Economy of the Philippines – Page 3

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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Philippines Coconut Oil Exporters See Golden Opportunities In America

March 10, 2026March 3, 2026carlocarrasco

Since US President Donald J. Trump returned in 2025, there were significant revisions in America’s health standards with Robert F. Kennedy Jr. (RFK Jr.) serving as the Secretary of Health and Human Services. One of the revisions tackled the dietary health guidelines which in turn created new opportunities in America that coconut oil exporters of the Philippines can capitalize on, according to a news report by the Philippine Star.

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

Coconut oil exporters are upbeat that demand for the prized commodity in the US will increase after Washington revised its dietary health guidelines, promoting the consumption of healthy fats.

United Coconut Association of the Philippines (UCAP) said the latest 2025-2030 US Dietary Guidelines reflects a “symbolic” shift in Americans’ diet as it represents an “inverted” food pyramid, putting fats at the top.

Prior to the change, saturated fats, including coconut oil, have been demonized based on the prevailing Lipid Heart Theory claiming that saturated fats and cholesterol are the root causes of heart disease, said UCAP chairman Marco Reyes.

He pointed out that previous dietary guidelines, particularly the 2020-2025 edition, had explicit warnings on the consumption of fats, including coconut oil and recommended consumers to shift to vegetable oil instead.

But in the latest guidelines, such an explicit warning has been removed with the only discouraging factor to coconut oil remaining is the limit stated on the consumption of saturated fat, Reyes said.

The latest dietary guidelines emphasized that saturated fat consumption must not exceed 10 percent of total daily calories. Furthermore, consumers are advised to eat healthy fats which it noted are plenty in whole foods like meats, eggs, among others.

However, coconut oil is not categorically stated as part of the healthy fats. Despite this, Reyes noted that demand for the commodity will still increase since there are no more explicit warnings against coconut oil.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the latest health guidelines of America will actually lead to stronger demand for coconut oil from 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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New Debit Mastercard Launched By BPI

March 5, 2026March 3, 2026carlocarrasco

A new debit Mastercard was launched recently by the Bank of the Philippine Islands (BPI) which will be available for free for clients who open an account through bank branches and also for existing clients whose existing cards are about to expire or are due for renewal, according to a business news report by GMA Network.

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

The Bank of the Philippine Islands (BPI) has launched a new debit Mastercard made from 100% recycled PVC-free plastic, as the Ayala-led lender boosts its sustainable banking efforts.

The new card will be available for free for clients who open an account through the bank’s branches and for existing clients with cards nearing expiry or are already due for renewal. Clients who switch to the new card will be charged a P200 replacement fee.

The card—which features a curved notch at the bottom left corner—can be requested through the BPI app or BPI Online, and may be available for pickup at the preferred branch.

“Reimagining the BPI Debit Mastercard to become an eco-friendly card is a testament to BPI’s commitment to its values of sustainability and innovation,” BPI Mass Retail head Jenny Lacerna said in an emailed statement.

“By using sustainable materials for our card, we hope to make sustainable behavior the default option for everyone,” she added.

Let me end this post by asking you readers: What is your reaction to this recent development? What is your observation about the new debit card launched by BPI? If you are an existing BPI account holder, do you intend to request for the new card?

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 Exporters Feeling Uneasy Over Trump’s New 15% Global Tariff

March 1, 2026February 26, 2026carlocarrasco

The new 15% tariff on imports announced by US President Donald Trump after reacting to the Supreme Court of the United States (SCOTUS) decision is already troubling exporters of the Philippines, according to a report by BusinessWorld.

There is concern that the new tariff may dampen the export recovery of the Philippines. It should be recalled that the American tariff on Philippine-made goods was set at 19% following the meeting between President Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr. last year.

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

THE United States government’s plan to impose a new 15% tariff on imports may dampen the Philippines’ export recovery and disrupt supply chains, according to analysts.

“Under a 15% tariff, there might be a disruption in the supply chain, because other countries might negotiate or diverge [to other markets],” Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said in a phone call.

“Unfortunately, our competitors here in the ASEAN (Association of Southeast Asian Nations) are supported by their governments, but we aren’t,” he added.

Mr. Ortiz-Luis said the Philippine government must resume negotiations with its US counterparts to ensure exports remain competitive.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the new tariffs could dampen export recovery, especially for electronics, garments, and agricultural sectors.

“The renewed threat of a 15% global tariff signals that protectionist risks remain and could dampen export recovery if implemented, especially for semiconductors and intermediate goods integrated into US supply chains,” he said in a Viber message.

US President Donald J. Trump said he wants to impose a new 15% duty on US imports from all countries, starting Tuesday, Reuters reported. (Read related story “Asian economies weigh impact of fresh Trump tariff, uncertainties” on S1/11).

This after the US Supreme Court struck down his previous tariff program, ruling that Mr. Trump had exceeded his authority when he imposed higher tariffs under an economic emergency law.

Government officials emphasized that the US remains an important trading and investment partner.

“We will continue to engage with (the US). A stable and predictable arrangement with the US will be very beneficial to our stakeholders,” Trade Undersecretary Allan B. Gepty said in a Viber message.

Finance Secretary Frederick D. Go earlier said that the majority of the country’s exports — like semiconductors and key agricultural goods — were already exempted before the US Supreme Court’s ruling.

The US has long been the Philippines’ biggest export market. From January to December 2025, the value of Philippine exports to the US stood at $13.44 billion.

“We don’t know under what authority he (Mr. Trump) will impose those tariffs, and if these will last. We will have to wait until the dust settles to properly assess the impact of his new universal tariffs,” Foundation for Economic Freedom President Calixto V. Chikiamco said in a Viber message.

Reuters reported the new US tariffs are grounded in a separate but untested law, known as Section 122, that allows tariffs up to 15% but requires congressional approval to extend them after 150 days.

Foreign Buyers Association of the Philippines President Robert M. Young said its members have been resuming talks with its US buyers.

“We have survived, for the last eight months, the US’ 19% tariff. So, I think we have to just go on with what we are doing, and we’ll try our best to just lower our price to be competitive with other ASEAN nations,” he said via telephone.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think Filipino exporters will do better with the new 15% tariff instead of the previous one set at 19%? If you are managing a company that makes products for export mainly to the United States, do you have any backup plans when dealing with new tariffs?

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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Cerberus’ P5.31 Billion Unsolicited Proposal For Subic Bay International Airport Development Under SBMA’s Review

February 28, 2026February 25, 2026carlocarrasco

When was the last time you visited the Subic Bay International Airport (SBIA)? In recent times, the US-based company Cerberus Asia Pacific Investments, LLC (Cerberus) proposed to manage, operate and rehabilitate the said airport for P5.31 billion and it has been endorsed by the Public-Private Partnership (PPP) Center. The unsolicited proposal is officially being reviewed by the Subic Bay Metropolitan Authority (SBMA), 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…

THE P5.31-billion unsolicited proposal of US-based investment company Cerberus Asia Pacific Investments, LLC (Cerberus) to manage, operate, and upgrade Subic Bay International Airport (SBIA) is now being reviewed by the Subic Bay Metropolitan Authority (SBMA) after the go signal from the Public-Private Partnership (PPP) Center.

“This unsolicited project was endorsed by the (PPP) Center to the IA (implementing agency) after being determined complete… The Subic Bay International Airport PPP is currently undergoing the approval process of SBMA,” the PPP Center told BusinessWorld on Tuesday.

According to the PPP Center, the SBMA will be the approving body for the project. If approved, the airport project will be under an operate-add-transfer contract arrangement.

Once the SBMA approves the project, it will begin negotiations with the project proponent. The government will then formalize the Original Proponent Status and initiate the Swiss Challenge process.

The Swiss Challenge is a process where other companies can submit better offers, but the original proponent has the right to match them.

Cerberus Capital Management is an investment firm managing approximately $65 billion in assets. Its global network of affiliates includes Cerberus Asia Pacific, which focuses on investments in logistics, infrastructure, technology, and energy.

Cerberus already operates part of a 310-hectare lot of a former South Korean-owned shipyard located west of the airport for which it had submitted an unsolicited bid.

“In theory, competitive bidding is king. In the reality of the SBIA, Cerberus is the catalyst we need. It is time to choose strategic results over procedural delays,” Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said in a Viber message.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, said that solicited bidding would be more feasible and faster, as it enables the government to define the contract’s parameters and coverage.

“Many of our public facilities should be operated by the private sector to attain a lot of the efficiencies that they can do, which are often difficult to attain within the government realm,” Mr. Villarete said.

For Mr. Villarete, a government-led solicited procurement process will always be preferable.

However, since an unsolicited proposal has already been submitted, the government’s role is to enter into negotiations, introduce the necessary changes and amendments, and only then present the proposal to the public for challenge, he said.

“There should be a negotiation period for the two parties to discuss any amendments required by the government before this is published for challenge,” he said.

Cerberus’ proposal covers the rehabilitation of SBIA assets and the development of new facilities to expand capacity and attract new tenants.

The company has also committed to invest “considerable financial resources” and utilize its real estate management capabilities in developing the airport.

In its proposal the company said that it will maintain the existing leases but only for the “early years” of its concession period.

“Cerberus plans to maintain the status quo of existing operations by honoring existing leases and retaining incumbent employees. In parallel, Cerberus will invest significant capital expenditure to improve SBIA’s infrastructure and operations, whilst building new hangars and storage facilities to reestablish SBIA as a major hub for commercial cargo operations and to expand SBIA’s government logistics operations,” it said.

The company added that it will monitor and evaluate airport fees to optimize SBMA’s returns under the revenue-sharing agreement, while supporting efforts to attract and manage both existing and new airport tenants.

This revenue-sharing scheme would be the determining factor if the proposed 25-year concession agreement were extended, PPP Center said.

Let me end this post by asking you readers: What is your reaction to this recent development? What is your opinion about the current state of the international airport inside the Subic Bay Freeport Zone? Do you think so much more can be achieved with the Subic Bay International Airport in terms of expanding flight connectivity, attracting more tourists from overseas and paving way for more foreign commerce to enter the freeport?

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 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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Deals Worth $4.2 Million Signed To Expand Nuclear Cooperation

February 24, 2026February 18, 2026carlocarrasco

Recently the effort to integrate nuclear power into the energy mix of the Philippines moved a few steps forward as deals with American companies worth $4.2 million were formally signed, 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 PHILIPPINES is gaining more support from the United States in its goal of integrating nuclear power into the national energy mix in the next six years as it sealed $4.2 million worth of deals with US companies.

Government agencies and private companies from the Philippines and the US on Monday entered into memoranda of understanding which are aimed at exploring deployment of nuclear technology and supporting nuclear workforce development in the country.

“The Philippine Energy Plan sets clear direction for an energy future — 1,200 megawatts (MW)by 2032. And that is not moving until somebody tells us that it’s impossible,” Energy Secretary Sharon S. Garin said in her speech during the signing ceremony in Makati City on Monday.

“These targets demand preparation, anchored in discipline, safety, and capacity. As we pursue energy security and a responsible transition, we must invest in our people as deliberately as we invest in infrastructure,” she added.

Under the Philippine Energy Plan, the country aims to integrate nuclear energy into the power mix with at least 1,200 MW of capacity by 2032, rising to 2,400 MW by 2045 and to 4,800 MW by 2050.

“We want to work together to get the Philippines to the finish line on nuclear energy,” Ann K. Ganzer, principal deputy assistant secretary at the US Department of State’s Bureau of Arms Control and Nonproliferation, said.

“Beyond acquiring the technology and establishing robust regulations, to achieve that 2032 goal, the most vital elements will be assessing sites for commercial reactor and developing the skilled workforce needed to design, construct, operate, regulate and sustain advanced nuclear plants for generations to come,” she added.

Manila Electric Co. (Meralco), the country’s largest private electric distribution utility, secured a $2.7-million grant from the United States Trade and Development Agency to help the company assess and deploy US-designed small modular reactors (SMRs) in the Philippines.

Meralco will pursue a feasibility study which involves an evaluation of leading US technologies, identification of viable sites, and delivery of a high-level implementation roadmap.

SMRs, each capable of generating up to 300 MW, can be constructed more quickly than traditional nuclear power plants.

Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan described the grant as “the beginning of a long but necessary journey.”

“Meralco is also looking actually at not only SMRs. It depends on the horizon by which we are able to deploy, but also, perhaps a bit sooner, conventional nuclear plants for this country,” Mr. Pangilinan said.

“It simply is right for the country and for Meralco to take nuclear, and we are prepared to act as thought leaders in this regard,” he added.

The US State Department’s Foundational Infrastructure for Responsible Use of Small Reactor Technology Program involves the installation of a $1.5-million nuclear reactor control room simulator at a technical institution within the planned Luzon Economic Corridor.

The simulator will provide hands-on realistic training for future reactor operators, which is aimed at positioning the Philippines as an SMR regional training hub.

Meanwhile, several private companies and government agencies also contributed $2.5 million to bring US nuclear experts to the Philippines to develop specialized vocational and higher education curricula focused on the civil nuclear industry.

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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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.

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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2.26 Million Filipinos Jobless in December 2025, Unemployment Rate Lands At 4.4%

February 15, 2026February 9, 2026carlocarrasco

Over two million Filipinos were reported jobless for the month of December 2025 with the unemployment rate landing at 4.4%, according to a business news report by the Manila Bulletin.

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

The country’s unemployment rate held steady at 4.4 percent in December 2025 from the previous month, but underlying labor market data pointed to emerging softness as the number of jobless Filipinos continued to rise.

The latest preliminary data from the Philippine Statistics Authority (PSA) released Friday, Feb. 6, showed that around 2.26 million Filipinos were unemployed in December, up sharply from 1.63 million during the same month in 2024 and slightly higher than the 2.25 million recorded in November.

The increase came alongside a labor force participation rate of 64.4 percent, translating to about 51.69 million Filipinos aged 15 and above who were either employed or actively seeking work.

The employment rate settled at 95.6 percent for the month, down from 96.9 percent in December 2024, while the underemployment rate fell to a single-digit eight percent in December—the lowest on record, National Statistician Claire Dennis S. Mapa noted at a press briefing. The last time that underemployment reached a single-digit rate was in May 2024, when it stood at 9.9 percent.

For full-year 2025, the employment rate slipped to 95.8 percent from 96.2 percent in 2024, while the unemployment rate rose to 4.2 percent from 3.8 percent. Underemployment held steady at 11.9 percent, the same level recorded in 2024.

Mapa attributed the year-on-year increase in unemployment primarily to the construction sector, which reportedly shed 550,000 jobs.

He noted that weak growth in construction—particularly public construction—was the main driver of the rise in unemployment. The sector further declined in the fourth quarter of 2025 compared with the third quarter.

Reductions in employment were also observed in transportation and storage (258,000), fishing and aquaculture (258,000), and manufacturing (255,000), but Mapa emphasized that construction accounted for the largest impact.

While employment grew by around 172,000 in 2025 compared with 2024, Mapa said this was the lowest annual increase in the past three years, excluding the pandemic years.

He noted that employment had risen by 1.29 million in 2023 compared with 2022 and by 664,000 in 2024 compared with 2023, highlighting a clear downward trend.

The slowdown was largely due to the construction sector contributing fewer workers compared with previous years, as reduced public construction activity translated into lower employment.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think unemployment all over the Philippines will gradually get worse over the next twelve months? If the economic growth of the Philippines weakens further, do you think job opportunities will be reduced?

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