‘Rate cut bets, lack of trust weaken peso’ By Reine Juvierre S. Alberto
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WORLD » A6
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HE Philippine peso fell to another historic low on Tuesday, closing at P59.22 against the US dollar, on rate cut bets, a stronger greenback and weak business confidence. This is the weakest level since the all-time low of P59.17 to the greenback recorded when it closed on November 12. The peso is also down by 28.5 centavos from the previous close of P58.935 per $1. The local currency traded from a high of P59.07 to a low of P59.22, after opening at P59.08, data from
the Bankers Association of the Philippines (BAP) showed. According to Jonathan Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., the peso’s slide to a record low reflects a strong US dollar and weak local confidence. “For Filipinos, it’s a mixed bag— remittances gain, but imports and debt cost more. The key now is policy clarity and attracting inflows like tourism and exports. BSP can step in, but lasting stability needs more than intervention—it needs trust and growth,” Ravelas said. Expectations of a BSP rate cut may also have weighed on the local currency.
Reinielle Matt Erece, economist at Oikonomia Advisory and Research, Inc. said that wide expectations of a rate cut may have contributed to weak demand for the peso and related peso-denominated assets. “This is as their returns are expected to decrease, following the expected movement of benchmark interest rates,” Erece said. In the short term, Erece said a weak peso may be a risk to inflation. “A depreciated peso can be an advantage in increasing exports. This can be achieved with good industrial policy whose benefits can be felt in the medium to long
term,” he added. Meanwhile, a trader said that the peso’s dip to P59.22 reflects a “firmer” US dollar amid persistent capital inflows. With the US Federal Reserve likely to stay cautious on rate cuts and with the Bangko Sentral ng Pilipinas facing pressure of monetary easing, the peso could hover near P59 to P60 in the short term before stabilizing once policy signals clear, the trader said. Another trader added that the local currency might continue to remain weak ahead of the US JOLTS report, with exchange rates possibly moving between 59.10 and 59.35.
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Wednesday, December 10, 2025 Vol. 21 No. 63
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
OWER domestic investment, weak business confidence and a significant decline in foreign direct investments will cause the Philippine economy to post growth of below 5.5 percent until 2027, according to the World Bank. In a media briefing on Tuesday, World Bank senior economist Jaffar Al-Rikabi presented the mul-
tilateral lender’s growth forecast for the Philippines under its latest See “Growth,” A2
PEZA-CLEARED INVESTMENTS IN 11 MONTHS REACH P207.6-B By Andrea E. San Juan
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@andreasanjuan
NVESTMENTS approved within the country’s economic zones have breached the P200-billion mark in the 11-month period this year and could even reach a three-year high in investment pledges despite the “challenging” global investment climate, according to the Philippine Economic Zone Authority (Peza). In a statement, PEZA reported that it approved 281 projects worth P207.58 billion in invest-
ments in the January to November 2025 period. This is nearly 3 percent higher than the P201.55 billion approved in the same period a year ago. “Even amid external shocks and a challenging global investment climate, the ecozone industry remains undeterred,” Peza Director General Tereso O. Panga said. In a Viber message sent to the BusinessMirror, the Peza chief expressed confidence: “We will surpass our 2024 investment performance.”
TWINKLE, SHOP, SURVIVE Shoppers browse a Manila store selling Christmas lanterns and lights on Tuesday, December 9, 2025, as families prepare for the country’s long “ber” month
celebrations. Amid rising prices and persistent economic pressures linked to decades of governance and corruption issues, many Filipinos still embrace the festive season with parols, twinkling lights, and gift-hunting, highlighting resilience and hope even as the economy faces challenges. AP/AARON FAVILA
See “Investments,” A8
Senate okays ’26 budget on 3rd reading By Butch Fernandez
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MARIKINA MARKS A MILESTONE Marikina City celebrated its 29th Cityhood Anniversary and the kickoff of Paskong Pag-asa on Monday night, December 8, 2025, at Plaza de los Alcaldes. The event featured cultural performances by local schools and community groups, the lighting of a giant Christmas tree adorned with ornaments crafted by Marikina artisans, and a fireworks display. City officials and residents gathered to commemorate Marikina’s rich heritage as the Philippines’ Shoe Capital—a status recently reinforced by Senate Bill 2997, which seeks to formally recognize the city’s longstanding role in the nation’s footwear industry—and to usher in the holiday season. NONOY LACZA
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HE Senate on Tuesday approved on third and final reading the P6.7-trillion budget for 2026, with its main sponsor, Finance committee chairman Sherwin Gatchalian, citing four key features that he said reflect the government’s desire to respond to the people’s most vital needs while ensuring a transparent and accountable budget process. The amendments to HB 4058, Gatchalian stressed, ensure that the 2026 General Appropriations Bill reflects a “more transparent, more disciplined and more accountable” budget. This, in contrast to the widely criticized 2025 General Appropriations Act, still facing a legal challenge in court and which
has triggered angry exchanges between officials of the Executive and Congress as a result of the budget insertions and unprogrammed appropriations. In his manifestation after the chamber voted 17 affirmative, zero objections and zero abstentions, Sen. Gatchalian highlighted the key improvements made in education, health, disaster response and infrastructure. The education sector’s 1.37-trillion outlay is the biggest ever, the senator noted, and is the first to meet the United Nations benchmark on education spending. According to Gatchalian, the P1.37 trillion given to the education sector is the equivalent of 4.5 percent of Gross Domestic Product (GDP). This meets the 4 to 6 percent benchmark of Unesco on education spending. He highlighted improvements in
the budget of education. For one, the Senate added P19.2 billion to the allocation set in the General Appropriations Bill (GAB), or House Bill No. 4058, to construct more than 24,000 new classrooms. The Department of Education’s School-Based Feeding Program will receive P28.6 billion to cover 200 school days and benefit 4.8 million learners. The program will cover all Kindergarten and Grade 1 learners, while continuing support for wasted and severely wasted learners from Grades 2 to 6. State Universities and Colleges (SUCs) will receive P139.03 billion, P7.35 billion more than what was allocated in the GAB, to expand their carrying capacity. Gatchalian previously flagged that at least 168,000 qualified students were denied admission because SUCs
lacked sufficient capacity. Gatchalian also emphasized the P1-billion allocation under the Local Government Support Fund to convert over 3,000 daycare centers into Child Development Centers (CDCs) in 4th and 5th class municipalities, along with the creation of 150 plantilla positions for Child Development Workers.
Health amendments
MEANWHILE, Gatchalian credited Senator Pia Cayetano with championing and refining most of the key improvements in the health sector budget, specifically in ensuring that zero balance billing is indeed being enforced. A second improvement is the allotment of P1 billion for pilot implementation of zero balance billing in See “Budget,” A2
PESO EXCHANGE RATES n US 59.0250 n JAPAN 0.3786 n UK 78.6567 n HK 7.5865 n CHINA 8.3451 n SINGAPORE 45.5054 n AUSTRALIA 39.0864 n EU 68.6992 n KOREA 0.0401 n SAUDI ARABIA 15.7270 Source: BSP (December 9, 2025)