Recto still bullish on ’25 despite below-target GDP data By Reine Juvierre S. Alberto
D
ESPITE falling short of its growth target, easing inflation would allow the government to lower interest rates and boost consumption in 2025, according to Finance Secretary Ralph G. Recto. Recto said he remains bullish this year due to lower inflation, higher consumption and investments. This, after the Philippine economy posted a full-year growth of 5.6 percent in 2024. The country’s GDP growth was at 5.5 percent in the fourth quarter of 2023 while full-year GDP growth averaged 5.5 percent in 2023. “While this is below our target,
HONORARY LEADERSHIP Hans T. Sy, SM Prime Holdings Inc. Chairman of the Executive Committee, is conferred the title of Adopted Son and Honorary Mayor of the City of Bacolod as part of its Chinese New Year celebration and in recognition of his 18 years of contributions to economic development, business leadership and philanthropy in the City of Bacolod. In photo: Honorary Mayor Hans T. Sy, with (standing left to right), Bacolod Mayor Albee Benitez with Hans Sy’s children Harvey T. Sy and Hanna Carinna T. Sy at the Bacolod City Government Center. SM SUPERMALLS
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
@reine_alberto
we continue to be one of the fastest-growing economies in both the region and the world. This is despite external and local challenges such as extreme weather events, geopolitical tensions, and subdued global demand,” Recto said. “We remain optimistic about our outlook for 2025. A lower inflation rate gives us more room to ease interest rates, which will further boost consumption. With Create More taking full effect, we anticipate more investments materializing,” the Finance chief added. Global investors were enticed with the recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) Act during the World Economic Fo-
rum and Philippine Business Dialogue in the Netherlands. (See: https://businessmirror.com. ph /2025/01/23/recto-usescreate-more-to-entice-globalinvestors/). The interim Implementing Rules and Regulations (IRR) of Create More were issued in December 2024 while the final IRR is set to be signed in February 2025. Moreover, Recto said the P6.326-trillion 2025 national budget is the government’s “most powerful tool” to mitigate risks and provide economic benefits to Filipinos. “President Ferdinand R. Marcos Jr. continues to lead meetings to identify gaps in the appropriations of national government agencies, ensuring that funds are used effectively for maximum im-
pact,” Recto said. Meanwhile, the extension of the Rice Competitiveness Enhancement Fund (RCEF) until 2031 and its increased allocation of P30 billion is seen to enhance local rice production, support rice farmers and stabilize rice prices. The government is also strengthening its efforts to control African Swine Fever (ASF) and administer vaccines to mitigate disruptions in pork supply, Recto added. Moreover, the National Economic and Development Authority (Neda) is finalizing the Trabaho Para sa Bayan (TPB) Plan or the administration’s 10-year employment roadmap to improve workforce employability. Apart from enhancing labor market governance, the initiative
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business
n
Friday, January 31, 2025 Vol. 20 No. 111
See “Recto,” A2
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
’24 GROWTH DISAPPOINTS,
’25 SHADOWED BY RISKS By Cai U. Ordinario
A
CRUNCHING Q4 Philippine Statistics
@caiordinario
FTER two years of lackluster economic performance under the Marcos administration, economists are not optimistic that 2025 will be any different due to a number of headwinds, including the emerging trade isolationism.
Authority (PSA) Undersecretary Dennis S. Mapa and National Economic and Development Authority (Neda) Undersecretary for Policy and Planning Group Rosemarie G. Edillon present the 2024 Fourth Quarter Performance of the Philippine Economy during a press conference at the PSA Headquarters in Quezon City on Thursday, January 30, 2025. NONOY LACZA
On Thursday, the Philippine Statistics Authority (PSA) disclosed that the economy only posted a growth of 5.2 percent in the last quarter of 2024, leaving fullyear growth to average 5.6 percent, the second consecutive year that the country failed to meet its minimum GDP growth target. (See: https://businessmirror. com.ph/2025/01/30/q4-gdp-growth-at5-2-as-typhoon-battered-farm-sectorshrinks/). “Annual Growth for 2025 is expected to be higher but will still barely miss the 6 perSee “Growth,” A2
SLOW GROWTH, COVID COULD Marcos bares plan to meet
DELAY EXIT FROM MIC TRAP Trump on 3 major issues
S
LOW growth and the Covid-19 setbacks suffered by the economy could delay the country’s exit from the middle income trap, according to the National Economic and Development Authority (Neda). In a briefing on Thursday, Neda Undersecretary for Planning and Policy Rosemarie G. Edillon told reporters that while attaining Upper Middle Income Country status remains feasible this year or early next year, the AmBisyon2040 goals may be delayed. The AmBisyon 2040 is the national long-term mission-
vision of the country to have a predominantly middle class society after a 25- period which began in 2015. “With respect to the AmBisyon [2040], our setback was quite substantial because of Covid in terms of productivity loss, so we are still trying to catch up on that. That’s really important that we are able to quickly recover the lost ground so we can still meet it,” Edillon told reporters. Edillon said that while their assessments in Neda estimate that the delay in attaining the AmBisyon2040 will not reach See “Slow,” A2
By Samuel P. Medenilla
P
@sam_medenilla
RESIDENT Ferdinand Marcos announced he will meet with United States President Donald Trump to discuss trade, security and immigration policies, which has resulted in the deportation of Filipinos. In an interview with reporters in Lapu-Lapu City last Thursday, the chief executive said he hopes the meeting will help prevent the mass deportation of Filipinos in the US. “So, this is something that we have to work through and hopefully resolve. Because the Filipinos in the United States, especially, have really formed a very important part already of their workforce,” Marcos said. Last Monday, Philippine ambassador to the US Jose Manuel Romualdez reported that 24
Filipinos were deported for allegedly engaging in illegal activities. The deported Filipinos were among the 956 people affected by the nationwide immigration crackdown by the Trump administration. Trump has been vocal about his intention to go after undocumented migrants in the US. Last November, the Department of Migrant Workers (DMW) reported there were an estimated 370,000 undocumented Filipino immigrants in the US. During the first term of Trump, 3,500 Filipinos were deported from the US from 2017 to 2020. Aside from immigration issues, Marcos said he will also discuss trade, defense and security, and the effect of the announcement by the US State Department of the decision to suspend almost all of US foreign aid by 90 days. See “Marcos,” A2
PESO EXCHANGE RATES n US 58.4750 n JAPAN 0.3768 n UK 72.8365 n HK 7.5045 n CHINA 8.0789 n SINGAPORE 43.3469 n AUSTRALIA 36.4299 n EU 60.9368 n KOREA 0.0406 n SAUDI ARABIA 15.5954 Source: BSP (January 30, 2025)