Tag: growth

Philippines GDP Growth Unlikely To Reach 6% In Medium Term

Philippines GDP Growth Unlikely To Reach 6% In Medium Term

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Several economic factors and the continued vulnerability to climate-driven shocks make it unlikely for the Philippines to achieve gross domestic product (GDP) growth of 6% in the medium term, according to a news report by BusinessWorld citing Moody’s Ratings.

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

MOODY’S RATINGS said the Philippines’ medium-term growth outlook seems bleak as its slow  investment recovery and vulnerability to climate-driven shocks may derail its economic rebound.

In a statement following its latest rating action on the Philippines, the debt watcher said the country’s gross domestic product (GDP) growth is expected to hover below its pre-pandemic level of around 6% over the medium term.

“The Philippines’ medium-term growth will continue to be underpinned by favorable demographics, resilient remittances and service exports, and a gradual strengthening of investment as confidence recovers, with electronics and other goods exports providing a more marginal offset,” Moody’s Ratings said late on Monday.

“Even so, we expect medium-term potential to settle somewhat below the near-6% pace recorded before the pandemic, as investment recovers only gradually and the economy remains exposed to recurrent natural disasters and climate-related shocks,” it added.

Moody’s slashed its Philippine GDP growth forecast for this year to 3.6% from 5.5%. This falls near the bottom end of the government’s 3.5%-4.5% target for the year.

In the second quarter, GDP growth tumbled to a new post-pandemic low of 2.3%, bringing average growth to 2.6% in the first half.

The fourth consecutive quarter of slowing growth came as investments continued to reel from last year’s flood control corruption scandal, while rising prices amid the Middle East war squeezed household spending.

Moody’s Ratings noted that the Middle East war shocks and investment slump are “largely cyclical,” with an investment-driven recovery expected later this year.

“The recovery from the second half of 2026 should be led by a rebound in public investment as the government resumes stalled disbursements and normalizes spending execution,” it said.

Moody’s Ratings said that local investments should focus on public infrastructure and public-private partnerships, especially in renewable energy “as the country diversifies its energy mix in response to the recent shock.”

The government’s recent reforms should also eventually boost investment and productivity as their benefits are realized, the debt watcher said.

These include the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, foreign investment liberalization, and allowing more private and foreign participation in sectors such as renewable energy.

By 2027, Moody’s Ratings expects GDP to expand by 5.3%, although still slower than its previous estimate of 5.6%.

Let me end this post by asking you readers: What is your reaction to this recent development? Are you convinced that the economy of the Philippines really does not have enough strength to achieve 6% GDP growth anytime soon? Do you think the current economic managers know what they are doing? Do you think there will absolutely be no economic gains from the Philippines’ hosting of the 2026 ASEAN Summit?

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 2026 Foreign Tourist Arrivals Reach 4.11 Million as of August, U.S. and South Korea Remain Top Markets

Philippines 2026 Foreign Tourist Arrivals Reach 4.11 Million as of August, U.S. and South Korea Remain Top Markets

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With the Peso performing terribly in the global currency market, weakening economic growth, high inflation and fears of an economic recession growing, 2026 has not been good for the Philippines. There is a bright spot in tourism, however, as the Philippines saw its 2026 foreign tourist arrivals reach 4.11 million in the January-August period and the United States and South Korea combined for more than 1.5 million tourist arrivals, according to a news article by the Philippine News Agency (PNA).

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

The Philippines has recorded 4.11 million foreign arrivals from January to August, higher by 3.7 percent compared to the same period last year, the Department of Tourism (DOT) said on Tuesday.

The United States posted the highest number of share at 818,318, followed by South Korea at 727,379, Japan at 350,191, China at 310,088, and Australia at 234,156.

Also making it in the top 10 source markets are Canada with 231,972, Taiwan with 154,957, the United Kingdom with 132,370, Singapore with 126,812, and India with 77,883.

Tourism Secretary Dita Angara-Mathay said the Philippines targets to surpass its 2025 arrival figures to reach between 6.4 million and 6.8 million, or at least 7 million, by the end of 2026.

To achieve this, she said the DOT is intensifying its branding and promotions to reach more tourists in its key source markets.

The DOT is also in active talks with airlines to open up and establish more chartered flights between the Philippines and secondary cities of Korea and China.

DOT Assistant Secretary Ren Sapitan said the agency is also set to sign a contract with a creative agency in November to broaden the country’s marketing efforts and make the Philippines more visible worldwide.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines will be able to exceed the 2025 foreign tourist arrivals number by the end of this year? Do you think the DOT is doing a good job to strengthen the Philippines’ attraction of foreign tourists? Considering the Top 10 markets of foreign tourists the Philippines attracted so far, are you convinced that the nation’s hosting of the Association of Southeast Asian Nations (ASEAN) Summit did not create any positive tourism results?

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

Moody’s Analytics Cuts Philippines 2026 GDP Growth Forecast to 3%

Moody’s Analytics Cuts Philippines 2026 GDP Growth Forecast to 3%

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By citing key factors like weak consumption, Middle East oil shock and the collapse in private investment, Moody’s Analytics officially slashed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 3%, according to a news report by BusinessWorld.

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

MOODY’S ANALYTICS slashed its 2026 growth forecast for the Philippines, amid weak consumption and a collapse in private investment.

In its latest Asia-Pacific Outlook report dated Aug. 24, the analytics firm said it now sees Philippine gross domestic product (GDP) expanding by 3% this year, slower than its 4% projection in June.

“We lowered our 2026 GDP growth forecast to 3% from 4% in the June vintage after incorporating the second-quarter GDP result, which was far weaker than expected,” Moody’s Analytics Assistant Director and Economist Sarah Tan said in an e-mailed reply to questions.

The Philippine economy slumped to its worst post-pandemic growth of 2.3% in the April-to-June period, as investments and public construction continued to reel from last year’s flood control corruption scandal. Rising prices from the Middle East war-driven oil shock also strained household spending.

“The economy expanded by just 2.3% year on year, with private consumption showing notable weakness and private investment collapsing,” Ms. Tan noted. “This points to softer underlying domestic demand than we had previously anticipated.”

As of the first half of 2026, the country’s GDP growth averaged 2.6%, well below the government’s 3.5%-4.5% full-year target.

If Moody’s Analytics’ forecast holds true, the government will miss its growth target for a fourth year in a row. The economy would also further soften from last year’s post-pandemic low growth of 4.4%.

Economists earlier said that reaching even the bottom end of the government’s target entails a steep climb, as it means the economy must grow by at least 4.4% in the second half.

Moody’s Analytics sees growth recovering over the next two years to 4.6% in 2027 and 5.1% in 2028. The government wants full-year expansion to be between 5% and 6% from 2027 to 2030.

Meanwhile, GlobalSource Partners Country Analyst Diwa C. Guinigundo noted that the Philippines could face a more complicated path toward fiscal consolidation if growth remains below potential.

“Slower growth would make fiscal consolidation and debt reduction more difficult,” he said in a Viber message. “The issue is not simply that government revenues would grow more slowly; a weaker economy also means a smaller denominator for the debt-to-GDP ratio.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think 2026 will end up as a very disappointing year of economic growth for the Philippines? Do you think the economy of the Philippines could still fall into a recession in 2027 or in the first half of 2028? Are you convinced that the Philippines has nothing to gain economically from hosting the ASEAN Summit?

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 Economic Weakness Continues As 2nd Quarter GDP Growth Lands At 2.3%

Philippines Economic Weakness Continues As 2nd Quarter GDP Growth Lands At 2.3%

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The economy of the Philippines slowed down even further in the 2nd quarter of 2026 landing at 2.3%, according to a news report by GMA News. Embarrassingly, this made the Philippines an economic weakling among the members of the Association of Southeast Asian Nations (ASEAN).

By comparison, the economy of the Philippines achieved only 2.8% growth in the 1st quarter of this year. The nation’s economic growth for 2025 was at 4.4%

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

The Philippine economy continued to slow down in the second quarter of 2026, still due to a subdued investor and consumer sentiment amid the lingering effects of the flood control corruption scandal and the inflationary pressure brought by Middle East crisis-induced global fuel price shocks, the Philippine Statistics Authority (PSA) reported on Friday.

At a press conference, PSA chief and National Statistician Claire Dennis Mapa said the economy, as measured by gross domestic product (GDP)—the value of goods and services produced in a period— grew 2.3% in the April to June 2026 period, slower than the 2.8% growth seen in the first quarter of 2026.

This is the economy’s weakest footing since the fourth quarter of 2009 —excluding the contraction seen during the COVID-19 pandemic years— when the GDP growth rate was at 1.8%.

The 2.8% second quarter GDP growth put the Philippines behind its neighbors in Southeast Asia that already released their April to June economic growth rates such as Indonesia at 5.29%, Vietnam at 8.39%, and Singapore at 5.7%.

The first half of 2026 GDP growth rate stood at 2.6%, still behind the government’s downwardly revised target of 3.5% to 4.5% for the entire year.

Despite the economic slowdown, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said, “What we are experiencing right now, I believe, is transitory, temporary.”

“Domestic demand remained subdued, mainly because total investment continued to contract as public construction declined. Household consumption growth also moderated amid higher inflation, job losses, and lower remittance receipts arising from the Middle East conflict,” Balisacan said.

Household final consumption expenditure grew 2.8%, slower than 5.2% in the same period last year, weighed by contractions in transport (-7.5%), alcoholic beverages and tobacco (-1.9%), recreation and culture (-0.8%), and restaurants and hotels (-0.2%).

Government expenditure, likewise, slowed down by 8.3% from 8.7% year-on-year; while gross capital formation (GCF) —which measures investments— contracted by 9.2% from a growth rate of 0.9% a year ago.

The decline in GCF was due to the decline in construction at 14.8% with government spending on construction contracting 32.4%.

“Although public construction is a small part of the economy, the amount of contraction, at 32%, brought a significant impact on the economy,” Balisacan said.

“The sharp decline in public construction was the main contributor in the decline in investments… driven by continuous caution due to the flood control scandal,” the country’s chief economist said.

Among the major economic sectors, agriculture posted a growth rate of 2.7%, slower than 7% year-on-year; industry declined by 2.4%, from an increase of 2.1% weighed by the construction’s depreciation; services grew slower at 4.5% from 6.9%.

Agriculture, industry, and services sector contributed 7.5%, 27.9%, and 63.3%, respectively to the total GDP during the quarter.

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 recession in 2027? Do you believe that the hosting of the ASEAN summit by the Philippines will result in economic miracles and more foreign investment?

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

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

American Investors To Explore Mega Infrastructure, Energy Deals And Other Opportunities In The Philippines

American Investors To Explore Mega Infrastructure, Energy Deals And Other Opportunities In The Philippines

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Several business executives and investors from the United States are set to visit the Philippines next week to explore investment opportunities in the nation’s infrastructure sector, energy sector, and more, according to a news report by the Manila Bulletin. The American investors will engage with their Filipino counterparts during the planned 5-day trade mission.

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

More than 25 American business executives and investors will visit the country next week for a business mission as the United States (US) seeks to deepen its economic ties with the Philippines, which recently secured upper-middle-income status.

In a statement, the Department of Trade and Industry (DTI) said the US business delegation would mount a five-day trade mission across major economic areas in the Philippines from July 6 to 10.

The delegation includes business leaders and investors from the Northeast and Midwest regions of the US. The mission is organized by the DTI’s Philippine Trade and Investment Center (PTIC) in New York and the Philippine Consulates General in New York and Chicago.

The DTI said the business mission aims to strengthen economic ties between the two longtime trade partners while also encouraging US companies to invest more in the country’s growing economy.

Based on the latest country income classifications of the World Bank, the Philippines has moved up from lower-middle-income to upper-middle-income status. This was based on the country’s gross national income (GNI) per capita estimate for 2025, which reached a record $4,850.

The DTI noted that the upcoming visit also comes at a time when the Philippines is actively positioning itself as a key partner for US companies looking to expand in Asia.

During the business mission, the US delegation will meet with Philippine government leaders and local business owners to explore business, tourism, and investment opportunities.

The US business leaders will also attend business meetings, informational briefings, and tours of key economic areas in Manila, Clark, Subic, and Corregidor.

Let me end this piece by asking you readers: What is your reaction to this development? Do you see a promising future between the United States and the Philippines when it comes to economics and investment under the leadership of US President Donald Trump? Are you convinced the corruption within the Philippines is no longer a turn-off for American 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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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

World Bank Sees Below-Target Philippine Economic Growth In 2028

World Bank Sees Below-Target Philippine Economic Growth In 2028

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In its latest analysis of the economy of the Philippines, the World Bank (WB) predicts a below-target economic growth will happen in 2028, according to a news report by BusinessWorld.

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

THE WORLD BANK said the Philippine economy is likely to expand by 5.6% in 2028, still below the government’s 6-7% target, amid an expected recovery in public investment.

In the latest Global Economic Prospects report, the World Bank said it retained its gross domestic product (GDP) growth forecasts for the Philippines at 3.7% in 2026 and 5.6% in 2027.

If realized, growth would fall short of the government’s 5-6% target for 2026 but would be at the lower end of its 5.5-6.5% goal for 2027.

“Growth in East Asia and the Pacific excluding China is forecast to improve to 4.9% in 2027-28 as geopolitical uncertainty dissipates, energy prices settle, and demand improves,” the World Bank said.

“Public investment is expected to recuperate in the Philippines, and Indonesia’s growth will be supported by state-led investment initiatives,” it added.

The Philippine economy expanded by a weaker-than-expected 2.8% in the first quarter, the slowest pace since the pandemic, amid lingering uncertainty from last year’s corruption scandal and higher oil prices linked to the Middle East conflict.

“The World Bank’s outlook is plausible, but I would not treat it as the only reasonable scenario,” Ateneo Center for Economic Research and Development Senior Research Fellow Ser Percival K. Peña-Reyes told BusinessWorld.

He said the weak 2026 forecast reflects uncertain global conditions, elevated geopolitical and trade tensions, fiscal consolidation, weather-related disruptions, and food price shocks.

However, Mr. Peña-Reyes said economic expansion this year could be stronger if household consumption remains resilient, inflation continues to ease, infrastructure spending is sustained, investment reforms gain traction, and monetary policy becomes more accommodative.

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 keep on growing below the targets set by the government? Could it be possible that an economic recession can still happen in the Philippines in 2028?

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

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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’ Bid For United Nations Security Council Seat Rejected

Philippines’ Bid For United Nations Security Council Seat Rejected

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The Philippines, which previously supported the creation of a Palestinian state and discussed cooperation with the Islamic terrorist regime of Iran, badly lost in its bid for a non-permanent seat in the United Nations Security Council (UNSC) as only forty-nine nations voted for them, according to a news report by GMA News. One hundred and forty-two other nations chose Kyrgyzstan over the Philippines during the fourth round of voting.

It should be recalled that no less than Philippine President Ferdinand “Bongbong” Marcos, Jr., himself told the United Nations General Assembly (UNGA) last March that the Philippines is a voice for principled peace and expressed confidence that the nation has an advantage in its bid for a UNSC non-permanent seat.

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

The Philippines failed in its bid to attain a seat in the United Nations Security Council (UNSC) as a non-permanent member.

Zimbabwe, Austria, Portugal, Trinidad and Tobago, and Kyrgyzstan were named new members of the UNSC, which can issue legally binding resolutions that may include military action, economic sanctions, and deployment of peacekeeping operations.

A fourth round of votes was cast for UNSC members to choose between the Philippines and Kyrgyzstan, in the Asia-Pacific Group, after they failed to reach the required two-thirds of the majority.

Kyrgyzstan eventually achieving the necessary two-thirds majority and securing its first-ever Security Council seat by 142 votes to 49.

The remaining 10 members are elected, with five new members joining every year. This year, one comes from the Africa Group, one from the Latin American and Caribbean Group, one from the Asia-Pacific Group, and two from the Western European and Others Group.

Zimbabwe will replace Somalia and Trinidad and Tobago will replace Panama, while Portugal and Austria will replace Denmark and Greece. Kyrgyzstan will replace Pakistan.

Bahrain, Colombia, Democratic Republic of Congo, Latvia and Liberia will continue to serve as non-permanent members of the Security Council until the end of 2027.

The Permanent Members are: China, France, Russia, the United Kingdom, and the United States.

The rest of the non-permanent members are: Bahrain, Colombia, Democratic Republic of the Congo, Latvia, and Liberia.

Last March, President Ferdinand Marcos Jr. made a personal pitch for the Philippines’ candidacy for a non-permanent seat on the United Nations (UN) Security Council, saying the country is ready to contribute as a voice of balance among the world’s nations and as a “voice for principled peace.”

Marcos Jr. expressed confidence that the Philippines has an advantage in its bid for a non-permanent seat on the United Nations Security Council.

As a concerned citizen, I do not like what the Philippines did at the wicked United Nations and on other international affairs. Apart from supporting the creation of a Palestinian state, their diplomats formalized a mechanism to boost bilateral cooperation with the Palestinians (which practices apartheid). When the ASEAN Summit was hosted in Cebu province, the Philippines acted as if it was a highly credible player on global diplomacy (click here and here). The Philippines deplored Israel’s strike on Qatar which made them look like they were defending the Hamas terrorists in Doha.

The loss at the UN is the latest setback for the Philippines and 2026 has been a pretty bad year so far. Apart from diplomacy, the Philippines is experiencing weakening economic growth, rapid inflation and it remains very vulnerable on energy as it imports most of its oil from the Middle East. The warning signs about the national economy are only growing.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you consider the Philippines a highly credible participant in international affairs? Do you think the Philippines deserves a seat at the United Nations Security Council under the current administration?

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

Japanese Business Leaders Pledge $3.4 Billion Worth Of Investments For The Philippines

Japanese Business Leaders Pledge $3.4 Billion Worth Of Investments For The Philippines

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The Philippines, which is already struggling with weak economic growth, high fuel prices and rapid inflation, got a boost thanks to Japanese business leaders who pledged investments worth $3.4 billion for the country, according to a news report by GMA News.

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

President Ferdinand Marcos Jr. on Wednesday secured stronger commitments for deeper economic integration during a high-level roundtable meeting with top Japanese business executives at the Imperial Hotel in Tokyo.

In his meeting with leaders of Japan’s largest conglomerates and financial institutions, Marcos bagged an aggregate investment commitment of $3.4 billion (approximately P210 billion) from participating Japanese corporations.

In a statement, the Presidential Communications Office (PCO) said these combined capital inflows are “projected to catalyze substantive macroeconomic benefits, expanding domestic industrial capacity and directly generating thousands of high-quality, specialized jobs for Filipinos.”

The PCO added that the infusion “underscores the resilience of the Philippine market, promising long-term economic dividends by fortifying local supply chains, upgrading tourism infrastructure, and accelerating technology transfers across critical growth sectors.”

The President is in Tokyo for a four-day state visit upon the invitation of the Japanese government.

In his remarks, Marcos said a robust Philippine-Japan economic corridor is critical and that laying the groundwork for an enhanced, unified partnership is essential to navigate global difficulties, build resilience, and sustain momentum.

“As we mark 70 years of the normalization of our diplomatic relations, we are no longer simply commemorating history. We are entering a new chapter – a chapter defined not only by friendship, but by deeper integration, shared growth, and a common belief in the future,” the President told the leaders of Japan’s largest conglomerates and financial institutions.

He outlined a unified government approach spearheaded by the Department of Trade and Industry (DTI) and the Department of Tourism (DOT).

“The Philippines is pursuing a clear national direction: building an economy where infrastructure, industry, finance, human capital, and connectivity move together as one system of growth,” Marcos said.

“Increasingly, we recognize that trade and tourism will be among the most important engines of that growth.”

He underscored the importance of stronger trade and tourism linkages, saying these are not supporting sectors but “core drivers of economic expansion in the Philippines moving forward.”

“This is a philosophy our two countries understand deeply,” the President said.

He also acknowledged the foundational contributions of several Japanese firms operating in the Philippines, such as All Nippon Airways, Toyota, Mitsubishi Corporation, Marubeni, Panasonic, and Fast Retailing.

He thanked these Japanese investors for their continued confidence in the Philippine economy and for helping create high-quality opportunities for Filipino workers and industries.

“You are no longer just investors in our economy. You are builders of it,” Marcos told the Japanese business leaders.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the $3.4 billion investment pledge by Japanese corporations will be a huge boost for the Philippines’ economy? Do you consider the ties of Japan and the Philippines healthy 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

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