There is no denying the fact that the Philippines is having trouble attracting foreign tourists this year but for Leechiu Property Consultants there is still a bright future ahead for the nation’s tourism industry due to growth in domestic tourism and a few other factors, according to a Manila Bulletin news report.
To put things in perspective, posted below is an excerpt from the Manila Bulletin news report. Some parts in boldface…
Although Asian tourist arrivals decline, the Philippine tourism industry is still perceived to be entering “a new era of opportunity” because of the growth in domestic tourism, improved flight connectivity, and the 99-year lease reform.
Leechiu Property Consultants said in its third-quarter media briefing that, as investors refocus on long-duration assets, the country’s hospitality and leisure industries are expected to see renewed capital flows and expanded capacity through 2026.
“With the anticipated growth in domestic and long-haul tourism, along with increased hospitality FDIs (foreign direct investments) driven by the newly-approved 99-year lease to foreign investors, the tourism sector is poised to strengthen its position as a key investment area and a vital pillar of the Philippine economy,” said LPC Director of Hotels, Tourism, and Leisure Alfred Lay.
He said the sector continued its steady recovery in the third quarter of 2025, but “while there are signs of resilience, no significant shifts have yet created real momentum in foreign arrivals. Without a major catalyst, arrivals are unlikely to surpass 2024 levels.”
Traditional leaders, such as South Korea and China, show steep declines, while the USA, Japan, and Australia are emerging as stronger contributors, reflecting changing travel patterns and opportunities to diversify source markets.
While international arrivals remain below pre-pandemic peaks, Lay said “domestic travel is surging toward historic highs, establishing a solid foundation for long-term tourism growth and investment confidence.”
Domestic tourists are projected to reach 58.7 million in 2025, rising further to 62.2 million in 2026, a trajectory supported by the country’s forecast gross domestic product growth by 7.63 percent and 5.8 percent in 2025 and 2026, respectively.
Over the past two decades, domestic tourism spending has outpaced GDP, underscoring the sector’s resilience and capacity to drive nationwide economic activity.
Meanwhile, rising travel demand has spurred a wave of hotel developments nationwide, with a total of 5,210 new keys to be added in 2025—over 4,300 of which are expected to open in the fourth quarter.
A majority of these projects are led by domestic operators, reflecting local developers’ agility in capturing demand across destinations such as Metro Manila, Cebu, Boracay, Davao, and Palawan.
Lay said the newly approved 99-year lease law has created a strong foundation for long-term tourism investment as it provides global investors with the security to pursue large-scale resort and mixed-use developments.
Over time, the law is expected to stimulate foreign direct investment in tourism and hospitality, similar to the trends observed in the Maldives, where long-term leases have transformed the sector into a global investment hotspot.
Let me end this post by asking you readers: What is your reaction to this development? Do you think domestic tourism, improved flight connectivity and the 99-year lease reform will boost Philippine tourism in the short-term? Do you think domestic tourism will keep on growing to life up the nation’s tourism industry as a whole?
Recently the Secretary of the Department of Economy, Planning, and Development (DEPDev) expressed confidence that the economy of the Philippines will hit the low-end target of GDP growth for 2025, 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…
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said he is confident Philippine economic growth will hit the lower end of the target this year, despite a slowdown in the third quarter.
“The growth that we are expecting for 2025 is now 5.5 to 6.5% The low-end of the range is still very much achievable,” he told reporters on the sidelines of an event on Oct. 16.
Economic managers will meet next week to assess whether revisions to this year’s growth outlook are needed, he added.
Budget Secretary and Development Budget Coordination Committee (DBCC) Chairperson Amenah F. Pangandaman on Wednesday told BusinessWorld that the gross domestic product (GDP) target for 2025 “remains attainable.”
Finance Secretary Ralph G. Recto earlier said flagged a slowdown in the third quarter and possibly until early 2026 as corruption probes curb public spending.
Aside from slower public spending, Mr. Balisacan said weather disruptions may have dampened economic activity in the July-September period.
“There may be a bit of a slowdown (in third quarter) because of these supply shocks that we have seen. There are so many typhoons that we have seen during the quarter, many days of work suspension. So economic activity is really affected,” he said.
Asked whether third quarter growth could fall below the 5.5% annual GDP growth in the second quarter, Mr. Balisacan said: “Hopefully not.”
Let me end this post by asking you readers: What is your reaction to this development? Would you be satisfied to see the economy of the Philippines grow by 5.5% this year? Do you think there will still be a lot of challenges and problems in the 4th quarter that could somehow bring economic growth below 5.5% for the entire year?
The embarrassment of the ongoing flood control corruption scandals and the slowing economy of the Philippines caught the attention of the World Bank (WB) as it released a detailed assessment of the nation, 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…
The World Bank (WB) has flagged a slowing Philippine economy as investor sentiment weakens, financial markets soften, and manufacturing and exports falter—even as joblessness steadies and inflation stays below target.
“There are signs that economic activity may be decelerating” in the country, the WB said in its Philippines Monthly Economic Developments report for September 2025, published on Oct. 14.
The WB highlighted that investor sentiment toward domestic financial assets weakened in September, with the Philippine Stock Exchange Index (PSEi) falling 0.9 percent between August and Sept. 18—contrasting with the rising stock markets of regional peers since July.
The WB noted that while interest rate cuts by the Bangko Sentral ng Pilipinas (BSP)—which lowered its policy rate by 25 basis points (bps) to 4.75 percent last Oct. 9—and the United States (US) Federal Reserve supported early September gains, negative market developments later limited buying activity in the domestic stock market.
Among these “unfavorable market updates” were “governance issues in flood control projects, an uptrend in inflation and unemployment, and lower foreign direct investment (FDI) inflows,” the report said.
“Amid these developments, foreign investors became net sellers of local shares. This contributed to the slight weakening of the Philippine peso against the US dollar,” the report noted.
“In real effective terms, the Philippine peso depreciated in August against a basket of currencies of its major trading partners” and sustained a slight depreciation last month, it added.
The WB also noted that the Philippines’ merchandise export growth fell to an eight-month low in August, with exports rising just 4.6 percent year-on-year as shipments to the US declined following the introduction of higher tariffs.
This came even as export growth was “driven by sustained demand for semiconductors and electronic data processing equipment, primarily from Hong Kong and Japan,” the report added.
Meanwhile, the WB emphasized that merchandise import values declined by 4.9 percent year-on-year last August, mainly due to lower global prices for coal and petroleum products. The Philippines is a net oil importer. The report also noted that imports of raw materials and intermediate goods fell after robust growth in prior months.
Imports of motor vehicles, however, rose—driven by strong consumer demand. The WB noted that, in all, the goods trade deficit narrowed from $4.4 billion in July to $3.5 billion in August.
The WB also highlighted that high-frequency data indicated a slowdown in manufacturing activity, with output rising just 1.4 percent year-on-year in August, largely supported by growth in the food products sector.
However, the WB said that production of electrical equipment as well as computer, electronic, and optical products decelerated, reflecting the slowdown in export growth.
The WB also noted that the country’s S&P Global manufacturing purchasing managers’ index (PMI) for September dropped to 49.9, falling below the neutral threshold for the first time in six months and indicating a contraction in activity.
“Despite modest gains in external demand, output and new orders from the domestic market declined, and business confidence, while positive, remained subdued,” the WB added.
The WB further highlighted that labor market conditions steadied as the effects of weather-related disruptions eased, noting that the unemployment rate held steady year-on-year at 3.9 percent in August, rebounding from a temporary rise in July caused by adverse weather that affected agriculture and fisheries.
The WB said that employment in wholesale and retail trade fell year-on-year, although the reasons behind the decline remain unclear and require careful monitoring.
“The government expects further improvement in labor market conditions as weather-sensitive sectors continue to recover in the near term,” the WB added.
The WB stressed that inflation has increased moderately in recent months but remains below the central bank’s target, with headline inflation reaching a six-month high of 1.7 percent in September due to the delayed effects of weather-related supply disruptions, which pushed up food prices, especially for vegetables and oils.
“Despite this, average inflation remains below the two- to four-percent inflation band set by the BSP and is partly limited by sustained rice disinflation,” the WB said.
Year-on-year drops in rice prices helped ease inflationary pressures on the poorest 30 percent of households, with their consumer price index (CPI) falling by 0.2 percent in September, the report added.
“Favorable inflation dynamics and moderating domestic demand” supported the BSP’s monetary easing, the WB said, adding that the central bank has “space for a more accommodative policy stance in the context of a weaker outlook for economic growth.”
The WB stated that external imbalances widened in the first half of 2025, though foreign reserves remained sufficient, noting that the current account deficit grew to 3.9 percent of gross domestic product (GDP)—up 0.3 percentage point (ppt) year-on-year—driven by strong domestic demand that boosted goods imports.
“Higher spending by Filipino tourists abroad and lower inbound tourism receipts also contributed to a decline in net receipts from services trade,” it added.
Let me end this post by asking you readers: What is your reaction to this development? What do you think the national government should do to improve the nation’s economic conditions? Do you agree with what the WB reported about the Philippines? If you have been managing a business for at least one year, has 2025 been a rough business year?
Here in the Philippines, the flood control corruption scandals are not only keeping many Filipinos very angry but they are also affecting the economy negatively as the nation was prevented from achieving a credit rating upgrade from S&P Global Ratings, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the BusinessWorld. Some parts in boldface…
THE FINANCE CHIEF on Tuesday said the multibillion-peso flood control scandal prevented the Philippines from getting a credit rating upgrade from S&P Global Ratings.
“If [only] we did not have the flood control issue,” Finance Secretary Ralph G. Recto told reporters on the sidelines of a Senate budget hearing. “We met with S&P, and they were ready to give us a credit rating upgrade this year.”
The controversy, which involves “ghost” projects and fund misuse in government flood control programs, has triggered investigations by Congress, the Commission on Audit, the Ombudsman, and the Independent Commission for Infrastructure.
The Marcos administration is facing increasing scrutiny over flood control projects, where billions of pesos in public funds were diverted through padded contracts and shell companies.
The scandal highlighted spending inefficiencies and governance lapses that credit agencies closely monitor when evaluating institutional credibility and fiscal management.
Asked whether the Philippines can achieve an “A” credit rating in the next two years, Mr. Recto said: “I hope so.”
He said the government wants to maintain its current credit rating, despite the multibillion-peso corruption scandal.
“There is a big chance they will maintain it, but there was a bigger chance for a credit rating upgrade,” he added.
In November 2024, S&P affirmed its “BBB+” long-term credit rating for the Philippines, which is a notch below the “A” level grade targeted by the government.
S&P had also raised its rating outlook to “positive” from “stable.” A positive outlook means the Philippines’ credit rating could be raised over the next two years if improvements are sustained.
Mr. Recto said the government needs to improve its governance and resolve the flood control mess.
Let me end this post by asking you readers: What is your reaction to this development? What do you think the national government should do to resolve the flood control mess? Are you convinced that the ongoing flood control corruption scandals are already turning away potential foreign investors?
In response to backlash from online merchants, the Department of Trade and Industry (DTI) officially deferred the mandatory Trademark, according to a Manila Bulletin news report. Trustmark will be voluntary until December 31, 2025.
To put things in perspective, posted below is an excerpt from the Manila Bulletin report. Some parts in boldface…
After facing backlash from online merchants, the Department of Trade and Industry (DTI) will no longer mandate the E-Commerce Philippine Trustmark, instead making the requirement voluntary until the end of the year.
In a statement, the DTI said the move was announced by Trade Secretary Cristina Roque during a town hall meeting about the trustmark’s implementation on Wednesday, Oct. 15.
Roque said that hearing directly from stakeholders made the agency want to improve the trustmark to make it more “useful, fair, and helpful for both businesses and consumers.”
“After all, our shared goal is to make e-commerce in the Philippines safer and more trustworthy for everyone,” she said.
The secretary—and the DTI as a whole—has been on the receiving end of outrage among online merchants, who have been labeling the trustmark as an additional burden.
The DTI even disabled the comment feature on its Facebook page after being bombarded with criticism on every post, even those unrelated to the trustmark.
The trustmark, aligned with the Internet Transactions Act, serves as a digital badge to ensure that online platforms and merchants are compliant with fair e-commerce practices. It is designed to help consumers identify legitimate businesses, protecting them against unfair trade practices, scams, and other fraudulent activities.
Under the new policy, the DTI said that the trustmark will be voluntary until Dec. 31. So far, the DTI is still finalizing supplemental guidelines for this policy, including fees that depend on the size or type of business, among other details.
By early 2026, the department is expected to evaluate whether the trustmark registration will remain voluntary.
Let me end this post by asking you readers: What is your reaction to this development? What do you think the Trustmark of DTI is more of a hassle than a benefit for online sellers? Do you think the Trustmark should be scrapped entirely? What do you think should be done to help consumers find legitimate online merchants?
To get straight into what happened, watch the selected videos below. Pay close attention to the details.
To put things in perspective about the many surviving hostages who made it back home to Israel after spending over two years in captivity in Gaza, posted below is an excerpt from The Jerusalem Post news report. Some parts in boldface…
All 20 of the living Israeli hostages held by Hamas have returned to Israeli territory, the IDF announced. The remaining live hostages held by Hamas were all in IDF custody as of 11:42 a.m.
The first seven hostages to be released were named as: Matan Angrest, Alon Ohel, Eitan Mor, Gali and Ziv Berman, Omri Miran, and Guy Gilboa-Dalal. The second round of returned hostages, which are the other 13, included: Bar Abraham Kupershtein, Evyatar David, Yosef-Chaim Ohana, Segev Kalfon, Avinatan Or, Elkana Bohbot, Maxim Herkin, Nimrod Cohen, Matan Zangauker, Eitan Horn, Rom Braslavski, Ariel Cunio, and David Cunio.
The released hostages have undergone a medical assessment and are en route to hospitals and will reunite with their families, the military added.
Despite earlier IDF estimates that the hostages would be returned in three rounds, in the end it took only two rounds, with Hamas seeming to want to have all hostages over to Israeli custody before US President Donald Trump was soon expected to speak to the Israeli Knesset.
The three expected locations for the transfers were Gaza City, central Gaza, and Khan Yunis in southern Gaza.
Earlier Monday at 9:10 a.m., the IDF had already received seven out of the 20 remaining live hostages back from Hamas via the International Red Cross (ICRC). By 8:10 a.m., the ICRC had already received those hostages from Hamas.
Late Sunday night, the IDF had said that if the live hostages were stable, they would move from Red Cross custody to IDF special forces custody, then to the Reim base, and then to the three hospitals: Shiba, Ichalov, and Beilinson.However, if a live hostage was in immediate medical danger, a helicopter would be sent to rush them to Soroka Medical Center or to Barzilai Medical Center.
All of the first round hostages were stable enough medically that they did not require an emergency evacuation.
The IDF expects that some deceased hostages will be returned on Monday, but has no set numbers about how many, and is prepared for that part of the process to be drawn out over multiple days or longer. The deceased hostages will be transferred to Israel in coordination with further Red Cross-supervised exchanges, under the same verification and transfer protocols. Part of the process will also involve identifying the remains with specific hostages.
According to the IDF, Hamas is bound to assist a joint mechanism associated with the Trump ceasefire to help locate other deceased hostages, where finding them may be less of an exact science.
The ICRC will also transfer around 2,000 Palestinian security prisoners held in Israeli prisons to the Gaza Strip, West Bank, and locations outside of Israel, such as Qatar and Turkey.
Praise and thank the Lord for the return of the 20 surviving hostages! Spending a little over two years as captives of the Palestinian terrorist group Hamas in Gaza surely has been painful and torturous for them. Their respective families had to deal with the long waits and uncertainties during the two years. The surviving hostages are now starting to get their lives back on track and figure out how they will fit back in with local society. The release of the hostages was made possible by the new peace deal for Gaza (and the Middle East) brokered by Trump. What has happened today is undeniably history unfolding and there is still a lot of developments yet to happen.
Of course, we should not forget about the other hostages who died in captivity in Gaza. For sure, the return of bodies of dead hostages will be sorrowful for the affected families and their local communities. That being said, I urge the faithful reading this to pray to the Lord to comfort and heal the families whose loved ones died in captivity in Gaza.
Moving on, Trump addressed the Knesset during his visit in Israel. He expressed how good it is to say that the hostages are back and that the painful nightmare left behind by the October 7, 2023, terrorist attacks committed by Hamas (supported by terrorist state Iran) is over.
To put things in perspective and to find out what Trump exactly said, posted below is an excerpt from the news report of The Jerusalem Post. Some parts in boldface…
US President Donald Trump arrived at the Knesset on Monday morning, giving a speech at the plenum.
A trumpet fanfare sounded in the Knesset upon his entrance to the building and he entered the plenum to additional fanfare and wide applause.
“We’re in a nice place,” Trump’s speech began. We are “giving thanks to the Abrahamic God,” he added.
“The hostages are back! It feels so good to say it,” Trump said.
Netanyahu is “not easy to work with, but that’s what makes him great,” Trump affirmed.
“Like the USA right now, it will be the golden age for Israel,” the president commented.
Trump commented that “a lot of people said we were wasting our time” with regards to a ceasefire agreement, but thanks to several “great American patriots, we achieved this,” Trump commented, highlighting the work of US envoy Steve Witkoff for the part that he played.
Trump also thanked “someone who loves Israel so much, my daughter converted,” referring to his son-in-law Jared Kushner, and also thanked US Secretary of State Marco Rubio, noting that the two were political rivals, particularly during the Republican party primaries before Trump’s 2016 election victory.
Trump said that countries working together toward peace under the Gaza agreement represents an “incredible triumph for Israel and the world.”
He said Israel “has won all that can be won by force of arms.”
He added that it was time to translate what he described as “victories against terrorists” into peace and prosperity for the Middle East.
Trump then said my “personality is all about stopping wars.”
“As you mentioned, Bibi before, peace through strength…We have a lot of weapons, and we’ve given a lot of them to Israel frankly…Bibi would call me sometimes, can you get me this weapon that weapon, some of them I had never even heard of,” Trump said.
“Never forget and never again,” Trump declared regarding Hamas’s October 7, 2023 massacre, as the plenum stood for a standing ovation.
The “cruelty of October 7 struck the heart of humanity. The US mourned alongside Israel,” Trump affirmed.
“Because of us, the long and painful nightmare is finally over,” he said.
Trump also praised Israel for its airstrikes against Iran in June’s Operation Rising Lion, and the part the US played in striking Iranian nuclear facilities in Operation Midnight Hammer.
“We stopped the number one state sponsor of terror in obtaining the world’s most dangerous weapons,” he said.
“Assuming we made the same deal we have today, there would be a dark could over the deal,” he added.
“We took a big cloud off the Middle East and off of Israel,” Trump said to a round of applause.
“They took a big hit,” Trump said about Iran. “You know it would be great if we could make a peace deal” with them, he said.
“The dagger of Hezbollah, long aimed at Israel’s throat, has been shattered,” Trump commented, adding that he is supporting the Lebanese president in disarming the terror organization.
“People are dancing in countries in the street that would never have danced in the street,” due to the deal, Trump said, adding that the entire region has endorsed the plan that Hamas will be demilitarized.
“Peace is not just a dream, it’s a reality that we can build upon piece by piece,” the president said.
Everybody that has tried antisemitic policies has become irrelevant, and those who have reached across to Israel have become important, Trump said referring to the Abraham Accords, signalling his intention for other countries to join the agreement. “Now you have peace…people who really like Israel,” he said.
“They did nothing with the document,” he said, referring to countries who have not yet join the normalization agreement with Israel.
“This little dot, look at what you’ve done it’s incredible,” he said, receiving another standing ovation.
“The world wanted peace and Israel wanted peace, everybody did, and what a victory it’s been. The timing of this is brilliant,” Trump said as he thanked Netanyahu for “having the courage to end the war” when he did.
“After tremendous pain and hardship, now is the time to build the country up, instead of tearing it downI intend to be a partner is this,” Trump said.
“It’s my firm hope and dream that the Abraham Accords will turn out to be everything that we thought they would. Trump said that even after the war, the countries within the accords have remained. I hope all the countries we’re seeking, join quickly, no games,” Trump commented.
When Iran signed the nuclear deal it was a disaster for everyone,” Trump spoke on the past.
“That was the beginning of a very bad time, and by the way, I terminated the Iran nuclear deal,” Trump added.
Iran “wants to make a deal,” Trump said. Neither US or Israel bear Iran any hostility, the president claimed.
“We are ready when you are, and it’s going to be the best decision that Iran ever made,” Trump said.
“The state of Israel is strong and it will live and thrive forever,” he said, praising Israel as a key US ally.
Trump also spoke on the things he has done for Israel, remarking on how he is the best ally Israel has ever had.
Still there in the Knesset, Trump and Israeli Prime Minister Benjamin Netanyahu met with the mourning families, the abducted and the wounded Israel Defense Forces (IDF) personnel. You can see it by clicking here.
Thank the Lord for US President Trump, Prime Minister Netanyahu, the Israeli President Isaac Herzog, the armed forces of Israel and the entire Jewish State for the breakthroughs that happened this year. Israel defeated Iran during the 12-Day War which involved America’s massive bombing on the Iranian nuclear facilities. Hamas terrorists lost a lot of ground in Gaza and were down to their final stronghold being cornered by the IDF.
The Trump-brokered peace deal is working as I write this and having been to Israel myself (some of my Israel 2023 tour blog posts can be read by clicking here, here, here, here and here) I truly believe that the Middle East will change for the better with Israel as God’s chosen state. There will be challenges, the Trump-brokered peace deal has to keep developing, Middle East nations will have to adjust before joining the Abraham Accords and the terrorist leadership of Iran has yet to vanish. Whatever happens, hang on to your faith in the Lord and live on with His Word (the Holy Bible). Do not let the worldly pawns of Satan and chaos of the world dominate you. Simply stay strong with the Lord and keep on supporting Israel and Trump’s current term as US President.
To everyone reading this, I encourage you to accept the truth that Israel is the land God designated specifically for the Jewish people (read Genesis 35:10-12) and His command must be followed without hesitation. If you want to be blessed further by the Lord, do so by loving and blessing the Jewish people (Genesis 12:1-3). I did my part when I was in Israel. Also, let me remind you all that the ties between the Jews and Christians are truly biblical!
I encourage you all to pray to the Lord God in support of Israel, to love and bless the Jewish people, and pray for the peace of Jerusalem.
Here we go again with the perceived challenges related to the tariffs of Trump-led America. This time around the secretary of the Department of Trade and Industry (DTI) pointed to the Trump tariffs which she said raised the risk of products from Asian neighbors getting dumped into the Philippines and potentially harm local industries, according to news article by the Philippine News Agency (PNA).
For the newcomers reading this, the Trump administration had set a series of tariff rates for different nations in Asia. American tariff on Philippines-made products was set at 19% after the big meeting between US President Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr.
It is a known fact that many nations in Asia export their products to the United States but with the new tariffs in effect and the fact that the Philippines has a population of more than one hundred million people, the latter is anticipated to become the dumping ground of Asian products. This development is happening just as the economy of the Philippines will grow by less than 6% this year (click here, here and here). Recently, the US State Department published a report about pervasive corruption being a barrier to investment in the Philippines.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
The recent increase in the United States’ tariff rates heightened the risk of Asian goods being dumped into the Philippine market, raising the need for more stringent measures to protect local industries, Department of Trade and Industry (DTI) Secretary Cristina Roque said Wednesday.
Roque, in an interview on the sidelines of the Federation of Philippine Industries Inc. Business Summit in Makati City, said they expect increased entry of steel, cement, and garments, among others.
She traced this to the attractiveness of the Philippines as a market, given the country’s large population of over 100 million. She said DTI will work closely with the Bureau of Customs (BOC) to ensure that only registered and properly taxed goods enter the country.
The DTI will also coordinate with local industries to prevent the continued spread of unregistered products in the market.
On Tuesday, personnel from DTI’s Fair Trade Enforcement Bureau seized around PHP2 million worth of substandard construction materials from 24 retailers in Central Luzon as it strengthened its drive against uncertified and unsafe products in the market.
“We need to protect the manufacturing industry of the Philippines. So us, being in government, and us making sure we protect the jobs of the people,” she said.
Roque also noted that although investments continue to pour in, the volume is not what they had expected, thus, the need to boost local industries.
“So, we try to help them resolve whatever issues they have. And then we also at least help them strengthen or level up their businesses,” she explained.
Let me end this post by asking you readers: What is your reaction to this development? Do you think it is only a matter of time before a massive amount of Asian products (originally made for export to America) will arrive in the markets of the Philippines very soon? Did you notice any unregistered or sub-par quality products from overseas already being sold locally? What do you think can the DTI do to protect the local industries and livelihood of many Filipinos?
By citing factors like weaker-than-expected growth in the first half, the American tariffs on Philippine goods and geopolitical conflicts, the International Monetary Fund (IMF) sees the economy Philippines growing only 5.4% this year and 5.7% next year, 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…
PHILIPPINE ECONOMIC GROWTH is expected to moderate this year and in 2026 amid ongoing trade uncertainties and geopolitical tensions across the globe, the International Monetary Fund (IMF) said.
The IMF trimmed its Philippine growth forecast to 5.4% for this year, slightly lower than its 5.5% projection in July.
If realized, gross domestic product (GDP) growth will be at the low end of the National Government’s 5.5-6.5% target band this year.
For 2026, the IMF also cut its growth forecast to 5.7% from 5.9% previously. However, this is below the government’s 6-7% target for next year.
The IMF said the economy is expected to remain resilient, but downside risks warrant “close attention.”
“Risks to the growth outlook are tilted to the downside. The main external risks stem from prolonged global trade policy uncertainty, geopolitical tensions, and disruptive financial market corrections,” IMF Mission Head Elif Arbatli Saxegaard said at a briefing after the conclusion of the 2025 Article IV Consultation with the Philippines on Wednesday.
“On the domestic front, more frequent and intense climate shocks would cause notable macroeconomic losses. On the upside, accelerated implementation of structural and governance reforms would support investor confidence and the fiscal multiplier and raise potential growth. Risks around inflation are broadly balanced.”
Ms. Saxegaard said the growth outlook was revised to reflect the weaker-than-expected growth in the first half. For the first half, GDP growth averaged 5.4%, slower than the 6.2% a year ago.
Ms. Saxegaard said growth will be affected by the higher tariffs imposed by the US on Philippine goods. The US began imposing a 19% tariff on goods from the Philippines on Aug. 7
“It will weigh on exports and investment,” she said.
She also noted growth will be “supported by monetary easing and recent legislative measures to promote private investment.”
Meanwhile, the IMF sees inflation averaging 1.6% this year, before picking up to 2.6% next year.
“The pickup in inflation is expected to be driven by (the) food and transport crisis,” Ms. Saxegaard said. “And that reflects essentially the decline in negative base effects that have been dragging down inflation this year. So, as those base effects recede, we expect a pickup.”
She said core inflation is expected to “remain muted” at 2.5% in 2026.
“The BSP (Bangko Sentral ng Pilipinas) has room for a slightly more accommodative stance to help bring inflation back to the target faster and reduce economic slack amid elevated downside risks to growth,” Ms. Saxegaard said. “Policy will need to remain data dependent amidst prevailing uncertainties around the output gap and the neutral rate, and two-sided risks to inflation.”
On Aug. 28, the central bank slashed its key interest rate by 25 basis points (bps) for a third consecutive time to 5%. It has cut the benchmark by a total of 150 bps since August last year.
CORRUPTION – Asked about recent corruption scandals involving some government projects, Ms. Saxegaard said the IMF will continue to monitor the developments.
“It’s not yet clear whether and how these allegations will impact investor and private sector confidence, as well as their perceptions and behavior,” she said.
The IMF welcomed recent reforms to reduce infrastructure gaps and promote foreign direct investment, but effective implementation is key.
“Enhancing fiscal governance and the rule of law and reducing corruption vulnerabilities are critical for inclusive and sustainable growth,” Ms. Saxegaard said.
The IMF urged the Philippine government to continue implementing gradual fiscal consolidation “to replenish fiscal buffers and support external balance.”
Let me end this post by asking you readers: What is your reaction to this development? Do you think the IMF’s prediction of weaker economic growth will turn out true? Do you think the flood control projects scandal and government corruption investigation are turning away foreign investors?
To put things in perspective, posted below is an excerpt from the GMA Network news report. Some parts in boldface…
The United States Department of State has flagged “pervasive” corruption in the Philippines as among the major barriers to foreign investment in the country.
In its 2025 Investment Climate report, the US State Department said “corruption is a pervasive and long-standing problem in both the public and private sector” in the Philippines.
It also cited the country’s rank of 114th out of 180 countries on Transparency International’s 2024 Corruption Perceptions Index and “remaining around that level since 2019.”
The State Department added that the World Economic Forum also flagged corruption as among the top problematic factors for doing business in the Philippines.
“The Philippines’ complex, slow, redundant, and sometimes corrupt judicial system inhibits the timely and fair resolution of commercial disputes,” it said.
“Foreign investors describe the inefficiency and uncertainty of the judicial system as a significant barrier to investment. Investors often decline to file cases in court because of slow and complex litigation processes and fears of corruption. Stakeholders report an inexperienced judiciary when confronted with cases involving complex issues such as technology or science,” it added.
The State Department also said its embassy in Manila has received multiple reports from US businesses of overly invasive searches, inconsistent customs charges, and solicitations of “facilitation fees” (such as bribes) from some customs officials.
Let me end this post by asking you readers: What is your reaction to this development? Do you think the US State Department’s 2025 Investment Climate report about the Philippines is true and accurate? Are you concerned that the perceived corruption as well as the shocking revelations about the flood control projects scandals are already discouraging foreign investors from investing in the country? Do you think the Trump tariffs will eventually bring down Philippine exports to the United States in the next few months? What do you think the Philippine government should do to wipe out corruption and regain the trust of foreign investors?
The Asian Development Bank (ADB) predicted that the economy of the Philippines will achieve growth of less than 6% this year, according to a GMA Network news report.
To put things in perspective, posted below is an excerpt from the GMA News report. Some parts in boldface…
The Asian Development Bank (ADB) has maintained its economic growth outlook for the Philippines this year on the back of sustained domestic demand despite global trade uncertainties.
In the September 2025 edition of its flagship Asian Development Outlook (ADO), the ADB said it forecasts the country’s gross domestic product (GDP) to grow at 5.6% for 2025, maintained from the ADO July edition’s outlook.
The multilateral lender said that “robust domestic demand amid subdued inflation will support Philippine economic growth this year and the next.”
“The Philippines’ growth outlook remains resilient amid a global environment of shifting trade and investment policies and heightened geopolitical uncertainties,” said ADB country director for the Philippines Andrew Jeffries.
“Though these uncertainties pose increased risk, we see strong domestic demand anchoring growth, with sustained investments and an accommodative monetary policy supporting the economy’s expansion,” said Jeffries.
For 2026, the ADB said it sees the Philippine economy to grow at 5.7% — the same level as the country’s actual growth rate in 2024.
Nonetheless, the bank said the country is expected to remain a bright spot in Southeast Asia, “with the second highest GDP expansion in the region.”
Moreover, the ADB said it forecasts inflation to ease at 1.8% this year, before rising to 3% in 2026 to return to the government’s target range of 2% to 4%. The latest 2025 inflation forecast is lower from July’s 2.2%.
Let me end this post by asking you readers: What is your reaction to this development? Do you think the economy of the Philippine does not have any more momentum to grow at least 6% this year? Are you concerned that the flood control projects scandal and government corruption here in the Philippines will turn away foreign investors?
Author Carlo Carrasco 