Think tank keeps ’26 growth forecast for PHL By Justine Xyrah Garcia
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LIBRENG SAKAY The City Government of Manila resumes its Libreng Sakay program on Monday,
April 6, 2026, offering free rides on select PUV routes across the city through the initiative of Mayor Isko Moreno Domagoso. Originally rolled out before Holy Week, the program supports students, workers, and daily commuters grappling with higher fares driven by rising fuel costs. Jeepney drivers plying city routes receive subsidies ranging from P3,000 to P3,500 to help offset oil price increases. ROY DOMINGO
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MID rising concerns that the Philippines’s economic growth could lose steam this year as tensions in the Middle East drag on, the Asean+3 Macroeconomic Research Office (Amro) said the country is still on track to expand within the government’s target range. On Monday, Amro retained its gross domestic product (GDP) growth forecast for the Philippines at 5.3 percent this year, while projecting a 5.8-percent expansion in 2027. These projections assume Brent crude oil prices stay
above $90 per barrel through June before easing to around $80 per barrel in the second half of the year. Even so, this outlook is stronger than Amro’s projection for the broader Asean+3 region, which is expected to grow at 4 percent in both 2026 and 2027. The Philippines’s growth forecasts also remain within the Cabinet-level Development Budget Coordination Committee (DBCC) target of 5 to 6 percent for 2026 and 5.5 to 6.5 percent for next year. According to Allen Ng, head of Amro’s Regional Surveillance
group, “strong momentum in growth” is cushioning the economy from geopolitical headwinds, even as the Philippines relies on the Middle East for about 98 percent of its oil and gas imports. “A lot of things have happened between January and now. I think there was strong momentum in growth in the Philippines prior to the escalation of the conflict,” Ng said during the launch of the 2026 report on the Asean+3 Regional Economic Outlook (AREO). Ng noted that domestic demand was the primary engine of the country’s strong growth momentum this year prior to the Middle
East tensions. Based on the most recent Business Expectations Survey conducted by the Bangko Sentral ng Pilipinas (BSP), the confidence index of firms jumped to 8.2 percent in February from 0.9 a month earlier due to higher income and sales “supported by stronger demand for goods and services.” Respondent firms also attributed the renewed confidence to “improved investor confidence on the back of higher public infrastructure spending and sustained governance reforms.” On the consumer side, the BSP See “Growth,” A2
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GROWTH-INFLATION SWAP IN REGION A RISK–AMRO www.businessmirror.com.ph
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Tuesday, April 7, 2026 Vol. 21 No. 175
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PESO CLOSES STRONG FOR 2ND DAY, BUOYED BY ‘CEASEFIRE’
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EPORTS of a 45day ceasefire to the conflict between the United States and Iran threw in support for the Philippine peso, with the local currency finishing strong for the second straight trading day. Data from the Bankers Association of the Philippines (BAP) showed the local currency closed at P60.05 per $1 on Monday, stronger by 11 centa vos than its previous finish of P60.16 on Wednesday, April 1. Chinabank’s Group Chief Economist Domini S. Velasquez explained the trading session on April 6 started with the Philippine peso at 60.595 following “heightened” geopolitical tensions over the long weekend, par-
ticularly after US President Donald Trump threatened potential strikes on Iran’s power plants and bridges. However, Velasquez said: “Sentiment shifted after reports of a 45-day ceasefire, which triggered a rally in global financial markets.” The Chinabank’s group chief economist said this resulted in the decline of oil prices alongside the US dollar, providing support for the peso to appreciate. Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., shared the same sentiment, saying: “Local players focused on reports of intensified diplomatic efforts to secure a potential ceasefire See “Ceasefire,” A2
TAILORED FOR TOUGH TIMES A vendor of used gowns and terno inside the Antipolo Public Market along Sumulong Avenue waits for customers as foot traffic thins in the days after Holy Week, reflecting softer consumer spending. While prices of basic goods remain under a temporary government monitoring period, retailers and vendors are bracing for possible increases as fuel costs continue to rise, pushing transport and supply expenses higher. This adds to persistent inflationary pressures that continue to weigh on household budgets. For small vendors, the result is a quieter market—and a longer wait for buyers already stretched by the rising cost of living. BERNARD TESTA
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By Andrea E. San Juan @andreasanjuan
VEN as the Bangko Sentral ng Pilipinas (BSP) is seen to adopt a neutral stance this year given that inflation forecast still settles within the central bank’s target band, a regional economic think tank warned that sustained rise in global energy prices could create a “growth-inflation tradeoff” which could jolt policy calibration across the Southeast Asia region.
“Preserving policy flexibility is the central challenge for policymakers in the Asean+3 region in 2026,” Asean+3 Macroeconomic Research Office (Amro) said in its Asean+3 Regional Economic Outlook 2026 report. The regional economic think tank
said this as it underscored that the potential for a sustained rise in global energy prices adds a “further dimension” to this challenge. The global energy crisis could “create a growth-inflation trade off that would complicate policy calibration See “Swap,” A2
Mitsubishi Motors set to make hybrid EVs in Laguna plant–DOF By Reine Juvierre S. Alberto
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@reine_alberto
HE Philippines is poised to manufacture hybrid electric vehicles (HEV) as Mitsubishi Motors Corp. (MMC) plans to set up a dedicated production facility at its existing plant in Santa Rosa, Laguna. “This kind of investment becomes more valuable during times of uncertainty, as it will create more job opportunities for Filipinos, while propelling the nation into a more sustainable and technological future,” the Department of Finance said in a statement.
This development bodes well for the country to reduce its reliance on oil importation and cut its carbon emissions by producing HEVs locally. “This is a landmark investment that will redefine the future of our automotive industry. And the even more exciting possibility is that we could be an exporter of hybrid cars,” Finance Secretary Frederick D. Go was quoted in a statement as saying. The planned investment comes after a meeting between MMC President and Chief Executive Officer Takao Kato and Ferdinand R. Marcos See “Hybrid EVs,” A11
PESO EXCHANGE RATES n US 60.3270 n JAPAN 0.3778 n UK 79.6015 n HK 7.6976 n CHINA 8.7615 n SINGAPORE 46.8668 n AUSTRALIA 41.5351 n EU 69.5088 n KOREA 0.0399 n SAUDI ARABIA 16.0679 Source: BSP (April 6, 2026)