Overseas news
In the US, stocks rose on Thursday. This was the result of investors reacting positively to a new trade agreement between the US and the UK, and to US President Donald Trump’s indication of more significant discussions with China.
The state of international trade can have a significant effect on the countries directly involved and, in some cases, on the global economy.
Meanwhile, the Bank of England reduced interest rates by 0.25% to land on 4.25% on Thursday. This was in anticipation of negative economic consequences from US and other countries’ tariff increases.
Interest rates are often lowered to spur economic growth, as companies may borrow money for expansion when rates aren’t high.
Local developments
The Philippine economy grew at a slower pace of 5.4% in the first quarter, the Philippine Statistics Authority reported. This was seen to be a result of the increased uncertainty due to tariff wars.
While the effects of the updated tariffs have yet to be fully felt, some businesses and investors are avoiding aggressive moves for the meantime.
Also, Philippine dollar reserves fell 1.9% month-on-month to $104.6 billion as of end-April. This happened as the government increased foreign debt repayments, the Bangko Sentral ng Pilipinas (BSP) reported.
Central banks such as the BSP aim to keep foreign currency reserves at adequate levels to mitigate possible shocks to the economy and be able to service external debt obligations.
Meanwhile, the Asian Development Bank intends to provide approximately $4 billion in financing to the Philippines in 2025 to support crucial infrastructure. This was according to ADB Country Director Pavit Ramachandran.
Additional and improved infrastructure is essential for developing countries such as the Philippines to grow. These may include roads, bridges, and utilities.
These developments aren’t pointing strongly in a particular direction, although the uncertainty can be noted in various countries and among different investors. For now, you may be better off avoiding big decisions.
