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Wednesday, August 27, 2025 Vol. 20 No. 318
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE Philippine economy’s growth is expected to remain lackluster in the second semester on the back of spillover effects from the slowdown of the global economy. BMI, a Fitch Solutions Company, said the economy’s growth is expected to average 5.4 percent this year. This is below the 5.5 percent to 6.5 percent target of the national government. With Trump’s tariffs in full swing in the second half of the year, BMI expects global economic conditions to deteriorate and impact the country’s ability to attract more investment as well as impact private consumption. “We have not revised our growth forecast upwards for two main reasons. First, global economic conditions will deteriorate in H2 [second half]. By then, US tariffs will be fully in force and the knock-on effects on global trade will become more apparent,” BMI said. “Second, the Philippines remains a largely domestically driven economy. While interest rates have eased considerably from their peak, erratic US trade policies will weigh on global investor sentiment and limit foreign direct investment inflows,” it also said. BMI said the resilience of the Chinese economy is not expected
to last. This means GDP growth is expected to slow to around 4.3 percent in the second half of the year. It can be noted that China is one of the country’s top import sources as well as export markets. Based on the data in June 2025, China was the country’s top import source, cornering 28.2 percent of total import receipts and 10.5 percent of total export earnings. Meanwhile, BMI said the country’s investment prospects are grim in the near term due to high tariffs. The United States slapped a 19-percent tariff rate on Philippine exports to the American market. BMI also said household spending is slowing if the slowdown in imports would be used as proxy for private consumption. Consumer surveys also confirm lower confidence from households. “Household consumption is showing similar weakness. Import volumes—a reliable proxy for private spending—continue to contract sharply and recent conSee “H2 growth,” A2
DILG Secretary Juanito Victor C. Remulla, and PLTGen. Jose Melencio C. Nartatez Jr. are seen at the Assumption of Command Ceremony on Tuesday, August 26, 2025 of the Philippine National Police. Nartatez assumed office as OIC of the PNP, replacing General Nicolas Torre III. Story on A12, Second Front Page. NONOY LACZA
ADB DEPLORES STEEP TRADE IRR text is next battleground in ‘Konektado’ BARRIERS FOR CLEAN TECH
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EVELOPING economies like the Philippines are often faced with the steepest trade barriers when it comes to importing clean technologies, according to the Asian Development Bank (ADB). In its latest Key Indicators for Asia and the Pacific 2025, ADB said that in 2022, the average tariffs imposed on a subset of green products were only at 1.4 percent in high-income countries compared to 7.3 percent in low-income countries. The Manila-based multilateral development bank recommend-
By Andrea E. San Juan
ed that trade facilitation efforts should be pursued to support the use of green technologies, especially in developing economies. “Regional trade agreements focusing on the facilitation of these technologies, such as the revival of the Environmental Goods Agreement, and digital green technology marketplaces, could further widen the channels through which these products move,” ADB said. The ADB noted that in July 2014, select members of the See “ADB,” A2
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@andreasanjuan
INE business groups are now keeping an eye on the development of the implementing rules and regulations of the Konektadong Pinoy Bill, hoping that this set of rules will enable Philippine businesses to innovate and scale globally. “The Joint Foreign Chambers [JFC], EU-Asean Business Council [EUABC], IT and Business Process Association of the Philippines [Ibpap], and US-Asean Business Council [USABC] laud the enactment of Konektadong Pinoy,” the business groups said in a statement on Tuesday. The business groups said they
see this measure as a “landmark achievement that will significantly improve internet access, boost the Philippines’ economic competitiveness, and strengthen its digital ecosystem as Asean develops its regional Digital Economy Framework Agreement [DEFA].” They underscored, however, that the law’s success will depend on the development of implementing rules and regulations that protect the “free and seamless” flow of data across borders. “This approach will ensure that businesses are able to innovate and scale globally, allowing the Philippines to fully harness the digital economy’s potential,” the nine business groups said. “We remain committed to sup-
porting the Philippines’s digital transformation and look forward to the full and immediate implementation of this law,” they also noted. The JFC is a coalition of the American, Canadian, European, Japanese, and Korean chambers and Pamuri. The EU-ABC is the voice for European business within the Asean region. The Ibpap is the industry association and advocacy group of the country’s IT and Business Process Management (IT-BPM) sector. The US-ABC, meanwhile, represents over 180 US companies, including many of the world’s largest global firms, with a “significant” number of them having “substan-
tial” investments in a variety of sectors. On Sunday, Malacañang said the Konektadong Pinoy Bill, which is expected to make internet services cheaper but is widely opposed by the big telecommunication (telco) firms, had lapsed into law. The law, which is part of the priority legislative measures of the Marcos administration, aims to simplify the entry of service providers into the market to make internet services cheaper for consumers. Among its salient features is it exempts transmission providers from securing congressional franchise and a Certificate of Public Convenience and Necessity. See “IRR,” A2
PESO EXCHANGE RATES n US 57.0580 n JAPAN 0.3865 n UK 76.8001 n HK 7.3039 n CHINA 7.9748 n SINGAPORE 44.4031 n AUSTRALIA 36.9793 n EU 66.3014 n KOREA 0.0410 n SAUDI ARABIA 15.2078 Source: BSP (August 26, 2025)