economy – Author Carlo Carrasco

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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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

SBMA And BCDA Agree To Use Port Of Subic Bay As Maritime Gateway For Pax Silica

July 24, 2026July 22, 2026carlocarrasco

The Subic Bay Metropolitan Authority (SBMA) announced that it has sealed a formal agreement with the Bases Conversion and Development Authority (BCDA) to make the Port of Subic Bay the preferred maritime gateway for Pax Silica.

Launched in late-2025, Pax Silica is a United States-led strategic coalition to secure the global supply chains for artificial intelligence and semiconductors. Pax Silica was designed to counter China’s dominance in technology manufacturing and earth minerals.

To put things in perspective, posted below is an excerpt from the SBMA’s official announcement. Some parts in boldface…

The Subic Bay Metropolitan Authority (SBMA) and the Bases Conversion and Development Authority (BCDA) have agreed to make the Port of Subic Bay the preferred maritime gateway for the Pax Silica initiative.

The partnership was confirmed in the signing of the Memorandum of Understanding (MOU) between SBMA Chairman and Administrator Eduardo Jose L. Aliño and BCDA President and CEO Joshua M. Bingcang at the Bonifacio Technology Center in BGC, Taguig City, on July 20, 2026.

“Having the Port of Subic Bay as the preferred maritime gateway for Pax Silica Operations within the Luzon Economic Corridor is a great honor for the SBMA. It is, in fact, a crowning recognition of the invaluable role the Port of Subic Bay can play, on par with the initiatives to support the National Government regarding Pax Silica,” Aliño said.

“As part of the Luzon Economic Corridor, Subic Bay’s deep-water port and shipyard facilities are designed to transport raw materials like nickel and copper quickly, and processed tech goods between the port and the AI-native Economic Security Zone, or ESZ, in New Clark City,” he added. Meanwhile, Bingcang highlighted that the Port of Subic Bay offers a strategic advantage for the Pax Silica initiative. It serves as a critical gateway that enables the efficient movement of raw materials into the country and the timely delivery of finished products to customers,” PCEO Bingcang said. It serves as a critical gateway, enabling the efficient movement of raw materials into the country and the timely delivery of finished products to customers.

He added that the partnership advances the Marcos administration’s whole-of-government approach to infrastructure development and investment promotion, while reinforcing the Luzon Economic Corridor through stronger integration of ports, industrial hubs, and emerging technology ecosystems that will generate quality jobs and long-term economic opportunities for Filipinos.

Also present during the signing ceremony were SBMA Senior Deputy Administrator for Operations Ronnie Yambao and BCDA Senior Vice President for Legal Services Atty. Diana Joyce N. Basco-Galera.

This partnership requires the SBMA to identify and evaluate specific land and port areas under its jurisdiction that can be strategically leveraged for the Pax Silica initiative. It also involves evaluating the infrastructure, utilities, logistics, and port support requirements for Pax Silica.

The partnership would also include the assessment of land use compatibility and traffic connectivity with existing and planned master development plans of both economic zones; exchange of non-confidential information relevant to infrastructure planning and operational coordination.

Both the BCDA and the SBMA would also conduct market sounding, logistics demand analysis, potential development phasing, and explore possible modes of cooperation or future project structures, subject to applicable laws and policies.

Let me end this post by asking you readers: What is your reaction to this recent development? Were you surprised the SBMA and BCDA sealed the agreement on designating the Port of Subic for Pax Silica as a maritime gateway?

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

American Delegation Sees Potential Business Opportunities In Subic Bay

July 23, 2026July 18, 2026carlocarrasco

A delegation from the United States recently visited the Subic Bay Freeport Zone, met with the local authorities and saw the potential business opportunities within, the Subic Bay Metropolitan Authority (SBMA) announced.

To put things in perspective, posted below is an excerpt from the SBMA’s official announcement. Some parts in boldface…

A United States delegation is eyeing more potential business opportunities here as part of a profile business mission in line with the initiatives of the Luzon Economic Corridor (LEC).

According to SBMA Chairman and Administrator Eduardo Jose L. Aliño, the delegates from the U.S. Northeast, Midwest, and West Coast regions visited on July 8, 2026 to participate in the said business mission that will strengthen partnerships, expand business opportunities, and foster a prosperous future for both U.S. and Philippine enterprises.

With the theme “Driving the Future of U.S.–Philippine Trade Through Innovation,” Aliño said that the mission reflects the SBMA’s commitment to enhancing international cooperation and economic growth within the Subic special economic zone.

The delegation, composed of 25 executives and investors, conducted comprehensive discussions, site visits, and networking activities with SBMA officials and Subic company officials, all designed to showcase the potential and advantages of investing in the SBFZ.

Subic Bay Freeport Chamber of Commerce (SBFCC) President Benjamin Antonio III, together with SBFCC Executive Director Donna May Tamayo also joined to take part in a rare opportunity to build strong, lasting business relationships that will drive economy not only in the Subic special economic zone but ultimately the country as a whole.

The Philippine Trade and Investment Center (PTIC) in New York, the facilitator of the said U.S. Business Mission to the Philippines, said that the main goal of the trip is to create stronger economic ties and encourage more US companies to invest in the country’s growing economy.

Aside from Subic Bay Freeport, the delegation also visited areas in Manila, Clark, and Corregidor Island to conduct business meetings, informational briefings, and tours of these major economic areas that are part of the LEC.

“The trip comes at a time when the Philippines is actively working to welcome international businesses and establish itself as a key partner for US companies looking to grow in Asia,” the PTIC said.

Officials from Worldwide Shipping & Logistics (WSL), who were also part of the delegation, said that these engagements strengthened economic cooperation and opened new opportunities for trade and investment between the United States and the Philippines.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the visit of the American delegation will lead to a breakthrough of new investments and the creation of new businesses inside the Subic Bay Freeport Zone in the next few years?

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 Attracts Over 21 Million Foreign Visitors In First Half Of 2026

July 23, 2026July 20, 2026carlocarrasco

During the first half of this year, Japan attracted a little more than twenty-one million foreign visitors, according to a news report by VnExpress. What is notable, however, is the fact that Japan experienced its first drop in five years.

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

Japan, voted the “world’s most favorite destination” by readers of Condé Nast Traveler last year, received 21.08 million foreign visitors in the first half of the year, down 2% from the same period a year earlier, marking the country’s first decline in inbound tourism for the January-June period in five years.

The drop was largely driven by a sharp decline in arrivals from mainland China after Beijing advised its citizens against traveling to Japan, while strong growth from South Korea helped cushion the decline, Japan Today reported.

Mainland Chinese arrivals plunged 56.4% year-on-year to 2.06 million in the first half, while visitors from South Korea rose 18.6% to 5.68 million, and from Taiwan increased 20.9% to 3.97 million.

Hotel operator Mori Trust forecasts Japan will welcome between 40.5 million and 42 million international visitors in 2026, slightly below the record 42.68 million arrivals recorded last year, The Japan Times reported.

The company said demand for hotel bookings remains strong for the summer and autumn travel seasons, despite airlines increasing fuel surcharges on international flights amid heightened tensions in the Middle East.

Let me end this piece by asking you readers: What is your reaction to this development? With the way it is going, do you think Japan will be able to match the 42.7 million foreign tourists it attracted in 2025? Do you think growth of incoming tourists from South Korea, Taiwan and other nations will heavily offset the lack of Chinese tourists by the end of 2026? Do you consider overtourism a problem for the Japanese?

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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Vietnam Sets December 1 Opening For Ambitious Long Thanh International Airport

July 21, 2026July 16, 2026carlocarrasco

With large ambitions on tourism and commerce in mind, Vietnam recently announced that the brand-new Long Thanh International Airport will formally be opened for commercial flights on December 1, according to a news report by VnExpress.

Previously, the new international airport was powered up and the local authorities deployed soldiers to help complete the preparations. It is anticipated that most international flights will be handled by Long Thanh International Airport in 2027. During the first half of 2026, Vietnam attracted more than twelve million foreign tourists.

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

Vietnam will open its largest airport Long Thanh for commercial flights on Dec. 1 and move most of Ho Chi Minh City’s international traffic there within a year under a newly proposed transition plan.

Long Thanh is the biggest and most expensive airport project in Vietnam’s history, built at a cost of VND336.63 trillion (US$12.8 billion).

Sitting about 40 km east of Ho Chi Minh City, it is built first to relieve the chronically overcrowded Tan Son Nhat, which has run for years beyond its designed capacity.

The Airports Corporation of Vietnam (ACV), the state operator building Long Thanh, has said it hopes the airport will grow into a regional transit hub able to rival the established gateways in Singapore, Bangkok and Kuala Lumpur, reclaiming the long-haul connecting traffic that now flows through those hubs rather than Vietnam.

Long Thanh opens with capacity for 25 million passengers a year and reaches its full 100-million design ceiling only in later phases still years away. The target will make it surpass Singapore’s Changi, ranked the world’s best airport which handled a record 69.98 million passengers in 2025 and is expanding toward 140 million.

ACV has submitted a plan to split flights between Long Thanh and Tan Son Nhat by region and route distance.

Long Thanh would take all international routes longer than 1,000 km and every cargo flight. Tan Son Nhat would keep shorter international routes flown on Code C jets such as the Airbus A320, A321 and Boeing 737.

Every route to East Asia, West Asia, Oceania and Europe would move to Long Thanh. Southeast Asian routes would be divided roughly 55% to the new airport and 45% to Tan Son Nhat.

The handover would run in three phases pegged to airlines’ seasonal schedules.

From Dec. 1, 2026 to March 27, 2027, Long Thanh would take all long-haul international and cargo flights along with new routes and added HCMC-area frequencies, about 19% of the area’s international passenger volume. Tan Son Nhat would keep its existing routes and open no new international ones.

From March 28 to Oct. 30, 2027, all flights to Europe, the Americas, Oceania, Africa, the Middle East, South Asia and Central Asia would shift to Long Thanh, leaving Tan Son Nhat with its remaining Northeast and Southeast Asian routes.

From Oct. 31, 2027 to March 25, 2028, Long Thanh would handle nearly all international flights, keeping only scheduled sub-1,000 km routes flown by Vietnamese carriers at Tan Son Nhat.

ACV is targeting the transfer of more than 90% of the area’s international passenger traffic to the new airport by 2027.

Domestic flights would stay largely at Tan Son Nhat, though carriers could pick either airport based on demand across all three phases.

Let me end this piece by asking you readers: What is your reaction to this development? Are you convinced that Vietnam could someday attract 30 million foreign tourists by air annually with Long Thanh International Airport at full operation?

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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Japan’s Parliament Enacts National Flag Vandalism Bill

July 18, 2026July 17, 2026carlocarrasco

Japan’s Parliament enacted a bill that would criminalize acts of damaging the national flag, according to a news report by Kyodo News. This new development is the latest legislative victory for Prime Minister Takaichi Sanae whose administration, parliamentary partner and even a few opposition elements submitted it. Those who opposed the bill called it “divisive” and “unconstitutional”.

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

Japan’s parliament on Friday enacted a divisive law introducing criminal penalties for desecrating the national flag, achieving a key legislative goal of Prime Minister Sanae Takaichi in the current Diet session.

The ruling parties argued the law was needed because Japan already criminalized desecration of foreign flags but had no equivalent provision covering its own. Some opposition parties and legal experts criticized the measure, saying it may infringe on freedom of expression and could be unconstitutional.

The bill, jointly submitted by the ruling coalition of the Liberal Democratic Party and Japan Innovation Party, along with the opposition Democratic Party for the People and Sanseito, cleared the House of Councillors.

Under the law, individuals who damage, remove or defile the national flag in a way that arouses “strong feelings of discomfort or disgust” in others could face up to two years in prison or a fine of up to 200,000 yen ($1,200).

The penalties mirror existing provisions in the Penal Code on desecration of foreign flags and follow an October agreement between the LDP and JIP identifying the legal discrepancy as one to be resolved.

Parliamentary debate centered on the law’s implications for constitutional rights and what constitutes a punishable act, with the opposition Constitutional Democratic Party of Japan among its critics.

Under the law, whether an act is punishable will be determined based on the circumstances as a whole. LDP lawmakers cited as possible violations stomping on a flag, covering it with mud in a street or park, and soiling it with feces or urine.

Livestreaming the cutting up or burning of a Japanese flag in a private space is also punishable, although a provision making the subsequent sharing of such footage an offense was dropped during negotiations to secure the DPP and Sanseito’s support for the bill.

A supplementary provision calls for a review around three years after the law takes effect to determine whether additional measures are needed in light of developments such as the online dissemination of images of flag desecration.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think Japan’s parliament did the right move enacting the national flag vandalism proposal? Do you believe that desecrating your nation’s flag should be penalized? What is your opinion about the Islamists and Leftists – both foreigners and citizens – in America and Europe who burned national flags so publicly and shamelessly? Did you notice social media posts that captured images of Leftists and woke nuts in Japan who desecrated the Japanese flag?

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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IMF Reduces Philippine Growth Outlook Until 2027

July 15, 2026July 10, 2026carlocarrasco

While the government of the Philippines is delighted over the nation’s new status as an upper-middle income economy (click here and here) believing that a bright economic future is approaching, the International Monetary Fund (IMF) sees the national economy growing at a weaker pace until 2027, according to a BusinessWorld news report.

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

THE PHILIPPINE ECONOMY could post its weakest growth this year since the pandemic, as the Middle East war drives up prices and dampens economic activity, the International Monetary Fund (IMF) said.

In its latest World Economic Outlook (WEO) released on Wednesday, the IMF trimmed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 3.9% from 4.1% previously. This is still within the government’s 3.5%-4.5% target.

“This reflects a weaker-than-expected outturn in the first quarter of 2026 (2.8%) alongside a larger-than-expected effect of the war in the Middle East on prices and activity in the Philippines,” an IMF spokesperson said in an e-mail.

Oil price shocks and the lingering impact of the flood control fallout dragged first-quarter Philippine GDP growth below market and government expectations at 2.8%.

Since the United States and Israel first launched attacks on Iran on Feb. 28, spiraling oil prices fed into the costs of other key commodities and squeezed consumers’ pockets.

If the IMF’s projection holds true, the country’s full-year expansion will be weaker than the 4.4% recorded in 2025, when a massive flood control corruption scandal dampened public spending, investments, and sentiment.

It would also mark the economy’s worst performance since the 9.5% contraction during the COVID-19 pandemic in 2020.

Excluding the pandemic, it would match the 3.9% expansion in 2011 and would be the worst in 17 years or since the 1.4% in 2009.

The multilateral lender’s Philippine growth estimate is below its projection for ASEAN-5, which it kept at 4.1% for this year. ASEAN-5 is composed of Indonesia, Malaysia, the Philippines, Singapore, and Thailand.

The Philippines is expected to lag Indonesia (5%) and Malaysia (4.7%) but outpace Thailand (1.9%) this year.

At the same time, the IMF trimmed the Philippine growth projection for 2027 to 5.5% from 5.8% previously, on the back of base effects and a potential improvement in sentiment.

This is within the government’s 5%-6% target for the year. It is also above the IMF’s 2027 growth projection of 4.3% for ASEAN-5.

“The rebound in 2027 is driven mainly by favorable base effects, alongside a gradual pickup in investment as confidence improves and supply-side effects related to the war ease,” the IMF spokesperson said.

According to the multilateral lender, risks to domestic growth may come from extreme weather disturbances, as well as a slower-than-projected normalization of public investments and reform momentum.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you find the IMF’s analysis for the Philippines believable? Do you think the economy of the Philippines will grow below 5% per year 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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