‘Sans trust, BSP rate cuts won’t lead to growth’ By Andrea E. San Juan
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HE interest rate cuts delivered by the Bangko Sentral ng Pilipinas (BSP) may not manifest in the growth of the economy if the trust and confidence of investors and consumers are not restored, according to an economist. “Even if BSP cuts rates, it may not manifest in growth if trust and confidence are not restored,” Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo Rivera told the BusinessMirror in a Viber
NO CONSENSUS ON MYANMAR, ASEAN TO HOLD SEA TALKS Foreign Secretary Theresa Lazaro briefs the media on the second day of the Asean Foreign Ministers’ Retreat in Cebu City, noting that there was no consensus among as counterparts on whether the bloc would endorse the recently concluded elections in Myanmar. She also said the ministers agreed to hold monthly working group meetings to accelerate negotiations on the long-awaited code of conduct in the South China Sea. Stories in A12. MALOU TALOSIG-BARTOLOME
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message on Thursday. “It’s not about whether BSP will hold or cut rates. This is about whether investor confidence and trust as well as consumer confidence are restored,” Rivera added. He also told this newspaper: “By all means, BSP can cut rates, but it’s nothing if confidence is not present.” Meanwhile, Luis F. Dumlao, Ateneo De Manila University (ADMU) economics professor, said the latest gross domestic product (GDP) data now eases the decision of the central bank to further reduce interest rates. On Thursday, the economy un-
derperformed anew after posting 3-percent growth in the fourth quarter of 2025. Data from the Philippine Statistics Authority (PSA) indicated this was slower than the third-quarter expansion and pulled full-year GDP growth down to 4.4 percent in 2025, the slowest pace of the economy since the pandemic. By comparison, the economy grew 5.2 percent in the fourth quarter of 2024, while full-year growth averaged 5.6 percent in 2024. With this, Dumlao said: “Below the target inflation gives pressure for BSP to ease interest. Low GDP
growth eases it’s decision to ease interest.” Dumlao said. He also pointed out that with consumption and investment slowing and inflation still below target, the easing of interest “has not materialized to expectations.” The country’s full-year head inflation in 2025 was at 1.7 percent, well below the government’s 2 to 4 percent target range for 2025. Following the announcement of the economic performance of the Philippines in the fourth quarter of 2025, ANZ Research said the BSP is likely to lower the policy rate by 25 basis points (bps) at its See “Rate cuts,” A2
BusinessMirror A broader look at today’s business
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3.3% Q4 GROWTH PULLS DOWN FULL-YR TO 4.4% www.businessmirror.com.ph
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Friday, January 30, 2026 Vol. 21 No. 110
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Justine Xyrah Garcia
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ROWTH of the gross domestic product (GDP) last year slowed considerably on more conservative household spending as well as the ill effects of climatechange and the corruption that continues to dampen investor and consumer confidence.
Data released Thursday by the Philippine Statistics Authority (PSA) showed that gross domestic product (GDP) growth settled at 3.3 percent in the fourth quarter of 2025, slower than the 5.3 percent in the same period a year earlier. The weaker fourth-quarter outturn pulled full-year growth down to 4.4 percent, from 5.7 percent in 2024—the economy’s slowest annual expansion since the 9.5-percent contraction in 2020, and, excluding the pandemic period, the weakest growth performance since 2011, when GDP expanded by 3.9 percent. Weather and climate-related disturbances disrupted production and services toward the end of the year, while corruption issues undermined business and consumer sentiment, according to Department of Economy, Planning, and Development (DepDev) Secretary Arsenio M. Balisacan. “This outcome reflects several converting factors. These include the adverse economic effects of weather and climate-related disruptions, which led to unexpected class and work suspensions—several of them—as well as the measures we are taking to ensure that only the right infrastructure projects move forward. Admittedly, the flood control corruption scandal also weighed on business and consumer confidence,” Balisacan said during a press briefing. PSA data showed that on the production side, services remained the main growth driver, expanding by 5.2 percent in the fourth quarter. Agriculture, forestry, and fishing (AFF) grew by 1 percent, while industry contracted by 0.9 percent, pulling overall output lower. For the full year, services grew by 5.9 percent, AFF by 3.1 percent, and industry by a modest 1.5 percent. See “Growth,” A2
SLOWER GROWTH, SOFTER OUTLOOK An aerial view captures Ortigas Center in Pasig City with Manila Bay on the horizon, setting the scene for a more subdued economic backdrop. The Philippine Statistics Authority on Thursday reported that GDP growth last year slowed considerably on more conservative household spending as well as the ill effects of climate-change and the corruption that continues to dampen investor and consumer confidence. Growth settled at 3.3 percent in the fourth quarter of 2025, pulling down full-year growth down to 4.4 percent, from 5.7 percent in 2024—the economy’s slowest annual expansion since the 9.5-percent contraction in 2020, and, excluding the pandemic period, the weakest growth performance since 2011, when GDP expanded by 3.9 percent. NONOY LACZA
RECORD EXPORTS DRIVE DTI’S WIDER MARKET ACCESS PUSH By Bless Aubrey Ogerio
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@blessogerio
HE Department of Trade and Industry (DTI) is ramping up efforts to open new markets for Filipino exporters following strong export growth in the final quarter of 2025. Preliminary figures from the Philippine Statistics Authority (PSA) show exports climbed more than 20 percent for three consecutive months, helping total export earnings hit a record $84.41 billion for the year. Trade Secretary Cristina
Roque said the surge in overseas demand supports domestic production and job creation, noting the importance of ensuring that global trade benefits reach Filipino families. “Our goal is to make exporting simpler and more rewarding, ensuring that the wealth generated from global trade translates into more jobs and better opportunities for every Filipino family,” Roque said in a statement. However, at the same time, imports also remained high, totaling $133.57 billion—the See “DTI,” A2
Local carriers agree to cut fares for domestic flights, says Palace By Samuel P. Medenilla
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OCAL airlines have agreed to bring down airfares for domestic flights to help boost the country’s tourism sector, according to Malacañang. Palace Press Officer Claire Castro said the Department of Transportation (DOTr) Acting Secretary Giovanni Z. Lopez was able to secure the commitment of Philippine Airlines (PAL) and Cebu Pacific. “He also said that he has negotiated and spoken with the management of PAL and Cebu Pacific and they agreed that prices will be reduced, especially for Siargao
flights,” she said in Filipino in a press briefing on Thursday. In August, in a bid to reduce prices, DOTr launched an investigation on reports that a roundtrip air ticket to the popular surfing destination cost P30,000. The Department of Tourism (DOT) said the high cost of airfare was among the factors which discouraged travelers from visiting the country. The agency said the country attracted 5.9 million inbound tourists and 134 million domestic trips last year. DOTr noted that one of the reasons for the country’s high airfares was the use of smaller
aircraft, which have a sitting capacity of 60 to 70 passengers, for local destinations. It noted such aircraft have the same operational cost compared to bigger aircraft, which can accommodate 200 passengers. It noted the fluctuating fuel cost also led to higher airfares, which DOTr is trying to address through the Civil Aeronautics Board (CAB). “When the price is seen to be decreasing, the CAB reminds airlines to also reduce the fuel surcharge, effectively cutting down airfares,” Castro said. “So, that’s what the DOTr is doing to improve tourism in our See “Flights,” A2
PESO EXCHANGE RATES n US 58.8350 n JAPAN 0.3835 n UK 81.2570 n HK 7.5423 n CHINA 8.4685 n SINGAPORE 46.6204 n AUSTRALIA 41.4198 n EU 70.3431 n KOREA 0.0411 n SAUDI ARABIA 15.6889 Source: BSP (January 29, 2026)