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FUNAN AND GAMES BY THE RIVERSIDE The Funan River along Heblan Street in Jinniu District, Chengdu, Sichuan, China, comes alive at night with the glow of riverside restaurants, including the iconic Bridge Restaurant, and the bustle of promenades where locals stroll and exercise. Chengdu, which is hosting the 2025 World Games from August 7 to 17, offers visitors a vibrant mix of food, culture, and nightlife along its scenic waterways. ROY DOMINGO
PHL NEEDS DEBT-GDP RATIO SEEN SENTRO: ROBUST PUBLIC PLAN EASING TO 61% BY DEC EMPLOYMENT TO EASE JOB CRISIS A SHIFTING BALANCE
HE country’s rising outstanding debt as a share of the overall economy is expected to ease to 61 percent by the end of the year, according to Finance Secretary Ralph G. Recto. 62-percent debt-to-GDP ratio posted in the first quarter of 2025. “Easing the ratio depends on the economic growth that is achieved. But if the debt increase remains higher than the GDP increase, then this is impossible,” Lanzona said, pertaining to the government’s aim of easing the debt-to-GDP this year. While the 5.5-percent secondquarter GDP growth was slightly faster than the 5.4 percent in the first quarter, it was slower than the 6.5 percent posted in the second quarter of 2024. Meanwhile, the government’s outstanding debt breached the P17-trillion mark, reaching P17.267 trillion as of end-June. Still, achieving this year’s debt-to-GDP target could be attainable if the economy grows at a much faster pace along with the government’s sound fiscal management, according to Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo Rivera. “The second-quarter debt ratio uptick to 63.1 percent shows how sensitive the metric is to both growth fluctuations and financing needs,” Rivera told BusinessMirror. Rivera said a GDP expansion
Year-on-Year Comparison – June 2024 vs. June 2025 BM Graphics: Ed Davad/ Source: PSA /Illustration by Eti Swinford | Dreamstime.com
“Yes, roughly 61 percent by yearend,” Recto told BusinessMirror in a message on Friday, affirming that the government will achieve its goal of bringing down the ratio of national debt with the country’s gross domestic product (GDP). The government is targeting a reduction in the debt-to-GDP ratio to 60.4 percent in 2025, and lowering it further to 56.3 percent by 2028. However, global economic risks may make it “unrealistic” for the government to meet its target, according to Ateneo de Manila University economist Leonardo A. Lanzona. After the economy grew 5.5 percent in the second quarter of 2025, Lanzona told BusinessMirror that this already signaled “poor prospects” even before the full implementation of US tariff policies. “It will be more difficult [for the economy] to grow once these policies have reached their full effect in the coming months,” Lanzona said. Following the GDP print in the second quarter, the debt-to-GDP ratio jumped to 63.1 percent from 60.9 percent in the same period a year ago. This is also higher than the
Slight dip in employment rate and rise in unemployment highlights a tightening labor market
RISING DEBT LEVELS
Debt-to-GDP exceeds 2025 target, moving away from 2028 goals Global economic risks may make it “unrealistic” for the government to meet its target—Ateneo de Manila University economist Leonardo A. Lanzona
of more than 5.5 percent must be achieved in the remaining quarters of the year, along with improvements in revenue collection and tighter control over borrowings, for the government to hit its target. “To stay on track, the govern-
ment should focus on accelerating infrastructure and investment projects that boost GDP, broadening the tax base and enhancing collection efficiency and exercising spending discipline to avoid excessive borrowing,” Rivera added.
Indicator
June 2024
June 2025
Change
Employment Rate
96.9%
96.3%
▼ 0.6 pp
Unemployment Rate
3.1%
3.7%
▲ 0.6 pp
Employed Persons (millions)
50.28
50.47
▲ 0.19 M
Unemployed Persons (millions)
1.62
1.95
▲ 0.33 M
Youth Unemployment
582,000
623,000
▲ 41,000
BM Graphics: Ed Davad/Source: PSA Labor Force Survey/Photo by Nonie Reyes
T
By Reine Juvierre S. Alberto
By Justine Xyrah Garcia
A
LABOR group on Thursday urged the government to launch a bold and targeted response to what it called the country’s worsening job crisis. Josua Mata, Secretary General of Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro), said the June 2025 Labor Force Survey highlights the urgent need for a robust and state-led employment program that directly addresses the lack of decent, secure jobs in the country. “The latest labor force data confirms what workers already feel on the ground: the jobs crisis is far from over,” Mata told the BusinessMirror. He noted that while the number of employed individuals increased in absolute terms, the employment rate declined. “This means that job creation is not keeping pace with the growing labor force. More people are looking for work, but the economy isn’t generating enough decent jobs to absorb them,” he explained. Continued on A2
DBM has released ₧5.936T of ’25 budget as of end-July
T
HE Department of Budget and Management (DBM) released P5.936 trillion of this year’s budget as of end-July to bankroll the administration’s priority programs and projects. Latest DBM data showed the amount released from January to July accounts for 93.8 percent of the P6.326-trillion total budget for 2025. This is higher than the P5.434 trillion issued during the same period last year, although the release rate then was slightly higher at 94.2 percent of the P5.767-trillion budget for 2024. According to the data, the DBM disbursed P3.876 trillion under the 2025 General Appropriations Act (GAA), representing 92.1 percent of the P4.211 trillion budget allocated. Under the 2025 GAA, the DBM distributed P3.509 trillion to line departments, or 95.3 percent of their P3.681-trillion budget. Releases for special purpose
funds also reached P367.534 billion, covering 69.4 percent of the P529.595-billion allocation. Meanwhile, automatic appropriations amounted to P1.903 trillion or 90 percent of the P2.115 trillion total. This included the P68.549 billion in retirement and life insurance premiums for government workers fully released in January, plus an additional P7.965 billion in July. The DBM also completed as early as January the full disbursements of the national tax allotment worth P1.034 trillion and block grant amounting to P83.421 billion. Further, P480,000 worth of pensions of former presidents or their widows and the special account in the general fund of P37.352 billion were entirely remitted in February. Tax expenditures fund worth P14.5 billion was also fully allo-
cated in April. However, disbursements for interest payments and net lending remained at 75 percent or P636.023 billion and P21.525 billion, respectively, as of end-July. The DBM has yet to release the remaining P212.007 billion for interest payments and P7.175 billion for net lending this year. Moreover, other releases reached P155.465 billion as of end-July. Of the amount, P54.586 billion was earmarked for various automatic appropriations, including grants or donations, the AFP Modernization Program and other special accounts in the general fund. About P14.896 billion was for continuing appropriations from the previous year, while P85.982 billion was allocated for unprogrammed appropriations. Unprogrammed appropria-
tions serve as a standby authority allowing agencies to have additional obligations for priority programs or projects once revenue collections surpass targets, or when extra grants or foreign funding become available. The bulk, or P69.819 billion, of the unprogrammed appropriations was allocated to support the foreign-assisted projects of the departments of Agrarian Reform, Finance, Health, Social Welfare and Development, Public Works and Highways and Transportation. Foreign-assisted projects of the Philippine Competition Commission and Metropolitan Manila Development Authority were also provided funding. The Department of Education also received P9.894 billion as assistance for government infrastructure and social programs, while the National Food Authority was granted P6.269 billion as budgetary support. Reine Juvierre S. Alberto
FFCCCII COURTESY CALL ON DOLE (Top photo) Labor Secretary Bienvenido E. Laguesma leads senior officials of the Department of Labor and Employment (DOLE) in a meeting with the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII), led by its president, Mr. Victor Lim (bottom row, center), as they made a courtesy call on the Department on August 6, 2025 at the DOLE Central Office. The DOLE-FFCCCII dialogue covered ongoing joint efforts, including Project Angel Tree—DOLE’s program to eliminate child labor—and the conduct of job fairs. Also discussed were new opportunities for partnership such as labor market information dissemination, youth employability and internship programs, livelihood and emergency employment and recovery programs, labor standards and occupational safety compliance promotions, and anti-illegal recruitment and anti-trafficking campaigns. They explored potential convergence points on recent legislation and plans related to labor and employment, specifically the Enterprise-based Education and Training (EBET) Act and the National Green Jobs Human Resource Development Plan 2024, as well as support for the MSME development. With Laguesma were Undersecretaries Carmela I. Torres, Felipe N. Egargo, Jr., Warren M. Miclat; OIC-Assistant Secretary Patrick P. Patriwirawan Jr.; Bureau of Working Conditions Director Alvin B. Curada; and Institute for Labor Studies Executive Director Jeanette T. Damo. With Lim were FFCCCII Executive Vice President Jeffrey Ng, Vice President William Gosiaco, and Vice President/Adviser for Industrial Relations Jose Go. PHOTOS BY ALI CREO/DOLE-IPS
PESO EXCHANGE RATES n US 57.1970 n JAPAN 0.3890 n UK 76.8899 n HK 7.2870 n CHINA 7.9645 n SINGAPORE 44.5841 n AUSTRALIA 37.2810 n EU 66.7317 n KOREA 0.0414 n SAUDI ARABIA 15.2416 Source: BSP (August 8, 2025)