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Saturday, March 29, 2025 Vol. 20 No. 168
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BUSINESS CONFIDENCE WEAKENED IN Q1—BSP B n
By Reine Juvierre S. Alberto
USINESS confidence in the Philippines weakened in the first quarter of 2025, as concerns over post-holiday demand slowdown, inflationary risks and tighter financial conditions loom. According to the Business Expectations Survey by the Bangko Sentral ng Pilipinas (BSP), the business sentiment in the Philippines is “less optimistic” in the first quarter of 2025. The overall confidence index (CI) fell to 31.2 percent in the first quarter of 2025 from 44.5 percent in the fourth quarter of 2024. “This decline reflects a combination of a decreased percentage of optimists and an increased percentage of pessimists,” the BSP said. Concerns on post-holiday decline in demand for goods and services coupled with a slowdown in business activities and potential resurgence of inflationary pressures gloom firms’ outlook. Firms are generally less optimistic across all sectors, except for the construction sector, whose optimism was little changed, according to the BSP. Meanwhile, firms expecting tighter cash or liquidity positions in the first quarter is expected, as
OVERALL CONFIDENCE INDEX Q1 2025: 31.2% (from 44.5% in Q4 2024) Q2 2025 (Projection): 45.4% (from 40.3% in Q4 2024) Next 12 Months (Projection): 56.4% (buoyant outlook)
the financial condition index became more negative. Businesses also expect access to credit to turn tight in the first quarter, as the credit access index (CAI) reverted to negative territory. Moreover, firms anticipate the peso to depreciate against the US dollar in the first half of the year, but to appreciate over the next 12 months.
STICKY, SWEET, AND GONE IN A FLASH! Candon City whipped up a giant calamay, a 10-meter-wide sticky delight weighing 1,639 kilos. In less than five minutes, over 1,500 eager residents at South Central Elementary School devoured the massive treat. Crafted by 50 women, the calamay required 2,000 coconuts, 900 kilos of white and brown sugar, 150 gantas of rice flour, and over 20 kilos of peanuts. Fifty kawas (vats) were used to cook the sweet masterpiece. Back in 2008, Candon made history with the world’s heaviest rice cake, tipping the scales at over 2,500 kilos. MAU VICTA
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‘Pay as you file’ annual tax returns before April 15–BIR
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HE Bureau of Internal Revenue (BIR) told taxpayers to “pay as they file” their annual income tax return (AITR) for 2024 before the April 15 deadline to avoid penalties. Taxpayers are required to file their 2024 AITR electronically through the BIR’s e-Filing facilities such as the Electronic BIR Forms (eBIRForms) or Electronic Filing and Payment System (eFPS) for those mandated to use it. Those without internet access may use the Revenue District Offices’ (RDO) eLounge facilities where they will be assisted in their e-Filing of 2024 AITR. The BIR National Office will also establish an Electronic Filing (e-Filing)/Tax Assistance Center at the BIR National Training Center (NTC) Auditorium, inside the BIR Compound on Senator Miriam P. Continued on A2
KEY TRENDS & INSIGHTS
49% of office transactions were due to expansion n Hybrid Work Impact: Companies reducing office footprints n CREATE MORE Act: Allows PEZAregistered firms to adopt up to 50% remote work with tax perks n
PHL’s ’24 trade gap widens to $54.33B; Feb data shrinks By Bless Aubrey Ogerio
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HE country closed 2024 with a wider trade gap as imports continued to outpace exports, the Philippine Statistics Authority (PSA) showed. Figures from the International Merchandise Trade Statistics indicated that the trade deficit clocked in at $54.33 billion for the Philippines in 2024, rising 3.3 percent. This followed an 8.8-percent decline in the trade deficit in 2023, which came after a notable 36.6-percent surge in 2022. The PSA also reported that the total value of the country’s external trade in goods reached $200.87 billion in 2024, representing a slight 0.5-percent growth from $199.83 billion in 2023.
TRADE DEFICIT OVERVIEW (2024)
Total Trade Deficit: $54.33B (+3.3% YoY) Total External Trade: $200.87B (+0.5% YoY) n Imports: $127.60B (+1.1%) n Exports: $73.27B (-0.5%) n n
“Of the total external trade in 2024, 63.5 percent were imported goods, while the remaining 36.5 percent were exported goods,” the statistics agency stated. In contrast, 2023 saw a 7.8-percent decline in external trade in goods, which followed a 13.2-percent increase in 2022.
Total export sales for 2024 amounted to $73.27 billion, marking a slight 0.5-percent dip from the $73.62 billion in 2023. Exports had already declined by 7.5 percent in 2023, following a 6.5-percent growth in 2022. The biggest hit among export commodities in 2024 came from electronic products, which saw a $2.81-billion decline. Still, electronics held their spot as the country’s top export, bringing in $39.09 billion or 53.4 percent of the total export earnings. Manufactured goods, on the other hand, remained the dominant export category, contributing $58.39 billion, or 79.7 percent of the total exports. On the import side, the total value of goods entering the counContinued on A2
T TUPUNGATO VIA DREAMSTIME
“Our goal is to make tax compliance easier and hassle-free for our taxpayers.”— Internal Revenue Commissioner Romeo D. Lumagui Jr.
COLLIERS: IT-BPM 2025 GROWTH STEADY AMID SHRINKING SPACE
HE information technology and business process management (IT-BPM) industry is set for continued growth and expansion in 2025, driven by innovation and strategic shifts, according to a property consultancy firm. Colliers highlighted the industry’s “resilience” and “adaptability” last year. In 2024, Metro Manila recorded 246,672 square meters of office space take-up, while provincial areas saw an additional 177,859 sq m occupied. “While some companies have adjusted their office space requirements in response to evolving work trends, the business process outsourcing [BPO] sector remains a significant contributor to the Philippine economy,” the firm said in a statement. Continued on A2
»NEWS | A4
BIRTHDAY RALLIES
THIS March 28, 2025, photo shows some of the estimated 100,000 people who flocked to the streets of Davao City to show support for former President Rodrigo R. Duterte on his 80th birthday last Friday. Local police said similar gatherings were also observed in areas outside the city. MANUEL CAYON
PESO EXCHANGE RATES n US 57.5330 n JAPAN 0.3810 n UK 74.5455 n HK 7.3997 n CHINA 7.9225 n SINGAPORE 42.9543 n AUSTRALIA 36.2458 n EU 62.1299 n KOREA 0.0394 n SAUDI ARABIA 15.3393 Source: BSP (March 28, 2025)