PHL told to double down on governance reforms By Andrea E. San Juan
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LANNED structural reforms are likely to boost investment and productivity in the Philippines this year but concerns around governance remain, according to the World Bank’s Global Economic Prospects report. The World Bank indicated this in its report where it projected that growth in the East Asia and Pacific (EAP) region will ease to 4.4 percent in 2026 and 4.3 percent in 2027, mainly due to China’s slowdown. “In contrast, growth in EAP excluding China is projected to edge
down to 4.5 percent this year and then rise to 4.7 percent next year, as investment growth helps to offset the waning contribution of net exports,” it said. Elsewhere in EAP, activity is expected to moderate this year before picking up next year, WB said. “This reflects the unwinding of front-loading, along with stronger investment growth in some countries, owing to domestic policy support,” it noted. In a briefing last December, the World Bank slashed its growth projections for the Philippines to 5.3 percent from 5.4 percent for 2026, and to 5.4 percent from 5.5 percent for 2027.
THE World Bank building in Washington. AP FILE PHOTO
“We expect decelerating growth, which makes it even more important to double down on reforms,” World Bank senior economist Jaffar Al-Rikabi said. Over the next two years, growth is expected to recover on the back of strong domestic demand. Private consumption is likely
to pick up as inflation remains subdued, the labor market stays strong and lower interest rates from monetary easing make borrowing more accessible for households and businesses, the World Bank said. Meanwhile, investments are anticipated to rise as public infrastructure projects regain momentum and recent reforms that liberalize investment in telecommunications, transport, logistics and renewable energy start creating a more favorable business climate for companies, World Bank added. (See: https://businessmirror.com.ph/2025/12/10/ phl-growth-limited-to-5-5till-2027-world-bank/).
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Thursday, January 15, 2026 Vol. 21 No. 95
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto
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@reine_alberto
HE Bureau of Internal Revenue (BIR) raised P3.105 trillion in 2025, lower than its full-year target, in a year that ended with it pausing audit operations amid an uproar about harassment of businesses. In a statement on Wednesday, the BIR said it capped off 2025 with a yearend recovery that pushed its full-year collections beyond P3 trillion. Despite the collection being lower than its target, the BIR said this is a reversal of the mid-year slowdown and confidence reinforcement as it shifts toward a “trust-based” tax system. Internal Revenue Commissioner Charlito Martin R. Mendoza said the rebound was driven not by pressure on taxpayers, but by the restoration of credibility. “Even while audits were paused, taxpayers continued to pay. That tells us that predictability, fairness and institutional trust are now driving compliance,” Mendoza was quoted as saying. Preliminary BIR data showed its full-year collections were 3.9 percent See “BIR,” A2
BANK LENDING UP, PESO DOWN A bank teller counts Philippine peso bills inside a bank in Makati City. The Bangko Sentral ng Pilipinas (BSP) said outstanding loans from universal and commercial banks (U/KBs) to businesses and individual consumers expanded in November 2025. Story in B3, Banking. In another development, the Philippine peso dropped to a record low anew at P59.44 to the dollar on Wednesday. Story above. NONIE REYES
Peso sinks anew on costlier oil, geopolitical risks ELECTRICITY DEMAND WILL
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HE Philippine peso tumbled to a fresh record low of P59.44 on Wednesday, as a stronger greenback, rising oil prices, global geopolitical risks and expectations of further monetary easing at home weakened the local currency. Data from the Bankers’ Association of the Philippines (BAP) showed the local currency closed at P59.44 per $1. The peso plunged by 9 centavos from its previous finish of P59.341 on Tuesday. This is now the weakest level that the peso reached since its close of P59.355 last January 7. The local currency hit a new intraday low of P59.45 per dollar and traded for as low as P59.35 per greenback.
Trading volume slightly declined to $951 million from $999.22 million a day earlier. According to a trader, the peso slid as dollar strength, fueled by higherfor-longer US rates and US Federal Reserve policy uncertainty, dominated foreign exchange markets. “Expect the US dollar-peso spot to grind lower, as steady corporate demand and a firm US dollar backdrop are likely to overwhelm local bank supply,” the trader said. The greenback is strong due to US growth holding up, while rate are also staying higher for longer, the trader explained. “Policy uncertainty around the Fed is reinforcing the dollar’s safehaven appeal. Fed uncertainty hasn’t weakened the dollar—it’s actually strengthened it by keeping
rates high and investors defensive,” the trader added. Japan-based MUFG Bank Ltd. said that with Brent oil prices closer to $65 per barrel, this may be weighing on oil-sensitive currencies in Asia, such as the peso, in the near term, even as the global oil market remains fundamentally oversupplied. “The dollar was stronger on the back of uncertainty around a possible Japan snap election and geopolitical concerns, even as US CPI inflation was a touch weaker than expected,” MUFG said in a report. Meanwhile, Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said markets see the Bangko Sentral ng Pilipinas (BSP) possibly delivering a 25-basis point rate cut on February
19, which could narrow the interest rate gap with the US and pressure the peso. “The US dollar/peso exchange rate would still be a function of the BSP in terms of interventions/ smoothening any volatility, as one of the important actors/catalysts/ considerations, moving forward,” Ricafort said. The BSP will not be intervening to defend the peso even if it plunges to P60 per US dollar despite the “tremendous” pressure from the market, according to BSP Governor Eli M. Remolona Jr. “We ignore that… I feel the pressure, but the economics of it is we shouldn’t,” Remolona said. “The economics doesn’t warrant defending the peso.”
RISE IN ALL GRIDS–NGCP By Lenie Lectura
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@llectura
LECTRICITY demand this year is seen to increase across all grids, particularly in Visayas where supply is tight. According to the National Grid Corporation of the Philippines (NGCP), the projected demand in Luzon will likely go up by 13.32 percent and 12.34 percent in Mindanao as against last year’s actual demand. The forecasted demand in Visayas, meanwhile, will shoot up by
24.12 percent. These, however, are still based on initial forecasts, the grid operator said. “Demand is increasing. Actually, the projected peak was already breached. We have seen every year that demand for power increases. The question now is how fast is the rate of increase going up, but it will always increase. The same drivers apply such as population, increase in economic activity and development, etc.,” NGCP spokesperson Atty. Mutya Alabanza said at a news briefing. See “NGCP,” A2
See “Peso,” A2
PESO EXCHANGE RATES n US 59.3090 n JAPAN 0.3728 n UK 79.6223 n HK 7.6034 n CHINA 8.4976 n SINGAPORE 46.0474 n AUSTRALIA 39.6184 n EU 69.0594 n KOREA 0.0402 n SAUDI ARABIA 15.8153 Source: BSP (January 14, 2026)