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The Bangko Sentral ng Pilipinas (BSP) faces an intricate policy dilemma as the economy slows down sharply. Second-quarter GDP growth cooled to 2.3 percent year-on-year—down from 2.8 percent in the first quarter and well below the 5.4 percent mark recorded a year prior—placing the central bank in the difficult position of managing persistent price pressures while avoiding a deeper domestic downturn.

The Philippines’ gross international reserves (GIR) remained above the psychologically important USD100-billion mark in July, providing the country a sizable external cushion even as the stockpile edged lower during the month. 

The economy recorded a 2.3 percent expansion in the second quarter this year, according to data released by the Philippine Statistics Authority (PSA). The performance fell short of market expectations, slowing from the 2.8 percent growth recorded in the first quarter of the year. Excluding the severe disruptions caused by the COVID-19 pandemic, this represents the softest quarterly growth since the fourth quarter of 2009.

Electricity prices at the Wholesale Electricity Spot Market (WESM) fell by 13.1 percent nationwide in July, driven by lower overall demand across the country. According to data released by the Independent Electricity Market Operator of the Philippines (IEMOP) during an online briefing, the national spot price dropped to an averaged P8.31 per kilowatt-hour (kWh) as of July 25, down from P9.56 per kWh in June.

The Philippines' unemployment rate rose to 4.9 percent in June from 4.8 percent in May, as the number of jobless Filipinos climbed to 2.59 million, underscoring the uneven pace of labor market recovery despite an increase in overall employment.