Cement industry to complete decarbonization plan soon

The Cement Manufacturers Association of the Philippines, Inc. (CeMAP) said it is looking to present a decarbonization roadmap for the industry to the Association of Southeast Asian Nations (ASEAN), which the Philippines chairs this year.

CeMAP President and Vice Chairman John Reinier H. Dizon said the group is working with the United Nations Industrial Development Organization in preparing a roadmap that will help reduce the industry’s carbon emissions.

“It is almost done … We will finish it next month, before the end of February,” he told reporters last week.

“We will try to present it at the ASEAN … We will be the second in the region,” he added, noting that the first such plan was completed by Thailand.

Under the roadmap, the Philippine cement industry will set a target every five years between 2030 and 2050, with net-zero as the ultimate goal.

“Cement and concrete in general contribute to around 6-7% of greenhouse gas, but we need cement to build houses and roads, so we are just doing our part on how we can reduce our carbon footprint,” he said.

The group aims to achieve the plan’s targets via the increased usage of alternative fuels, among others.

“Typically we use coal, which is fossil-based. And of course, it emits carbon dioxide,” he said.

He added that the process of cooking the limestone used for cement, also produces carbon dioxide.

“We have two main actions: we want to introduce more alternative fuels, and in the production of cement, we want to use less clinker,” he said.

In particular, he said that the industry is looking at waste-to-energy as an alternative, noting its role in reducing waste.

He said that the roadmap is also aligned with recently signed laws: the New Government Procurement Reform Act and the Tatak Pinoy Act.

Source: Business World

Investments recovery key to growth rebound

A rebound in public and private investments could lead to gradual economic gains for the Philippines and a return to 6.0-percent growth, a senior Asian Development Bank (ADB) official said.

“I guess the main variable for 2026 is how fast does the public investment recover,” ADB Country Director Andrew Jeffries told reporters on the sidelines of the Bangko Sentral ng Pilipinas’ (BSP) Annual Reception for the Banking Community last Friday.

“[W]e were thinking maybe two quarters,” he added, with the last six months of this year setting the stage for a stronger expansion in 2027.

For 2026, he said: “Imagine a slower quarter one and maybe a little better quarter two and then maybe a little better quarter three and a good quarter four.”

A return to 6.0-percent growth is possible, but Jeffries stressed that “high investment, public and private... would be, to me, the key driver... the other things seem to be going pretty well.”

He also said that exports would have to improve for long-term economic growth and economic resiliency, which will require sustained reforms, stronger investment promotion, and improvements in the business environment.

“It’s not something that happens overnight,” he said. “But, you know, neighbors have done it, and the Philippines can do that.”

Citing “reduced public infrastructure spending,” the Manila-based lender last month lowered its 2025 and 2026 growth forecasts for the Philippines to 5.0 percent and 5.3 percent, respectively, from 5.6 percent and 5.7 percent.

The country enjoyed a run of above 6.0-percent growth before the Covid-19 pandemic hit, leading to a 9.5-percent plunge in 2020. It saw a recovery in the following two years, recording a spike of 7.6 percent in 2022, but then posted below-target results of 5.5 percent and 5.7 percent in 2023 and 2024.

A 5.5- to 6.5-percent expansion was targeted for 2025, and despite a middling start to the year, officials expressed hope of a return to target. A massive flood control project scandal, however, led to a marked third-quarter slowdown that likely extended to the rest of the year.

A third straight growth miss and a marked full-year slowdown to below 5.0 percent are expected to be announced this Thursday.

BSP Governor Eli Remolona Jr. has said that 2025 growth could have slowed to 4.6 percent, while Socioeconomic Planning Secretary Arsenio Balisacan has predicted a 4.8- to 5.0-percent outcome.

Earlier this month, Remolona said the corruption scandal would have “a long impact” on economic growth, with the loss of confidence among investors and households possibly extending up to the first half of 2026.

Still, he expects a recovery to 5.4 percent this year and a further improvement to 6.0–6.2 percent in 2027, within the downwardly-revised targets of 5.0–6.0 percent and 5.5–6.5 percent.

Source: Manila Times

Philippine economy likely to expand by 5.3% in 2026

The Philippine economy is likely to grow by 5.3% this year, driven by robust domestic demand, although private investment risks persist amid the graft scandal, the ASEAN+3 Macroeconomic Research Office (AMRO) said.

In its latest Regional Economic Outlook quarterly update, AMRO sees Philippine gross domestic product (GDP) expanding by 5.3% in 2026, unchanged from its annual consultation report released in November.

This is still within the government’s revised 5-6% GDP growth target for 2026.

“The picture for the Philippine economy is that it has been quite steady, but there are some headwinds against (this outlook) on the investment side,” AMRO Chief Economist Dong He said in a virtual news briefing on Wednesday.

“Private investment of course, needs to be supported by investor confidence, and the public investment had been affected by some of the, for example, flood control controversy,” Mr. He said.

If realized, the Philippines is expected to be the second fastest-growing economy in Southeast Asia this year, after Vietnam’s 7.6%.

The country’s growth will likely outpace Cambodia (5.1%), Indonesia (5%), Laos (4.6%), Malaysia (4.4%), Singapore (3%), Myanmar (2.5%), Thailand (1.7%), and Brunei (1.6%).

The Philippines’ GDP growth would also be above the region’s average growth of 4.6% for 2026.

For 2025, AMRO said the Philippine economy likely grew by 5.2%, falling short of the government’s 5.5-6.5% target.

Mr. He also noted that the “fairly weak” third-quarter growth in 2025 prompted a downgrade in forecasts from the October update.

A flood control corruption scandal has weighed on growth, investor confidence and consumption.

In the third quarter, GDP grew by 4%, the weakest growth in over four years, bringing the nine-month average to 5%.

Fourth-quarter and full-year 2025 GDP data will be released on Jan. 29.

Mr. He said private consumption, which accounts for over 70% of the economy, will continue to remain firm, but the corruption scandal hit the investment side, he added.

Meanwhile, AMRO kept its headline inflation forecast for the Philippines at 3.2% this year, matching the Bangko Sentral ng Pilipinas’ (BSP) full-year projection.

Inflation settled at 1.7% in 2025, the slowest pace in nine years or since 2016.

MAIN RISKS

Meanwhile, AMRO said climate-related risks and artificial intelligence (AI), which put pressure on the country’s service exports sector, are the two main risks for the Philippine economy.

Mr. He also said that while the economy has expanded “steadily,” growth remains below its pre-pandemic trajectory.

“What’s important is really to strengthen governance, strengthen investor confidence, and prioritize investments or prioritize public spending so the economy will become more resilient (against the main risks),” he said.

Last week, the government unveiled “big bold reforms” before the private sector to counter the slide in investor confidence amid a corruption scandal.

Mr. He said these risks highlight the need to upgrade human capacity and human capital to suit the AI age, as well as strengthen infrastructure to make it resilient amid natural disasters.

“In order to maintain resilience and even aim higher to go back to earlier trajectory of growth, we think that the public policies should really focus on strengthening resilience, particularly in light of the two main risks facing the Philippines in the longer term,” he added.

AMRO added that in the near term, authorities have room to ease monetary policy and deploy fiscal support to help the economy.

“I think in terms of policies, of course, in the short term if there are shocks that hit the economy, monetary policy and fiscal policy would be the first policy instruments that the government can use,” he said.

The BSP has reduced its benchmark rate by a total of 200 basis points since August 2024, bringing the policy rate to a more than three-year low of 4.5%.

REGIONAL GROWTH TO MODERATE

Meanwhile, the ASEAN+3 region is projected to grow by 4% this year, moderating from the regional growth forecast of 4.3% in 2025 amid softer external demand.

ASEAN+3 includes the 10 Association of Southeast Asian Nations (ASEAN) member states plus China, Hong Kong, Japan and South Korea.

ASEAN is forecast to expand by 4.6% this year, slightly slower than 4.8% estimate in 2025.

“While domestic demand is projected to remain firm and continue supporting growth, higher US tariffs and persistent policy uncertainty are expected to weigh on external demand, leading to more moderate growth in 2026,” AMRO said.

The US began imposing a 19% reciprocal tariff on many goods from the Philippines, Cambodia, Malaysia, Thailand, and Indonesia in August 2025.

The think tank noted that overall risks to the regional outlook have become “more balanced,” though downside risks persist and uncertainty continues to rise.

AMRO also flagged five downside risks that could weigh on the region’s baseline forecast for 2025 to 2026, including heightened protectionist measures and a potential slowdown in technology demand.

It also warned that further escalation of US trade measures may dampen regional activity, amid concerns that tariffs will be imposed on sectors currently exempted, such as semiconductors.

Other factors that could undermine regional growth in the near term include potential slowdowns in major economies, surging global commodity prices, and increased financial market volatility.

AMRO said long-term risks include geoeconomic confrontation and policy uncertainty from geopolitical tensions, failure of climate change mitigation and adaptation, natural disasters, and extreme weather events.

It added that cyber insecurity, frontier technology risks, weak preparedness for infectious disease outbreaks, and inadequate planning for an aging population could further weigh on the region in the long run.

Despite these risks, the AMRO noted potential upside, such as strong global semiconductor demand and sustained foreign direct investment (FDI) commitments.

“Strong technology demand and robust FDI inflows into emerging sectors, including advanced electronics, electric vehicles, and digital services, have helped cushion growth despite ongoing tariff headwinds,” Mr. He said.

Source: Business World