gross domestic product (GDP) – Author Carlo Carrasco

Philippines 2025 GDP Growth Lands At 4.4%

January 30, 2026January 29, 2026carlocarrasco

After much anticipation, the full gross domestic product (GDP) growth of the Philippines registered final pace of 4.4% for the whole year of 2025, according to a Manila Standard business news report.

For insight, the 4.4% 2025 GDP growth is even lower than what others anticipated (click here and here). It should be recalled that GDP growth in the 3^rd and 4^th quarters of last year showed clear signs of economic weakness. The said weakness is connected with the flood control corruption scandal that rocked the nation.

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

The Philippine economy expanded 4.4 percent in 2025 as a sharp slowdown in the final three months of the year dragged down the annual performance, government data showed on Thursday.

The gross domestic product grew 3.0 percent in the fourth quarter, marking the weakest quarterly expansion in five years. The Philippine Statistics Authority (PSA) said the industrial sector contracted by 0.9 percent during the period, while gross capital formation, a measure of investment, tumbled 10.9 percent.

Wholesale and retail trade, financial activities and public administration remained the primary drivers of growth during the October to December period.

Public administration and defense led the gains with a 7.9 percent increase, followed by financial and insurance activities at 5.6 percent and trade at 4.6 percent.

For the full year, the services sector led the economy with a 5.9-percent expansion, while agriculture, forestry and fishing grew 3.1 percent. The industrial sector recorded a modest 1.5 percent increase for all of 2025.

Consumer spending, which traditionally anchors the Philippine economy, rose 3.8 percent in the fourth quarter and 4.6 percent for the full year. Government spending saw a significant annual jump of 9.1 percent despite the year-end cooling.

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 bounce back strongly this year and achieve 5% growth later? Do you think the reforms being implemented by the national government will create positive economic results soon? Are you convinced that the flood control corruption scandal turned off a lot of foreign investors?

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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Trump Delivers Largest Tax Refund Season in American History

January 28, 2026January 27, 2026carlocarrasco

While it is true that the economy of the United States is indeed growing, there are still a lot of Americans struggling financially. As such, the promised tax relief by US President Donald J. Trump is crucial for millions as the new tax season has started. The White House officially announced the largest tax refund in the nation’s history and there is professional feedback to support it.

To put things in perspective, posted below is an excerpt from the White House announcement. Some parts in boldface…

As tax season kicks off, millions of Americans are poised to receive significantly larger tax refunds thanks to President Donald J. Trump’s landmark Working Families Tax Cuts Act — which every Democrat in Congress opposed.

The historic legislation is delivering the biggest tax refund season ever, with average refunds projected to rise by $1,000 or more this year due to its transformative policies.

*Reference from the White House announcement.*

Economists and financial experts agree — 2026 will mark an unprecedented year for tax refunds:

USA TODAY: “The average refund in 2025 was $2,939, IRS data showed. This year, refunds could be as much as 30% more due to new provisions from President Donald Trump’s mega tax and spending bill, according to James Knightley, chief international economist at Dutch bank ING.”

CBS News: “Many Americans could see heftier tax refunds next year when they file their 2025 tax returns, largely due to new provisions enacted through the Republicans’ ‘one big, beautiful bill’ act that are retroactive to the start of the current year, according to an analysis from Oxford Economics. Total taxpayer savings could amount to an additional $50 billion through bigger tax refunds or a cut in their 2026 taxes…A $50 billion boost in tax refunds would represent an 18% increase from the $275 billion in refunds the IRS sent this year to nearly 94 million taxpayers who overpaid on their 2024 federal tax returns.”

The Wall Street Journal: “Refunds on average are expected to come in $1,000 higher than usual this year, according to a study by investment firm Piper Sandler.”

Business Insider: “The Tax Foundation estimates that the average tax refund will grow from $3,052 in 2024 to $3,800 for tax year 2025. Depending on your income and circumstances, you might get even more back.”

CNBC: “Tax experts and analysts have agreed that many filers will see bigger refunds… ‘Overall, we’re expecting these changes to increase refunds by 15% to 20% on average,’ Heather Berger, a U.S. economist with Morgan Stanley said…”

President Trump’s Working Families Tax Cuts Act provides broad-based tax relief for hardworking Americans, with the average taxpayer expected to see nearly $4,000 in total tax savings in 2026. Key provisions of the bill include No Tax on Tips, No Tax on Overtime, No Tax on Social Security, a deduction for auto loan interest on Made-in-America vehicles, and much more — putting more money back in the pockets of families, workers, and seniors.

For details about the One Big Beautiful Bill (OBBB) and the Working Families Tax Cuts, click here and here.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think this new tax refund season will be very helpful to Americans who are struggling with making ends meet? Have you paid close attention to the details within the Working Families Tax Cuts and the One Big Beautiful Bill already? How many families in your local community have been anticipating the new tax refunds from the Trump administration? Do you think the new tax refunds will be able to boost gross domestic product (GDP) growth to 5% 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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IMF Trims Philippines Economic Growth Projections For 2026 And 2027

January 27, 2026January 20, 2026carlocarrasco

As far as the International Monetary Fund (IMF) is concerned, issues of corruption and climate disruptions are enough to convince them to project economic growth of the Philippines at a slower pace not just for this year but also for next year, according to a Manila Bulletin news report.

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

Washington-based multilateral lender International Monetary Fund (IMF) has tweaked downwards its economic growth projections for the Philippines this year and the next, following its more somber outlook for 2025 amid corruption allegations and climate disruptions.

According to the IMF’s updated World Economic Outlook (WEO), Philippine gross domestic product (GDP) is now seen expanding at a slower 5.1 percent, down from its earlier forecast of 5.4 percent—both of which fall short of the country’s already lowered target of at least 5.5 percent.

Despite the cut, the IMF’s forecast remains slightly more optimistic than the Bangko Sentral ng Pilipinas’ (BSP) assumption of a 4.6 percent growth rate, which the central bank has attributed to a loss of confidence tied to governance concerns.

For 2026 and 2027, the IMF also trimmed its growth forecasts to 5.6 percent from a previous 5.8 percent, and to 5.8 percent from 6.1 percent, respectively. The central bank’s projection of 5.4 percent for 2026 stands lower than the IMF’s forecast, while its 6.2 percent forecast for 2027 is higher.

These projections still fall within the revised targets, based on National Socioeconomic Planner Arsenio M. Baliscan’s lower growth assumptions. Baliscan expects growth to clock in at five to six percent in 2026, and 5.5 to 6.5 percent in 2027—both lowered from the earlier goals of six to seven percent.

According to the IMF, the downward adjustment for 2026 and 2027 “reflects the carryover impact from a downward revision in the IMF’s growth forecast for 2025—from 5.4 to 5.1 percent—and a slower pace of capital accumulation.”

It noted that the slashed GDP growth forecast for 2025 reflects the output slump in the third quarter of 2025 “amid recent corruption allegations and climate shocks impacting economic activity in the second half of the year.”

To recall, the Philippine economy expanded by four percent in the third quarter of 2025—the weakest in four and a half years.

Looking ahead, output expansion could accelerate slower than expected mainly due to the potential “escalation of trade restrictions and prolonged uncertainty, geopolitical tensions, and disruptive financial market corrections.”

“On the upside, accelerated implementation of structural and governance reforms can boost investment and foreign direct investments (FDI), increase fiscal multipliers and boost potential growth,” the lender said.

What would drive the economy in the medium term is robust private consumption and higher investment, the IMF said, “supported by monetary policy easing and the authorities’ recent policy initiatives to support private investment.”

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 can somehow grow faster than what the IMF projected for 2026 and 2027? Do you think foreign investors have been turned off by the flood control corruption scandals?

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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Trump’s America Urges Allies To Increase Defense Spending To 5% Of GDP

January 25, 2026January 24, 2026carlocarrasco

Under the leadership of US President Donald J. Trump, America’s new defense strategy urged its allies and partner to increase their defense spending to 5% of their gross domestic product (GDP), according to a news report by Kyodo News. This latest development could result in a chain of events in which American allies will not only spend more but also act more responsibly when it comes to securing their respective nations.

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

A new U.S. defense strategy released Friday urges all American allies and partners to increase defense spending to 5 percent of their gross domestic product and be more responsible for their own national security.

Highlighting President Donald Trump’s “America First” and “peace through strength” agenda, the Pentagon’s policy document says they have a bigger role to play, but not as “the dependencies of the last generation,” as the United States needs to prioritize defending its homeland and its interests throughout the Western Hemisphere.

“We will advocate that our allies and partners meet this standard around the world, not just in Europe,” says the first National Defense Strategy since Trump’s return to the office a year ago, referring to the 5 percent defense target.

“As our allies do so, together with the United States, they will be able to field the forces required to deter or defeat potential adversaries in every key region of the world, even in the face of simultaneous aggression,” it says.

NATO members have already pledged to meet Trump’s demand to increase defense spending from 2 percent to 5 percent of GDP by 2035. The new NATO target is composed of 3.5 percent for core military spending and an additional 1.5 percent for security-related spending.

As the document praises Europe and South Korea for committing to raising their defense expenditures since Trump’s return to office, it appears inevitable that other major U.S. allies, including Japan, will face increased pressure from his administration to follow suit.

On par with the National Security Strategy, released by the White House in December, the key defense document touches on China and its fast-paced military buildup.

But the tone is softer compared to previous versions.

It says the second Trump administration’s approach is to deter China in the Indo-Pacific region through strength, “not confrontation.”

In the 34-page document, there is also no mention of Taiwan, the self-ruled island that China regards as its own territory and around which it has been stepping up military pressure.

“President Trump seeks a stable peace, fair trade and respectful relations with China, and he has shown that he is willing to engage (Chinese) President Xi Jinping directly to achieve those goals,” the document says, adding that Washington’s goal is not to dominate China.

“Rather, our goal is simple: To prevent anyone, including China, from being able to dominate us or our allies,” it says.

As part of efforts to meet that end, the U.S. military will erect a “strong denial defense” along the first island chain in line with the security strategy, according to the defense blueprint.

The island chain runs from the Japanese archipelago, through Taiwan, the Philippines and on to Borneo, encircling China’s coastal waters.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the new American strategy will create a huge impact on how the allies will defend their respective nations? Do you think this will lead to the containment of Communist China’s aggression on the Indo-Pacific? Do you think the new strategy could lead to more stability in both Asia and Europe?

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 Attracted 5.94 Million Foreign Tourists And 543K Overseas Filipinos In 2025

January 22, 2026January 22, 2026carlocarrasco

Finally, the Department of Tourism (DOT) revealed that 5.94 million foreign tourists and over 543,000 returning overseas Filipinos arrived in the Philippines in 2025 resulting in tourism revenue of P694 billion, according to a news release by the Philippine News Agency (PNA).

For insight, the Philippines attracted 5,940,975 foreign visitors in 2025 which is 8,375 less compared with 2024’s foreign visitors. Ultimately, the Philippines is still behind many of its Southeast Asian neighbors on international tourism for 2025.

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

The Philippines recorded 6.4 million foreign visitors and returning overseas Filipinos in 2025, generating an estimated PHP694 billion in tourism receipts, the Department of Tourism (DOT) said Tuesday.

Citing Bureau of Immigration data, the DOT said 5,940,975 were foreign visitors, including cruise passengers and categories not fully captured in eTravel.

Another 543,085 were returning overseas Filipinos, bringing total inbound arrivals to 6,484,060.

The DOT said preliminary international visitor spending was estimated at PHP694 billion.

While arrivals remain below pre-pandemic levels in 2019, the DOT said the outcome was achieved despite global and domestic challenges, including travel alerts from key markets and fiscal constraints.

The agency said tourism performance should not be measured by arrivals alone, citing strong domestic travel, value creation and job generation.

Guided by the National Tourism Development Plan 2023–2028, the DOT said it remains focused on improving connectivity, safety, workforce skills and service standards.

For insight as to why the Philippines is having a lot of trouble attracting visitors from abroad, watch the YouTube videos below.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you agree with the Department of Tourism’s claim that tourism performance should not be measured by arrivals alone while the Philippines keeps on falling behind its Southeast Asian neighbors that attracted a lot more foreign tourists? Do you think the DOT should examine closely how satisfied or dissatisfied foreign tourists really are before they leave the country? Are you tired of seeing the Philippines failing to hit its annual international tourist arrival targets?

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 Philippine Economic Growth May Fall Below 4% In The Near Term

January 15, 2026January 9, 2026carlocarrasco

By pointing to the effects of the flood control corruption scandal as well as other factors, Nomura Global Markets Research stated that the economic growth of the Philippines may fall below 4% in the near term, according to a BusinessWorld news report.

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

PHILIPPINE economic growth may fall below 4% in the near term as the billion‑peso flood control scandal drags on, affecting government spending and dampening consumption and sentiment, Nomura Global Markets Research said.

“I think going forward, these spillover effects (from the graft scandal) will also expand,” Nomura Chief Association of Southeast Asian Nations (ASEAN) Economist Euben Paracuelles told Money Talks with Cathy Yang on One News on Thursday.

The scandal, which curbed state spending last year, is expected to dampen household consumption and business investment amid weaker sentiment, he added.

“If the drag is now sort of becoming more broad-based, not just the drop in government spending, you’ll see growth coming potentially below 4%, at least in the near term,” he said.

Nomura now expects the gross domestic product (GDP) to expand by 5.3% in 2026 from 5.6% previously. This is still within the government’s recently revised 5-6% target this year.

Economy Secretary Arsenio M. Balisacan earlier said growth targets were lowered through 2027, after GDP growth likely slowed to 4.8-5% in 2025 amid the flood control controversy.

The government cut its 2026 projection to 5-6% and to 5.5-6.5% for 2027 from the earlier 6-7% range. The 2028 target was retained at 6-7%.

Mr. Paracuelles anticipates that the government will roll out catch-up spending plans, possibly in the second half of the year.

Meanwhile, the Philippines may earn a credit rating upgrade if the government manages to resolve the flood control corruption issue within a year, Mr. Paracuelles said.

“The key for me is 12 months from here, when they need to decide on whether they need to upgrade the Philippines, I think it’s still quite uncertain,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economic growth of the Philippines is indeed slowing down right now? Would you be surprised to see the nation’s economic growth reach less than 4%? Do you think the officials of the Department of Public Works and Highways (DPWH) is working sufficiently to restore its credibility?

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 Reduces Economic Growth Targets Until 2027

January 8, 2026January 5, 2026carlocarrasco

In what is an acknowledgment of slowing growth, the government of the Philippines officially reduced its economic growth targets until the year 2027, according to a news report by BusinessWorld.

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

The Philippines trimmed its economic growth targets until 2027, after growth likely slowed to about 4.8% to 5% this year, according to Economy Secretary Arsenio M. Balisacan.

In a briefing on Monday, Mr. Balisacan said the Development Budget Coordination Committee (DBCC) had lowered its gross domestic product (GDP) growth targets to 5%-6% for 2026 and 5.5%-6.5% for 2027. It kept the GDP growth target at 6%-7% for 2028.

The government earlier aimed to achieve 6%-7% GDP growth annually from 2026 until 2028.

This comes after Mr. Balisacan said the economy likely grew by 4.8-5% in 2025. This is much slower than the 5.7% GDP growth in 2024, and below the government’s 5.5-6.5% growth target.

“The emerging number, growth scenario for 2025, is something like 4.8 to 5%,” he said. “But if you achieve 5% for the entire year, because the first three quarters’ average is already 5%, that still puts the economy into one of the fastest growing economies in Asia.”

Economic growth slowed to an over four-year low of 4% in the third quarter, as the flood control scandal affected government spending and hurt business and consumer confidence.

“The developments last year are likely still to be felt this year, although in a diminishing effect, and so we expect growth perhaps in the first quarter or at least in the first half to be still quite not as rosy as we would want it to be,” the Economy chief added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the government spending this year should be increased somehow so that it will stimulate the national economy to grow more? Do you think investors based overseas are not convince to invest in the country soon?

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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World Bank Sees Philippine Economy Gradually Recovering In 2026 And 2027

December 11, 2025December 10, 2025carlocarrasco

The World Bank (WB) sees the economy of the Philippines making a gradual recovery in 2026 and 2027 fueled by strong domestic demand, according to a news report by BusinessWorld. The WB also stressed that corruption is unacceptable.

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

THE WORLD BANK (WB) sees a gradual recovery for the Philippines in 2026 and 2027, after growth slowed this year due to weaker investment and sluggish consumption, compounded by a corruption scandal and a string of natural disasters.

In its latest Philippines Economic Update released on Tuesday, the multilateral lender trimmed its Philippine gross domestic product (GDP) growth forecast to 5.1% for this year from 5.3% in its June report. For 2026, it lowered its Philippine GDP growth forecast to 5.3% from 5.4% previously.

The World Bank also cut its Philippine GDP growth projection for 2027 to 5.4% from 5.5% previously.

These latest projections are below the government’s 5.5-6.5% growth goal for this year and the 6-7% target for 2026 to 2028.

“To borrow from Torsten Slok, chief economist at Apollo (Management), it’s a Nike swoosh pattern. He describes the US economy, and I’m describing our forecast for the Philippines as a kind of Nike swoosh. We have a dip in 2025, and then we have a gradual recovery in 2026 to 2027,” World Bank Senior Economist Jaffar Al-Rikabi said during a briefing.

He noted the average growth of the Philippines over 2025 to 2027 will be lower than 2024 when GDP expanded by 5.7%.

“For 2025… the growth is largely weighed down by domestic factors. In particular, lower construction activity and weaker consumption growth,” he said.

The Philippine economy expanded by a weaker-than-expected 4% in the third quarter, bringing nine-month growth to 5%, as the pace of household final consumption expenditure and government spending slowed amid a corruption scandal.

Mr. Al-Rikabi also noted the deceleration in fixed investment and private consumption due to higher-than-expected number of natural disasters that hit the Philippines this year.

“But for 2026 to 2027, we think that it’s likely that external factors will weigh more heavily on growth, largely slower export demand,” Mr. Al-Rikabi said.

The US imposed a 19% tariff on most goods from the Philippines starting August, dampening export demand.

The World Bank said the Philippine economy’s growth will pick up in 2026 and 2027, fueled by strong domestic demand.

“Private consumption is projected to strengthen as inflation stays low, employment remains robust, and monetary easing lowers interest rates, making it easier for businesses and households to borrow,” it said in the report.

According to the World Bank, private consumption, which accounts for more than 70% of the economy, is projected to expand by 4.8% this year, slowing from 4.9% in 2024. This is expected to pick up to 5.3% in 2026 and 5.4% in 2027.

The World Bank said investment is likely to recover as public infrastructure projects regain momentum, while recent liberalization reforms in telecommunications, transport, logistics and renewable energy improve the business climate.

The multilateral lender also expects headline inflation to average 1.8% this year, describing the pace as “very moderate” and a key source of resilience. This forecast is slightly above the Bangko Sentral ng Pilipinas’ (BSP) 1.7% projection for 2025 and the 1.6% average recorded in the first 11 months.

‘CORRUPTION IS UNACCEPTABLE’ – Even as the Philippine economy will see a gradual recovery in the next two years, Mr. Al-Rikabi noted risks are tilted to the downside, with “more prominent” domestic drivers.

“There is a continued challenge of heightened perceptions around governance risks. This could, if it continues, erode investor confidence. It could delay public investment execution, and it could weaken growth,” he said.

The World Bank economist also noted there may be delays in fiscal and structural reforms amid the current domestic environment, “which could slow consolidation and weigh on growth over the medium term.”

A corruption scandal involving anomalous flood control projects has already triggered protests, slowed economic activity, and shaken investor confidence in the country.

“From the World Bank perspective, corruption is unacceptable,” World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said during the same briefing.

“The World Bank considers it detrimental to any country and has been fighting against corruption in all the member countries that we operate in,” he added.

Mr. Mustafaoğlu said the Philippine government could take this opportunity to increase transparency and modernize its budget execution system “that could actually support longer-term growth and can increase investment confidence (and) can increase long-term potential growth,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Did you think the national economy will recover gradually in 2026 and 2027 as the World Bank predicted? With inflation being low, do you feel confident about spending for your needs and wants in the short term?

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 At Risk Of Falling Behind Southeast Asian Neighbors Economically

November 26, 2025November 19, 2025carlocarrasco

The 3^rd quarter growth of only 4% the Philippines achieved has been on people’s minds a lot lately. As such, the country is at risk of falling behind its neighbors in Southeast Asia in terms of economic growth and gross domestic product (GDP) per capita, according to a BusinessWorld news report.

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

The Philippine economy is at risk of further falling behind its Southeast Asian neighbors, an economist said, noting it may take two years to catch up with Vietnam and up to 70 years to catch up with Singapore.

“(T)he Philippines could find itself lagging behind if alleged public spending issues continue to divert attention and resources away from the structural reforms needed to accelerate economic development,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a commentary on Wednesday.

In the third quarter, Philippine gross domestic product (GDP) grew by 4%, its slowest pace in over four years amid slower household and public infrastructure spending as the flood control scandal dampened investor and con-sumer sentiment.

In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.

“The Philippine economy is growing, but not enough to close the economic gap with other countries,” Mr. Neri said.

He noted the Philippine GDP per capita is lower compared with other economies in the region. Citing International Monetary Fund (IMF) data, he said the Philippines’ GDP per capita stood at $4,078 in 2024.

“At the current growth rate, it would take the Philippines two years to catch up with the GDP per capita of Vietnam, 4 years with Indonesia, 14 years with Thailand, 26 years with Malaysia, and 70 years with Singapore, assuming their incomes remain stagnant. In reality, their GDP per capita continues to grow, which means the gap could persist or even widen,” Mr. Neri said.

The Philippines lagged behind Singapore which had a GDP per capita of $90,674 in 2024, followed by South Korea ($36,128), Japan ($32,498), China ($13,312), Malaysia ($12,540), Thailand ($7,491), Indonesia ($4,958) and Vietnam ($4,535).

“Before the pandemic, the Philippines had a higher GDP per capita than Vietnam, but has since been overtaken. At current trends, it would take the Philippines two years to catch up with Vietnam, but that gap could increase to 13 years by 2044,” Mr. Neri said.

The BPI economist said the Philippines needs structural reforms to accelerate growth in order to close the widening gap with its neighbors.

“The current economic model of the country is not enough, as shown by the country’s inability to grow faster than 6% in recent years,” he said.

Mr. Neri said the economy has been “too reliant” on consumer spending, driven by overseas Filipino worker (OFW) remittances and the business process outsourcing industry.

“There is a need to diversify its sources of growth. The economy must improve in terms of production, especially in agriculture and manufacturing, as they will allow the economy to be more self-sufficient and to reach foreign markets. These industries have been critical to Vietnam’s success and could play a similar role for the Philippines,” he said.

However, Mr. Neri said implementing these reforms will be hard if the government lacks focus.

“Public spending issues divert fiscal resources and policymaking focus away from long-term development priorities. Efforts to strengthen safeguards against potential issues in government spending are essential, enabling the country to work on structural reforms that could improve the economy,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think should the government do to accelerate economic growth?

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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Approved Foreign Investment Pledges Fall Down 48.7% In 3rd Quarter

November 21, 2025November 14, 2025carlocarrasco

The flood control corruption scandals connected with the weaker investor sentiment resulted in a 48.7% fall in foreign investment pledges during the 3^rd quarter this year, according a news report by BusinessWorld. It should be noted that Philippines GDP growth for the same quarter slowed down a lot.

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

APPROVED foreign investment pledges plunged nearly 50% in the third quarter as investor sentiment soured due to the corruption scandal involving government infrastructure projects, the local statistics agency said.

Preliminary data from the Philippine Statistics Authority (PSA) showed the value of foreign commitments approved by investment promotion agencies (IPAs) fell by 48.7% to P73.68 billion in the July-to-September period from P143.74 billion in same period last year.

However, this was the highest amount of investment pledges since the third quarter of 2024.

Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said the decline in approved investments can be attributed to the weaker investor sentiment.

“Tingin ko. Wala pang nakukulong eh (I think so. No one has been imprisoned yet),” he said in a Viber message, when asked if this sharp slump in approved investments will likely persist in the fourth quarter until 2026.

Quarter on quarter, the approved pledges rose by 9.34% from P67.38 billion in the second quarter.

Singapore was the top source of foreign investment pledges in the third quarter with P20.26 billion (27.5%), followed by Japan with P13.59 billion (18.4%) and Cayman Islands with P13.14 billion (17.8%).

Investment commitments from South Korea stood at P5.57 billion (7.6%), while those from China stood at P4.51 billion (6.1%)

PSA data showed the investment pledges were approved by seven IPAs — the Authority of the Freeport Area of Bataan, Bases Conversion and Development Authority (BCDA), Board of Investments (BoI), Clark Development Corp., Clark International Airport Corp., Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority.

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think the government must do to convince foreign investors to become more confident about investing in the Philippines? Do you think the investigation and pace of justice related to the flood control corruption scandal is moving too slowly?

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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