Overseas news
Officials from the US Federal Reserve (the Fed) expressed concerns that President Donald Trump’s initial policies, particularly on tariffs, could drive inflation higher. That’s because businesses could pass on such costs to consumers.
Tariffs are a type of tax that a country charges on items that come from another country. If imposed, they can make goods and services more expensive.
Fed officials also noted that trade policy and supply chain disruptions could impact progress on disinflation and raise inflation expectations.
Local developments
Economic managers expect strong economic and investment ties between the Philippines and the US to continue despite tariff threats from the Trump administration.
They also discussed the CREATE MORE Act, which is aimed at boosting economic opportunities. CREATE MORE was signed into law to attract more investors and support economic growth by improving the process and policies for providing tax incentives.
Meanwhile, the Bureau of Internal Revenue (BIR)’s Tax Compliance Verification Drive (TCVD) reached over 200,000 businesses nationwide, revealing that 12% were unregistered.
TCVD is a taxpayer education initiative that seeks to inform taxpayers about their obligations and promote proper compliance with tax laws.
Commissioner Romeo Lumagui Jr. said the initiative marks the agency’s shift toward a taxpayer-centric approach. He added that the BIR will use the findings to improve business registration compliance.
Additionally, approved building permits fell 10.8% in December, reversing the 1% growth from the previous year, according to preliminary data from the Philippine Statistics Authority (PSA).
The number of projects, total floor area, and construction value all declined. Weaker building activity may hint at a slowing demand for residential and nonresidential properties.
On the other hand, vehicle sales rose 10.4% year-on-year to reach 37,604 units in January, according to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA).
Although passenger car sales dropped 8.5%, commercial vehicle sales surged 16.6% and accounted for 79.5% of total sales.
Vehicle sales figures can hint at an economy’s health since sales tend to pick up when consumers and businesses are doing well and are more willing to spend.
With no major changes in the news, you may want to adopt a wait-and-see stance until there are concrete signs of the direction that markets will take.
