More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government.
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| https://mb.com.ph/2025/3/20/ph-creative-economy-growth-slows-to-3-year-low-at-8-7-in-2024 |
No word on what is causing this contraction.The growth of the Philippines’ creative economy in 2024 slowed to its lowest in three years as the total value of creative industries only increased to ₱1.94 trillion from ₱1.78 trillion in the previous year.
Based on preliminary data from the Philippine Statistics Authority (PSA), last year’s 8.7-percent growth in the creative industries was the slowest since 2021 (7.1 percent), when the country was still experiencing the Covid-19 pandemic.
In 2024, it accounted for 7.3 percent of the country’s gross domestic product (GDP), up from 7.1 percent the previous year.
According to the PSA, the creative economy comprises industries such as audio and audiovisual media, digital interactive services, advertising, research and development, artistic services, symbols and images, media publishing and printing, music, arts and entertainment, visual arts, traditional cultural expressions, and activities related to art galleries, museums, ballrooms, conventions, and trade shows.
Symbols, images, and related activities contributed the largest share of the creative economy last year, with 33 percent, or ₱640.3 billion.
Advertising, research and development, and other artistic services accounted for over 21 percent of the creative economy, followed by digital interactive goods and services, at nearly 21 percent.
Of the nine industry groups, the group of art galleries, museums, ballrooms, and conventions and trade shows had the smallest contribution to the creative economy, at ₱5.7 billion, or barely one percent of total.
Employment in creative industries rose to 7.5 million in 2024, up from 7.2 million in 2023, marking a 3.9 percent annual growth. This sector accounted for over 15 percent of the country’s total employment last year.
Traditional cultural expression activities had the largest share of employment in creative industries, at 36.6 percent. Symbols, images, and related activities followed with 29.5 percent, while advertising, research and development, and other artistic services accounted for 17.9 percent.
To recall, the GDP of the country’s creative industries contracted by ₱132 billion, a drop of nine percent in 2020. Meanwhile, the creative economy slowly recovered and peaked with a 13.3-percent growth rate in 2022, when the country was almost out of the pandemic.
The Philippines' economy needs to expand by 9.5% in order to fully recover from the devastating effects of the lockdown. Strengthening investments and upskilling the workforce will pave the way to long-term growth.
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| https://www.bworldonline.com/opinion/2025/03/21/660718/strengthening-investment-and-upskilling-workforce-for-the-philippines-long-term-growth/ |
THE PHILIPPINES aims to transition to an upper middle-income country over the next few years and achieve high-income status by 2050. While these goals are achievable, there are significant challenges to be addressed.
The “scarring effects” caused by the COVID-19 pandemic have impaired corporate balance sheets, curtailed investment, and hindered human capital development, inflicting lasting damage on economic fundamentals and diminishing the country’s long-term potential growth. Understanding the impact of these scarring effects on the Philippine economy and identifying effective policies to mitigate their consequences are crucial for achieving long-term goals.
The Philippine economy experienced a drastic 9.5% contraction in 2020, triggered by the COVID-19 outbreak. Despite a strong rebound in economic activities since 2022, key segments including private investment and the performance of some industries such as accommodation, food services, and construction have yet to reach their pre-pandemic levels. AMRO’s latest estimates indicate that the pandemic’s scarring effects have lowered the country’s annual potential growth by an average of 1.69 percentage points for the 2022-2024 period (See the figure). About two-thirds of this decline (1.12 percentage point) is due to slower growth in physical capital. The remaining impact comes from weaker total factor productivity (TFP) — likely caused by temporary productivity drops, underutilization, and efficiency losses — as well as reduced human capital formation.
Among the different production factors of the Philippine economy, physical capital suffered the most from the pandemic due to sluggish growth in investment. Investment in the Philippines in 2020 plummeted by 34% from 2019, with modest recovery only in subsequent years. Many firms were left with weakened balance sheets due to losses incurred during the pandemic, further hampering and discouraging new investments.
Meanwhile, post-pandemic domestic infrastructure development is hindered by a challenging business environment, deficiencies in planning, coordination, and financing, as well as a decline in private-sector participation in infrastructure projects. The weak sentiment in private investment and foreign direct investment (FDI) has slowed the accumulation of capital stock.
The pandemic also reduced the TFP, which captures the efficiency and innovation in an economy. The decline is attributed to lower job quality and productivity, and ongoing structural challenges exacerbated by the pandemic. Lower job quality is reflected in the higher share of self-employment and unpaid family work, which remains at an elevated level of over 30% compared with the pre-pandemic period, although it has gradually improved in recent years.
The pandemic also has a significant impact on human capital formation. Growth in the Philippines’ human capital decelerated sharply in 2020-2021, primarily driven by prolonged school closures and lower returns on education during the pandemic. However, human capital growth is now slower than the pre-pandemic period, partly due to the high learning losses.
In the pursuit of sustainable long-term growth, the Philippines should overcome the scarring effects of the pandemic through an increase in productive investment, productivity enhancement, and labor upskilling.
To help stimulate productive investment, the Philippines should focus on attracting more FDIs that emphasize technology and knowledge transfer. This can be achieved by enhancing infrastructure, reforming regulatory frameworks, fostering a competitive business environment, promoting digitalization and innovation, and developing a sustainable economy. Furthermore, it is imperative to introduce measures that help micro, small, and medium enterprises (MSMEs) restore their balance sheets and secure funding. Initiatives such as temporary loan restructuring incentives and the Philippine Open Finance Pilot have played a key role in improving financial access for MSMEs.
The government should also prioritize upgrading labor productivity and job quality by diversifying the economy and incentivizing investment in high-productivity sectors such as manufacturing, digital services, and agribusiness. This includes expanding the Technical Education and Skills Development Authority’s (TESDA) vocational training programs to focus on technology upgrade and digital skills. Collaboration between TESDA, industries, and educational institutions is crucial to align training with industry needs, ensuring a skilled workforce, and improving job placement opportunities for students post-training.
The scarring effects of the COVID-19 pandemic have posed unprecedented challenges to the Philippine economy, severely impacting its growth potential. Overcoming these long-term effects will depend on the country’s ability to implement effective investment and human capital policies. A comprehensive strategy — focused on digitalization, infrastructure investment, and sustainable economic development — will be crucial in enhancing competitiveness and advancing the Philippines toward its goal of achieving high-income status.
But this task might not be so easy.
It is a truth that the Philippines relies too much on foreign countries for employment whether it's OFWs or BPOs. But it will be no easy job to build a competent and productive native workforce.The Philippines’ balance of payments (BOP) is expected to remain in deficit in 2025 and 2026, as global economic uncertainty continues to dampen trade and investor confidence, the Bangko Sentral ng Pilipinas (BSP) said in its latest outlook.
A balance of payments is a country’s financial ledger that tracks all economic transactions with the rest of the world — including exports, imports, investments, and remittances. A BOP deficit means the country is spending more in foreign exchange than it is earning, which can affect the peso’s value and the country’s external stability.
The BSP attributed the projected deficit to a wider trade gap, slower growth in key export sectors, and global headwinds such as ongoing geopolitical tensions and changes in U.S. trade policies.
“Global growth prospects are expected to be further dampened by several factors, including the ongoing weakness in the Chinese economy, prolonged geopolitical tensions in conflict zones of the Middle East and Eastern Europe, and commodity price volatility,” the central bank said.
While the global economy is expected to remain sluggish through 2026, the Philippines’ domestic economy is forecast to continue expanding, offering a buffer against external risks. Private consumption, infrastructure investments, and business-friendly reforms are helping support growth, according to the BSP.
The trade outlook, however, remains mixed. Philippine exports of goods — particularly semiconductors — are expected to grow only modestly after declines in 2023 and 2024.
The semiconductor industry, which accounts for over half of Philippine exports, is still undergoing an “inventory correction,” meaning companies are adjusting from previous overproduction and shifting to meet changing global tech demands.
In the services sector, the business process outsourcing (BPO) industry — a key source of foreign earnings — is also facing headwinds.
Growth is expected to slow due to the U.S. government’s push to bring jobs back home and a local shortage of highly skilled workers in areas such as generative artificial intelligence (GenAI) and data analytics.
“These challenges may hamper industry efforts to climb up the value chain and maintain competitiveness,” the BSP noted.
Tourism is a bright spot in the services sector, with international arrivals from South Korea and Japan helping the industry recover to pre-pandemic levels.
Overseas Filipino worker (OFW) remittances, a stable source of dollar inflows, are projected to grow slightly below historical trends.
Middle Eastern countries like Saudi Arabia and Qatar are prioritizing local hiring, which could affect OFW deployment.
However, stricter U.S. immigration policies are expected to have limited impact on remittances from the U.S., since most Filipino migrants there are permanent residents or legally documented.
Despite the BOP challenges, the BSP expects sustained inflows of foreign investments — both direct and portfolio — to support the financial account. These inflows reflect investor confidence in the country’s economic fundamentals and ongoing reforms such as improved tax incentives, better ease of doing business, and enhanced capital market efficiency.
The band SALA has released a new single. They got their start during the pandemic playing songs in their living room.
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| https://www.gmanetwork.com/music/exclusives/news/91825/opm-band-sala-releases-no-ragrets/story/ |
"No Ragrets" is the latest single from the OPM band SALA. It boasts a unique and heartfelt backstory and is rich in emotion and profound significance.
Released under AltG Records, “No Ragrets” is now streaming on all digital platforms starting March 21. The song is also now on Spotify Philippines Fresh Finds Playlist.
The song explores the heartbreaking reality that, at times, lovers must part ways.
Composed of Ronald Villadar Fourth Dayag on bass, Fourth on drums and percussion, Neth on guitars, keyboards, and vocals, Rigil on guitars, SALA has also released the song "Hi, Tita" under AltG Records.
Much like a cozy living room, SALA—the band offers a laid-back take on songs about love and the realities of life, while promising a mellow listening experience.
Neth recalled how the band started, "Yung Sala, it started, there were only three of us. Ron, Fourth, and me."
Ron added the backstory of SALA, "The name came about because we only play in the living room."
Neth also revealed how the band became part of GMA Music's sub-label AltG Records.
"Before the pandemic, we used to cover songs, right in our living room. Even the songwriting, that's what happens in the living room.
"My songs were already recorded, but I didn't have money to release them, so I let different people hear them. Then I had a friend who controlled the sound system of a cafe in Subic. One of the people who heard them knew one of the big bosses at AltG Records. Then, he looked me up on Facebook, then he directly sent the song to Sir Rene.
Fourth shared, When the pandemic hit, Neth wrote a lot of songs, and after the pandemic, he reached out to Ron and I because he needed a band to record songs.
"Rigil, he's the owner of the studio where we recorded, at Mindscapes Lab."
Rigil recalled, "Their songs were so thin back then, I said, can I join them here?"
Fourth added, "We can honestly say, Rigil's contributions are so great. And then, we invited him to join. He is such a crucial part of the sound of Sala. And we are so glad and very honored to have Rigil with us."
Now they have hit the big time.
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