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The World Bank has kept its economic growth forecasts for the Philippines despite heightened uncertainty arising from the Trump administration’s tariff policies.

In its bi-annual Global Economic Prospects report, the multilateral lender said the Philippine gross domestic product (GDP) is expected to expand by 5.3% this year, 5.4% in 2026 and 5.5% in 2027.

The World Bank’s forecasts were below the government’s 6-8% GDP target range for this year up to 2028.

These were unchanged from the bank’s East Asia and Pacific report released in April.

However, it was lower than the forecasts in the January edition of the Global Economic Prospects report released before Donald J. Trump assumed the US presidency on Jan. 20.

The latest 2025 forecast was 0.8 percentage point (ppt) lower than the 6.1% projection in January, while the 2026 forecast was 0.6% lower than the 5.9% projection in January.

The Philippines’ GDP growth for this year is still one of the fastest among the East Asia and Pacific country forecasts, after Palau’s 8.6%, Mongolia’s 6.3% and Vietnam’s 5.8%, but the same as Samoa’s 5.3%.

For 2026, the Philippines will be the second-fastest in the region after Vietnam’s 6.1%. In 2027, the Philippines is again expected to be the second-fastest growing economy after Vietnam’s 6.4%.

“Growth in East Asia and Pacific (EAP) is projected to slow from 5% in 2024 to 4.5% in 2025, slightly lower than previously expected owing to increases in trade barriers and related policy uncertainty,” the World Bank said.

In April, Mr. Trump announced a 10% tariff on all trading partners as well as higher reciprocal tariffs on others including the Philippines which is facing a 17% rate.

The reciprocal tariffs have been paused for 90 days until July as countries negotiate lower rates with the US.

The World Bank projects EAP growth at 4% for both 2026 and 2027, a tad below the previous forecasts.

“The downgrade reflects the impact of higher tariffs on growth, which is expected to be partly offset by policy support measures in EAP economies, notably China. In many regional economies, the deterioration in the outlook will weigh on the pace of job creation and per capita income catch-up with advanced economies,” it said.

The World Bank said downside risks to the baseline projections have intensified since January.

“Additional shifts in trade policy would likely have large impacts on economies across the region, owing to their high trade openness and links to global production networks. Other downside risks include tighter global financial conditions, substantially weaker growth in major economies, increased geopolitical stress, and natural disasters,” it said.

A partial resolution of trade tensions and a reduction in trade policy uncertainty would likely boost growth in the region above the baseline, the World Bank added.

TRADE COLLAPSE
At the same time, the World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies.

The global lender lowered its forecasts for nearly 70% of all economies — including the US, China and Europe, as well as six emerging market regions — from the levels it projected six months ago before Mr. Trump took office.

Mr. Trump has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective US tariff rate from below 3% to the mid-teens — its highest level in almost a century — and triggered retaliation by China and other countries.

The World Bank is the latest body to cut its growth forecast as a result of Mr. Trump’s erratic trade policies, although US officials insist the negative consequences will be offset by a surge in investment and still-to-be approved tax cuts.

It stopped short of forecasting a recession but said global economic growth this year would be the weakest outside of a recession since 2008. By 2027, global gross domestic product growth was expected to average just 2.5%, the slowest pace of any decade since the 1960s.

The report forecast that global trade would grow by 1.8% in 2025, down from 3.4% in 2024 and roughly a third of its 5.9% level in the 2000s. 

The forecast is based on tariffs in effect as of late May, including a 10% US tariff on imports from most countries. It excludes increases that were announced by Mr. Trump in April and then postponed until July 9 to allow for negotiations. 

The World Bank said global inflation was expected to reach 2.9% in 2025, remaining above pre-COVID-19 levels, given tariff increases and tight labor markets.

“Risks to the global outlook remain tilted decidedly to the downside,” it wrote. The lender said its models showed that a further increase of 10 percentage points in average US tariffs, on top of the 10% rate already implemented, and proportional retaliation by other countries, could shave another half of a percentage point off the outlook for 2025.

Such an escalation in trade barriers would result “in global trade seizing up in the second half of this year… accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the report said.

Nonetheless, it said the risk of a global recession was less than 10%.

‘FOG ON A RUNWAY’
“Uncertainty remains a powerful drag, like fog on a runway. It slows investment and clouds the outlook,” World Bank Deputy Chief Economist Ayhan Kose told Reuters in an interview.

But Mr. Kose said there were signs of increased dialogue on trade that could help dispel uncertainty, and supply chains were adapting to a new global trade map, not collapsing. Global trade growth could modestly rebound in 2026 to 2.4%, and developments in artificial intelligence could also boost growth, he said.

“We think that eventually the uncertainty will decline,” Mr. Kose said. “Once the type of fog we have lifts, the trade engine may start running again, but at a slower pace.”

Mr. Kose said while things could get worse, trade was continuing and China, India and others were still delivering robust growth. Many countries were also discussing new trade partnerships that could pay dividends later, he said.

The World Bank said the global outlook had “deteriorated substantially” since January, mainly due to advanced economies, which are now seen growing by just 1.2%, down half a percentage point, after expanding by 1.7% in 2024. — Reuters with ARAI

Congress adjourned session on Wednesday without giving the final approval for the proposal to hike the minimum daily wage by PHP 100-PHP 200, after economic managers warned of its “dangerous repercussions” on the Philippine economy.

“We express our strong reservations on the proposed legislated wage hikes as these may undermine our recent gains and result in adverse economic and social impact,” economic managers said in a letter addressed to Senate President Francis G. Escudero and House Speaker Ferdinand Martin G. Romualdez.

The joint position paper was signed by Special Assistant to the President for Investment and Economic Affairs Frederick D. Go, Finance Secretary Ralph G. Recto, Economic Planning Secretary Arsenio M. Balisacan, Budget Secretary Amenah F. Pangandaman, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. and Trade Secretary Ma. Cristina A. Roque.

Estimates by the Department of Economy, Planning, and Development showed that a P100 or P200 increase in the daily regional minimum wage “could exert downward pressure on gross domestic product (GDP), increase inflation and result in job losses.”

“Estimates show that the across-the-board wage hike will exert substantial downward pressure on GDP by 1.6 ppts (percentage points) for a PHP 200 hike and 0.5 ppt for a hike of PHP 100. Both scenarios are predicted to result in the economy missing the lower end of the GDP growth target range,” the economic managers said.

Economic managers are targeting 6-8% GDP growth this year.

The wage hike could also stoke inflation, which has recently been on a downtrend.

“A PHP 200 increase in wages could raise inflation by approximately 2 ppts, while a PHP 100 hike may add 0.7 ppt. The substantial minimum wage increase may lead to higher production costs, which could result in higher prices that may disproportionately affect low-income households,” economic managers said.

“Additionally, when wage adjustments are not commensurate with improvements in productivity, they can exacerbate price pressures.”

Inflation cooled to an over five-year low of 1.3% in May, bringing the five-month average to 1.9%. This is below BSP’s 2-4% target band.

Economic managers also warned a P100 or P200 increase in the minimum wage could spur job cuts as companies seek to reduce operational costs.

“These could increase the unemployment rate by 0.2 ppt, equivalent to 105,000 unemployed persons if minimum wage increases by PHP 100, and as much as 0.6 ppt or 300,000 persons if minimum wage increases by PHP 200,” they said.

In April, the number of jobless Filipinos rose by 4.1% to 2.06 million from 1.93 million in March.

Micro, small, and medium enterprises, which account for 90% of businesses and heavily rely on minimum wage labor, may be unable to absorb the proposed daily wage hike, economic managers said. They estimated this would translate to an additional PHP 4,000 increase every month for those working five days a week.

Economic managers said that while higher wages can initially benefit workers, the long-term impact will be detrimental to the economy.

“Higher prices of goods and services reduce the purchasing power of households, dampening consumption spending and overall economic activity,” they said.

Economic managers recommended maintaining the current system of adjusting wages through the Regional Tripartite Wages and Productivity Boards.

“Rather than a one-size-fits all legislated wage hike, we support existing measures such as (i) strengthening the implementation of the minimum wage law to increase compliance; (ii) encouraging collective bargaining system and other voluntary mechanisms at the firm level to promote workers’ welfare, and (iii) strengthening the linkage between wages and productivity,” they said.

NO BICAM
Meanwhile, the House of Representatives and the Senate did not convene a bicameral conference committee to reconcile the conflicting provisions of the wage hike bills. The House approved a P200 daily increase for minimum wage earners in the private sector, while the Senate approved a PHP 100 hike.

Senator Joel B. Villanueva, chairman of the Labor Committee, said some congressmen had previously expressed willingness to adopt the Senate’s version of the legislated wage hike bill. “I don’t know what the intentions of our colleagues in the House are but the ones I spoke to yesterday were more than willing to adopt the Senate version,” Mr. Villanueva told reporters, noting that Congress no longer had time for further discussions.

Mr. Villanueva previously asked Rizal Rep. Juan Fidel Felipe F. Nograles, chairman of the House Labor Committee, to adopt the Senate’s version to expedite the bill’s ratification.

In response, Mr. Nograles called for a transparent and deliberative bicameral process, “rather than being bamboozled into accepting the Senate version wholesale, without discussion or compromise.”

Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said the wage hike bills are “populist.”

“Wages per se aren’t really a problem. The current tripartite system already accurately reflects the different market conditions across regions. That legislation is job-killing,” he told BusinessWorld in a Viber Message.

Instead, Mr. Peña-Reyes suggested improving competitiveness to attract investments that create high-value jobs.

Jose Enrique “Sonny” A. Africa, executive director at think tank IBON Foundation, urged the economic managers to focus on creating “a fairer economy” where the rising wages reflect rising productivity.

“The government’s scaremongering about urgent wage hikes is an alarmingly anti-worker position built on biased analysis crafted to prioritize profit margins over workers’ livelihood and long-term development,” Mr. Africa said. — A.R.A.Inosante with inputs from A.H.Halili

Residential households in areas served by Manila Electric Co. (Meralco) will see lower electricity bills in June as the power distributor cut power rates amid a drop in generation charges.

In a statement on Wednesday, Meralco said that electricity rates will fall by PHP 0.1076 per kilowatt-hour (kWh) in June to PHP 12.1552 per kWh from PHP 12.2628 per kWh in May.

Households consuming 200 kWh will see their monthly electricity bills go down by around PHP 22. Those consuming 300 kWh, 400 kWh, and 500 kWh will see a reduction of PHP 32, PHP 43, and PHP 54, respectively.

Meralco attributed the overall rate reduction to the lower generation charge, which dropped by PHP 0.1099 per kWh to PHP 7.3552 per kWh.

“The reason for this reduction is the decrease in the charges from our suppliers and the Wholesale Electricity Spot Market (WESM),” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said at a briefing.

Charges from power supply agreements (PSA) and independent power producers (IPP) slipped by P0.3699 and P0.1034 per kWh, respectively, due to lower fuel costs and higher average dispatch.

WESM charges likewise declined by PHP 0.6342 per kWh amid an improved supply situation in the Luzon grid for the May supply.

PSAs, IPPs, and WESM accounted for 48%, 33%, and 18%, respectively, of the power distributor’s total energy requirement for the period.

Despite the continued decline of prices in the WESM, rates during the rainy season are still uncertain due to power plants that may undergo maintenance, according to Lawrence S. Fernandez, Meralco vice-president and head of utility economics.

“We are expecting the demand to go down from the peaks that we experienced during summer because it’s already the rainy season. It’s not as warm anymore, so electricity usage will decrease. That will tend to push down power prices,” Mr. Fernandez said in mixed English and Filipino.

“However, on the supply side, since power plants were not allowed to go on maintenance during the summer months… now that it’s the rainy season, this is the time they can do their regular scheduled maintenance. So, in that case, supply will go down because they’re on outage, and that will tend to push prices up,” he added.

On the other hand, transmission charges increased by PHP 0.0214 per kWh due to higher ancillary service charges from the National Grid Corp. of the Philippines’  ancillary service procurement agreements and the reserve market.

Other charges, including taxes, went down by PHP 0.0191 per kWh.

“Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government,” the company said.

Meralco’s distribution charge remained unchanged since the PHP 0.0360 per kWh in August 2022.

The company said that the implementation of the distribution-related refund of PHP 0.2024 per kWh for residential customers is still ongoing.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

The growth of the Philippine information technology and business process management (IT-BPM) industry this year is expected to outpace the global average in terms of job generation and export revenues, an industry group said.

“We have grown to 1.82 million in 2024 and will hit 1.9 million by the end of 2025. So, we are closing in on the 2-million mark. What we will also hit in 2025 is USD 40 billion in export revenue,” IT & Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jonathan R. Madrid said at a press briefing late on Monday.

“That is a growth of 5% over last year and 4% in jobs over the previous year. Growth is always good news but considering that the global growth of our industry only grew 3%, it shows that yet again the Philippines is leading the growth of the industry,” he added.

These numbers, he said, are the recalibrated targets for the year but are below the industry’s aggressive targets under the IT-BPM Industry Roadmap 2028.

“We are exceeding our baseline targets, but we are slightly below our aggressive targets,” Mr. Madrid said.

When setting the targets, he said that the industry considers the changing work types, availability of talent, and ease of doing business.

“This industry is no longer about cost optimization. It is about the availability of the talent, ease of doing business, and balancing where you give the work. Because investors cannot put all their work in one place, there has to be diversification,” he said.

“So, being such a leader, together with India, the issue of over concentration has become a topic, and so we really need to address those other issues so that we can maintain our market share,” he added.

According to IBPAP officials, the industry continues to face challenges at the local government unit (LGU) level despite the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and its implementing rules and regulations (IRR).

“With the passage of CREATE MORE, we hope that problems with LGUs and the Bureau of Internal Revenue will have been addressed,” said IBPAP Chief Operating Officer Celeste B. Ilagan.

“But we see that even with the issuance of the IRR, some of our members still encounter problems with certain LGUs. And it really revolves around how the LGUs interpret the provisions of CREATE MORE in terms of incentives that enterprises are entitled to,” she added.

To resolve this, she said that the Department of Trade and Industry, the Department of Finance, and the Department of the Interior and Local Government are planning to issue a joint memorandum circular (JMC) that will specify how the LGUs should interpret CREATE MORE.

“We have seen a draft of that JMC that has done the rounds of consultation. We know that there’s one more consultation in the province before they are able to pass that JMC,” she said.

“That will specify what the LGUs should follow in terms of imposing fees and charges, what requirements there are for business permits, all of that,” she added.

Ms. Ilagan said these challenges are being experienced by existing enterprises, as new investors are still checking out which cities they should set up shop.

Meanwhile, Mr. Madrid said there are opportunities for growth in global capability centers (GCC).

“I am happy to say that every week our office is visited by locators and investors who want to expand their footprint in the Philippines and are considering setting up operations in the Philippines,” he said.

“Much of the growth and interest comes from GCC; these are companies like JPMorgan and HSBC. I think this is a sector that we need to focus on because these tend to offer higher value-added jobs,” he added.

For instance, Mr. Madrid noted that India has seen an increase of 100 GCCs per annum, with its entire GCC industry already as big as the entire Philippine IT-BPM industry.

“I think we should really emphasize and focus on growing GCCs. As it is, we only have 150 GCCs in the country. I think the potential is much more,” he said.

“I think there is an opportunity to grow our presence in the GCCs. And I think this is important because the revenue per employee in GCC is much higher than the broader industry,” he added.

To date, the industry has 250,000 employees in GCCs led by banking and financial, insurance, and healthcare services. The GCCs accounted for USD 8 billion, or 20% of the total industry revenues last year.

Also, Mr. Madrid said that there has been a rise in employment in the countryside mostly because cities in the provinces do not have the same kind of public commuting issues faced by workers in Metro Manila.

“The countryside is a bright spot for the industry. Before COVID, we were only 25% outside Metro Manila. Today, we are at 32% of a bigger base,” he said.

“And according to our roadmap projections, we see that growing to 40% by 2028. Congestion in Metro Manila is an issue, so the countryside helps to decongest that,” he added.

However, he said that revenues are still higher in Metro Manila, as most of the GCCs are located in Metro Manila and Cebu. – Justine Irish D. Tabile, Reporter

The Philippine banking system’s nonperforming loan (NPL) ratio hit a five-month high in April, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Banks’ bad loan ratio rose to 3.39% in April from 3.3% in March. However, it eased from 3.45% a year ago.

This was the highest bad loan ratio in five months or since the 3.54% logged in November 2024.

Data from the BSP showed that soured loans inched up by 0.6% to PHP 519.23 billion as of April from PHP 516.12 billion a month prior.

Year on year, bad loans jumped by 8% from PHP 480.65 billion in the same month in 2024.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. These are deemed risk assets since borrowers are unlikely to pay.

BSP data also showed the total loan portfolio of the banking system stood at PHP 15.34 trillion as of end-April, down by 1.9% from PHP 15.63 trillion as of end-March. On the other hand, it rose by 10% from PHP 13.94 trillion a year ago.

Past due loans went up by 1.1% to PHP 653.26 billion in April from PHP 646.37 billion in March. It likewise increased by 5.7% from PHP 618.04 billion a year earlier.

This brought the past due loan ratio to 4.26%, higher than 4.14% in March but lower than 4.43% in the same period in 2024.

Restructured loans edged higher by 0.1% to P311.66 billion in April from PHP 311.48 billion month on month. Year on year, it rose by 7.3% from P290.37 billion.

Restructured loans accounted for 2.03% of the industry’s total loan portfolio in April, higher than 1.99% in the month prior but lower than 2.08% in April 2024.

Banks’ loan loss reserves stood at PHP 493.79 billion, up by 0.7% from PHP 490.56 billion a month ago and higher by 4.8% from PHP 471.35 billion a year earlier.

This brought the loan loss reserve ratio to 3.22% in April, higher than 3.14% last month but lower than 3.38% a year ago.

Lenders’ NPL coverage ratio, which gauges the allowance for potential losses due to bad loans, stood at 95.1% in April from 95.05% in March and 98.07% a year prior.

“The uptick in NPL ratio likely reflects a lagged response to tighter financial conditions, elevated interest rates, and persistent cost of living pressures on both households and businesses,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said.

“While still relatively low and manageable, the rise signals early signs of stress, especially among more vulnerable borrowers, such as MSMEs (micro, small and medium enterprises) and lower-income consumers. In my opinion, it is not yet a cause for alarm, but it is a signal for banks to remain vigilant in their credit risk management.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the slight uptick in NPLs is seen amid slowing growth in bank loans.

Bank lending rose by 11.8% year on year to PHP 13.19 trillion in March, its slowest pace in four months, as loan growth for production activities and consumers eased.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said the rise in unemployment could also be a factor behind the rise in NPLs.

“On the consumers’ side, higher unemployment these past few months may indicate slower earnings growth, making it harder to pay their loans. In addition, slow demand and business growth may also impact business cash flows during the period,” he said.

The jobless rate rose to 4.1% in April from 3.9% in March and 4% a year ago, the latest data from the local statistics authority showed.

This was equivalent to 2.06 million unemployed Filipinos in April, higher than 1.93 million a month ago and 2.04 million the year prior.

“If the trend continues over the next few months, it could indicate that some sectors of the economy are experiencing difficulty servicing debt, possibly due to slower-than-expected income recovery or tightening liquidity,” Mr. Rivera said.

“Monetary authorities and banks will likely monitor this closely. If credit quality deteriorates further, it could prompt more cautious lending behavior and affect the overall pace of credit growth, which in turn could have broader implications for economic recovery and domestic consumption.” – Luisa Maria Jacinta C. Jocson, Senior Reporter

The Bangko Sentral ng Pilipinas (BSP) will be able to further reduce interest rates amid below-target inflation and weak economic growth, analysts said.

“With inflation holding near multi-year lows and the peso showing relative strength, a rate cut from the BSP in June has become more certain,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

This after inflation cooled to an over five-year low of 1.3% in May, bringing the five-month average to 1.9%. This is below the BSP’s 2-4% target band.

Inflation is also seen to remain well contained for the remainder of the year, analysts said.

Nomura Global Markets Research analysts Euben Paracuelles and Nabila Amani said headline inflation could average 1.8% this 2025.

“Our forecast pencils in CPI (consumer price index) inflation becoming more benign at 1.3% in the third quarter, down from 2% year-to-date, before edging back up to 2% by yearend,” they said in a report. 

The central bank expects inflation to average 2.3% this year.

“This benign inflation outlook is underpinned by various factors, such as a negative output gap, low crude oil prices and the government maintaining supply-side measures (to keep rice prices low, in particular),” Nomura added.

Weaker-than-expected first-quarter gross domestic product (GDP) growth would also justify further easing, Mr. Neri said.

Consumption growth has not yet returned to pre-pandemic levels, which has kept overall GDP below 6%.

“However, with inflation stabilizing at lower levels, there is room for further recovery in the coming months,” he added.

The Philippine economy grew by a weaker-than-anticipated 5.4% in the January-to-March period, sharply slowing from the 5.9% expansion a year ago.

“Coupled with the weaker-than-expected GDP print in the first quarter, we think the latest inflation report supports the case for another 25-bp (basis point) cut at the BSP’s June 19 meeting,” Chinabank Research said.

The Monetary Board’s next policy meeting is scheduled for June 19.

In April, the BSP resumed its rate-cutting cycle with a 25-bp rate cut, bringing the benchmark rate to 5.5%.

Nomura expects the BSP to deliver another 75 bps worth of cuts for the remainder of the year.

“We continue to believe BSP has scope to steadily shift towards a more accommodative stance, as inflation expectations remain well-anchored and domestic demand is still subdued,” it said.

“We reiterate our call for BSP to deliver an additional 75 bps of rate cuts this year, taking the policy rate to a below neutral 4.75%.”

BSP Governor Eli M. Remolona, Jr. has signaled the possibility of two more rate cuts this year, in increments of 25 bps. He also said another 25-bp cut this month is still “on the table.”

The central bank has reduced borrowing costs by a total of 100 bps so far since it began easing rates in August last year.

Risks ahead 

Despite macroeconomic indicators pointing to a cut, Mr. Neri said the BSP must still remain cautious. 

“However, while the environment favors a cut, caution is still warranted. A shift in US monetary policy remains a key risk, particularly if inflation there rises further due to tariffs.”

“An overly aggressive easing cycle could leave the Philippine economy exposed to a sharp reversal in the Federal Reserve’s stance, potentially forcing the BSP into abrupt and sizable rate hikes in response,” he added.

US Federal Reserve policymakers have already signaled they are in no rush to cut interest rates, and a government report on Friday showing the labor market is far from crumbling amid big trade policy changes only cements that stance, Reuters reported.

Financial markets have been betting the Fed will wait until September to cut rates and will deliver a second reduction in borrowing costs by December.

Meanwhile, Chinabank Research said the central bank will also consider the recent wage hike proposal and its impact on prices.

“The BSP will likely remain cognizant of persisting upside risks to the inflation outlook, including upticks in food prices and the proposed legislated wage hike.”

The House of Representatives last week approved on third and final reading a bill seeking to raise the minimum daily wage by P200 across the board. If passed into law, this would mark the first legislated national wage hike since the late 1980s.

“Looking ahead, we expect inflation to remain low in the next months, though a hefty increase in the minimum wage could add to inflationary pressures,” Chinabank added.

Business groups have warned that the proposed wage hike could lead to closure of small businesses, joblessness and higher cost of goods and services. — Luisa Maria Jacinta C. Jocson