More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government.
Aon and Munich Re have launched a first-of-its-kind pandemic reinsurance solution specifically designed for Indonesia and the Philippines. The product addresses the significant protection gap for non-damage business interruption losses caused by pandemics, which standard property and casualty policies usually exclude.
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| https://www.reinsurancene.ws/aon-and-munich-re-launch-pandemic-reinsurance-solution-for-indonesia-and-the-philippines/ |
Aon, a global re/insurance broker and risk adviser, and Munich Re, a leading global reinsurer, have launched a first-of-its-kind pandemic reinsurance solution for Indonesia and the Philippines.
The solution is designed to help organisations address non-damage business interruption losses arising from a pandemic, a risk typically excluded from property and casualty insurance policies, except in areas such as medical and travel insurance.
Governments, businesses and communities remain significantly exposed to pandemic risk, which has the potential to disrupt trade, supply chains, travel, hospitality and public services on a large scale.
Through the solution, Aon can access dedicated, highly rated pandemic capacity for clients in the hospitality industry, with Munich Re providing the reinsurance capital, pricing and policy wordings.
The solution combines indemnity-based coverage with parametric triggers, aiming to provide greater clarity and confidence around coverage responses, subject to policy terms, while supporting a more efficient approach to risk transfer.
It has been developed for clients in Indonesia and the Philippines, where Munich Re and Aon teams identified specific coverage needs and designed a solution to address them.
Soeren Soltysiak, CEO of Asia, Reinsurance Solutions, Aon, said, “The COVID-19 pandemic highlighted the protection gap for this peril, particularly for non-damage business interruption losses. It also reinforced the need for new solutions that help organisations build greater financial resilience and confidence ahead of potential future outbreaks. By combining specialist reinsurance capacity with a solution specifically designed for pandemic-related losses, we will help clients achieve greater clarity and confidence in how they can protect their balance sheets against possible future events.”
Hitesh Kotak, CEO, Asia, Munich Re, commented, “Pandemic risk remains one of the most significant protection gaps facing economies across Asia. This solution provides organisations in Indonesia and the Philippines with greater access to protection against pandemic-related disruption and supports their ability to recover and grow following future public health events.”
Dr. Gunther Kraut, Global Head of Epidemic Risk Solutions, Munich Re, added, “Epidemic and pandemic risk requires robust approaches to risk sharing and capital deployment. Similar to other perils, affirmative specialist insurance solutions are required to help address the challenge of global risk accumulation. Munich Re is committed to supporting solutions that help clients manage the financial consequences of these events.”
Initially providing capacity to clients in the hospitality sector, the offering blends indemnity-based coverage with parametric triggers. This mechanism aims to help organisations build financial resilience against potential future public health disruptions and supply chain crises.
Philippine economic growth fell to a post-pandemic low of 2.1 percent in the third quarter of 2026, marking the slowest year-on-year increase since the height of the COVID-19 pandemic. The Philippine Statistics Authority (PSA) reported that this figure declined further from the 2.4 percent growth recorded in the preceding quarter.
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| https://mb.com.ph/2026/11/09/philippine-gdp-growth-plunges-to-new-post-pandemic-low-of-21-in-q3-2026 |
Philippine economic growth slowed to a post-pandemic low of 2.1 percent in the third quarter of 2026 as a sharp contraction in government construction, falling agricultural production, and weakening household spending weighed on the economy despite continued growth in services and exports.
The Philippine Statistics Authority (PSA) reported on Monday, Nov. 9, that gross domestic product (GDP) growth eased from the revised 2.4 percent in the second quarter, marking the slowest year-on-year expansion since the recession at the height of the Covid-19 pandemic.
Government construction contracted by 15.1 percent during the July-to-September period, dragging down overall construction activity by four percent and contributing to a marginal 0.003-percent contraction in the industry sector.
Agriculture, forestry, and fishing shrank by 4.8 percent, reversing the 2.9-percent growth recorded in the same quarter last year, as palay and corn production plunged by 17.8 percent and 17.4 percent, respectively.
Household consumption, a major driver of the Philippine economy, grew by only 2.4 percent, slowing from four percent a year ago, while investment remained weak.
The PSA reported that gross capital formation, a measure of investment in productive assets, contracted by 0.2 percent, marking its fifth consecutive quarter of decline.
During a press conference, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan attributed the economic slowdown partly to elevated food and energy prices, which constrained household spending, alongside weak agricultural output and subdued investment.
The disappointing third-quarter performance has made the government’s already downgraded full-year GDP growth target of 3.5 to 4.5 percent increasingly difficult to achieve.
Balisacan said the economy would need to expand by 6.3 percent in the fourth quarter to reach even the lower end of the government’s target range.
The country’s chief economist said the Development Budget Coordination Committee (DBCC) would meet early next month to revisit its economic growth assumptions and targets.
Despite the slowdown, Balisacan said it was premature to characterize the economy as experiencing stagflation, preferring to wait for the full-year figures before making such an assessment.
“I think that it's important that we are looking at the various dimensions of the economy and not just a few indicators,” Balisacan said.
PSA chief and National Statistician Claire Dennis S. Mapa said GDP increased by only 0.1 percent quarter-on-quarter during the July-to-September period.
The services sector, which accounted for 67.8 percent of GDP, expanded by 3.7 percent year-on-year, although this was slower than the 5.5-percent growth recorded in the same quarter of 2025.
Wholesale and retail trade, including the repair of motor vehicles and motorcycles, grew by 3.5 percent, while public administration and defense expanded by 9.9 percent and financial and insurance activities increased by 3.5 percent.
These were among the largest contributors to third-quarter GDP growth, according to the PSA.
Meanwhile, manufacturing growth slowed to 0.7 percent from 1.3 percent a year ago, although the manufacture of computer, electronic, and optical products expanded by 13.1 percent.
On the expenditure side, household spending on transportation declined by 5.3 percent, while spending on food and non-alcoholic beverages increased by only 1.6 percent.
Government consumption provided some support, growing by 6.8 percent, faster than the 5.8-percent expansion recorded in the same quarter last year.
Exports of goods and services also increased by 8.6 percent, supported by growth of 10.1 percent in goods exports and six percent in services exports.
Balisacan pointed to the strength of electronics exports amid continued global demand for artificial intelligence (AI)-related products, noting that electronics shipments had expanded by 19.4 percent.
However, imports of goods and services also increased by 7.7 percent during the quarter.
Within agriculture, fishing and aquaculture declined by 8.5 percent, while sugarcane production plunged by 48.4 percent, adding to the sector’s overall contraction.
In contrast, poultry and egg production increased by 5.2 percent, livestock grew by two percent, and coconut production rose by 1.2 percent.
The PSA also reported that construction investment contracted by 3.5 percent, mainly because of the decline in government construction, even as household construction and corporate construction recorded modest increases of 1.1 percent and 0.3 percent, respectively.
Looking ahead, Balisacan identified the recovery of public investment as a key priority, given its effects on private investment, business confidence, and domestic demand.
He said public infrastructure spending generated stronger multiplier effects than maintenance and other operating expenses (MOOE), making the timely implementation of government projects particularly important.
Balisacan said DEPDev had received assurances from the Department of Budget and Management (DBM) that it was working to ensure the release and utilization of funds by implementing agencies.
He expressed hope that public construction projects could be executed more quickly in the fourth quarter.
President Ferdinand R. Marcos Jr. has instructed government agencies to accelerate implementation-ready infrastructure projects, resolve bottlenecks, and expedite payments to contractors, according to Balisacan.
He stressed that faster infrastructure implementation must be accompanied by stronger accountability and more efficient public spending.
“We will work with Congress to secure timely passage of the national budget,” Balisacan said.
“A credible fiscal program must protect productive infrastructure and essential social services, supported by better revenue collection and reduced waste,” he added.
Beyond infrastructure, Balisacan emphasized the need to strengthen the country’s innovation ecosystem to help businesses develop new products, improve competitiveness, and create better jobs.
He said government interventions through agencies such as the Department of Agriculture (DA) and the Department of Energy (DOE) were also being pursued to support affected sectors.
Balisacan also called for stronger trade and investment partnerships to help Philippine businesses move into higher-value activities and participate more extensively in global and regional supply chains.
He identified Canada, Chile, the European Union (EU), Japan, and the United Arab Emirates (UAE) among the government’s key trade and investment partners.
The tourism industry likewise needed stronger support through expanded direct flights, improved airport capacity, and more effective promotions to attract additional visitors and encourage longer stays, he said.
“Our task is to turn these priorities into results: investment commitments realized, projects completed, and more Filipinos earning better incomes,” Balisacan said.
This deceleration was primarily driven by sluggish performances in the agriculture and industry sectors, which weighed down the gains made by the services sector. Ultimately, this weak third-quarter performance underscores the persistent economic headwinds confronting the country during the post-pandemic period.
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| https://mb.com.ph/2026/11/09/citi-philippines-can-no-longer-deny-it-has-entered-stagflation |
American banking giant Citi said the Philippines has already entered a period of ”stagflation or slowflation” as the country has suffered from persistently elevated inflation, high unemployment, and successive slowdowns in economic growth.
Johanna Chua, Citigroup global head of emerging market (EM) economics, said in a press briefing on Monday, Nov. 9, that, by definition, the Philippines is already grappling with stagflation, a label for the economy that the government has long ruled out.
“An inflation rate of 7.8 percent against the two- to four-percent target is very high. Meanwhile, the 2.1-percent economic growth is low compared with its historical growth of five to six percent,” Chua said.
“Obviously, by that definition, you can call it stagflation or slowflation,” the economist asserted.
According to the Philippine Statistics Authority (PSA), the new post-pandemic low of 2.1 percent in the third quarter of 2026 bore the brunt of a sharp contraction in government construction, falling agricultural production, and weakening household spending.
Chua revealed that Citi had expected a rebound to 3.8 percent in the third quarter, which was more upbeat than the 3.1-percent consensus. She said these were “very, very large misses,” noting the need for the revision to close in on the actual gross domestic product (GDP) expansion.
Citi Chief Executive Officer (CEO) and Banking Head Paul Favila also said the macroeconomic situation remains unfavorable, leaving the government with limited room to tackle the economic hurdles head-on.
“This just goes to show that the situation is not good,” Favila said. “Unfortunately, there is not much the government can do to correct it because much of it is driven by external factors, including overnight developments, geopolitical events, another attack on Iran, and the corresponding adjustments in oil prices. Whether justified or not, that is market sentiment.”
On prices, headline inflation in October accelerated to its fastest pace in three years and eight months, driven by soaring transport, electricity, and housing costs. This has prompted banks and think tanks to tweak their interest rate assumptions.
After the recent outsized increase in key borrowing costs to 5.5 percent, Citi continued to price in two more quarter-point hikes to reach a terminal rate of six percent before the BSP switches back to easing in 2028.
“It was kind of interesting how BSP surprised the market with a hike of 50 basis points (bps). It's a reestablishment of the independence of the central bank,” Chua said, adding that the rate hikes would come in December and early 2027.
Meanwhile, the number of unemployed Filipinos increased to 2.86 million in September 2026 from 2.77 million in August and 1.96 million in September 2025. This translated to an unemployment rate of 5.4 percent, up from 5.3 percent a month earlier and 3.8 percent a year earlier.
Looking ahead, Citi expects economic growth to recover to as high as 5.8 percent in 2027, well within the government's five- to six-percent target. This could be achieved if tensions in the Middle East ease, public investments pick up, and price pressures dissipate.
