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Saturday, December 13, 2025 Vol. 21 No. 66
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RATE CUT WILL BOP SWINGS TO DEFICIT ‘BIGGER UNDERMINE CONFIDENCE’ ON TRADE JITTERS—BSP T
HE country’s balance of payments (BOP) swung to a deficit in January to September, weighed down by a widening trade gap even as exports, remittances and business process outsourcing (BPO) services helped cushion the external position.
“Prioritization of anti-corruption/good governance measures and reforms, if taken seriously, would lead to improved investor confidence, both local and foreign.”— Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. ALDAR DARMAEV | DREAMSTIME.COM
The Bangko Sentral ng Pilipinas (BSP) said Friday the country’s overall BOP registered a $5.3-billion deficit during the period “amid tighter global financial conditions and lingering trade uncertainties.” The 9-month deficit was a reversal of the $5.1-billion surplus recorded in the same period in 2024. This was mainly due to the shortfall in the current account, which was partly offset by net inflows in the financial account. The BOP consists of the current account, financial account, and capital account. The current account covers trade in goods and services, as well as primary and secondary income, while the financial account records investments and loans. The capital account includes grants and other one-time transfers. The current account posted a deficit of $12.5 billion during the
nine-month period, due largely to the trade in goods gap, as imports exceeded exports. The deficit, however, was narrower than the $13.3 billion recorded last year. See “BOP,” A2
DOLE: Rise in jobless rate due to natural disasters By Justine Xyrah Garcia
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HE Department of Labor and Employment (DOLE) has pinned the rise in October’s unemployment figures on the recent natural calamities that hit the country. In a text message, DOLE Secretary Bienvenido E. Laguesma said the storms and earthquakes that struck several regions have resulted in the increase in unemployment rate to 5 percent in October, from last year’s 3.9 percent. The jobless rate in October is one of the highest this year, just below July’s 5.3 percent. “The increase was attributed to reported natural calamities such as southwest monsoon and tropical cyclones plus the effects of the earthquake that hit Cebu and Davao Oriental,” Laguesma said. The labor chief added that he was not “surprised” by the rise in unemployment, noting that the combined impact of these natural disasters had inevitably disrupted work in several sectors. “Hopefully, the [statistics] for [November] and [December] will reflect a rebound in our economy due to the Christmas season,” he said. Data from the Philippine Statistics Authority (PSA) showed that other service activities suffered the biggest employment losses from July to October, dropping by 638,000. This was followed by professional, scientific and technical activities (-96,000); water supply, sewerage and waste management (-32,000); transportation and storage (-27,000); and administrative and support service activities (-21,000). Year-on-year, other service activities still led job losses with 520,000, followed by wholesale and retail trade (-66,000) and professional, scientific and technical activities (-47,000). Several economists earlier told this newspaper that the higher
unemployment rate aligns more closely with the broader economic slowdown (See: https://businessmirror.com.ph/2025/12/11/amid-slowing-growth-jobless-ranks-expand/). Real gross domestic product (GDP) growth slipped to 4 percent in the third quarter of 2025, the country’s weakest performance since the first quarter of 2021, when output contracted by 3.8 percent. They also noted that the continued decline in investment activity has likely contributed to the labor market’s fragility, citing corruption scandals hounding the government as a factor weighing on investor confidence. Ateneo de Manila University labor economist Leonardo A. Lanzona said weather-related disruptions typically emerge toward the end of the year, but seasonal hiring
“Despite these disruptions, the employment has grown during the holiday months. In effect, the data this year in some way creates some experimental measure on how corruption affects the labor market. This seems to be the only factor that differentiates the employment picture this year from the rest of the other years.”— Ateneo de Manila University labor economist Leonardo A. Lanzona
usually offsets these losses. What sets this year apart, he said, is the added impact of the corruption scandal on an already vulnerable labor market. “Despite these disruptions, the employment has grown during the holiday months. In effect, the data this year in some way creates some experimental measure on how corruption affects the labor market. This seems to be the only factor that differentiates the employment picture this year from the rest of the other years,” Lanzona said. “In effect, the vulnerability of the labor market can be attributed to structural factors affecting corruption.”
‘A structural issue’
SENTRO ng mga Nagkakaisa at See “DOLE,” A2
HIRED ON THE SPOT! President Ferdinand R. Marcos Jr., together with officials from the Office of the President, DOLE, DICT, PSAC, and SM Supermalls, opens the SM Holiday Job Fair + Skills e-Hub at the Music Hall, SM Mall of Asia. The event features hundreds of job opportunities, digital upskilling programs, and celebrates DOLE’s 92nd anniversary—highlighted by “Hired on the Spot” applicants proudly standing in the front row. SM SUPERMALLS
“Mahina ang economy, humina ang demand, so we can help from the demand side. Pero pag nag-50 kami o off-cycle, it will worsen the loss of confidence. Sasabihin ‘desperado ang BSP.’”— BSP Governor and Chairman of the Monetary Board Eli M. Remolona Jr.
in its next rate-setting meeting in February 2026, Remolona said any cut could happen during a regular meeting and not off-cycle. In an interview with Bloomberg Television’s Stephen Engle and Annabelle Droulers on Friday, Remolona said the BSP is “pretty much on the fence” about the need to cut rates even further. “I think we may cut one more time or we may not. That’s where we are,” Remolona said. The impact of the corruption scandal will continue into the early part of 2026, with the BSP projecting a 5.4-percent growth in 2026 and 6 percent in 2027. See “Rate cut,” A2
Campi, IPOPHL team up to stop sale of fake auto parts
YURYRUMOVSKY | DREAMSTIME.COM
T
By Reine Juvierre S. Alberto
HE Bangko Sentral ng Pilipinas (BSP) could still deliver one more 25-basis-point rate cut next year, rejecting the need for an aggressive or off-cycle monetary easing, amid slower economic growth. BSP Governor and Chairman of the Monetary Board Eli M. Remolona Jr. told reporters on Friday that the Central Bank will not consider an off-cycle move or a larger 50-basis-point cut, as it could undermine confidence. Remolona said the pace of economic growth in the fourth quarter may be slower at 3.8 percent, based on BSP’s estimates. This is way below the government’s target of 5.5 to 6.5 percent. “Mahina ang economy, humina ang demand, so we can help from the demand side [The economy is weak, and demand has softened; we can provide support from the demand side],” Remolona said. “Pero pag nag-50 kami o off-cycle, it will worsen the loss of confidence. Sasabihin ‘desperado ang BSP’ [But if we cut by 50 basis points or make an off-cycle move, it will worsen the loss of confidence; people will say, ‘The BSP is desperate’],” the governor added. Asked if the Central Bank may reduce the key policy rate
By Andrea E. San Juan
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HE Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) has joined the list of over 100 partners of the country’s intellectual property rights watchdog that will go after counterfeit products particularly fake auto parts sold online. Campi and the Intellectual Property Office of the Philippines (IPOPHL) signed last Friday a memorandum of understanding (MOU) which grants the auto industry group the power to take down fake products across various e-commerce platforms. Campi President Rommel Gutierrez said this partnership will help the local auto industry provide consumers only with genuine car parts. “This will help us fight the sale of counterfeit parts. I think not only parts, even sale of the whole unit. We noticed that there are dubious sale of motor vehicles but mostly parts,” Gutierrez said during the signing of the MOU on Friday held in Makati City. Under this MOU, Gutierrez said there is a “mechanism” which will enable the local auto industry group to request for notice and takedown procedures. “We will test that in partnership with the e-commerce platform. So yeah, we will identify,
we’ll try as much as possible to identify who are legitimate and who are not with the objective of really protecting consumers,” added the Campi chief. As for the penalties that may be imposed on sellers of counterfeit goods online, IPOPHL said the purpose of the MOU is only to get rid of fake online market products. “When you are seeking penalties, then the brand owners have that decision option to pursue the case and they have to file it in court,” IPOPHL Acting Director General Nathaniel S. Arevalo said. Arevalo further noted that this partnership requires the participation of brand owners, adding that this is a private right. From 12 initial signatories in March 2021, the acting chief of IPOPHL said Campi is the 112th entity to sign the MOU on E-commerce. “Campi’s entry as MOU signatory further strengthens our shared commitment to ensuring that consumers have access to safe, high-quality, and genuine automotive products online,” said Arevalo. Further, Arevalo noted that with Campi as IPOPHL’s partner, safety on roads will be reinforced. “We are optimistic that this will result in the significant reduction, if not total removal, of all fake automotive products available in online marketplaces,” he said.
PESO EXCHANGE RATES n US 59.0970 n JAPAN 0.3799 n UK 79.1309 n HK 7.5943 n CHINA 8.3742 n SINGAPORE 45.7514 n AUSTRALIA 39.3704 n EU 69.3740 n KOREA 0.0402 n SAUDI ARABIA 15.7495 Source: BSP (December 12, 2025)