Tag: gross domestic product (GDP)

Tourism’s Contribution To Philippines GDP The Lowest In 3 Years

Tourism’s Contribution To Philippines GDP The Lowest In 3 Years

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Given the fact that the Philippines has been having trouble attracting foreign tourists and their money, it has been confirmed that the tourism industry’s contribution to the national economy in 2025 fell down to a 3-year low, according to a news report by BusinessWorld. For insight, the Philippines attracted 5.94 million foreign tourists in 2025 while Indonesia attracted 15.39 million, Vietnam attracted a record-high 21.2 million and Thailand attracted almost 33 million.

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

THE TOURISM industry’s contribution to the Philippine economy fell to its lowest level in three years in 2025, weighed down by weaker tourism spending by foreign visitors, according to data from the statistics agency.

Preliminary data from the Philippine Statistics Authority (PSA) showed tourism’s direct gross value added (TDGVA) accounted for 8.1% of the gross domestic product (GDP) in 2025, down from 8.7% of GDP in 2024.

This was tourism’s lowest contribution to the national output in at least three years or since 2022 when it contributed 6.3% to the country’s GDP.

The country’s TDGVA was estimated at P2.27 trillion last year, down by 1.4% from the revised P2.3 trillion in 2024.

The TDGVA measures the value generated from various tourism-related activities and is based on the results of the Philippine Tourism Satellite Accounts report, which the PSA compiles from the Department of Tourism.

Tourism Congress of the Philippines President James M. Montenegro said the drop reflected external pressures, structural constraints and a weaker recovery in international tourism relative to the rest of the Philippine economy.

“While domestic tourism remained resilient, inbound tourism weakened significantly in 2025, which pulled down overall tourism value creation,” Mr. Montenegro said in a Viber message.

He said a major factor was the slower-than-expected recovery of inbound tourism from key Asian markets such as China and India even after the Philippine government eased visa requirement for Chinese and Indian nationals.

Mr. Montenegro said another challenge is the Philippine tourism industry’s ability to remain competitive in attracting foreign tourists. He said the Philippines should prioritize making key destinations more accessible to major regional markets.

“Many neighboring countries accelerated aggressive tourism recovery programs, including visa-free access, expanded airline incentives, stronger destination marketing, and airport infrastructure improvements. The Philippines continued to face challenges in air connectivity, airport capacity, inter-island transport efficiency, and tourist friction points,” Mr. Montenegro said.

He said that while the Philippines’ tourism sector has one of the highest contributions to GDP in Southeast Asia, it continues to lag behind regional peers in attracting tourists.

Let me end this post by asking you readers: What is your reaction to this recent development? Were you surprised that the Philippines remained weak on attracting foreign tourists even though some reforms were implemented? Do you think the local tourism authorities should focus more on domestic tourism which itself remains strong and growing? What are the biggest hassles that tourists experience here in the Philippines when it comes to traveling by air, sea and land today?

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

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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will truly rebound in the 2nd half of this year? What do you think will help boost the national economy apart from foreign investments?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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

Economic Warning Signs In The Philippines Grow

Economic Warning Signs In The Philippines Grow

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will eventually fall into a state of stagflation this year? How are you dealing with the higher costs of living nowadays?

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

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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

Economy Of Japan Grows 2.1% In 1st Quarter Of 2026

Economy Of Japan Grows 2.1% In 1st Quarter Of 2026

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Thanks to the recovery in exports and private consumption, the economy of Japan grew by 2.1% in the first quarter this year, according to a Kyodo News report. Still, there will be challenges ahead for the Japanese economy as the nation is still dependent on the Middle East for its crude oil needs and there is the possibility that the Islamic terrorist regime of Iran could start a new series of conflicts in the said region.

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

Japan’s economy grew an annualized real 2.1 percent in the January-March period, marking the second straight quarterly expansion, led by a recovery in exports and private consumption, government data showed Tuesday, with the full impact of the Middle East conflict yet to be felt.

In the first quarter of 2026, gross domestic product adjusted for inflation increased 0.5 percent from the October-December period, the Cabinet Office said in its preliminary report, beating market expectations. GDP is the total value of goods and services produced in a country.

Economists polled by the Japan Center for Economic Research had forecast an annualized real expansion of 1.56 percent while expecting growth to slow to 0.45 percent in the April-June quarter, amid concern that the Middle East crisis and surging crude oil prices will weigh on corporate profits and consumer spending.

In the January-March period, private consumption, which accounts for more than half of the economy, grew 0.3 percent, rising for the fifth straight quarter, helped by strong demand for clothing and a boost in spending at restaurants, an official said.

Spending was also underpinned by state subsidies for gas and electricity bills and solid wage growth, as rising earnings saw companies move to attract and retain talent, economists said.

But with data showing a rapid deterioration in consumer sentiment due to the Middle East conflict, its impact on private consumption warrants close attention, another government official said.

In the January-March period, exports rose 1.7 percent from the October-December quarter on a recovery in auto shipments bound for the U.S. market and strong demand for machinery and electrical devices for industrial purposes. Imports edged up 0.5 percent.

Economists said shipments to the world’s largest economy have been recovering due to receding uncertainty over U.S. tariff policy following a bilateral deal struck last year.

Business investment rose 0.3 percent from the previous quarter, with increased expenditure for research and development on the back of robust corporate profits and for general-purpose machinery and electric lighting fixtures, the first official said.

She said the impact on the data of the Middle East conflict, triggered by U.S.-Israeli attacks on Iran that began in late February, was unclear.

Prolonged tensions in the Middle East could affect imports of crude oil and petroleum products such as naphtha and hit exports bound for the region, economists said.

GDP was dampened 0.1 percentage point by a reduction in private inventories, apparently due to the government’s decision to release oil from stockpiles, starting with those held by the private sector.

Japan’s heavy reliance on oil imports from the Middle East makes the country vulnerable to the effective closure of the Strait of Hormuz, a key shipping artery, with surging oil prices feared to drive up inflation.

Prime Minister Sanae Takaichi said Monday the government will consider compiling a supplementary budget for fiscal 2026 to ease the impact of elevated crude oil prices.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the economy of Japan can still maintain its growth rate in the 2nd quarter? Do you think Japan will soon import oil from other parts of the world to reduce its dependence on the Middle East? Do you think Japan’s ties with Trump-led America will open new windows that will help Japanese exporters a lot?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines has no room left to find ways to boost economic growth this year? What do you think the national government should do to stimulate the economy?

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

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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

Philippines Counting On Stronger Cooperation With Japan On Investment And Energy Security

Philippines Counting On Stronger Cooperation With Japan On Investment And Energy Security

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines cannot grow stronger without the involvement of Japan and its investors? Do you think the Philippines will proceed to acquire anti-ship missile systems from Japan to enhance national defense?

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

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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

Philippines Digital Economy Reaches P2.74 Trillion In 2025

Philippines Digital Economy Reaches P2.74 Trillion In 2025

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The digital economy of the Philippines grew to P2.74 trillion in gross value added (GVA) in 2025 and its contribution to the nation’s gross domestic product (GDP) is at 9.8%, according to a business news report by GMA News.

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

The Philippine digital economy continues its upward trajectory, reaching a Gross Value Added (GVA) of P2.74 trillion in 2025, accounting for 9.8% of the country’s gross domestic product (GDP), according to the latest preliminary data from the Philippine Statistics Authority (PSA).

Last year’s digital economy GVA grew by 5.4% from P2.59 trillion recorded in 2024 as the country moves forward with digital transformation initiatives across public and private sectors.

The PSA defines the digital economy as encompassing four main areas: digital-enabling infrastructure, digital content and media, e-commerce, and government digital services.

Digital-enabling infrastructure remained the primary driver of GVA, contributing P1.79 trillion to the total. 

Within this sector, growth was fueled by ICT services with a 27.1% contribution, ICT manufacturing with 13.6%, and ICT-enabled services with 13.3%.

E-commerce followed as a significant contributor at 32.2%, while digital content and media accounted for 2.2% and government digital services made up the remaining 0.3% of the digital landscape.

Beyond monetary value, the digital sector has become a massive source of livelihood for Filipinos. 

In 2025, the digital economy employed 10.39 million people, accounting for 21.2% of the country’s total workforce. 

This was a 1.2% increase from the 10.27 million workers recorded the previous year.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the digital economy of the Philippines will continue to grow this year? Could the nation’s digital economy reach P3 trillion in value in the near future?

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

Philippine Economic Growth Slows Down To 2.8% In 1st Quarter Of 2026

Philippine Economic Growth Slows Down To 2.8% In 1st Quarter Of 2026

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While the Philippines is hosting the summit of the Association of Southeast Asian Nations (ASEAN), the economy of the nation grew only 2.8% in the first quarter this year and it is the slowest growth in five years, according to a business news report by the Manila Bulletin.

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

The Philippine economy grew at its slowest pace in five years, expanding just 2.8 percent in the first quarter of 2026, as the country grapples with the persistent government spending slump and mounting inflation shocks.

The country’s economy, as measured by the gross domestic product (GDP), decelerated from the 3.0 percent expansion recorded in the final three months of 2025.

It also significantly missed the 3.4 percent median growth projected by economists in a survey, and marked the weakest quarterly output for the country since the first quarter of 2021, when the economy contracted 3.8 percent during pandemic-era lockdowns.

Growth was severely dragged down by a prolonged slump in public construction following a massive government flood-control scandal late last year, which has continued to stall state spending.

Moreover, the global energy shock triggered by the Middle East conflict in late February also sent domestic oil and input costs soaring, severely denting consumer and business confidence.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think heavy government spending will boost the economy somehow? Could it be possible that the Philippines could fall into a recession this year or next year? How do you rate the performance of the economic managers of the national government?

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

Philippines Falls In 2026 FDI Confidence Index

Philippines Falls In 2026 FDI Confidence Index

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Things are looking bad for the Philippines as the nation declined in the 2026 Foreign Direct Investment (FDI) Confidence Index ending up 18th out of the 25 emerging markets, according to a news report by BusinessWorld. It should be remembered that the Philippines attracted less than $8 billion FDI in 2025.

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

THE PHILIPPINES dropped two spots to 18th out of 25 emerging markets in the 2026 Foreign Direct Investment (FDI) Confidence Index by global management consulting firm Kearney.

The Philippines posted a score of 1.4635 in the index, which ranks markets that are likely to attract the most FDI in the next three years.

This was the third straight year the Philippines’ ranking declined in the index. It ranked 16th in 2025, 13th in 2024 and 12th in 2023.

“The index reflects a three-year outlook, so the shift points to softer medium-term investor confidence, rather than any single short-term factor,” Kearney Senior Partner, Philippines Country Head & APAC Communications, Media & Technology Lead Marco de la Rosa said in an e-mail interview.

“At the same time, recent Philippine-specific developments, including headlines last year around infrastructure spending and political challenges, may have weighed on investor sentiment, alongside a more risk-sensitive global environment, making the country a relatively less attractive destination for FDI,” he added.

The Philippines was rocked by a corruption scandal last year that linked government officials, lawmakers, and public contractors to anomalous flood control projects.

In 2025, the Philippines saw its FDI net inflows drop 17.1% year on year to $7.791 billion. This was the lowest yearly FDI level since 2020.

The downtrend continued at the start of this year as January FDI net inflows slid to a four‑month low of $443 million, 39.2% lower compared with the same month a year ago.

Conducted in January 2026, the FDI Confidence Index uses primary data from a proprietary survey of 507 senior executives of the world’s top corporations.

“China, the United Arab Emirates, and Saudi Arabia lead the emerging market ranking for the third consecutive year,” Kearney said.

Among emerging markets, the Philippines fell behind regional peers such as Thailand (6th), Malaysia (7th), Indonesia (13th) and Vietnam (16th).

“Other ASEAN (Association of Southeast Asian Nations) markets have become more attractive, particularly those benefiting from supply chain shifts and stronger positioning in innovation,” Mr. de la Rosa said. “Thailand and Malaysia are benefiting from China+1 diversification, while Vietnam stands out for linking talent to a clear sector strategy, particularly in semiconductors.”

Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes said that the steady decline in the index is not driven by a single factor but rather by the Philippines’ relative underperformance versus peers and persistent structural constraints.

“The index is relative, so even if the Philippines is stable, (the fact) that other countries are rising faster pushes it down,” he said in a Facebook Messenger chat.

According to Kearney, investors cited the Philippines’ labor talent as its strongest asset (32%), followed by natural resources (28%) and economic performance (27%).

A fourth of the investors have identified the country’s tech innovation and ease of doing business as top reasons for investments, while 22% cited transparent governance. Only 12% cited infrastructure quality.   

However, a small percentage or 2% said that there were no strong reasons at all to invest in the Philippines.  

“What it suggests is that, for a small group of investors, the Philippines’ strengths may not yet be coming through as distinctly as some peers,” Mr. de la Rosa said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines can bounce back strongly on FDI soon? Do you think the Philippines is becoming the economic weakling of Southeast Asia?

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