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Saturday, August 8, 2026 Vol. 21 No. 298
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GROWTH AT 2.3% IN Q2, RECOVERY DIMS IN ’26
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By Justine Xyrah Garcia
HE Philippine economy may be running out of room for a comeback this year after growth slowed further to 2.3 percent in the second quarter, economists said. On Friday, the Philippine Statistics Authority (PSA) reported that the second quarter growth eased from 2.8 percent in the first quarter and was significantly below the 5.4-percent expansion recorded a year earlier. The latest reading was the slowest since the first quarter of 2021, when the economy contracted by 3.8 percent. Excluding the pandemic period, it was the weakest growth recorded since the fourth quarter of 2009, when gross domestic product (GDP) expanded by 1.8 percent. This brought economic growth
in the first half of 2026 to an average of 2.6 percent, significantly slower than the 5.4 percent recorded in the same period last year. Former Socioeconomic Planning Secretary Dante B. Canlas said prospects for a strong recovery in the remaining half of the year appear dim, with both households and firms pulling back on spending. “There are no clear signs that these market agents will regain confidence. The year 2026 looks lost economically,” Canlas told the BusinessMirror. Continued on A2
Debt-to-GDP ratio climbs to 66% in Q2, a 22-yr high
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HE national government’s outstanding debt relative to the size of the gross domestic product (GDP) climbed to a 22-year-high in the second quarter, after the economy grew disappointingly and the debt stock continued to climb. The debt-to-GDP ratio rose to 66 percent in the second quarter, the highest since 2004 at 71.6 percent, according to data released by the Bureau of the Treasury on Friday.
After Moody’s review, BSP chief vows continued financial stability
Domestic debt as a share of GDP stood at 44.4 percent, while the proportion of external liabilities settled at 21.6 percent. “[This] suggests that the country’s fiscal position has become more constrained, largely reflecting the combination of continued government borrowing and slowerthan-expected economic growth,” said Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion to BusinessMirror. See “Debt,” A2
RAINWATER drips over a window as dark clouds gather above the Makati Central Business District. The gloomy skyline mirrors the country’s economic outlook after the Philippine economy slowed to 2.3 percent growth in the second quarter of 2026—the weakest pace outside the pandemic period since 2009—raising concerns over softer consumer spending, declining investment, and a challenging road to meeting the government’s growth target. NONIE REYES
End-July GIR plunges to $103.38B, an 18-mo low that ‘bears watching’ By Andrea E. San Juan
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HE trend of the Philippines’s dollar reserves level “bears watching,” an analyst warned, after the country’s buffer against external economic shocks plunged to its lowest level in 18 months. “The level of reserves remains comfortable, but the trend bears watching,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co. said on Friday. Ravelas said this after data
from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s gross international reserves (GIR) plunged to $103.38 billion as of end-July 2026, the lowest level in 1 year and 6 months or since January 2025. The latest figure is 1.30 percent lower than the $104.74 billion recorded in end-June 2026. Year-on-year, foreign reserves also declined by 2.47 percent from the $106 billion in end-July 2025. For his part, Michael L. Rica-
Pag-IBIG expands perks for members via Loyalty Card By Reine Juvierre S. Alberto
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HE Home Development Mutual Fund, commonly known as Pag-IBIG Fund, is expanding the perks for its members by partnering with Landers Superstore to offer exclusive discounts and promotions through its Loyalty Card Plus program. Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta and Landers Deputy Chief Executive Officer Bill Cummings signed a memorandum of agreement on Friday at Landers Aseana in Parañaque City. From August 1 to October 31, 2026, Pag-IBIG Loyalty Card and Loyalty Card Plus holders may access exclusive offers and promotions at 16 participating Landers Superstore branches nationwide. Cardholders may obtain a free Landers Shopping Pass by presenting their cards. They may also receive a free one-year Landers Premium Membership by making a minimum single-receipt purchase of P3,000. In addition, members may upgrade to a Landers Executive Membership for a discounted rate of P300 and earn cash rebates of up to 2 percent on eligible purchases. “For many Filipino families, groceries are one of the biggest monthly household expenses,” Acosta said during the signing. “Every peso saved on everyday es-
FROM left: Pag-IBIG Fund Deputy Chief Executive Officer Alexander Aguilar, Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, Bill Cummings, Deputy Chief Executive Officer of Southeast Asia Retail Inc., and Landers Superstore Vice President for Marketing and Membership Kenneth Charles Ocampo lead the ceremonial signing of a memorandum of agreement (MOA) between Pag-IBIG Fund and Landers Superstore. The partnership enables Pag-IBIG Loyalty Card holders to enjoy exclusive shopping privileges and benefits at all Landers Superstore branches nationwide. Top photos: Officials participate in an in-store walkthrough at the Landers Superstore in Aseana City, Parañaque City, following the signing ceremony. BERNARD TESTA
sentials can help pay for school, transportation, utilities, or simply add to their MP2 savings.” Aside from helping Filipino workers own homes and build financial security through savings, Acosta said they must also enjoy the benefits of the Pag-IBIG Fund through the Loyalty Card program. “This is the purpose of the Pag-IBIG Loyalty Card Plus—to give our members benefits that will help in their daily expenses through discounts and savings,” Acosta said. “More than just a membership card, it gives our members access to exclusive discounts, special offers and reward points from our growing network of partners,” Acosta added. Holders of the Pag-IBIG Loyalty Card Plus can enjoy discounts and rewards from over 500 partner establishments, covering food, retail, health, housing and transportation nationwide. This initiative has provided more than P1 billion in cumulative discounts across nearly 31 million discounted transactions since the program’s expansion in 2019. The program was launched in 2014 and was later upgraded to the Loyalty Card Plus in 2019 to add cash card functions through Asia United Bank and UnionBank of the Philippines for members to receive loan proceeds and access basic banking services through a single card.
fort, chief economist at Rizal Commercial Banking Corporation (RCBC), attributed the decline in dollar reserves to “possible intervention” in the local foreign exchange market after the US dollar/ peso reached a new record low of P61.847 on July 24,2026. Ricafort said this could also be due to the local currency hovering around the 61.60 to 61.80 levels which he said “have been sustained since late April 2026.” See “GIR,” A2
Ravelas: “The key to rebuilding GIR is not intervention or borrowing, but stronger exports, higher investments, more tourism receipts, and sustained remittance growth. Ultimately, reserve strength follows economic strength.”
NGCP, PCG boost partnership; Almeda is auxiliary commodore
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HE National Grid Corporation of the Philippines (NGCP) and the Philippine Coast Guard (PCG) have affirmed their commitment to safeguarding the country’s critical infrastructure as NGCP President and CEO Anthony L. Almeda was formally inducted as Commodore of the PCG Auxiliary. The donning and oath-taking ceremony on July 29, 2026, led by PCG Commandant Admiral Ronnie Gil L. Gavan, marks a strengthened partnership between NGCP and the PCG in securing vital national infrastructure and supporting broader national security efforts. Accepting the honorary rank, Almeda said the recognition carries with it a greater responsibility to serve. “This recognition carries a great responsibility. It is not merely a badge of honor, but a commitment to a stronger partnership between the Philippine Coast Guard and NGCP, as well as to our shared mission of protecting critical infrastruc-
ture, strengthening maritime security, and serving the Filipino people,” Almeda said. He said he accepts the honor with humility and looks forward to working closely with the PCG in advancing their shared mission. In conferring the honorary rank, the PCG recognized Almeda’s leadership and expressed confidence that his appointment would further strengthen cooperation with NGCP in promoting national resilience and protecting the country’s critical infrastructure. As the country’s power transmission operator, NGCP works closely with government agencies and key stakeholders to secure the transmission network and ensure the reliable delivery of electricity nationwide. The strengthened partnership with the PCG is expected to enhance coordination in protecting strategic energy facilities and supporting emergency response and national security initiatives.
PESO EXCHANGE RATES n US 60.7020 n JAPAN 0.3831 n UK 81.6806 n HK 7.7388 n CHINA 8.9906 n SINGAPORE 47.3015 n AUSTRALIA 42.6614 n EU 69.9469 n KOREA 0.0427 n SAUDI ARABIA 16.1686 Source: BSP (August 7, 2026)