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Saturday, August 22, 2026 Vol. 21 No. 312
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‘SINGLE-DIGIT POVERTY RATE MASKING GAPS’ T
By Justine Xyrah Garcia
HE Marcos administration may have reached a single-digit poverty rate ahead of its 2028 target, but economists cautioned that the headline improvement may be masking gaps in how poverty and living standards are measured.
THE Bucao River lahar field where seven sections of the river dike were breached by strong current at the height of heavy habagat rains last week. HENRY EMPEÑO
Zambales declares state of calamity as agri, infra damage hits ₧591.98M By Henry Empeño
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MEASURING POVERTY, MEASURING SURVIVAL
Two boys use a makeshift boat to salvage recyclable materials from a river in Parañaque City, hoping to earn a few pesos from a junk shop and help their family. The image puts a human face on the debate over the Philippines’ 9.7% poverty rate: If the poverty line is too low, economists warn, a lower poverty rate may not necessarily mean families are living better. NONIE REYES
On Friday, the Philippine Statistics Authority (PSA) reported that poverty incidence fell to a historic low of 9.7 percent in 2025, equivalent to 11.08 million Filipinos. This was significantly lower than the 15.5 percent recorded in 2023 and 18.1 percent in 2021. At the household level, poverty incidence declined to 6.4 percent, or 1.90 million families, from
10.9 percent in 2023 and 13.2 percent in 2021. Socioeconomic Planning Secretary Arsenio M. Balisacan said reaching the single-digit poverty rate ahead of schedule “demonstrates that expanding economic opportunities, complemented by effective social protection, can make a meaningful difference in people’s lives.” Continued on A2
R&I AFFIRMS PHL’S A- CREDIT RATING, KEEPS STABLE OUTLOOK
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ATING and Investment Information, Inc. (R&I) affirmed the Philippines’ “A-” investment-grade credit rating and maintained its “stable” outlook on improving fiscal balance and expectations of sustained economic growth. The Japanese credit rating agency on Friday announced that it affirmed the sovereign’s Foreign Currency Issuer Rating at “A-” and the Foreign Currency Short-term Debt at “a-1.” “R&I’s affirmation of the Philippines’ A- rating and Stable outlook recognizes the government’s fiscal consolidation efforts and the strength of our economic reforms,” Finance Secretary Frederick D. Go was quoted as saying. R&I said the fiscal balance has improved as a share of gross domestic product (GDP) and the gov-
BA, Zambales—The province of Zambales has declared a state of calamity after sustaining more than P591.98 million in damage to agriculture and infrastructure from the combined effects of the enhanced southwest monsoon, or habagat, and tropical cyclones “Luis” and “Maymay” in the past two weeks. Governor Hermogenes Ebdane Jr. told BusinessMirror the Sangguniang Panlalawigan passed a resolution declaring the state of calamity on Wednesday, August 19, upon the recommendation of the Provincial Disaster Risk Reduction and Management Council (PDRRMC). The PDRRMC said heavy habagat rains whipped up by the recent typhoons caused widespread flooding, landslides, soil erosion, disruption of transportation, and
damages to houses, agriculture, and critical and lifeline infrastructure, including river dikes and flood-control structures. The disaster also caused the displacement of 5,770 families composed of 17,317 persons, as well as the isolation of residents of Barangay Sta. Fe in San Marcelino town when the bridge connecting the upland barangay was swept away by strong river currents, the council noted. According to consolidated reports from the Zambales Provincial Disaster Risk Reduction and Management Office (PDRRMO), the province sustained more than 22.71 million in damage in agriculture. The agricultural damages include losses of P11.21 million in rice crops, P8.7 million in corn and See “Zambales,” A2
It’s been 43 years since Aug. 21, 1983: and PBBM leads marking of Ninoy Day
See “R&I,” A2
Gov. Hermogenes Ebdane Jr. (seated) consults with Mayor Elvis Soria and MDRRMO staff on Friday, August 21, about the situation at the isolated Brgy. Sta. Fe in San Marcelino, Zambales. SAN MARCELINO LGU PHOTO
Fiscal tradeoff between revenue, spending to harm growth—Fitch By Reine Juvierre S. Alberto
“The government is pursuing fiscal consolidation while balancing economic growth.” — R&I, on its affirmation of the Philippines’ A- rating and stable outlook
ernment debt ratio is likely to ease in the medium term. The debt ratio, at 63.2 percent in 2025, remains manageable and is expected to decline over the medium term due to the “improving” trend in the fiscal deficit path, R&I said. “The government is pursuing fiscal consolidation while balancing economic growth,” it said. “The country has a certain level of debt affordability, given the manageable level of interest payment burden.” Economic expansion is likewise expected to continue, backed by population growth, infrastructure
See “GIR,” A2
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“Together, let us carry forward the lessons of our history as we continue to nurture a more peaceful and prosperous Bagong Pilipinas. May we all have a solemn and purposeful remembrance.” — President Ferdinand Marcos Jr.
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T’S been 43 years since former senator Benigno “Ninoy” Aquino Jr. was assassinated as he returned from exile in hopes of prodding a dictatorship toward democratic restoration. And on the anniversary of his martyrdom that unleashed
Benigno “Ninoy” Aquino Jr.
protests leading to a dictator’s ouster, no less than the only son and namesake of former President Ferdinand Marcos led the nation in marking his death. In a statement, President Ferdinand Marcos Jr. called on every Filipino to emulate the example of Aquino, Jr. of being involved in safeguarding the country’s freedom by combatting its modern-day threats, See “Ninoy,” A2
OWER revenue expectations are forcing the Philippines to scale back infrastructure spending, creating a fiscal tradeoff that could weaken growth, complicate efforts to stabilize debt and the sovereign’s “BBB” rating, Fitch Ratings said. In a commentary, the credit rating agency said reduced revenue projections, which have fallen to around 15.5 percent of gross domestic product (GDP) over the medium term from around 16.5 percent in last year’s framework, are causing “significant adjustments” in the government’s fiscal plans. As a result, the government is planning to reduce infrastructure disbursements to roughly 4 percent of GDP, about 1 percentage point lower over the projection period.
“Weaker public infrastructure spending could weigh on mediumterm growth, although the extent to which lower disbursements will affect growth remains unclear,” Fitch said. Governance reforms could improve spending efficiency and guard the economic impact of lower infrastructure spending levels, while increased use of public-public partnerships and local government units for infrastructure investment could reduce overall government disbursements, it added. In April this year, Fitch revised its outlook on the Philippines’ issuer default rating to “negative” from “stable” while affirming the country’s “BBB” sovereign rating due to “growing risks” around the country’s medium-term growth potential. See “Fitch,” A2
PESO EXCHANGE RATES n US 61.8660 n JAPAN 0.3913 n UK 84.2120 n HK 7.8909 n CHINA 9.1923 n SINGAPORE 48.6751 n AUSTRALIA 44.0610 n EU 72.2409 n KOREA 0.0446 n SAUDI ARABIA 16.4774 Source: BSP (August 20, 2026)