Economy of the Philippines – Page 2

Economy Of The Philippines Expected To Rebound In 2nd Half Of 2026

June 1, 2026May 28, 2026carlocarrasco

While the economists of a particular university predict slower economic growth for the Philippines this year, the University of Asia and the Pacific (UA&P) see the national economy growing stronger in the 2^nd half of this year, according to a news report by BusinessWorld.

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

THE PHILIPPINE ECONOMY could grow by around 5% in the second half of the year, driven by base effects and an expected acceleration in government infrastructure spending, according to the University of Asia and the Pacific (UA&P).

“Growth could recover to around 5% in the second half on base effects and a ramp-up in National Government infrastructure spending,” UA&P said in its The Market Call report this month.

Government officials earlier signaled a pickup in disbursements and project implementation as agencies roll out catch-up programs.

UA&P cautioned, however, that growth will remain subdued in the first half amid unresolved issues surrounding last year’s flood control scandal and elevated oil prices.

“Weak gross domestic product growth and faster inflation will weigh on the economy in the first half amid the unresolved flood control scandal and high oil prices from the Middle East conflict,” it said.

“Flip-flopping US-Iran talks may keep fuel prices elevated, hitting the Philippines harder than its ASEAN (Association of Southeast Asian Nations) peers,” it added.

The Philippine economy expanded by a slower-than-expected 2.8% in the first quarter. This was below the government’s target range of 5-6% for the year.

For the entire year of 2026, UA&P said growth will be slow “but pose some resilience in the face of near-term global and local headwinds that will likely moderate activity in the first half of the year.”

“While cautious business sentiment and lingering geopolitical uncertainties may weigh on household and investment spending, the domestic economy continues to benefit from strong structural drivers such as steady household consumption, a healthy labor market, and sustained remittance inflows,” it added.

Meanwhile, UA&P said that it expects inflation to accelerate further amid second-round effects from the oil shock, “but likely not to (reach) double digits year on year.”

Inflation accelerated to 7.2% in April, marking the second consecutive month that it settled above the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target. It also breached the BSP’s 5.6%-6.4% forecast for the month.

“The BSP took on a more hawkish tone because of above-estimate inflation, raising rates and its inflation forecast to 6.3% for 2026,” it said.

“We likewise see above-target inflation for the rest of 2026, with the possibility of double-digit inflation rates due to base and second-round effects creeping into succeeding readings,” it added.

As inflation is expected to settle above the target for the rest of the year, UA&P expects the BSP to further tighten.

“Our outlook pencils in 75 basis points (bps) more of rate hikes for this year, bringing the policy rate to 5.25%, especially as the April inflation reading trumped even the BSP’s upper inflation bound,” it said.

The central bank last month raised rates for the first time in nearly two years by 25 bps to 4.5%, with BSP Governor Eli M. Remolona, Jr. saying the Monetary Board remains open to extending the tightening cycle to anchor inflation expectations.

NO STAGFLATION – Despite weaker growth and high inflation, UA&P said the country is not experiencing stagflation.

“Despite inflation negative commentary from some analysts, the Philippine economy is not in stagflation mode,” it said.

“Inflation, while elevated, will continually trek downwards after a peace deal gets signed, and growth will return when infrastructure spending resumes along with consumer and business confidence,” it added.

Meanwhile, the peso remains under pressure as crude oil prices surge.

“The peso-dollar rate remained under pressure amid the rebound in crude oil prices (i.e., close to $100/barrel for West Texas Intermediate, and $110/barrel for Brent) in April,” it said.

On Tuesday, the local currency closed P61.56 versus the greenback, weakening by 9.5 centavos from its P61.465 finish on Monday.

UA&P said it expects bonds with longer tenors to deliver higher returns amid elevated interest rates, after investors cautiously returned to the local bond market in April.

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 truly rebound in the 2^nd half of this year? What do you think will help boost the national economy apart from foreign investments?

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 @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Japan Supports Oil Diversification In Southeast Asia

May 29, 2026May 26, 2026carlocarrasco

For a few months now, the economies of Southeast Asian nations have been affected by the higher costs of imported oil from the Middle East and there is no telling what evil the terrorist state of Iran could do with regards to the critical Strait of Hormuz. As such, the need for Southeast Asian nations to diversify their crude oil procurement sources is clear and Japan confirmed it will help them, according to a news article by Jiji Press with additional content from Manila Bulletin.

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

The Japanese government plans to help Southeast Asian countries diversify their crude oil procurement sources, in order to stabilize petrochemical supply chains amid the ongoing Middle East tensions.

Faced with recent energy shocks following the effective closure of the Strait of Hormuz, Southeast Asian nations, which depend heavily on imported crude oil, are working to reduce their reliance on Middle East oil.

The Philippines has depended on the Middle East for more than 90 pct of its crude oil imports. In March, the Philippines declared a national energy emergency due to soaring crude oil prices.

The Southeast Asian nation recently started importing crude oil from Russia, even while some countries have reduced or halted imports from Russia as part of sanctions following its invasion of Ukraine. The Philippines has also shown a willingness to pursue joint oil and gas exploration with China in the South China Sea, where the two countries have territorial disputes.

Philippine President Ferdinand Marcos Jr. said in a recent interview, “I don’t think that we will go back to the old system where the majority of the petroleum products that are coming out of the Strait of Hormuz are going to Asia.”

Marcos expressed expectations that Asian countries will further advance the diversification of their crude oil supply sources in the coming years.

Other member states of the Association of Southeast Asian Nations, such as Thailand and Vietnam, are also seeking to diversify their procurement of crude oil by increasing imports from the United States and African countries, in addition to Russia.

At an ASEAN summit in Cebu in the Philippines earlier this month, leaders reaffirmed in a joint statement their commitment to diversifying crude oil procurement sources and promoting energy trade in the region. They also exchanged views on the idea of establishing joint oil and gas reserves.

Meanwhile, the Japanese government is wary of the potential impact on domestic supply chains if supply chains in Southeast Asia, a petrochemical manufacturing hub, are disrupted.

“Supporting supply chains in Asian countries will directly contribute to strengthening the Japanese economy,” Japanese Prime Minister Sanae Takaichi said, indicating her intention to support ASEAN.

In April, the Japanese government announced a framework to provide financial support of 10 billion dollars, or around 1.6 trillion yen, to help stabilize energy supplies in Asian countries.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think Japan’s support for oil diversification in Southeast Asia is crucial for both itself and the region? Do you think Japan’s $10 billion plan will succeed in stabilizing the energy supplies of Asian nations? Do you think the Philippines will fall into an economic recession this year if the oil prices remained high? Do you think it is a wise idea for the Philippines to pursue a joint oil and gas exploration in the South China Sea with Communist China?

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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Japanese Business Leaders Pledge $3.4 Billion Worth Of Investments For The Philippines

May 29, 2026May 28, 2026carlocarrasco

The Philippines, which is already struggling with weak economic growth, high fuel prices and rapid inflation, got a boost thanks to Japanese business leaders who pledged investments worth $3.4 billion for the country, according to a news report by GMA News.

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

President Ferdinand Marcos Jr. on Wednesday secured stronger commitments for deeper economic integration during a high-level roundtable meeting with top Japanese business executives at the Imperial Hotel in Tokyo.

In his meeting with leaders of Japan’s largest conglomerates and financial institutions, Marcos bagged an aggregate investment commitment of $3.4 billion (approximately P210 billion) from participating Japanese corporations.

In a statement, the Presidential Communications Office (PCO) said these combined capital inflows are “projected to catalyze substantive macroeconomic benefits, expanding domestic industrial capacity and directly generating thousands of high-quality, specialized jobs for Filipinos.”

The PCO added that the infusion “underscores the resilience of the Philippine market, promising long-term economic dividends by fortifying local supply chains, upgrading tourism infrastructure, and accelerating technology transfers across critical growth sectors.”

The President is in Tokyo for a four-day state visit upon the invitation of the Japanese government.

In his remarks, Marcos said a robust Philippine-Japan economic corridor is critical and that laying the groundwork for an enhanced, unified partnership is essential to navigate global difficulties, build resilience, and sustain momentum.

“As we mark 70 years of the normalization of our diplomatic relations, we are no longer simply commemorating history. We are entering a new chapter – a chapter defined not only by friendship, but by deeper integration, shared growth, and a common belief in the future,” the President told the leaders of Japan’s largest conglomerates and financial institutions.

He outlined a unified government approach spearheaded by the Department of Trade and Industry (DTI) and the Department of Tourism (DOT).

“The Philippines is pursuing a clear national direction: building an economy where infrastructure, industry, finance, human capital, and connectivity move together as one system of growth,” Marcos said.

“Increasingly, we recognize that trade and tourism will be among the most important engines of that growth.”

He underscored the importance of stronger trade and tourism linkages, saying these are not supporting sectors but “core drivers of economic expansion in the Philippines moving forward.”

“This is a philosophy our two countries understand deeply,” the President said.

He also acknowledged the foundational contributions of several Japanese firms operating in the Philippines, such as All Nippon Airways, Toyota, Mitsubishi Corporation, Marubeni, Panasonic, and Fast Retailing.

He thanked these Japanese investors for their continued confidence in the Philippine economy and for helping create high-quality opportunities for Filipino workers and industries.

“You are no longer just investors in our economy. You are builders of it,” Marcos told the Japanese business leaders.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the $3.4 billion investment pledge by Japanese corporations will be a huge boost for the Philippines’ economy? Do you consider the ties of Japan and the Philippines healthy today?

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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America’s Pax Silica Prompts P7 Billion Power Expansion In New Clark City

May 28, 2026May 25, 2026carlocarrasco

Pax Silica – the United States’ Pax Silica flagship effort on artificial intelligence (AI) and supply chain security that includes the Philippines – prompted the P7 billion investment of the National Grid Corporation of the Philippines (NGCP) to ensure a stable power supply for New Clark City in Tarlac province, according to a news report by the Manila Bulletin.

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

The National Grid Corporation of the Philippines (NGCP) plans to invest nearly ₱7 billion in a dedicated substation to guarantee a stable power supply for New Clark City in Capas, Tarlac, anticipating a surge in demand from a planned artificial intelligence (AI) industrial hub.

Joshua Bingcang, president and chief executive officer of the Bases Conversion and Development Authority (BCDA), said the investment promotion agency is currently in talks with NGCP to finalize the project’s details. The grid operator is drafting the alignment plan for the substation, which Bingcang noted should be finalized “soon.”

“Our target with them is by [the] end of 2028, the dedicated power connection should be already installed in New Clark City,” he told reporters last week.

Bingcang added that the BCDA initially offered to fund the project to jump-start construction, with NGCP reimbursing the agency later. However, NGCP declined the offer because the substation is already integrated into its capital expenditures.

Under its Transmission Development Plan 2024 to 2050, NGCP outlined plans to construct the Capas 230-kilovolt (kV) substation to meet the growing power needs of the emerging metropolis. According to the plan, NGCP will allocate ₱6.95 billion to develop the facility.

To facilitate the project, Bingcang said the BCDA is offering land along the Subic-Clark-Tarlac Expressway (SCTEX) to ensure an unimpeded route for the transmission line into New Clark City. Once operational, the substation is expected to give locators in the AI hub the confidence to manufacture high-value inputs without risking operational pauses due to power shortages.

The AI hub will span more than 1,600 hectares within New Clark City as part of the United States-led Pax Silica partnership, which aims to encourage investment among member countries to bolster the global AI supply chain.

To meet the site’s massive energy requirements, Bingcang said the BCDA expects a foreign investor to build a solar energy project capable of generating up to 500 megawatts. Furthermore, the agency is drafting plans for an embedded power plant to secure baseload power and enhance the hub’s overall energy reliability.

In a separate interview with Business 360, Bingcang disclosed that the BCDA is also negotiating with US investors to construct a dedicated pipeline to transport jet fuel from Subic Bay to Clark International Airport, supporting the logistics needs of companies within the AI hub. The agency is also exploring a separate pipeline along SCTEX to deliver fuel or liquefied natural gas.

Additionally, the BCDA is advancing a public-private partnership (PPP) project for New Clark City’s information and communications technology (ICT) infrastructure. According to a bid bulletin published by the PPP Center, the agency aims to conclude the procurement process for a joint venture partner to lay fiber-optic cables across the city by August.

Bingcang noted that all of these infrastructure projects were requested by the US during preliminary talks for the AI hub. Following a visit to the 1,600-hectare site last week, the US will send engineering personnel next month to conduct a site assessment and design a concept plan for the industrial zone.

“Parallel to these technical studies, we will also finalize the commercial arrangement and contractual framework for the project. Within the year, we will be announcing a definitive contract arrangement [with the US],” Bingcang said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think Pax Silica will prompt further infrastructure and energy developments related with New Clark City as the initiative develops further? Do you think there is room for nuclear power to considered in the years to come?

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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Economic Warning Signs In The Philippines Grow

May 26, 2026May 21, 2026carlocarrasco

With weak economic growth and high inflation already happening, the future is looking dark for the economy of the Philippines and there are warning signs growing, according to a news report by Malaya Business Insight.

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

The Philippines is not yet in stagflation, economists said, but slowing growth, high inflation, weak public spending, and the Middle East oil shock are pushing parts of the economy closer to danger.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said some weaker sectors may already be feeling near-stagflation conditions.

“Near stagflation conditions for some vulnerable, already weak industries. But stronger ones are more insulated,” Ricafort said.

His comment followed President Marcos Jr.’s statement that potential stagflation is among the concerns keeping the government “awake at night” as officials try to contain prices of basic goods and keep the economy running.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the country is still not in stagflation, although the risks are rising.

“There are potential stagflation risks, but we’re not yet there,” Ravelas said at the weekly Pandesal Forum in Quezon City on Wednesday.

He said unemployment remains below its long-term average, while the economy continues to post positive growth despite the slowdown.

“If we talk about the average unemployment rate in the Philippines since the 1960s, it’s 7.5 percent. Right now, our numbers are between 5 percent and 5.3 percent,” Ravelas said.

Inflation, however, remains a major threat. Ravelas said consumer prices could climb to 8 percent to 9 percent toward the end of the year, with households likely to feel the sharpest impact from higher fuel, food, and transport costs.

He said the stagflation concern recalls the oil shocks of the 1970s, when energy disruptions pushed prices sharply higher while economic activity weakened.

Ravelas said the more immediate challenge is reviving spending, particularly government spending, to keep growth from losing further momentum.

He said the economy is still feeling the effects of last year’s flood-control scandal, which disrupted public works and slowed disbursements, while the inflationary impact of the US-Iran conflict has added pressure.

Restraining spending now, he said, would be like “shooting ourselves on our foot” because it would further weaken recovery.

“We need to be able to work on improving consumption,” Ravelas said.

He also said the government must convince the public that it is acting decisively to stabilize prices.

“When it comes to fighting inflation, we need to show our countrymen, from a government perspective, that prices are stable. That would be a good opportunity so that they will believe the government is doing something,” he said.

Ravelas noted the country should also invest in upskilling workers to improve employment prospects.

Given the inflation pressure, he said the Bangko Sentral ng Pilipinas is likely to take a defensive policy stance and raise interest rates by 50 to 75 basis points, although it must balance inflation control with the need to support growth.

A separate report from the De La Salle University Carlos L. Tiu School of Economics said inflation is being driven mainly by fuel, as higher energy costs feed into transport, logistics, and production.

“Fuel costs have more than doubled since the war began, pushing inflation sharply higher from May through August 2026. We expect inflation to peak at around 8 percent in August,” economists Jesus Felipe, Mariel Monica Sauler, Gerome Vedeja, political scientist Susan Kurdli, and research assistant Seth Paolo Paden said in the school’s May economic report.

They said the disruption in the Strait of Hormuz has also cut off roughly a third of global fertilizer supply, keeping inflation elevated through the end of 2026.

By early 2027, the report said, energy and fertilizer pressures are expected to ease, with inflation likely to return to the BSP’s 2 percent to 4 percent target band by April 2027 and settle at around 2.8 percent in 2028.

The DLSU economists said the current inflation surge is a supply shock caused by war-related disruptions in global energy and food markets, making interest rate increases an imperfect response.

“Higher interest rates will neither bring oil prices down nor reopen the Strait of Hormuz. What they will do is make borrowing more expensive, slow investment, and constrict household spending,” they said.

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 state of stagflation this year? How are you dealing with the higher costs of living nowadays?

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 Counting On Stronger Cooperation With Japan On Investment And Energy Security

May 23, 2026May 21, 2026carlocarrasco

As it is already struggling with weak economic growth and high inflation, the Philippines is looking forward to Japan for stronger cooperation on investment and energy security, according to a news report by Malaya Business Insight.

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

President Ferdinand Marcos Jr. said the Philippines is counting on stronger cooperation with Japan on investment, energy security, and defense as his administration seeks to keep the economy moving despite high inflation, slower growth, and pressure from the Middle East crisis.

Speaking to Japanese media in Malacañang ahead of his May 26 to 29 state visit to Japan, Marcos said the government remains confident the economy can recover from the recent slowdown, citing continued investor interest and policy measures meant to cushion consumers and businesses.

The economy grew 2.8 percent in the first quarter, slower than 3 percent in the fourth quarter of 2025, while inflation surged to 7.2 percent in April from 4.1 percent in March.

Marcos said the government was trying to keep the “economic machine running” despite “elements of fear” arising from global uncertainty.

“Luckily, I suppose, or at least as I said, we are still continuing to see marked interest in investment in the Philippines,” Marcos said.

“And perhaps this is why. This is because of the policies that we adopted, the incentives that we put out for investors. And so slowly we can see the way through this. Where we will recover through this,” he added.

Marcos said the risk of stagflation, or weak economic growth combined with rising inflation, remains a major concern.

He said the government has rolled out fuel subsidies, cash aid for the transport sector, a price cap on imported rice, and the P20-per-kilo rice program to help contain inflation and ease the burden on consumers.

“We want to keep the system, the economic system, continuing to function. We have done all these measures to keep inflation down,” Marcos said.

The President said his talks with Japanese Prime Minister Sanae Takaichi are expected to focus on energy security and defense cooperation, including tensions in the South China Sea and East China Sea.

Marcos said both countries have faced coercive actions and “gray zone” tactics, making adherence to international law and the United Nations Convention on the Law of the Sea central to the discussions.

He said he would also push for the full implementation of the Reciprocal Access Agreement signed in July 2024 and the Acquisition and Cross-Servicing Agreement signed in January.

Marcos said Japan’s participation in this year’s Balikatan exercises marked a significant step in strengthening interoperability among allied forces.

He also said the Philippines expects to benefit from Japan’s easing of restrictions on defense exports, including support for radar systems, aircraft, vessels, information technology sharing, and personnel training.

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 cannot grow stronger without the involvement of Japan and its investors? Do you think the Philippines will proceed to acquire anti-ship missile systems from Japan to enhance national defense?

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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University Economists Say Philippine Economic Growth Could Slow Down To 3.1% This Year

May 23, 2026May 21, 2026carlocarrasco

Could the economy of the Philippines be weakening a lot right now? As far as the economists of De La Salle University (DLSU) are concerned, economic growth will be 3.1% this year and they pointed to the effects of the Middle East conflict, rising inflation and other factors, 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…

De La Salle University (DLSU) economists slashed their 2026 Philippine gross domestic product (GDP) growth forecast to 3.11 percent from 3.79 percent previously, warning that the economy is facing mounting pressure from the Middle East conflict, elevated inflation, and lingering domestic vulnerabilities.

If realized, the revised forecast would mark the country’s weakest annual economic growth post-pandemic, worse than the 4.4 percent recorded in 2025 in the aftermath of the flood-control corruption scandal and below the government’s downscaled five- to six-percent target.

In their report on the Philippine economy for May 2026, published on Monday, May 18, DLSU economists Jesus Felipe, Mariel Monica Sauler, Gerome Vedeja, and Seth Paolo Paden, together with political science professor Susan Kurdli, said the downgrade reflected “three converging pressures on the economy.”

These include the Middle East conflict disrupting oil supply and pushing energy prices higher, the risk of tighter monetary policy should inflation persist, and the emerging pass-through of higher fertilizer costs to food prices.

“The combination of all three explains why the growth outlook has deteriorated more sharply than previously expected,” the report read.

The economists noted that the economy had already slowed sharply to 2.81 percent in the first quarter, which they described as “the last reading to reflect pre-shock normalcy” before the full impact of the Middle East conflict filtered through fuel prices, inflation, and fertilizer supply disruptions.

DLSU expects growth to slow further to 2.8 percent in the second quarter and 2.3 percent in the third quarter before recovering to 4.53 percent in the fourth quarter on the back of government catch-up spending, overseas Filipino workers’ (OFWs) remittances, and an eventual recovery in investments should geopolitical pressures ease.

The report warned that the war had exposed the Philippines’ structural vulnerabilities, particularly its heavy dependence on imported petroleum, fertilizer-sensitive food production, and a fragile investment environment already weighed down by domestic political issues even before the external shock emerged.

Medium-term growth is projected to recover to 3.93 percent in 2027 and 5.71 percent in 2028, driven by easing energy prices, the expected shift toward monetary accommodation, election-related spending, and the ramp-up of the Pax Silica semiconductor industrial hub. Still, both projections remain below the government’s downgraded growth targets.

For 2026, DLSU expects private consumption growth at 4.93 percent, government expenditure at 4.89 percent, exports at 4.51 percent, and imports at 5.62 percent. Gross fixed capital formation, however, is forecast to contract by 1.99 percent, reflecting weak investor confidence, slowing bank lending, and elevated geopolitical risks.

On the supply side, agriculture, forestry, and fishing are projected to grow just 0.2 percent this year, while industry is expected to expand 1.24 percent and services 4.38 percent.

The economists also warned that inflation would remain “elevated through the end of 2026” as higher fuel costs spill over into transport, logistics, and food prices. The report expects inflation to peak at around eight percent by August before easing back within the Bangko Sentral ng Pilipinas’ (BSP) two- to four-percent target band by April 2027.

DLSU also expects the peso to weaken further this year, projecting the currency to hit around ₱63.5 against the United States (US) dollar by August due to rising oil import costs and negative real interest rates before recovering in succeeding years.

The economists argued that peso depreciation may provide limited support to the economy because most Philippine exports and imports are priced in US dollars under the dominant currency pricing system.

“The short-run effect of depreciation tends to be: stronger on import prices; weaker on export volumes; more inflationary; [and] less expansionary for net exports than the textbook case,” the report said.

The report explained that because Philippine exports—particularly electronics and global value chain-related products—contain substantial imported inputs, peso depreciation could raise production costs while delivering only limited gains to export volumes.

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 has no room left to find ways to boost economic growth this year? What do you think the national government should do to stimulate the economy?

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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America Eyes Philippines Role In New Clark City Economic Security Zone

May 21, 2026May 21, 2026carlocarrasco

With New Clark City in the Philippine province of Tarlac chosen as the site for an industrial hub focused on artificial intelligence (AI) under Pax Silica, a planned economic security zone within the said city is being positioned as the United States of America aims to combine predictability and security with the manufacturing speed and scale of Asia, according to a news report by GMA News.

It should be noted that the economy of the Philippines has been slowing down and this new development could be the key to reinvigorating economic growth and attracting more investments from the United States.

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

A planned “economic security zone” in New Clark City is being positioned as part of broader efforts by the United States to build more reliable supply chains for emerging technologies, including artificial intelligence.

During a visit to the Philippines, US Under Secretary for Economic Affairs Jacob Helberg said the proposed zone aims to combine “predictability and certainty” with Asia’s manufacturing speed and scale, as global firms reassess supply chain risks.

“This is the site of a planned Economic Security Zone to fuse together the predictability and certainty of American law to the speed and scale of Asia,” Helberg said in prepared remarks delivered in New Clark City.

The initiative comes as US firms seek to reduce dependence on highly concentrated supply chains, particularly for critical components used in artificial intelligence and advanced manufacturing.

Helberg said that while semiconductor chips often dominate discussions, the broader AI supply chain relies on a wide range of inputs—from rare earth elements and metals to motors, packaging, and testing systems.

“For each of those parts, our position today is unacceptably overconcentrated,” he said, warning that disruptions, from export restrictions to sudden regulatory changes—have already caused production delays and uncertainty for companies.

He added that when a large share of critical inputs comes from a single source, “you do not have a supply chain,” but rather a vulnerable system exposed to external shocks.

The planned economic security zone is part of efforts under what he described as the US government’s push to treat economic security as a strategic priority, particularly as demand surges alongside the rapid development of artificial intelligence technologies.

Helberg also highlighted the Philippines’ role as a long-standing US partner in the region, calling the project a “partnership of a kind that has not been tried before.”

Let me end this piece by asking you readers: What is your reaction to this development? Do you think this latest initiative will help the Philippines attract investors and technology firms from the United States? Do you think this will help the Philippines reduce its dependence on Chinese involvement when it comes to long-term, major economic developments within the country? What is your opinion about the AI supply chain?

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 @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Filinvest Development Corporation’s Net Income Reaches P3.9 Billion In 1st Quarter Of 2026

May 20, 2026May 14, 2026carlocarrasco

As there are lots of signs of a weakening Philippine economy connected with higher fuel prices and accelerating inflation, Filinvest Development Corporation (FDC) achieved growth in the first quarter this year with its net income reaching P3.9 billion, according to a news report by the Manila Bulletin.

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

Filinvest Development Corp., the holding company of the Gotianun family, reported an eight percent increase in attributable net income to ₱3.9 billion for the first quarter, as robust performances in its banking and real estate divisions mitigated the sharp downturn in its power business.

The firm reported to the Philippine Stock Exchange that its consolidated net income grew by seven percent to ₱4.8 billion from ₱4.5 billion in the first quarter of 2025.

Total revenues and other income for the first quarter of 2026 rose by five percent versus the same period in 2025 to ₱30.8 billion.

The increases in revenues and other income by business segment were: Banking, 12 percent to ₱15.6 billion; Real estate, 16 percent to ₱7.9 billion; and Hospitality, 0.8 percent to ₱1.2 billion. Power declined by 28 percent to ₱3.6 billion.

“Business results were mixed: Real Estate and Hospitality showed resilience against macroeconomic pressure while for others, profits were flat or experienced decreases versus a year ago,” said FDC President and CEO Rhoda A. Huang.

She noted that, “We are facing the challenges with resolve to achieve revenue and profit growth in 2026, despite increasing inflation and weakening GDP growth, through astute strategies and persistence of our organization.”

Banking unit EastWest Bank’s (EW) top-line growth was driven by increased loan volumes and effective management of funding costs, resulting in a 20 percent rise in net interest income (NII) to ₱11.1 billion.

Non-interest income was affected by trading performance amid volatile market conditions, but this was partially offset by an eight percent growth in fee-based income.

FDC’s Real Estate business, composed of Filinvest Land, Inc. (FLI), Filinvest Alabang, Inc. (FAI), and Filinvest REIT Corp. (FILRT), recorded a 16 percent revenue increase to ₱7.9 billion due to stronger residential and commercial lot sales.

Residential sales increased by 28 percent, driven by sustained sales of ready-for-occupancy units and a higher percentage of completion for various residential projects. Mall and rental revenues remained steady with slight gains in occupancy and foot traffic.

The Power subsidiary, FDC Utilities, Inc. (FDCUI), reported total revenues and other income of ₱3.6 billion for the first quarter of 2025 due to a notable decrease in spot market sales and lower coal cost passthrough rates. This was mitigated by reduced costs resulting from lower sales volume.

Revenues from hotel operations under Filinvest Hospitality Corporation (FHC) remained consistent with the previous year’s level, supported by higher average room rates and enhanced contributions from the Food and Beverage (F&B) segment across its portfolio.

The Banking segment was the largest contributor to revenue and other income for the first quarter of 2026, representing 51 percent of the conglomerate’s total.

Real Estate and Power followed with contributions of 26 percent and 12 percent, respectively. The Hospitality segment accounted for four percent of revenues, while the remainder was attributed to other business units.

Let me end this post by asking you readers: What is your reaction to this recent development? Considering the current state of the economy of the Philippines today, how do you think Filinvest Development Corporation will be able to perform financially in this current quarter and the next quarter?

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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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagement, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Pickup Coffee Targets Around 800 Stores By The End Of 2026

May 19, 2026May 14, 2026carlocarrasco

Pickup Coffee, the popular homegrown coffee chain, is aiming to have around eight hundred stores by the end of 2026, according to a news article by the Philippine News Agency (PNA). Pickup Coffee first opened in 2022 and it now has roughly five hundred branches. It continues to attract customers who love coffee.

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

Banking on Filipinos’ love for coffee along with more affordable offerings, an official of grab-and-go coffee chain Pickup Coffee expressed confidence for continued expansion amidst the current economic challenges.

To date, the brand has around 500 coffee kiosks around the country, mostly in Metro Manila, and about a hundred stores in Mexico City.

The goal is to have around 800 stores by end-2026, Diego Lorenzo, Pickup Coffee chief executive officer and cofounder said in an interview Tuesday night.

*A branch of Pickup Coffee inside Festival Mall in Alabang, Muntinlupa City.*

The company is now open to franchising, with an initial investment of PHP2 million for the coffee truck’s stock, equipment and construction.

Lorenzo said they plan to open as many as 200 more company-owned stores nationwide this year, with the focus on Northern Luzon, Visayas and Mindanao.

He said they cater to people from all walks of life, from those who can afford high-end brands but are open to cheaper options with quality offerings, to those in the C and D levels.

“The more accessible you are, the faster you will grow,” he said.

The brand has received capital from venture capitalists and Lorenzo said this is a sign of the brand’s potential to post stronger growth going forward.

Rami Chahwan, president of Pickup Coffee, said franchising will complement the existing branches, citing lessons learned over the last 48 months.

He said they have piloted 10 franchise stores over the last three months to ensure they can efficiently cater to more units once this bid is in full bloom.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the quality of drinks and services of Pickup Coffee will be well maintained as the franchising of their business happens? Do you think Pickup Coffee will be able to grow even as the economy of the Philippines slows down? Do you think only a recession would stop Pickup Coffee’s growth? If you consumed coffee from Pickup Coffee, what can you say about the taste and quality of what was served to you?

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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