IMF lowers ’25 growth outlook to 5.1% By Reine Juvierre S. Alberto
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ISING tariffs weighing on exports and investments will slow the Philippines’s economic growth in 2025, before rebounding in 2026, as the International Monetary Fund (IMF) lowered its growth outlook for the country. IMF revised its economic growth outlook for the Philippines downwards to 5.1 percent in 2025 from its earlier projection of 5.4 percent due to increasing tariffs. Economic expansion is seen to pick up “moderately” to 5.6 percent in 2026, lower than its 5.7-percent forecast, after the “sharper-than-
KIDS SAY NO TO PAPUTOK Students from Pinyahan Elementary School march with antifirecracker signs and improvised noisemakers during the launch of EcoWaste Coalition’s “Iwas Paputoxic” campaign at the school in Quezon City on Monday, December 15, 2025. The initiative encourages families to choose safe, non-toxic alternatives to firecrackers ahead of New Year celebrations, promoting a healthier and accident-free holiday. NONOY LACZA
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expected” slowdown in the third quarter this year. Over the medium term, potential growth is estimated at around 6 percent. “The risks to the near-term growth outlook are tilted to the downside. The main external risks stem from prolonged global trade policy uncertainty, geopolitical tensions, and disruptive financial market corrections,” IMF said. At home, IMF said more frequent and intense climate shocks would cause notable macroeconomic losses. “On the upside, accelerated implementation of structural and governance reforms would support investor confidence and raise
fiscal multipliers and potential growth. Risks around inflation are broadly balanced,” IMF added. Inflation is projected to average 1.7 percent in 2025, then pick up to 2.8 percent in 2026, as negative base effects recede. Moreover, IMF said its executive directors commended the government’s “well-calibrated” macroeconomic policies and reforms, which have supported successful disinflation and resilient growth amid external headwinds. “Directors underscored the need to continue prioritizing governance reforms, greater private investment, economic diversification, and resilience to climate shocks to sustain inclusive
growth,” IMF added. IMF directors also welcomed the authorities’ plan to implement gradual fiscal consolidation over the medium term, which will help reinforce fiscal space and external balance and support a growthfriendly strategy. Reducing infrastructure and energy gaps, as well as promoting foreign direct investment and productivity, were recommended by the IMF directors, while noting the need to further lower non-tariff barriers. IMF directors stressed the importance of strengthening governance and the rule of law, reducing corruption vulnerabilities and See “IMF,” A2
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Tuesday, December 16, 2025 Vol. 21 No. 69
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
HILE cash remittances from overseas Filipinos continue to prop up the Philippine economy amid a weak thirdquarter performance and other key macroeconomic indicators, reliance on migrant’s hard-earned money is not a substitute for domestic growth. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances grew by 3.2
percent to $29.202 billion as of the end of October 2025 from See “Remittances,” A2
PPA UPBEAT ABOUT HITTING ’25 REVENUE TARGET OF P28B By Lorenz S. Marasigan
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HE Philippine Ports Authority (PPA) is “optimistic” it will surpass its revenue target of P28 billion for 2025, with collections as of October 30 already reaching P24.97 billion, its chief said on Monday. PPA General Manager Jay Santiago told reporters in a press briefing that the agency remains “on track” to surpass its goal by yearend, despite natural calamities that damaged several port facilities throughout the year. “We are still on track and we are optimistic that we will meet and in fact exceed the target by the end of the year,” he said. Santiago said the port authority will shift focus in 2026 to rehabilitation and re-
pair of damaged infrastructure rather than new port developments. “My instruction is we will concentrate on the rehab and repairing the damaged facilities,” Santiago said. “In the meantime, we will hold off on our new port developments for the next year and we will look back on our existing facilities to continue expanding.” He emphasized the need to maintain existing infrastructure before pursuing new projects. “We cannot go on by just moving forward and forgetting the existing facilities. We need to ensure that they are well maintained,” Santiago said. The agency has recorded significant damage to port facilities from recent typhoons
KEEPING RICE WITHIN REACH A rice retailer in Parañaque City displays varying prices of commercial rice, as the Department of Agriculture says supply and pricing remain stable despite the importation ban and the damage caused by recent tropical cyclones across the country. NONIE REYES
See “PPA,” A2
Palace, BSP confident of rosy 2-yr outlook By Samuel P. Medenilla
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RIDING OUT THE SURGE Passengers line up at a transport network vehicle service
(TNVS) booth at Ninoy Aquino International Airport Terminal 1 in Pasay City, as ride-hailing drivers raise concerns that the Land Transportation Franchising and Regulatory Board’s move to lower the cap on surge pricing could affect their livelihood. The LTFRB said the adjustment aims to address commuter complaints over excessive fares driven by algorithm-based pricing during periods of high demand. NONIE REYES
ESPITE the record drop in the value of the Philippine peso last week, Malacañang is confident of a rosy economic outlook in the next two years with inflation in check and more investments entering the country. The Bangko Sentral ng Pilipinas (BSP) made the forecast during its meeting with economic managers last week to discuss how to address the value of the peso dropping to a record low of P59.22 against the United States dollar. The BSP said it has sufficient resources to keep the value of pesos stable by participating in the currency trade. “The Bangko Sentral ng Pilipinas allows the exchange rate to be de-
termined by market forces. We continue to maintain robust reserves,” Palace Press Officer Claire Castro said in a press briefing on Monday, citing the position of BSP in the said meeting. As for the economic managers, she said they committed to capitalize on the stable inflation after BSP projected inflation will be within the 2 to 4 percent inflation target of the government, by removing bottlenecks in regulations and processes for investors. “Inflation remains low; continues to be within the target for the next two years; this will drive domestic demand,” Castro said. According to the Philippine Statistics Authority (PSA), inflation slowed down to 1.5 percent in November from 1.7 percent in the pre-
vious month. This prompted BSP to deliver a 25-basis point rate cut last week to help spur economic growth slowed down to 4 percent during the third quarter of the year—below the 5.5 percent to 6.5 percent economic
growth target set by the Development Budget Coordination Committee (DBCC). Castro also reiterated the announcement made by Executive Secretary Ralph G. Recto earlier his See “BSP,” A16
PESO EXCHANGE RATES n US 59.0960 n JAPAN 0.3794 n UK 79.1118 n HK 7.5921 n CHINA 8.3769 n SINGAPORE 45.7576 n AUSTRALIA 39.2338 n EU 69.3846 n KOREA 0.0401 n SAUDI ARABIA 15.7484 Source: BSP (December 15, 2025)