finance – Page 8 – Author Carlo Carrasco

Jobless Filipinos reach almost 2 million in June 2025

August 14, 2025August 6, 2025carlocarrasco

The number of jobless Filipinos swelled largely to almost two million this past June when compared to a year prior, according to a Manila Bulletin news report. Among the factors were the job losses in the gambling and betting sector, the construction sector and in 3 other sectors.

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

Coupled with an increase in unpaid workers, the number of jobless Filipinos swelled by more than 300,000 to 1.95 million in June from 1.62 million a year ago, with the online gambling sector partly contributing to the pool of unemployed.

Preliminary data from the Philippine Statistics Authority (PSA) showed that job losses in June translated to a higher unemployment rate of 3.7 percent from 3.1 percent in the same month last year.

“Gambling and betting activities contributed to the drop in arts, entertainment, and recreation, along with other amusement and recreation activities,” Deputy National Statistician and PSA Assistant Secretary Divina Gracia L. Del Prado said during a press briefing on Wednesday, Aug. 6.

Del Prado reported that the gambling and betting subsector shed nearly 210,000 workers, stressing that this had the largest share in the decrease of employees in arts, entertainment, and recreation.

Other than arts, entertainment, and recreation, the four other sectors that were major contributors to June’s job losses were construction (-692,000), agriculture and forestry (-580,000), manufacturing (-424,000), and mining and quarrying (-96,000).

Conversely, the employment rate dropped to 96.3 percent in June from 96.9 percent from June last year. In terms of numbers, employed Filipinos stood at 50.47 million, nearly 200,000 individuals higher than 50.28 million a year ago.

Data from the PSA showed that the services sector accounted for the largest share of jobs during the month at 61.4 percent, followed by agriculture with 20.9 percent, and industry with 17.7 percent.

Fishing and aquaculture posted the highest gains in June, with an additional 512,000 employed. Wholesale and retail trade, and vehicle repair recorded the second largest gain of 375,000.

Completing the subsectors with largest increases were financial and insurance activities (327,000), transport and storage (211,000), and health and social work (179,000).

“What we’re seeing now isn’t very encouraging. If you look at the increase by class of worker, a large portion came from unpaid workers—actually, 296,000. Employers increased by 80,000, and self-employed by 75,000,” Del Prado said.

“But the more [impacted] group is the unpaid workers, since that’s where the increase happened—and that’s not the kind of growth we want. The rise should have been in wage and salary earners, so this isn’t a very good result,” Del Prado further said.

Del Prado noted that wholesale and retail trade saw a significant increase, with unpaid workers in this sector bloated by nearly 150,000. Fishing and aquaculture also added 102,000 unpaid jobs.

“Employment in both sectors increased, but a large part of that growth was in unpaid work. This suggests we still need to improve the quality of jobs. And if you also notice the trend in underemployment, it has barely dropped to single digits—only once so far.”

“So we still need to improve job quality. While our employment rate has been rising over time, I think we need to focus more on improving the quality of work, because the underemployment rate shows that it hasn’t improved yet,” she urged.

According to Del Prado, underemployment last fell to single digits in May 2024 at 9.9 percent but has remained in double digits since then. Underemployment in June lowered to 11.4 percent from 12.1 percent a year ago.

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think needs to be done in order to improve job quality? Are a lot of people in your local community considered unemployed or underemployed? Do you think the current growth of the national economy will create a significant number of new jobs before the year ends?

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

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

Philippines inflation rate falls below 1% in July 2025

August 12, 2025August 5, 2025carlocarrasco

After the slight rise recorded in June 2025, the inflation rate of the Philippines fell below 1% this past July, according to news article by the Philippine News Agency (PNA).

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

The country’s inflation or the rate of increase in the prices of goods and services reversed its path in July 2025 after decelerating to 0.9 from month-ago’s 1.4 percent, driven primarily by the slower upticks in electricity rates and prices of liquefied petroleum gas (LPG).

The latest inflation figure, the lowest since October 2019’s 0.6 percent, brought the average in the first seven months this year to 1.7 percent, still below the government’s 2 to 4 percent target.

National Statistician Claire Dennis Mapa, in a briefing Tuesday, said food and non-alcoholic beverages also contributed to the lower inflation rate last July due to lower price increases of several items like rice, vegetables, tubers and cooking bananas; and fuel prices.

He said a continued drop in rice prices is seen to result in slower uptick for this particular item for the rest of the year, despite the proposal to stop rice importation and increase tariff to protect local farmers.

The government increased rice importation and lowered rice tariff from 35 percent to 15 percent for a period, starting in the second half of 2024 until 2028 to address rice price hikes.

This resulted in lower rice inflation, from 14.7 percent in August 2024 to 0.8 percent in December last year. Mapa forecast rice inflation to remain in negative territory for the next four months.

“The expectation is negative average rice inflation for the whole year,” he said in a mix of Filipino and English.

In terms of the impact of recent typhoons, Mapa said prices of vegetables have inched up in the second half of July, which is normal during typhoon season.

While inflation is seen to remain low, he pointed out that there are threats such as the higher prices of pork products, due to the impact of African swine fever; higher demand for chicken meat, as an alternative to pork, and rising prices of fish.

Deflation in low-income households – With the government is offering cheaper rice to the vulnerable sector, inflation rate for the bottom 30 percent income group as of July slipped to -0.8 percent from the year-ago’s 5.8 percent, the Department of Economy, Planning, and Development (DEPDev) noted.

Aside from rice, other contributors to the lower inflation rate for the bottom 30 percent income group are slower upticks in the prices of corn and vegetables and tubers, it said.

“The sustained drop in rice prices and the easing of inflation for low-income households are clear signs that our interventions are working. This not only helps Filipinos preserve the value of their peso but also builds confidence for businesses and consumers to plan ahead,” DEPDev Secretary Arsenio Balisacan said.

“While we expect the overall inflation for 2025 to remain favorable and supportive of domestic demand, we remain vigilant against external risks, including global policy shifts and geopolitical tensions,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there is a chance that the inflation rate of the Philippines will remain below 1% for the rest of 2025? Do you think the deflation of rice will continue going into 2026?

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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Ayala-Mitsubishi’s P18.4 billion GCash deal closed

August 11, 2025August 1, 2025carlocarrasco

After being cleared by the Philippine Competition Commission (PCC), the P18.4 billion deal between Ayala Corporation and Mitsubishi Corporation regarding a 6.5% stake in GCash owner Globe Fintech Innovations Inc. (Mynt) has finally closed, according to a Manila Bulletin business news report.

For the newcomers reading this, the Ayala-Mitsubishi deal was sealed a few months ago and it was perceived that it will likely boost the IPO of GCash.

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

The Zobel family’s Ayala Corp. (AC) has closed the sale of a 6.5-percent stake in GCash owner Globe Fintech Innovations Inc. (Mynt) to long-time partner Mitsubishi Corp. for ₱18.4 billion after the deal was cleared by the anti-trust watchdog Philippine Competition Commission (PCC).

In a disclosure to the Philippine Stock Exchange (PSE), Ayala said it has sold half of wholly owned AC Ventures Holding Corp. (ACV) to Mitsubishi. ACV owns about 13 percent of Mynt. Mynt has two financial technology (fintech) companies: G-Xchange Inc., the mobile wallet operator of GCash, and Fuse Lending, a tech-based microlender.

The PCC has cleared the deal after finding that Mitsubishi’s investment in ACV would not significantly reduce competition in the market for QR code-based digital payments to merchants.

The PCC noted in its decision the relatively small market share held by GCash in the provision of QR-based person-to-merchant payments. Additionally, the PCC cited the strong governmental push for interoperability in QR-based payments in the country as a factor in its approval.

Person-to-merchant payments, facilitated by QR codes, enable businesses to accept digital payments from consumers for goods and services.

While Mitsubishi indirectly owns Lawson Philippines, a convenience store chain that accepts QR code-based payments from consumers, the PCC said that its limited presence means the transaction would not result in a substantial lessening of competition.

“Mitsubishi, Japan’s largest trading company, can help Mynt grow overseas and within its own significant Japan-based ecosystem, and in areas like cloud-based payments and new credit algorithms,” Ayala said.

Ayala and Mitsubishi entered into a partnership and cooperation agreement in 1974 that has since featured industrial estates, renewable energy (RE) projects, a water utility, and auto dealerships.

Ayala President and Chief Executive Officer (CEO) Cezar P. Consing said earlier that, “We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users.”

ACV will serve as Ayala and Mitsubishi’s joint venture (JV) entity that will explore consumer-related and digital opportunities in the Philippines.

“These initiatives are aligned with AC’s strategic priority to support the growth of clear business winners within its portfolio,” Ayala said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there will be a series of technological and technical improvements happening with GCash as a result of the closed deal between Ayala and Mitsubishi? How many people in your household are using GCash 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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Philippine Economy Grew by 5.5% in 2nd Quarter of 2025

August 9, 2025August 7, 2025carlocarrasco

The economy of the Philippines expanded by 5.5% during the 2^nd quarter of 2025, according to a GMA Network news report. Among the factors are strong 2^nd quarter gains by the agriculture, forestry, fishing, industry and services sectors.

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

The Philippine economy grew marginally quarter-on-quarter in the second quarter of 2025 amid the growth seen in services, agriculture, and industry sectors, and posted a deceleration from the same period last year, according to the Philippine Statistics Authority (PSA).

The country’s gross domestic product (GDP) — the value of goods and services produced in a period — grew slightly faster by 5.5% in the April to June 2025 compared to the 5.4% growth seen in the January to March 2025 period, PSA chief and National Statistician Claire Dennis Mapa reported at a press conference in Quezon City on Thursday.

The second quarter GDP growth was the fastest in four quarters, however, it was still slower than the 6.5% growth rate in the same period in 2024.

All major economic sectors posted annual growth during the quarter — agriculture, forestry, and fishing with 7.0%, industry with 2.1%, and services with 6.9%.

The PSA attributed the year-on-year growth to wholesale and retail trade, repair of motor vehicles and motorcycles with 5.1%; public administration and defense, and compulsory social security with 12.8%; and financial and insurance activities with 5.6%.

Fixed capital investments climbed 2.6%, led by private construction which grew 11.2%, and investments in durable equipment up 10.6%.

Government spending posted an 8.7% growth rate during the quarter, slower than the 18.7% seen in the first quarter, which Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan attributed to the election spending ban.

“We expect to maintain that momentum in the spending side. I think that the next half, the second half of the year, you should see improvements in the construction, public construction spending,” he said in a briefing.

While the election spending ban hit government spending, officials said the campaigns boosted household spending which grew by 9.5%, faster than the 5.29% in the previous quarter, and the 5.4% in the second quarter of 2024.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will be able to accelerate to achieve 6% gross domestic product (GDP) growth for the entire 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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Economic study finds Starbucks and Dunkin’ leading Philippines coffee market while local brands are gaining

August 6, 2025July 29, 2025carlocarrasco

Are you fond of buying drinks at a local coffee shop or at a small stall that sells coffee? Recently the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA) announced the results of its research revealing that the local coffee market (cafés and small sellers specifically) of the Philippines are being dominated by Starbucks Coffee and Dunkin’ (formerly Dunkin’ Donuts) while several local brands are gradually gaining market share, according to a Philippine Star business news report.

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

Global brands continue to dominate the country’s coffee industry, but homegrown brands are gaining traction, helping to diversify and enrich Filipinos’ caffeine options, according to the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA).

In a policy brief, UA&P-CFA said the local café market is led by a “few dominant” global brands, based on a Euromonitor report.

These global brands, the UA&P-CFA noted, maintain their strong presence through solid branding, extensive branch networks and loyal customer base.

The policy brief indicated that Starbucks Corp. remains as the industry leader, accounting for almost 54 percent of total value share among chain café and bar operators.

It was followed by Dunkin’, a foreign brand under Inspire Brands Inc., with a 12.1-percent market share, according to the policy brief authored by Cy Reyes, a research assistant at UA&P-CFA.

Meanwhile, McDonald’s Corp. held a market share of 5.8 percent while Jollibee Foods Corp., which operates The Coffee Bean & Tea Leaf, accounted for 5.6 percent.

“In addition to global chains, the Philippine café scene is vibrant and diverse, featuring several strong homegrown brands that continue to gain traction and shape local consumer habits,” UA&P-CFA said.

UA&P-CFA said one of the most prominent local cafés is Mary Grace Food Inc., noting that it is known for its “cozy, sit-down atmosphere” and its handcrafted baked goods. The other notable local players, according to the policy paper, are Bo’s Coffee, Figaro Coffee, Coffee Project and But First, Coffee.

The local coffee industry has also been enriched by the growth of specially and so called third-wave coffee shops like Yardstick, % Arabica and El Union, the UA&P-CFA said.

These coffee shops focus on artisanal brewing methods, single-origin beans and minimalist shop designs, it added.

Furthermore, coffee kiosks like Big Brew, Pickup Coffee and various regional iced coffee stalls catering to the fast-growing market for convenient, budget-friendly caffeine options contribute to the vibrant coffee industry.

The emergence of various coffee brands outside the traditional, huge global names indicate the “rich” and “expanding” influence of local café innovators, UA&P-CFA said.

“Though these smaller and niche players hold modest individual shares of the market, collectively they play a vital role in the evolution of the industry,” it said.

“They offer localized flavors, elevate coffee standards, and respond to the preferences of a wide and increasingly discerning customer base,” it added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the coffee market and coffee sellers industry of the Philippines will keep modernizing as more people keep on buying coffee? Do you think the recent study should focus more on convenience stores selling coffee? What is your favorite coffee shop here in the Philippines?

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

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Nomura says America’s 19% tariff may cut Philippines GDP growth slightly

August 5, 2025July 28, 2025carlocarrasco

In the middle of mixed reactions towards the United States’ 19% tariff on Philippine exports, Nomura Global Markets Research stated that the country’s gross domestic product (GDP) growth could be cut by 0.4%, according to a BusinessWorld news report. Recently, US President Donald Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr., met in the White House which resulted in the new tariff.

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

THE United States’ 19% tariff on Philippine goods could cut the Philippines’ gross domestic product (GDP) growth by 0.4 percentage point (ppt), Nomura Global Markets Research said.

In a report, Nomura said the US tariff of 19% on Philippine goods is “fairly high” and poses downside risks to growth.

“We estimate the direct effects could reduce our baseline GDP growth forecasts by a still-substantial 0.4 ppt in the Philippines.”

Nomura said this projection is “relatively substantial” compared to its baseline growth forecasts of 5.3% and 5.6% for this year and 2026, respectively.

“This is partly because we assigned 10% as the level where the reciprocal tariff rate could settle, on the assumption that the Philippines is a strong ally of the US and is not a third country for transshipments,” Nomura said.

“As it turns out, despite the visit to Washington by President Marcos and both sides reiterating the need for a strong partnership, the tariff was still set at 19%, which is even higher than the ‘Liberation Day’ level of 17%.”

Last week, Philippine President Ferdinand R. Marcos, Jr. met with US President Donald J. Trump at the White House in Washington, DC. Mr. Trump announced a 19% tariff would be imposed on Philippine goods, which will take effect starting Aug. 1.

“The trade ‘deals’ therefore represent upside surprises in terms of tariff rates, especially for the Philippines,” Nomura said.

“As a result, if implemented and these tariff rates are sustained, these will likely further weigh on growth in both countries relative to our current baseline forecasts.”

The government expects GDP to grow by 5.5-6.5% this year, lower than its previous target of 6-8%.

“While these ballpark estimates make sense to us, uncertainty remains high and these are ‘only’ taking into account the direct effects on these ASEAN countries’ exports to the US,” Nomura said.

These estimates do not account for sectoral tariffs, such as in semiconductors and pharmaceuticals, which are currently exempted, it added.

“But as our US team highlights, the risk is these could be set higher, though some countries could be exempted, adding to the uncertainty. As mentioned above, the details of the trade deals with Indonesia and the Philippines are still limited.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines is in a serious disadvantage with the American tariff of 19% imposed on the nation’s exports? Do you think the Philippine economy still has strong momentum to reach 6% GDP growth by the end of 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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I Love Israel: Talks of possible Free Trade Agreement (FTA) to boost Israeli investments into the Philippines

August 5, 2025July 30, 2025carlocarrasco

In recent times, Israel’s Minister of Economy and Industry Nir Barkat visited the Philippines and he has officially confirmed that the Jewish state and the nation of Filipinos are starting the process for initial negotiations for a free trade agreement (FTA), according to a news article by the Philippine News Agency (PNA). If an FTA is realized sometime in the future, it would mean more Israeli investments coming into the Philippines.

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

The announcement of the Philippines and Israel’s intention to pursue free trade agreement (FTA) talks is certain to bring in more Israeli investments into the country.

Visiting Israel Minister of Economy and Industry Nir Barkat said the Philippines and Israel “actually are starting the process” to initiate negotiations on a free trade deal.

“Usually, it takes few years to sign an FTA. By defining that we will, many investors will start collaborating now,” he told reporters on the sidelines of a reception in Taguig City on Tuesday night.

“When investors see that in a year, two years, at some point in time, there’s going to be an FTA, they (start) to invest already. The impact of announcing that we will be doing a deal together is quite immediate.“

Barkat said Israeli firms are eager to expand businesses on a number of areas, specifically agricultural technology and food technology in the Philippines. Israel, he said, is also intent on growing its already robust trade with the country.

“My goal is to have 10 times more trade in 15 to 20 years with all countries, including the Philippines. In order to scale to such volumes of trade, we need to put foundation for long term infrastructure, and that’s what we’re doing in this visit,” he told the Philippine News Agency in a separate interview.

Barkat said he sees the Philippines as a partner that could aptly “complement” Israel both by scale and scope.

In his 4th State of the Nation Address on Monday, President Ferdinand R. Marcos Jr. said the Philippines is ready to receive local and foreign investors, especially on agriculture.

This newest development shows the continuing growth of Israel-Philippines ties with trade in mind. Even though Israel remains fighting the Palestinian terrorist group Hamas in Gaza, the Jewish state still manages to have economic breakthroughs (click here and here). Given the fact that Israel won the 12-day War over terrorist state Iran, that alone is enough to be confident about Israel’s economy and the prospects of Israeli enterprises and entities investing overseas. Besides, the Philippines can benefit not only from the finances of Israeli investments, but also from Israel’s advanced technologies and job creation for Filipinos.

To my fellow Filipinos reading this, I encourage you to accept the truth that Israel is the land God designated specifically for the Jewish people (read Genesis 35:10-12) and His command must be followed without hesitation. If you want to be blessed further by the Lord, do so by loving and blessing the Jewish people (Genesis 12:1-3). I did my part when I was in Israel. Also, let me remind you all that the ties between the Jews and Christians are truly biblical!

I encourage you all to pray to the Lord God in support of Israel, to love and bless the Jewish people, and pray for the peace of Jerusalem. Pray to Him so that Israel-Philippines ties and cooperation will keep growing stronger and more resilient no matter what happens around the world.

If you truly believe in Lord Jesus, the Holy Spirit and God the Heavenly Father wholeheartedly and you continue to be faithful, you should be aware that Christians are meant to stand united with Israel and love the Jewish people no matter what. You can do your part supporting Israel by donating to Christians United for Israel (CUFI). Do not forget to read the Holy Bible, then pray in tongues to the Lord in the privacy of your room with the door shut.

Always be the fearless and aggressive church of Lord Jesus! Always stand in support of Israel and its ties with the Philippines!

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Investment firm Cerberus Capital Management will invest P15 billion more in the Philippines

August 4, 2025July 27, 2025carlocarrasco

While a lot of economists stated that the economy of the Philippines is unlikely to achieve 6% growth this year, the New York-based investment firm Cerberus Capital Management is investing an additional P15 billion in the country, according to a Philippine News Agency (PNA) news article. For the newcomers reading this, Cerberus is the operator behind the Agila Subic Shipyard.

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

New York-based alternative investment firm Cerberus Capital Management is investing an additional PHP15 billion in the Philippines within a year, as it sees progress in its existing operations and government support for foreign investors.

The company, which operates the 300-hectare Agila Subic Shipyard, the former Hanjin Shipyard in Subic Bay that it acquired in 2022, disclosed the plan during a meeting with President Ferdinand R. Marcos Jr. in Washington, DC earlier this week.

In a press release Friday, the company said the additional investments will be used to update the shipyard and introduce new projects in logistics, energy, and transport infrastructure.

Cerberus managing director Alexander Benard said they are “encouraged by the progress we’ve seen and by the strong support from the Philippine government.”

“We believe the Philippines holds significant long-term potential as a regional hub for industrial and logistics activity. We look forward to building on this momentum and supporting the development of our key strategic assets in the Philippines,” he 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 experience a breakthrough of additional foreign investments over the next six months?

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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ADB sees Philippine economy growing by 5.6% this year

August 1, 2025July 24, 2025carlocarrasco

By pointing to a variety of factors, the Asian Development Bank (ADB) recently announced that the economy of the Philippines will grow by 5.6% this year, according to a news article by the Philippine News Agency (PNA). The ADB recently released its latest economy report.

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

The Philippines is expected to post the second highest economic growth in Southeast Asia this year despite the downgrade in growth outlook due to external headwinds, a report released by the Asian Development Bank (ADB) showed.

In its Asian Development Outlook July 2025 report released on Wednesday, the ADB said Philippine economic growth is expected to settle at 5.6 percent this year.

The growth outlook for the Philippines is the second highest in Southeast Asia, next to Vietnam’s 6.3 percent. Indonesia is projected to grow by 5 percent, Malaysia by 4.3 percent, Singapore by 1.6 percent, and Thailand by 1.8 percent.

For 2026, growth is expected to slightly pick up to 5.8 percent.

The ADB’s latest projection, however, was lower than its 6 percent for 2024 and 6.1 percent for 2025 economic growth forecast amid external headwinds. The Philippine economy grew by 5.4 percent in the first quarter of the year.

“Domestic demand grew 6.7 percent, supported by easing inflation and monetary policy. However, net exports dragged on growth as brisk imports outpaced exports,” the ADB said. It added that manufacturing index (PMI) recovered slightly to 50.7 in June from 50.1 in May.

“Consumer sentiment was positive in the near term. Unemployment was low at 3.9 percent in May, and remittance growth of 3.0 percent helped sustain household spending,” it said.

The ADB, however, said that business confidence softened amid heightened global policy uncertainties.

According to the ADB, economic forecasts for most countries in Southeast Asia have been downgraded for 2025 and 2026 due to the continuing global growth slowdown and increased trade uncertainty.

“Weaker external conditions have hurt business and consumer sentiment and threaten to disrupt investment in the subregion,” it said.

“Except for Indonesia, the largest economy in the subregion, all Southeast Asian economies are expected to post weaker growth in the next two years.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think it is still possible for the economy of the Philippines reach 6% GDP growth by the end of 2025?

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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Department of Finance (DOF) says 6% economic growth is quite difficult to achieve this year

July 31, 2025July 23, 2025carlocarrasco

The uncertainty about this year’s economic growth for the Philippines has gotten stronger as the Department of Finance (DOF) admitted that achieving 6% growth is quite difficult, according to a Manila Bulletin news report. The DOF pointed to external shocks that are affecting the national economy.

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

While the Philippine economy has already been recovering from its deep recession during the height of the Covid-19 pandemic, hitting its growth potential of six percent would be challenging given the global uncertainties spilling over domestically, according to the Department of Finance (DOF).

“We do think that the potential of the Philippines is at the minimum six-percent growth. But of course, it’s quite difficult, especially knowing some of the challenges that we’re seeing,” DOF Undersecretary and Chief Economist Domini Velasquez told reporters during the Philippine thrift banks’ annual convention on Tuesday, July 15.

Just before the initial three-month pause on reciprocal tariffs ended on July 9, United States (US) President Donald Trump had stretched it to Aug. 1, but hiked the rates for Philippine exports to 20 percent from 17 percent previously, repeatedly citing the “significant and persistent trade deficit” that the trade giant has with its former colony.

Velasquez noted that the tariff hike was among the uncertainties that the Cabinet-level Development Budget Coordination Committee (DBCC) had considered in downscaling its growth target for the year, through 2028.

Last month, the economic team slashed its 2025 GDP growth target to between 5.5 percent and 6.5 percent from six- to 6.5-percent previously. Cited as factors were heightened external uncertainties, especially the ongoing conflicts in the Middle East and the imposition of US tariffs.

Finance Secretary Ralph G. Recto told reporters during an informal press chat on Wednesday, July 16, that he expects the economy to accelerate “significantly” in the second quarter compared to the previous quarter.

“In effect, the target is still six percent for the year,” Recto noted, taking off from the recently revised growth goal. “Realistically, it’s probably around 5.7 percent or 5.8 percent for the year. It depends, because there’s a lot of uncertainty—uncertainty with trade policy.”

“But I think the second quarter will definitely be better than the first,” Recto said, noting that the improvement will be driven by both government and household consumption.

The DBCC had also narrowed the growth target range for 2026 to 2028 to six to seven percent, from the previously more ambitious six to eight percent.

“We did recognize those [tariffs]. When we dialed down on our growth target in 2025, it’s really because of the external factors that we were seeing,” Velasquez said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the national economy is not strong enough to achieve 6% GDP growth by the end of this year? What do you think the national government should do to strengthen economic growth and make the Philippines more attractive to foreign investors? Do you think the Philippines still has a chance to convince America to lower its planned tariff on Philippine-made goods?

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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