Marcos govt urged to adopt sound fiscal policy By Bless Aubrey Ogerio
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HE Philippines needs to adopt sound fiscal management measures and adjust its policies to sustain economic growth despite rising global trade tensions, according to an economist. Security Bank Chief Economist Angelo Taningco warned that a potential trade war could raise import costs, making production more expensive for businesses and push up consumer prices. “Many leaders around the world are very much cognizant of a looming escalation on tariffs and a potential date for that tariff retaliation,” Taningco said
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during a webinar on macroeconomic prospects. He added that as a net importer, the Philippines remains vulnerable to rising import costs, which could put pressure on businesses and households. Data from the Philippine Statistics Authority (PSA) showed that the country’s trade gap grew 16.9 percent in January, reaching $5.09 billion from $4.35 billion a year ago. This is a reversal of the 21.9-percent decline recorded in January 2024. However, the trade deficit by end-December expanded by 1 percent to $54.21 billion, from $52.59 billion the previous year. (See: https://businessmirror.com.
ph/2025/03/01/trade-gap-widens-by-nearly-17-in-january/) Import payments rose 10.8 percent to $11.45 billion in January, rebounding from consecutive decreases of 1.5 percent in December 2024 and 6 percent in January last year.
Tracking volatility
FORMER Philippine Institute for Development Studies (PIDS) researcher John Paul Corpus highlighted the importance of economic modeling in navigating external pressures. He said tracking fluctuations in oil prices, exchange rates, and government spending helps policymakers assess potential policy
responses and their impact on economic recovery. PIDS Senior Research Fellow John Paulo Rivera added that while the country posted moderate GDP growth in the last quarter of 2024, it lagged behind some Asean neighbors due to persistent inflation, high borrowing costs and weak external demand. The Philippine economy grew by 5.2 percent in Q4 2024, matching the previous quarter’s pace, according to the PSA. This brought full-year GDP growth to 5.6 percent, slightly above 2023’s 5.5 percent. (See: https://businessmirror. com.ph/2025/01/30/q4 -gdpSee “Marcos,” A2
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‘GLOBAL JITTERS CAUSE EXODUS OF HOT MONEY’ By Reine Juvierre S. Alberto
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UTFLOWS of “hot money” more than tripled in January as the return of United States President Donald Trump caused market jitters, according to an analyst. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed foreign investments registered with the BSP through authorized agent banks posted a net outflow of $283.69 million in January. The figure is 273.99 percent higher than the $75.83 million recorded in January 2024. However, the January figure was lower by $263.56 million than the $487.37-million net outflows in December 2024. The “Trump factor” was still considered by markets, pricing in possible higher US import tariffs, trade wars and other protectionist policies, which could dampen investments, according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corporation. This is “worst” for the US and local financial markets since the “Trump See “Global,” A2
GOLDEN HARVEST, GROWING HARDSHIPS In this photo, farmers transport their rice harvest from the fields. Despite achieving a record-high palay production of 20.06 million metric tons in 2023, local farmers continue to struggle with high production costs and unstable market prices. The government’s recent price cap on imported rice, intended to stabilize prices, has added to their challenges, making it even harder to sustain their livelihoods. JOEL C. PAREDES
REPORT: FOREIGN VISITORS SEEK AUTHENTIC TRAVEL EXPERIENCES By MA. STELLA F. ARNALDO Special to the BusinessMirror
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HE Philippines is sending a large delegation of private tourism stakeholders to the Internationale Tourismus-Börse (ITB) Berlin 2025, the world’s largest travel trade fair, from March 4 to 6, 2025. In a statement, the Tourism Promotions Board (TPB) said representatives from 29 private tourism agencies and one government firm will form the Philippine delegation, which will be led by TPB Chief Operating officer Maria Margarita Montemayor Nograles. The TPB is
the marketing arm of the Department of Tourism (DOT). “ITB Berlin provides an invaluable platform for us to engage with global stakeholders, highlight the unique selling points of our destinations, and position the Philippines as a premier travel choice,” said Nograles. “With a robust lineup of exhibitors, cultural activations, and business engagements, we are poised to elevate the Philippines’s presence on the global stage.” The Philippines aims to attract 8.4 million international tourists this year, although the DOT has See “Foreign,” A2
Parts makers seek govt help as input costs, imports rise By Andrea E. San Juan
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OCAL car parts manufacturers are clamoring for support even as top car brands in the country are optimistic about their sales projections for this year. Ferdi Raquelsantos, President of Philippine Parts Makers Association (PPMA), stressed the “urgency” of addressing the challenges confronting the sector. The group said parts makers are continuously grappling with rising costs and import dependency. “We welcome the positive outlook in the automotive industry,
but we must ask—what about the local parts makers? Many of our members are on the brink of closure due to an uneven playing field,” Raquelsantos said in a statement over the weekend. “If we don’t act now, we may see the death of Philippine auto parts manufacturing,” he added. The industry group of auto parts makers said despite the government’s push for investments in the automotive and electric vehicle (EV) industries, local suppliers are finding it “increasingly difficult” to compete with cheaper imported components.
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See “Parts,” A12
PESO EXCHANGE RATES n US 57.8970 n JAPAN 0.3865 n UK 72.9734 n HK 7.4443 n CHINA 7.9453 n SINGAPORE 42.9376 n AUSTRALIA 36.0872 n EU 60.2129 n KOREA 0.0399 n SAUDI ARABIA 15.4379 Source: BSP (February 28, 2025)