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://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.
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| 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.
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| 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.
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| 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.
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| 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?
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