Coronavirus Lockdown: Working With Australia, A Facebook Joke, and More!

More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government. 

Australia is a major source of tourists for the Philippines and the DOT is working with Australia to sustain travelers interest to get the numbers back to pre-pandemic levels. 

https://pageone.ph/dot-working-with-australia-to-sustain-traveler-interest-amid-advisory/

The Philippine government continues to work with Australia to sustain its citizens’ interest in traveling to the archipelago amid its latest travel advisory.

Speaking to reporters Monday, Tourism Secretary Christina Frasco said Australia remains one of the Philippines’ highest growth and recovery sectors post-pandemic.

“They are averaging around 22 percent in terms of growth for arrivals month-on-month compared to 2024,” she said.

“We continue to work with both the Australian government and stakeholders to ensure this interest of Australians in the Philippines is sustained,” she added.

The Philippine government, she said, is doubling efforts to ensure the quality of tourism safety as well as travel convenience and accessibility.

Frasco, meanwhile, encouraged the Australian government to continue partnering with the Philippines to help them “rationalize their travel advisory”.

In its March 19 travel advisory update, the Australian Department of Foreign Affairs and Trade (DFAT) advised its citizens to “exercise a high degree of caution in the Philippines overall due to the threat of terrorism and violent crime”.

It reiterated its warning against traveling to central and western Mindanao, including the Zamboanga Peninsula, Sulu archipelago and the southern Sulu Sea area.

Frasco said the DOT is working closely with the Department of the Interior and Local Government, Department of National Defense, and the Philippine National Police as well as related government agencies “to safeguard and continue to elevate the quality of our tourism destinations”.

Australia ranks as the fifth-highest source market for the Philippines in 2024, contributing 299,286 arrivals.

In the first two months of the year, a total of 56,629 Australian travelers visited the country, posting a 19.36 percent growth from the 47,694 recorded in 2024.

On top of ensuring travel safety, Frasco said the DOT is also in talks with international and local carriers to expand connectivity and number of direct flights to the Philippines.

Looks the problem is Mindanao. That's a no brainer. Stay in Luzon and the Visayas and everything will be ok. 

Bacolod City is seeing a lot of tourists post-pandemic.

https://www.pna.gov.ph/articles/1247169

This highly-urbanized city logged a 6.72 percent increase in overnight tourist arrivals in 2024, further strengthening its status as a top destination in the country.

Data from the City Tourism Office on Monday showed Bacolod accommodated 833,345 overnight travelers last year compared to only 780,916 in 2023.

In a statement, Tourism Operations Office chief Ma. Teresa Manalili said overnight tourist arrivals in the city have steadily climbed in the past three years, recovering from the pandemic lows in 2020 and 2021.

“The city government remains committed to strengthening Bacolod’s position as a top destination in the Philippines under the banner ‘Smile, You’re in Bacolod!’ and in support of the Department of Tourism’s ‘Love the Philippines” campaign,” she said.

Last year’s total overnight tourists included 774,084 domestic and 59,261 foreign visitors.

The city’s top ten foreign markets were the United States, China, South Korea, Canada, Australia, Japan, Singapore, Taiwan, the Republic of China, the United Kingdom, and Hong Kong SAR.

Some 125,491 same-day tourists also visited Bacolod in 2024, data showed.

Meanwhile, the annual overview showed that from 803,911 overnight tourist arrivals in 2019, figures slumped by 82.22 percent to only 143,114 in 2020, and slightly increased by 3.12 percent to 147,582 tourists in 2021.

By 2022, Bacolod rebounded with 618,682 overnight travelers, showing an increase of 319.17 percent, followed by a growth of 26.22 percent to 780,916 tourists the following year.

In October last year, the MassKara Festival drew 98,563 visitors, higher by 24.03 percent compared to the 2023 figures.

“This marks the festival’s continued resurgence as a major cultural and tourism draw for both local and international guests,” Manalili said.

Aside from the MassKara Festival, Bacolod also attracts tourists to its other major festivals.

These include the Bacolaodiat Festival, one of biggest Chinese New Year celebrations in the country; Chicken Inasal Festival, a celebration of the city’s chicken inasal industry every May; and Bacolod Rum Festival, which highlights the role of the sugar industry in rum production every August.

As long as the Australians continue to visit Bacolod and stay far away from Mindanao they should be fine. 

Private banks remain profitable post-pandemic. 

https://www.bworldonline.com/top-stories/2025/03/27/662024/strong-growth-to-support-philippine-banking-sector-fitch-ratings/

THE PHILIPPINE banking system’s credit profile will likely remain stable on the back of the country’s strong macroeconomic fundamentals, Fitch Ratings said. 

“Fitch Ratings believes the Philippines’ resilient medium-term economic potential and favorable banking business prospects reinforce banks’ standalone credit profiles,” it said in a peer credit analysis on Wednesday. 

Earlier this month, the credit rater hiked the country’s banking sector operating environment score to “bbb-” from “bb+.” 

All rated Philippine banks’ viability ratings (VR) were also revised one notch higher this month. 

“This considers the country’s strong growth prospects, with Fitch forecasting GDP (gross domestic product) growth of 6% over the next two years, which should underpin banking business volume and keep impairment risks at bay,” it said. 

The government is targeting GDP to grow by 6-8% this year until 2028. 

“Rising geopolitical tensions and greater trade protectionism pose downside risk to the Philippines’ growth momentum, but we believe it is relatively insulated and more resilient than many of its export-oriented regional peers, given its lower reliance on merchandise exports.” 

The recent VR upgrade also “reflects steady improvement in the private banks’ profitability and asset quality since the trough of the COVID-19 (coronavirus disease 2019) pandemic,” Fitch said. 

“Rising capital buffers at the state-owned banks support their credit profiles, and we expect this to continue over the next 12-18 months, helped by enhanced internal capital generation.” 

The net earnings of the Philippine banking industry rose by 9.76% year on year to P391.28 billion in 2024. 

Fitch raised the VR of BDO Unibank, Inc., Bank of the Philippine Islands, and Metropolitan Bank & Trust Company by one notch to “bbb-” from “bb+.” 

“The three privately owned banks have better standalone credit profiles than their state-owned counterparts, largely due to more established franchises and better underwriting standards,” Fitch Ratings said. 

“These factors will continue to help the banks maintain their industry-leading profitability and loan quality even as they continue to broaden their retail customer base,” it added. 

And they are doing better than state run banks. 

A Filipino in Chicago started a bakery business during the pandemic. Now he is thriving. 

https://chicago.eater.com/2025/3/27/24394961/del-sur-bakery-lincoln-square-filipino-opening-photos-images

While most don’t spend high school meticulously planning the future, that’s exactly what Justin Lerias did and he has the handwritten journal entries to show for it. Almost a year to the day after signing the lease and eight years since putting pen to paper, Lerias has finally opened Del Sur.

The 1,200-square-foot space in Lincoln Square is located next to the CTA’s Brown Line Damen stop. Lerias’s creative Filipino American baked goods — calamansi chamomile buns, turon danishes (in the tradition of sweet lumpias), ube oatmeal sandwich cookies, and longanisa-filled croissants — were born from an experimental pandemic home project that evolved to pop-ups and later at a more permanent home at Side Practice Coffee, the Filipino-inspired coffeeshop across from Amundsen High School in Ravenswood. Side Practice is owned by entrepreneur Francis Almeda, who’s also invested in Kanin and Novel Pizza Cafe. He’s also an investor in Del Sur, Lerias prefers to call him an advisor versus a co-owner. Almeda has played a big role in helping Lerias’s solo pastry career, including providing a home for his pastry pop-ups. Almeda, who constantly bounces around town working on projects, acts as an “investor advisor” at Del Sure, says Lerias. “Francis is too important in our little universe to force him to be in one space like he would if he was a partner here.”

Born on the southern island of Mindanao in the Philippines, Lerias grew up on Chicago’s North Side. His culinary experience includes pastry chef positions at Lost Larson and Big Jones. At Del Sur, he dives deep into showcasing both his birthplace and Midwest upbringing.

“Del Sur has been the culmination of my life,” says Lerias, who recently turned 24. “I’m a quiet and introspective person, and I feel like my pastries are a very good indicator of who I am as a person and how I approach my career and my work.”

When it comes to Del Sur’s baked goods beyond those signature items, Lerias gave his small team of bakers one caveat: no basic pastries. “If we’re going to be a specialty bakery, let’s really ride that,” he says.

He would likely never experience this level of success in Mindanao. 

The number of Filipinos self-reporting as hungry has hit the highest since the pandemic. 

https://www.abs-cbn.com/news/business/2025/3/31/more-than-1-in-4-filipino-families-went-hungry-in-last-3-months-sws-1152

About 27.2 percent of Filipino families experienced involuntary hunger in the last three months, according to a Social Weather Stations (SWS) survey released over the weekend.

The number of families who did not have anything to eat at least once "was 6.0 points above the 21.2 percent in February 2025, and the highest since the record high 30.7 percent during the COVID-19 pandemic in September 2020," the pollster noted.

The March figure was 7 points above last year's hunger average of 20.2 percent, SWS added.

It said families in Visayas were the hardest hit by hunger at 33.7 percent, followed by Metro Manila at 28.3 percent, Mindanao at 27.3 percent, and the rest of Luzon at 24 percent.

Some 21 percent of families faced moderate hunger, which meant they experienced hunger “only once” or “a few times” in the last three months. Meanwhile, 6.2 percent experienced severe hunger, which meant they felt it “often” or “always”.

Malacanang said it would look into the survey results.

“Let’s study where these statements that our fellow countrymen are still hungry come from and to know where it is and if there are any shortcomings, we can alleviate these kinds of situations,” Palace Press Officer Claire Castro said in a briefing.

She noted that the government was implementing several projects geared towards addressing hunger among vulnerable Filipinos.

“In the new report of the DSWD, there are already many programs that really help alleviate hunger. I will first mention the DSWD program that serves 300,000 food-poor households with the equivalent of 1.5 million individuals – across the country. They are given P3,000 monthly as food aid,” Castro said.

“The second program of the DSWD is Walang Gutom Kitchen. It is located in Pasay City where it serves hot free meals to families, especially children on the streets.”

“Apart from that, the DSWD has a program called the ‘Walang Gutom Project Kusinero Cook-off Challenge’ to improve public nutrition and there is also the Walang Gutom Project that provides eligible families with electronic benefit transfer – this is P3,000 monthly food credits,” she added.

The March 15-20 survey used face-to-face interviews with 1,800 registered voters. It had sampling error margins of ±2.31 percent for national percentages.

How were these hungry people surveyed? 

During the pandemic a student decided to apply for a Thai royal scholarship as a joke. It changed his life. 

https://globalnation.inquirer.net/270949/how-a-facebook-joke-earned-a-bukidnon-student-a-thai-royal-scholarship

Angelo Fernandez Virgo’s story may sound cliché — he is the youngest of seven children in a farming family with limited means, and from an early age, he knew that education would be his path to a better life.

“None among my siblings has ever finished college, that is why finishing college and becoming a professional is very crucial for me. I want to prove that poverty is not a hindrance to achieve success,” Angelo said in his introductory speech when applying for the Royal Scholarship for Asean Students at Suranaree University of Technology (SUT) in Nakhon Ratchasima, Thailand, in 2020.

In April 2020, during the height of the COVID-19 pandemic, Angelo Fernandez Virgo, a 17 year old from Valencia, Bukidnon, was browsing Facebook. He had just graduated from senior high school at Central Mindanao University – Senior High School and was looking forward to a university life under a DOST (Department of Science and Technology) scholarship.

One day, a friend tagged him in a Facebook post—intended as a joke—about the Royal Scholarship for Asean Students. Endorsed by Her Royal Highness Princess Maha Chakri Sirindhorn, the program offered full scholarships for engineering and technology courses at Suranaree University of Technology (SUT) in Nakhon Ratchasima, Thailand. The link was posted by a professor from Mindanao State University (MSU), which at the time had a memorandum of understanding with SUT.

“I read the terms and conditions for the Royal scholarship grant, it is like the DOST Scholarship but without the return service condition and no refund policy in case the scholarship gets terminated during study (e.g., failing to meet the minimum average grade). It’s also a chance to explore Thailand and study for free,” Angelo recalled.

Angelo passed all the interviews and exams to clinch the scholarship. He was one of the seven Filipino students and 19 others from Asean countries who studied Innovative Agripreneur, Civil Engineering, Mechanical Engineering, and Petrochemical and Polymer Engineering. Angelo was accepted for the Civil Engineering course. But the real challenge was the travel restrictions due to the pandemic and the financial difficulties.

“I had to secure a quarantine pass just to travel and process the school requirements including my passport,” Angelo said.

Due to travel restrictions, Virgo and his fellow scholars attended online classes for a few months before flying to Thailand on January 20, 2021.

“I had to stay at the house of another SUT Royal Scholar in CDO because we didn’t have internet and computer at home,” he said.

Plane tickets were costly, and upon arrival in Thailand, he had to book a quarantine hotel, which cost more than 28,000 THB. Medical insurance was also mandatory. Yet, Angelo and his family did all they could to have this once-in-a lifetime opportunity.

In Thailand, Angelo and the foreign students struggled during their first few months.

“The language barrier was tough. Many locals struggled with English, and most signs were in Thai. Inside the university, it was easier because we were in an international program, but outside, I had to rely on gestures and body language. Over time, I learned basic Thai words to make interactions smoother,” Angelo explained.

He also learned to eat spicy Thai foods.

Homesickness was another major challenge. “I often cried during video calls with my family. But having fellow Filipino scholars at the university helped me adjust. We shared dormitory rooms and supported each other.”

Angelo also connected with the small Filipino community in Nakhon Ratchasima, eventually making friends and easing homesickness. He was only able to return home in October 2024 after completing his studies.

Was it his dream to become an engineer?

Knowing his family’s financial struggles, Angelo said that he resolved to study harder. He excelled in mathematics during his elementary and high school years.

“In elementary school, we had writing exercises about our ambitions. At first, my parents influenced my dream of becoming an engineer, specifically to plan and build houses. I believed that Civil Engineering would be our way out of poverty,” he said.

“My family remains my biggest inspiration—I want to give them the best life possible.”

Angelo and the first batch of Filipino Asean scholars graduated on March 23, 2025. Her Royal Highness Princess Maha Chakri Sirindhorn conferred their degrees in the largest and most elaborate graduation ceremony in Nakhon Ratchasima.

However, earning his bachelor’s degree was not enough. Angelo believed that specializing in specific areas of Civil Engineering would open doors to various opportunities in the field.

In February 2025, Angelo was awarded another scholarship — becoming the first Filipino recipient of the One Research One Grant (OROG) Scholarship for Master of Engineering (M.Eng). He was endorsed by his adviser, Asst. Professor Dr. Theerawat Sinsiri. The scholarship covers full tuition and school activity fees, as well as research and conference expenses, though students must cover their own monthly and living allowances.

To the young people who are dreaming big, Angelo has wise words to impart:

“The possibilities out there are limitless. Do not be afraid to challenge yourself; you must be willing to get out of your comfort zone and grow. You have the ability and freedom to write your own story so be sure to make the most out of that. Dream as big as you can; it’s free. Be grateful to those who support you, and most of all, don’t forget to appreciate and give credit to yourself as well.”

Why did his friend intend it as a joke? What is so funny about studying abroad in Thailand? 

Golf rose in popularity during the pandemic causing one family to cash-in. 

https://lifestyle.inquirer.net/536850/malbon-golf-manila/

Ask any young athlete what motivates them in their chosen sport and chances are, stylish outfits will make the list. The founders of Malbon know this all too well.

With their bold and visionary approach, Stephen and Erica Malbon bring a fresh, fashion-forward perspective to golf merchandise in a market of cookie-cutter homogeneity—propelling the Malbon brand to global success, with distribution in around 50 locations in South Korea and even making its way to Justin Bieber’s closet. 

The Malbons’ entry into the golf apparel space is akin to a fresh, cool breeze on a hot summer day on the fairway. 

Golf has seen a steady rise in popularity in the Philippines, especially through the pandemic when it was considered one of the few permitted activities. The sport continues to gain momentum with Filipino players making big swings overseas, from rising stars like Rianne Malixi to champions such as Bianca Pagdanganan, Yuka Saso, Miguel Tabuena, Angelo Que, Rico Hoey, golfers of all generations with Filipino heritage are making their mark on the global stage.

Just recently, it was announced that the Sta. Elena Golf Club in Cabuyao, Laguna will host the Asian Tour International Series in October this year—marking one of the most thrilling times for golf in the country. 

It’s the perfect time for Malbon to step in and be part of the action,  supporting the sport they love in a country close to their hearts. Founded in Los Angeles in 2017, Malbon is the work of husband-and-wife duo Stephen and Erica Malbon, the latter of whom has Filipino roots.

Now, Malbon has arrived in the Philippines with its largest store yet, launched last week under TKG Lifestyle. The space joins a curated selection of brands outside Shangri-La The Fort, on the same row of TKG Lifestyle’s brands %Arabica and Gentle Monster. 

The store itself is an experience that merits a photo as soon as you step in, with sophisticated interiors, sleek water installation, and striking silver sculpture, all designed by architectural firm Eve Architecture. Customers can use iPad self-checkouts or enter the exclusive Buckets Club on the second floor where VIP guests can unwind after a round of golf (or shopping). Erica personally oversaw the design process, as she herself picked the wood and stone materials.

The Malbons have a deep love for golf which they consider “the greatest game on Earth.” As a golfer myself, I can’t help but appreciate the passion, the fresh concepts, and the excitement they bring to the sport. 

Here, we sat down with Erica to get to know more about the brand as they open their first store in the Philippines. 

What drove you to establish Malbon?

Stephen, my husband and co-founder, and I started Malbon with the intent of inspiring young people to participate in the greatest game on Earth—which we consider to be golf. We both had a passion for the sport, and we wanted to bring a contemporary flair to the brand.

Golf suddenly rose in popularity during the pandemic years. How did this affect your business?

The pandemic was actually a time for golf to really shine. I think that throughout the last couple of years, it’s all come to a head in terms of people playing. So I think there was the movement of brands like ourselves starting to make apparel and to make a culture around golf that was more fun and accessible simultaneously. 

When the pandemic hit, it gave people more free time to explore hobbies and try something new. I think it really helped propel our Malbon movement and our business forward a little faster. The pandemic, of course, was unfortunate, but it helped us look for the positive in every situation, for everyone at that time.

What better reason to capitalize on a new fad?

Coronavirus Lockdown: Creative Economy, 'No Ragrets', and More!

More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government. 

The creative economy is having a hard time recovering from the effects of the pandemic. 

https://mb.com.ph/2025/3/20/ph-creative-economy-growth-slows-to-3-year-low-at-8-7-in-2024

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.

No word on what is causing this contraction. 

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.

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. 

https://dailyguardian.com.ph/philippines-faces-bop-deficit-amid-global-risks/

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.

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 band SALA has released a new single. They got their start during the pandemic playing songs in their living room. 

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. 

Coronavirus Lockdown: 9-9.5% Growth, BSP Survey, and More!

More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government. 

The Philippines has had some setbacks growing the economy to pre-pandemic levels. The nation needs 9.5% growth for the next three years to reach pre-pandemic levels by 2028.

https://www.bworldonline.com/economy/2025/03/12/659091/philippines-needs-9-9-5-growth-to-return-to-pre-pandemic-track/

THE economy needs to grow by at least 9% to 9.5% a year until 2028 to return to its pre-pandemic growth track, a former Bangko Sentral ng Pilipinas (BSP) official said.

During the MAP Economic Briefing and General Membership Meeting, GlobalSource Partners analyst Diwa C. Guinigundo said that the current government’s target of “between 6% to 8% annually, by 2036 (the Philippines) should be reaching only P60 trillion.”

“To overcome this setback, growth will have to be between 9% to 9.5% through 2028 to be able to return to the original growth path,” he said.

Last year, Mr. Guinigundo pushed for targets of 9.4% growth.

The Development Budget Coordination Committee (DBCC) on December trimmed the economic growth estimate for this year to 6-6.5% but widened the target band to 6-8% until 2028, due to “evolving domestic and global uncertainties.”

Finance Secretary Ralph G. Recto described as “doable” growth of between 6% and 6.5%.

In 2024, the economy expanded by 5.6%, following a 5.5% reading in 2023. It fell short of the government’s revised 6-6.5% target.

“We grew by only 5.5% in 2023 and 5.6% last year. Of course, we take pride in saying Philippine growth performance surpassed the global average in 2022 and 2023 of 3.5% and 3.3% respectively,” he said. 

“But we had the economy stall in 2020 and the years following that, so we have a lot of catching up to do.”

Mr. Guinigundo said risks to the economy include fiscal and debt sustainability, with revenue effort remaining low, food security issues, and political disunity.

“Since the Trump policy of tariff increases and tax cuts are potentially inflationary, we don’t expect the Fed to be very aggressive in reducing the target interest rate,” he added in his presentation.

“With the BSP having the space to further ease monetary policy, we see a potential capital outflow, peso depreciation, and therefore, the resurgence of inflation.”

Mr. Guinigundo noted that the budget deficit, which narrowed to P1.506 trillion in 2024, remains  in the “trillion mark.”

He said improved tax administration can only yield much, as can “squeezing” state-run firms for more dividends.

“This is after Congress forced the split banks and other GOCCs to continue to the Maharlika Investment Fund. No wonder, from the pre-pandemic (debt) of $7.7 trillion, we saw the crisis ending at $16 trillion. In January 2025, $300 billion was added to National Government debt,” he said.

The economy did not stall in 2020. It was shut down by Duterte and there was nationwide devastation. 9.5% growth is simply not possible so it will be quite a while until the Philippines fully recovers from the economic lockdown.

Tourism plays a big part of the Philippines' economy. Siquijor is a new rising star destination.

https://business.inquirer.net/512457/siquijor-on-the-map-a-rising-star-in-ph-tourism

With 7,641 islands, the Philippines is home to an unspoken competition among lesser-known destinations vying to become the next tourism hotspot.

Leading the charge is Siquijor, a province in Negros Island that has seen a significant rise in overnight stays. Its 2024 arrivals reached 241,529, surpassing its pre-pandemic total of 168,366. Its untouched natural beauty and secluded charm, amplified by growing social media exposure, have made it a top choice for international travelers.

Agoda’s latest annual ranking even named Siquijor as the fastest growing travel destination in the Philippines today.

At least part of the Philippines is surpassing pre-pandemic figures. 

The Bangko Sentral ng Pilipinas has released a survey showing how Filipinos were affected economically during the lockdown. This survey has been broken down by several articles. First is how money was spent monthly. 

https://business.inquirer.net/513337/bsp-survey-shows-how-filipinos-spent-in-moments-of-crisis

Everyone did everything to survive during the COVID-19 pandemic lockdown. But did you know how Filipino families managed their budgets during the health crisis?

A new nationwide survey by the Bangko Sentral ng Pilipinas (BSP) showed that Filipino households spent an average of P19,242 per month—or P230,905 a year—to meet their needs in 2021, a year marked by slow economic reopening from pandemic lockdowns.

The same BSP poll—called the Consumer Finance Survey and is conducted every three years to check the financial condition of Filipino families—provided insights on what’s in the shopping cart of a typical Filipino household during the pandemic.

Results of a central bank survey of 16,212 households showed that food accounted for the largest expenditure share in 2021 at 57.2 percent, consistent with findings from previous survey rounds.

Broken down, families spent an average of P9,955 per month on food prepared and consumed at home. That cornered 55.4 percent of the total expenditures, higher than the 49.9 percent share recorded in 2017 or before the pandemic.

Meanwhile, spending on restaurants had averaged P486 per month in 2021, which accounted for only 1.9 percent of the overall expenditures.

“During the pandemic, many Filipino consumers shifted their eating habit from dining out to dining at home because of limited mobility and dining-in restrictions,” the BSP said.

“Thus, food at home has remained the largest expenditure item,” it said.

Housing and utilities collectively cornered 10.6 percent of the total household budget during the pandemic. That translated to a monthly spending of P2,061.

The ratio, however, was smaller than the 23.9 percent share of housing and utilities to total household spending in 2017. The BSP attributed this to the departure of some offshore gaming operators and the temporary return of some workers and students to their home provinces during the health crisis.

Transportation was the next biggest spending priority of Filipino families with a 7.2 percent share, or a monthly expenditure of P1,798.

“This spending distribution underscores the importance of government price management for essential goods and services,” the BSP said.

Lastly, nonessential items, including miscellaneous expenses, alcoholic beverages, tobacco, narcotics and recreation and culture made up 8.6 percent of total expenditure. Notably, miscellaneous expenses such as personal care, celebrations and gifts had the highest share at 4.8 percent.

P2,061 for housing AND utilities per month? Who are they surveying? That is only half of my monthly electric bill. 

The BSP says the pandemic accelerated the adoption of digital services but that is something already widely known. 

https://philstar.com/business/2025/03/17/2428837/pandemic-accelerated-adoption-digital-services

It was interesting to read the findings of the 2021 Consumer Finance Survey (CFS) conducted by the Bangko Sentral ng Pilipinas (BSP) from March 31, 2022 to Dec. 11, 2022, which were released last Friday, March 14.

The survey results gave a glimpse into how Filipino households managed their finances during the pandemic years and the resulting adoption of digital services.

According to the BSP, non-financial assets continued to form the foundation of Filipino household wealth portfolios. Home appliances and equipment remained the most commonly owned assets (96.6 percent), followed by residential properties (69.9 percent) and vehicles (35.3 percent).

Among vehicles, motorcycles (61.7 percent) continued to be the most commonly owned, which I believe also contributed to the shift to a digital economy through the delivery of goods purchased online but also contributed to traffic congestion.

A notable shift occurred in homeownership trends, with more families choosing rental accommodations (11.3 percent) compared to the previous survey round (10.2 percent). Within the appliance category, mobile phones (92.8 percent) continued to surpass televisions (81.1 percent) as the most common household item since the 2018 survey, highlighting the increasing importance of digital connectivity, especially during times of crisis. This finding is also significant to the decline of cable television as more people depend on their phones to get the news or watch online movies and content.

The composition of financial assets revealed interesting patterns of financial behavior. Deposit accounts recorded the highest ownership rates at 35.3 percent, followed by traditional cash savings kept at home (28.7 percent) and the rapidly growing category of e-money accounts (24.3 percent). After the pandemic, more people now have e-wallets for everyday small purchases or payments.

The post-pandemic recovery period witnessed substantial growth across financial asset categories, particularly in formal banking relationships and digital financial products. Financial institutions played a pivotal role in this transition by accelerating the development of user-friendly digital services. These services addressed the evolving needs of consumers who increasingly required remote access to financial resources during lockdown periods.

The pandemic, according to the BSP findings, prompted a significant reorientation of Filipino households’ approach to debt and savings. Faced with economic uncertainty, households increased their precautionary savings to protect against the risks of job losses and falling incomes.

Government-imposed restrictions on movement and business operations severely limited traditional spending opportunities such as travel, dining and entertainment. However, these restrictions inadvertently increased savings, which offered households some respite during the crisis. Furthermore, households benefited from government financial assistance programs.

Households were more reluctant to take on additional debt during this uncertain period, resulting in a significant decline in overall debt levels. The survey data indicated that only 29.3 percent of households carried any form of debt during this period, representing a substantial decrease from 40.4 percent in the 2018 survey. The composition of these liabilities primarily consisted of household bills (16.4 percent) and outstanding loans (15.2 percent). Only 0.7 percent of households had outstanding credit card debt, most of which was incurred for the purchase of basic goods.

Wages remained the leading source of income among households in 2021. The percentage of households receiving wage income rose to 91.5 percent, up from 73.7 percent in 2018. Government employment initiatives implemented to counteract pandemic-related job losses largely drove this increase. About 9.8 percent of households received income from businesses, primarily sole proprietorships in retail or food service, while 55.6 percent relied on other sources, mainly government pandemic assistance or ayuda. These ayuda included cash subsidies and food packs that played a crucial role during the COVID-19 pandemic, providing essential financial support to many households facing economic hardships due to lockdowns and job losses.

Spending patterns of households in 2021 revealed that food and beverages consumed at home accounted for the largest expenditure share at 55.4 percent, consistent with findings from previous survey rounds. For non-food items, housing and utilities accounted for 10.6 percent, while transportation took up 7.2 percent of the budget. This spending distribution, the BSP cited, underscores the importance of government price management for essential goods and services.

Meanwhile, non-essential items, including miscellaneous expenses, alcoholic beverages, tobacco, narcotics and recreation and culture, made up 8.6 percent of total expenditure, with miscellaneous expenses such as personal care, celebrations and gifts having the highest share at 4.8 percent.

According to the BSP, the country’s relatively young and healthy population presents the potential for a demographic dividend. The average household consisted of four members, with about half of them under 28 years of age, and an almost equal distribution of males and females. Furthermore, about 37.1 percent of household members aged three years and over were currently studying, while 49.8 percent of those not attending school were at least high school graduates.

Most household members (92 percent) reported good self-assessed health status. To capitalize on this demographic advantage, investing in high-quality education and robust health services is crucial to ensure a well-educated, healthy and productive young workforce that can drive higher economic growth.

Government restrictions on movement INCREASES savings? How is that even possible in the wake of everything shutting down and people losing jobs? 

According to the BSP survey the pandemic made households more reluctant to take on debt. 

https://www.bworldonline.com/economy/2025/03/16/659674/pandemic-data-reflects-reluctance-by-households-to-take-on-more-debt/

HOUSEHOLD DEBT declined in 2021, reflecting reluctance to take on additional debt during the pandemic, the Bangko Sentral ng Pilipinas (BSP) reported.

The BSP’s 2021 Consumer Finance Survey indicated that 29.3% of households carried debt during the period, much lower than the 40.4% in the 2018 survey.

“The pandemic prompted a significant reorientation of Filipino households’ approach to debt and savings. Faced with economic uncertainty, households increased their precautionary savings to protect against the risks of job losses and falling incomes.”

Bills accounted for 16.4% of household debt, followed by outstanding loans (15.2%) and credit card debt (0.7%).

“Government-imposed restrictions on movement and business operations severely limited traditional spending opportunities such as travel, dining, and entertainment,” the BSP said.

“However, these restrictions inadvertently raised savings, which offered households some respite during the crisis. Furthermore, households benefited from government financial assistance programs.”

The survey also showed the percentage of households receiving wage income jumped to 91.5% from 73.7% in 2018.

“Government employment initiatives implemented to counteract pandemic-related job losses largely drove this increase.”

“About 9.8% of households received income from businesses, primarily sole proprietorships in retail or food service, while 55.65% relied on other sources, mainly government pandemic assistance or ayuda.”

These subsidies include cash or food packs, which helped provide “essential financial support to many households facing economic hardships due to lockdowns and job losses.”

And where are these savings now?