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Saturday, August 1, 2026 Vol. 21 No. 291
BSP SEES JULY INFLATION AT WIDER 5.6-6.6% RANGE
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PHL game industry ready to export games, but global reach lags
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By Andrea E. San Juan
S it navigates a time of heightened uncertainty, the Central Bank is staring anew at a wider-than-usual inflation forecast range for the month of July. In a statement, the BSP said: “At a time of heightened uncertainty, the BSP projects July 2026 inflation to settle within the range of 5.6 to 6.6 percent.” The Central Bank said upside price pressures during the month could stem from “elevated” domestic petroleum pump prices, higher electricity rates, increasing fish prices, and the depreciation of the peso against the strengthening US dollar. These pressures, however, are expected to be “mitigated” by lower prices of key food commodities, including rice, meat, vegetables, and fruits, the BSP pointed out. For this year, this is the second straight month that the central bank pegged a wider-than-usual month-ahead inflation forecast range, with the lower and upper bound of the range having a 1-percentage-point difference. Should inflation in July hit 5.6
5.6%-6.6% The BSP expects July 2026 inflation to settle between 5.6% and 6.6%—its second straight month with a wider-than-usual forecast range amid heightened uncertainty.
“A wider forecast range suggests greater uncertainty around the inflation outlook.”— John Paolo R. Rivera, Philippine Institute for Development Studies
percent, it would mean that the increase in the prices of goods and services eased to the slowest in four months or since March 2026. However, if inflation shoots up to the upper end of the Central See “BSP,” A2
BANK LENDING, LIQUIDITY GROW AT SLOWEST PACE IN 4 MONTHS
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USINESSES and households are borrowing more cautiously amid lingering domestic and global uncertainties. Analysts pointed this out after latest data from the Bangko Sentral ng Pilipinas (BSP) showed that bank lending and domestic liquidity in June grew at the slowest pace in four months. Data from the Central Bank showed that loans from universal and commercial banks rose by 9.8 percent year-on-year in June, slower than the previous month’s 12.1 percent. This was the slowest growth pace of bank lending in four months. In peso value, data from the central bank showed loans outstanding for production and consumer loans amounted to P14.881 trillion as of June, 0.72 percent lower than the P14.989 trillion as of May. In the same vein, the amount of money circulating in the economy (M3) grew by 10.6 percent yearon-year to P20.5 trillion in June. This was slower than the 12.8 percent recorded in the previous month and also the slowest pace in four months or since February 2026.
₧20.5T Domestic liquidity (M3), a broad measure of money supply, reached P20.5 trillion in June, up 10.6% from a year earlier. “The slower growth in M3 and bank lending reflects a healthy normalization rather than a cause for concern.” — Jonathan L. Ravelas, Reyes Tacandong & Co. “The latest figures suggest a cooling rather than a contraction.” — Ruben Carlo O. Asuncion
See “Lending,” A2
DBM: ₧7.2-T budget of ’27 got one of toughest reviews in years By Reine Juvierre S. Alberto
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HE P7.2-trillion proposed national budget for 2027 underwent one of the toughest reviews in years as the government moves to prevent corruption and strengthen safeguards over the use of public funds. Speaking at Democracy Watch’s Post-SONA Forum on Friday, Budget Secretary Kim Robert C. De Leon said the Department of Budget and Management (DBM) subjected agency proposals to one of the “most rigorous reviews” in recent years. “[The DBM] believes that the strongest safeguard against corruption is not merely detection but prevention,” De Leon said. Every agency proposal was evaluated for its implementation readiness, strategic relevance, fiscal sustainability, measurable outcomes and alignment with the Philippine Development Plan (PDP) and President Ferdinand R. Marcos Jr.’s priorities, he noted.
₧7.2T
“We asked questions that every Filipino taxpayer deserves to ask: Is this project truly necessary? Will it genuinely improve people's lives?... Is every peso truly justified?” — Budget Secretary Kim Robert C. De Leon
The proposed 2027 national budget—worth P7.2 trillion—underwent one of the most rigorous reviews in years, with the DBM saying every program was scrutinized to ensure each peso is necessary, measurable, and resistant to corruption. “We asked questions that every Filipino taxpayer deserves to ask: Is this project truly necessary? Will it genuinely improve people's lives? Can the agency implement it effectively? Does it duplicate existing programs? Will it produce measurable results? And above all, is every peso truly justi-
fied?” De Leon said. “The national budget should never become a collection of wish lists, nor should it accommodate projects that cannot withstand careful scrutiny. Every allocation must respond to a genuine public need,” he added. In addition, the DBM intro-
duced a new requirement wherein priority regional programs must secure endorsements from their respective Regional Development Councils before they can be included in agency budget proposals. “It ensures that investments are grounded in regional realities. It gives communities a stronger voice in determining priorities and it makes the budget more responsive, more participatory, and ultimately more credible,” De Leon said. This comes as the DBM prepares to submit the 2027 National Expenditure Program, the government’s proposed national budget, to Congress before the August 14 deadline. Lawmakers in both chambers will conduct their own review of the budget and propose changes before reconciling their versions of the General Appropriations Bill, which will then beiosent n to the at President for signing nI fl to become the General Appropriations Act. See “DBM,” A2
GAMING enthusiasts flock to the Philippine GameDev Expo (PGDX) 2026 at the SMX Convention Center Manila, where more than 160 indie booths, game showcases, esports competitions and exhibitors highlight the three-day event from July 24 to 26. JOHN EIRON R. FRANCISCO
By John Eiron R. Francisco
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HE Philippines has the building blocks to become a global exporter of video games, but greater access to international markets remains the missing piece for local game studios and developers, according to global video game commerce company Xsolla. Juyeon Lee, Xsolla’s Senior Vice President for Asia-Pacific, said the country already has many of the ingredients needed to grow a globally competitive game development industry, including an established developer community through
the Game Developers Association of the Philippines (GDAP), English-speaking talent, government support and a large gaming audience. The challenge, she said, is improving the visibility of Filipino game studios in an increasingly competitive international market. “I think it’s a lack of access to the tool systems or the market itself. There are so many games and developers around the world, so visibility is the biggest challenge because it’s really hard to enter other markets,” Lee told the BusinessMirror during the Philippine GameDev See “PHL Game Industry,” A2
PHL ready to compete for EV investments–DTI By Bless Aubrey Ogerio
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HE Philippines is ready to compete for high-value manufacturing investments in the fast-growing electric vehicle (EV) industry following the issuance of Executive Order (EO) 121, which establishes the Electric Vehicle Incentive Strategy (EVIS) Program, the Department of Trade and Industry (DTI) chief said. In a statement on Friday, Trade Secretary Ma. Cristina Roque said the executive order sends a clear signal to both foreign and local investors that the country is prepared to strengthen its position as a manufacturing hub for electric vehicles and related industries. “The EVIS Program represents a strategic investment in the future of Philippine manufacturing. By strengthening our capabilities in electric vehicle production and supporting industries, we are laying the foundation for a greener, more resilient, and more globally competitive economy,” she said. Roque added that the executive order fulfills the mandate of the Electric Vehicle Industry Development Act (Evida) to establish an incentive strategy to accelerate the automotive industry’s transition to electric mobility while expanding domestic manufacturing capabilities. Signed by President Ferdinand Marcos Jr. on July 29, EO 121 provides up to P60 billion in fiscal support for qualified electric-vehicle manufacturing projects and estab-
₧60B
Government backs EV manufacturing with up to P60B in incentives, aiming to position the Philippines as a regional hub for electric vehicle production under the new EVIS Program. “By strengthening our capabilities in electric vehicle production and supporting industries, we are laying the foundation for a greener, more resilient, and more globally competitive economy.” — Trade Secretary Ma. Cristina Roque
lishes the Inter-Agency Committee on Electric Vehicle Industry Development (IAC-EV) to oversee the program’s implementation. The DTI said the EVIS Program is designed to encourage manufacturers to establish or expand EV production facilities in the Philippines through performance-based incentives tied to actual investments and production. Under the program, participating companies may register up See “EV,” A2
PESO EXCHANGE RATES n US 61.4320 n JAPAN 0.3848 n UK 82.7366 n HK 7.8330 n CHINA 9.0973 n SINGAPORE 47.9488 n AUSTRALIA 43.1621 n EU 70.8065 n KOREA 0.0432 n SAUDI ARABIA 16.3614 Source: BSP (July 31, 2026)