also moderated amid higher inflation, job losses, and lower remittance receipts arising from the Middle East conflict,” Balisacan said.

Household final consumption expenditure grew 2.8%, slower than 5.2% in the same period last year, weighed by contractions in transport (-7.5%), alcoholic beverages and tobacco (-1.9%), recreation and culture (-0.8%), and restaurants and hotels (-0.2%).

Government expenditure, likewise, slowed down by 8.3% from 8.7% year-on-year; while gross capital formation (GCF) —which measures investments— contracted by 9.2% from a growth rate of 0.9% a year ago.

The decline in GCF was due to the decline in construction at 14.8% with government spending on construction contracting 32.4%.

“Although public construction is a small part of the economy, the amount of contraction, at 32%, brought a significant impact on the economy,” Balisacan said.

“The sharp decline in public construction was the main contributor in the decline in investments… driven by continuous caution due to the flood control scandal,” the country’s chief economist said.

Among the major economic sectors, agriculture posted a growth rate of 2.7%, slower than 7% year-on-year; industry declined by 2.4%, from an increase of 2.1% weighed by the construction’s depreciation; services grew slower at 4.5% from 6.9%.

Agriculture, industry, and services sector contributed 7.5%, 27.9%, and 63.3%, respectively to the total GDP during the quarter.

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 eventually fall into a recession in 2027? Do you believe that the hosting of the ASEAN summit by the Philippines will result in economic miracles and more foreign investment?

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 Electricity The Most Expensive In ASEAN

July 28, 2026July 22, 2026carlocarrasco

Due to the low supply of electricity and the high demand recorded this past June, the Philippines had the most expensive electricity rates among member nations of the Association of Southeast Asian Nations (ASEAN), according to a news report by GMA News.

Be reminded that the Philippines is experiencing weak economic growth, high inflation, and has been weak when it comes to attracting foreign direct investment. Could imagine how foreign investors would react to the expensive electricity here in the Philippines?

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

The Philippines had the most expensive electricity rates among the Association of Southeast Asian Nations (ASEAN) in June due to low supply and high demand recorded during the month, the Department of Energy (DOE) reported Monday.

According to DOE Undersecretary Rowena Cristina Guevara, the country reported an average rate of P12.43 per kilowatt-hour (kWh) in June, surpassing that of Singapore by P0.093 per kilowatt-hour.

“Sa Visayas, siya talaga ‘yung pinakamahal dahil talagang may kakulangan tayo sa supply doon. Meron tayong 21 plants na naka-forced outage and therefore, dependent siya talaga sa Luzon at sa Mindanao for imported power,” she said in a virtual briefing.

(Visayas was really the most expensive because there was really a lack of supply there. There are 21 plants on forced outage, and therefore, it is really dependent on imported power from Luzon and Mindanao.)

“Alam niyo naman, naka-yellow alert sila palagi (As you know, they have been on yellow alert regularly) since May 13, and that is the one that is driving the price high for Visayas,” she added.

The Visayas grid has been on yellow alert — indicating that the operating margin is insufficient to meet the transmission grid’s contingency requirement — for several days in June, due to the continued forced outage of major coal plants in the region.

Among the outages recorded were Therma Visayas Inc. (TVI) units 1 and 2 and Panay Energy Development Corp. (PEDC).

“For the rest… Meron kasi din tayong mga matataas na demand during the summer months, and therefore we have to operate the more expensive power plants. Imbes na mag-blackout, paandarin na lang ‘yung mga medyo mahal na plant,” Guevara said.

(For the rest… Demand was also high during the summer months, and therefore, we have to operate the more expensive power plants. Instead of blackouts, we ran more expensive plants.)

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think must be done to ensure abundant electricity for the Filipinos? Are you convinced now is the time for the government of the Philippines to go all-in on nuclear power? How much was your electric bill this past June?

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 Attracts 2.9 Million Foreign Tourists In First Half Of 2026

July 25, 2026July 22, 2026carlocarrasco

For the first half of this year, the Philippines attracted 2.9 million foreign tourists and 1.13 million of that came from the United States and South Korea combined, according to a news report by Business Mirror. The figure does not include the 260,717 overseas Filipinos or balikbayan.

When compared to its Asian neighbors’ first-half foreign tourist numbers, the Philippines is still way behind Vietnam which attracted 12.3 million and Japan which attracted 21 million.

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

MORE relaxed visa entry requirements have enabled the Philippines to attract an increasing number of foreign tourists, lifting total visitor arrivals by 5.41 percent in the first half of the year.

Data from the Department of Tourism (DOT) showed 3.16 million inbound tourists from January to June 2026, of which 2.9 million were foreign nationals and 260,717 were overseas Filipinos. The latter are described as Philippine passport holders permanently residing abroad. This year’s arrivals are 76.5 percent of the 4.13 million total in the first half of prepandemic 2019.

The DOT stressed that the data are based on e-travel records provided by the Department of Information and Communications Technology, and are not final until Bureau of Immigration records are taken into account. E-travel registration is mandatory for those arriving in the Philippines except foreign diplomats, dignitaries, foreign government officials and their delegation, visiting business executives and students sponsored by the Philippine government or international organizations, and their immediate family members (9e visa).

Of the total foreign nationals, which were up 6.3 percent from the 2.73 million year on year (yoy), tourists from China and India were the most improved by 64.54 percent and 43 percent, respectively. Residents from both countries have been allowed to enter the Philippines visa-free for tourism purposes for 14 days.

The top 12 source markets of visitors for the Philippines all recorded increases, except for South Korea, with long-haul markets like Germany even showing monthly increases yoy, despite the ongoing tensions in the Middle East, which had jacked up jet fuel prices.

S. Korea plunges 13.7% – The United States continues to be the top source market for the Philippines with arrivals at 581,565 in the first half of the year, an increase of some 6.9 percent from the same period in 2025. Most of the market continues to be composed of Americans of Filipino decent, or Filipino immigrants, who visit the Philippines usually during the holiday season in December and January.

Some 300 Filipino-Americans are currently in the country as part of government’s long-running Very Important Pinoy (VIP) tour, and visiting destinations other than Metro Manila such as Cebu, Dumaguete, and Siquijor.

In second place are tourists from South Korea at 552,860, slumping by 13.7 percent, yoy. This was followed by Japan at 581,565 (+6.87 percent); China at 219,796 (+64.54 percent); Australia at 174,257 (+12.3 percent); and Canada at 156,763 (+15.6 percent), another haven of Filipino immigrants. Air Canada began offering direct flights from Vancouver to Manila in April last year, while flag carrier Philippine Airlines offers nonstop flights between Manila and Vancouver, and Toronto.

Tourists from Taiwan were in seventh place at 111,134, an increase of 11.85 percent; folowed by the United Kingdom at 92,829 (+1.7 percent); Singapore at 78,069 (0.35 percent); India at 60,583 (43.03 percent); Malaysia at 53,437 (+11.5 percent); and Germany at 48,657 (+6.9 percent).

Under the General Appropriations Act of 2026, the DOT committed to attract 6.7 million foreign tourists this year.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines will be able to attract 6.7 million foreign tourists by the end of this year? What do you think are the three most serious problems the Philippines has when it comes to attracting foreign tourists?

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 Among The Weakest In ASEAN In Credit Card Penetration

July 21, 2026July 16, 2026carlocarrasco

When it comes to credit card penetration within the Association of Southeast Asian Nations (ASEAN), the Philippines is still among the weakest as the number of adult Filipinos who own credit cards remains very low, according to a Manila Bulletin news report.

Be reminded that the Philippines is experiencing weak economic growth, high inflation, and has been weak when it comes to attracting foreign direct investment.

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

Only three percent of adult Filipinos own credit cards, placing the country among the laggards in the Association of Southeast Asian Nations (ASEAN), with the gap most pronounced compared to advanced Asia-Pacific economies.

In Asian emerging markets (EMs), the Philippines trails only Cambodia’s one percent and Bangladesh’s two percent, Visa Business and Economic Insights noted in a report last Tuesday, July 14, citing the 2024 update of the World Bank’s Global Findex Survey.

Meanwhile, the country was outpaced by seven other Asian EMs, including India (five percent), Indonesia and Vietnam (both six percent), Sri Lanka and Thailand (both eight percent), Malaysia (13 percent), and China (46 percent).

This low penetration drives Filipinos to rely heavily on informal and unregulated lending alternatives, which do not help build formal credit histories.

“Across markets such as India, the Philippines, and Indonesia, borrowing from family, moneylenders, or gold-backed loans is widespread due to ease of access and familiarity,” read the report authored by Visa principal Asia-Pacific economist Simon Baptist and Asia-Pacific economist Minakshi Barman.

Meanwhile, advanced Asia-Pacific economies have mature financial systems, with credit card penetration rates reaching nearly three-fourths of adults aged 15 and above. Hong Kong had the highest penetration rate at 72 percent, followed by Japan at 70 percent, South Korea at 68 percent, Taiwan at 64 percent, New Zealand at 57 percent, Australia at 51 percent, and Singapore at 42 percent.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you know anyone in your local community who successfully secured credit cards over the past six months? Do you have friends who already applied for credit cards? What do you think Filipinos are most afraid of when it comes to using credit cards? Do you think the weakening economic growth of the Philippines will discourage Filipinos from applying for credit cards?

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 Remains Vulnerable To Effects Of US-Iran War And Is One Of The Least Resilient In The Asia Pacific Region

July 18, 2026July 14, 2026carlocarrasco

When it comes to resilience to the effects of the war between the United States and the Islamic terrorist regime of Iran, the Philippines remains not only vulnerable but also one of the laggards of the Asia Pacific region as a whole, according to a news report by the Manila Bulletin.

Be reminded that the Philippines is experiencing weak economic growth, high inflation, and has been weak when it comes to attracting foreign direct investment. Already S&P Global slashed GDP growth forecast for the Philippines.

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

Asia-Pacific’s (APAC) relative insulation from the Middle East conflict has singled out the Philippines and Indonesia as laggards as external headwinds are exacerbated by domestic turmoil, according to Allianz Research.

Allianz Research said in its half-time outlook report published last week that despite emerging as one of the regions most exposed to the United States (US)-Iran conflict, APAC is still seen as relatively resilient, with average growth of 4.3 percent this year.

This resilience is attributed to the artificial intelligence (AI) boom, which is “doing the heavy lifting that geopolitics and fiscal policy cannot.”

“However, gains are far from evenly shared, with a group of winners emerging, including countries such as Taiwan, Singapore and South Korea, while countries such as the Philippines and Indonesia lag as domestic turmoil compounds exposure to the conflict,” Allianz said.

Apart from the technology surge, the report also pointed to Asia’s role as a global engine of commerce. “In 2026, 80 percent of global trade volume growth in goods and services is driven by Asia and the US,” the report said.

However, this dominance faces fresh challenges from shifting American trade policies. Allianz warned that the shift in US policies “is expected to negatively affect Asian countries in particular,” as the US effective tariff rate is projected to rise from eight percent to 13 percent.

According to Allianz, the region’s resilience hinges on the booming technology sector. It said the AI boom, which has been driving nearly two-thirds of Asia’s export growth, is helping “cushion” the global economy from the impact of the Middle East crisis.

This AI boom is broadening Asia’s recovery beyond traditional manufacturing, with major semiconductor firms in Taiwan and South Korea leading regional market gains.

By contrast, the Philippines and Indonesia are struggling with the lingering consequences of energy shocks.

“Despite recent developments toward normalization in the Gulf, we expect inflation to remain elevated in the near term as second-round effects from elevated fuel, energy and fertilizer prices keep weighing on the region,” Allianz said.

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think the Philippines should do in order to become more resilient to the effects of the war between America and the Islamic terrorist regime of Iran? Do you think the national government has been working to improve oil storage capacity, attract more foreign investors and rely less on the Middle East for importing oil? Do you think the Philippines will reach out to the Islamic terrorist regime of Iran to make an economic deal?

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’ Net FDI Inflows Fall Down Sharply In April 2026

July 16, 2026July 10, 2026carlocarrasco

This past April, the net inflows of foreign direct investment (FDI) into the Philippines reached only $250 million which counts as a 10-year low and a 59% fall compared with March 2026, according to a news report by BusinessWorld.

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

Net inflows of foreign direct investments (FDI) in the Philippines plunged to a near 10-year low of $250 million in April, as heightened global uncertainty dented investor sentiment, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Based on central bank data released on Friday, FDI net inflows declined by 58.8% to $250 million in April from $607 million in the same month last year.

April saw the lowest monthly level seen since the $244 million in June 2016, and the steepest year on year drop since the 76.1% in December 2022.

Month on month, FDI net inflows slumped by 59.1% from the $611 million in March.

“The sharp decline in FDI net inflows to $250 million in April likely reflects a combination of weaker intercompany borrowings, slower reinvestment activity, and continued investor caution amid an uncertain global environment,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said via Viber.

The latest FDI level was dragged by the 91.7% drop in net investments in debt instruments to $44 million in April from $522 million a year ago.

Reinvestment of earnings likewise slipped by 1.9% to $80 million from $81 million in April 2025.

Meanwhile, investments in equity and investment fund shares more than doubled (143.5%) to P207 million in April from $85 million the prior year.

Foreign net investments in equity capital other than reinvestment of earnings also ballooned (3,041%) annually to $127 million from $4 million previously.

Equity placements jumped by 21.4% to $136 million from $112 million a year earlier, while withdrawals plunged by 91.7% to $9 million from $108 million.

For Mr. Asuncion, the softer FDI inflows in April likely came as firms and investors deferred investments amid highly uncertain global conditions compounded by weak domestic growth.

“At the same time, heightened global uncertainty stemming from trade tensions, lingering geopolitical risks, and episodes of financial market volatility may have prompted multinational firms to defer expansion plans and adopt a more conservative stance toward capital deployment,” he said.

“Domestically, relatively subdued economic growth in the early part of the year may have also tempered investment decisions,” he added.

Let me end this post by asking you readers: What is your reaction to this recent development? Are you convinced that foreign investors have weak trust in the Philippines no matter what the current administration is doing? Do you think weak economic growth in the Philippines will continue until the end of 2028?

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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