News about Philippines

The House prosecution panel expects the Ombudsman to file criminal cases against Vice President Sara Duterte and officials of her office and DepEd over alleged misuse of confidential funds, after the agency began evaluating evidence. The defense has not formally notified the impeachment court whether Duterte will testify when the trial resumes on Nov. 9. The Chinese Embassy dared lawmakers to act quickly on their threat to declare Ambassador Jing Quan persona non grata, saying it is tired of repeated warnings. As 2026 Asean chair, the Philippines will host the 20th AMMTC from Oct. 19 to 21, while nine economists polled expect the BSP to raise its key rate by 25 basis points to 5.25 percent at its Oct. 22 meeting. In sports, Alex Eala opens her Ningbo Open campaign against France’s Diane Parry.

The Bangko Sentral ng Pilipinas (BSP) posted net income of P170.2 billion in the first seven months of 2026, up 114.9 percent from the same period last year, according to preliminary, unaudited statements. That already exceeded its P124.6-billion earnings for all of 2025 by 36.6 percent. Most of the rise came from net foreign exchange gains, which nearly tripled to P102 billion and made up about 60 percent of net income. Total expenses fell 18.8 percent to P98.6 billion, mainly because interest expenses dropped 42.4 percent, while revenues edged up 1.9 percent to P166.8 billion, with interest income making up about 90 percent.

The People’s Budget Coalition (PBC) says the House-approved P7.2-trillion 2027 national budget contains P1.06 trillion in “red flag” allocations, including pork barrel projects and handouts it considers vulnerable to political patronage ahead of the 2028 election. The House reportedly cut P34.7 billion from the Metro Manila Subway and the North-South Commuter Railway, P53.5 billion from foreign-assisted bypass roads and highways, and P4.9 billion from DOH immunization, while redirecting P54 billion to local District Engineering Offices. Delays in foreign-assisted projects are adding costs; Finance Secretary Frederick Go said the government accumulated P3.4 billion in commitment fees from 2022. DOTr, seeking P12.8 billion to buy LRT-2 trains, is allowing public utility buses along the line as a temporary measure. Senate finance committee chair JV Ejercito pledged to restore and protect funding for the subway and railway lines.

The column reflects on how the Philippines has repeatedly faced economic crises tied to political turmoil, from the 1983 debt crisis to coups and leadership changes, and now faces added pressure from a global geopolitical crisis. Citing First Metro Securities' Estella Villamiel, GDP growth averaged 2.6% year-to-date in 2026, one of the weaker periods outside the pandemic era. Household consumption remains the main driver but its contribution has moderated, capital formation is the primary drag on growth, and government spending and exports provide support. The fiscal deficit reached 5.8% of GDP in the first half, government debt is about 66% of GDP, and international funding is getting harder to secure. Household demand has softened in recent quarters, according to consumer sentiment, retail and vehicle sales data.