Philippines Monthly Economic Developments (July 2025)

Overview & Synopsis

Faster goods exports growth and a steady expansion in manufacturing output underpinned economic activity as of May. The US and the Philippines agreed on a new trade deal outlining tariff rates that are largely in line with regional peers. Low inflation provides room for further monetary policy easing which is expected to boost domestic demand moving forward. Declining inbound tourist arrivals could dampen service exports and exacerbate a persistent trade deficit. This is partly financed by stable growth in remittances and increased external borrowing and investment inflows. However, the new US tax on international remittances could adversely impact remittance inflows.