World Bank flags slowing Philippine economy, softer financial market amid flood control scandal

World Bank flags slowing Philippine economy, softer financial market amid flood control scandal

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. Inbound tourist arrivals declined 1.6 percent year-on-year from January to August, while overseas remittance inflows rose 3.1 percent from January to July, supported by continued growth in the deployment of overseas Filipino workers (OFWs), the WB reported. During the same period, the WB emphasized that gross international reserves (GIR) increased by $2.6 billion, mainly due to higher gold prices. “This level of reserves represents an adequate external liquidity buffer equivalent to 7.2 months’ worth of imports of goods and services and primary income, and about 3.4 times the country’s short-term external debt obligations,” it said. (Ricardo M. Austria)

Igniting dreams: Cebuana Lhuillier’s Youth Program fuels the heart of Philippine tennis

Igniting dreams: Cebuana Lhuillier’s Youth Program fuels the heart of Philippine tennis

What began as a grassroots effort to bring tennis closer to the youth in the provinces has blossomed into a success story for two rising Filipino athletes. Ariel Cabaral Jr. and Kurt Barrera, who sharpened their skills in Bais, Negros Oriental, are proud members of the Edna Diago Lhuillier (EDL) Youth Tennis Program—a deeply personal testament to Cebuana Lhuillier’s enduring belief in social development through sport. The EDL Youth Tennis Program, which started in 2016, was established to discover and nurture young tennis players from provincial communities, offering them structured training, mentoring, and access to competitive opportunities. Cabaral, the No. […]... Keep on reading: Igniting dreams: Cebuana Lhuillier’s Youth Program fuels the heart of Philippine tennis

Classes in Quezon province suspended Oct. 16–17 due to flu-like bug

Classes in Quezon province suspended Oct. 16–17 due to flu-like bug

LUCENA CITY — Classes in public and private schools at all levels in Quezon province are suspended on Thursday and Friday (Oct. 16 and 17) due to a spike in influenza-like illness cases, Quezon Governor Angelina Tan announced Wednesday afternoon, Oct. 15. “I issued an executive order suspending classes tomorrow (Thursday) and Friday, in public and private schools at all levels, due to rising cases of respiratory diseases or influenza-like illnesses among children and adults,” said Tan, a medical doctor by profession, speaking from the government-run Quezon Medical Center (QMC) in this city. Her announcement was broadcast live on her […]... Keep on reading: Classes in Quezon province suspended Oct. 16–17 due to flu-like bug

Gov't still on 'solid ground' amid rumored coup attempts— Marcos

Gov't still on 'solid ground' amid rumored coup attempts— Marcos

President Marcos said the government remains to be on "solid ground" despite alleged coup d\'etat attempts, stressing that his administration has the support of key and "power centers" of society. "When you ask me how confident I am, all I can say is that in our assessment, we are, and the administration is still very much on solid ground in terms of support from the different sectors of society," Marcos said after the oath-taking ceremony of newly-elected officers of the Malacañang Press Corps at Malacañan Palace on Wednesday, Oct. 15. The President also said that he is confident that the government continues  to enjoy the support of the important sectors of society. "[W]e\'re confident that the important sectors of society, the power centers of society and of the administration are very supportive still of the advocacies of the administration, the programs of the administration and we will continue to work very hard to make sure that we are doing what people want," Marcos said. He acknowledged that his administration must work "very hard to continue to earn that support from them." The President, however, admitted that "it is dangerous" for a chief executive to be complacent over alleged destabilization plot. Thus, he said, he continues to listen to everyone, and to keep his doors open for dialogues. "We always go to them and say what can we do to accommodate your advocacy or some of the things that they would like the national government to do. And so that\'s what we are doing," he said. "And you know it is never, it doesn\'t serve any, it is dangerous for someone in my position to be complacent," he added. He also said he is "never confident" that every sector of the government, including the military, would remain loyal to the administration. So, he must continue to listen to them and engage them in dialogue. "Kung may reklamo, bukas naman kami. Kung magreklamo kayo sabihan niyo lang kami (If you have complaints, we are open. If you are complaining, just tell me)," he said. "If it\'s something that we have to attend to, we will. Because we try to listen to everyone. And so that\'s the only way. That\'s the only real way that you can keep the support of people in different sectors," he added.

Electrician gunned down inside store

Electrician gunned down inside store

LIPA CITY, Batangas – A 52-year-old electrician was shot dead in a store in Barangay Muntingpulo here on Tuesday afternoon, Oct. 14. Police said the victim Roger, single, was sitting inside his friend\'s store when an unidentified man appeared and shot him in the chest. The victim died on the spot from multiple bullet wounds. The suspect, who was wearing yellow sando and short pants, fled on a motorcycle towards Barangay San Isidro. Police are conducting follow-up investigation.

BI starts enforcing ILBOs vs 16 persons ‘involved’ in flood control mess

BI starts enforcing ILBOs vs 16 persons ‘involved’ in flood control mess

The Bureau of Immigration (BI) started enforcing the Immigration Lookout Bulletin Orders (ILBOs) issued by the Department of Justice (DOJ) against 16 persons implicated in the anomalous flood control projects. BI Spokesperson Dana Sandoval confirmed that the bureau has already received the ILBO issued by the DOJ on Wednesday, Oct. 15. Sandoval said “their names have been included in our centralized database, and their travels will be monitored and reported to the DOJ.” DOJ Officer-In-Charge Secretary Fredderick A. Vida issued the ILBO on request of the Independent Commission for Infrastructure (ICI) which was created by President Marcos to investigate the flood control anomalies. Those placed under ILBO were former Caloocan City 2nd district representative Mitch Cajayon-Uy, Art Atayde, Alvin Tan, Bong Marasigan, Elmer de Leon, Ed Fuentebella, Johnny Santos, John Mary Vianney Parago, Alvin Mariano, Ryan Uy, Darryl Recio, Nestor Venturina, Benjie Tocol, Department of Public Works and Highways (DPWH) Metro Manila First District Engineer Aristotle Ramos, DPWH Quezon Third District Engineer Michael Rosaria, and DPWH Project Engineer Angelita Garucha. Their movements will be monitored in all seaports and airports in the country.

Angel’s Pizza opens new store at UN Ave, Manila — Home of the original creamy spinach dip pizza

Angel’s Pizza opens new store at UN Ave, Manila — Home of the original creamy spinach dip pizza

Angel’s Pizza, one of the country’s fastest-growing pizza chains under Figaro Culinary Group (FCG), proudly celebrated the grand opening of its newest branch at Shell UN Avenue, Manila on October 14, 2025. The event was graced by Hon. Mayor Isko Moreno and Vice Mayor Chi Atienza, together with FCG Chief Operating Officer Mike Barret, the FCG Executive Committee, and the Management Committee Team. As part of the festivities, the VIP guests led the ribbon cutting and ceremonial pizza slicing, symbolizing a new chapter for Angel’s Pizza as it continues to expand across the nation. This milestone marks the 158th store […]... Keep on reading: Angel’s Pizza opens new store at UN Ave, Manila — Home of the original creamy spinach dip pizza