Big Mac Index: Philippine peso undervalued by 53.6% vs US$

The Philippine peso is undervalued by 53.6% against the dollar, according to the latest release of the Big Mac Index by The Economist. As of January 2026, a Big Mac costs $6.12 in the US, compared with P169 in the Philippines, implying an exchange rate of P27.61.

This contrasts with the actual exchange rate of P59.48. The index is based on the theory of purchasing power parity, which suggests that exchange rates should match the value of a basket of goods and services across different economies in the long run.

This approach is used to help estimate how much one currency is under- or overvalued relative to another.

Source: Business World

Manila ranks ninth in Prime Global Cities Index in Q3

The Philippine capital’s prime residential prices rose 5.4% year on year in the third quarter of 2025 based on the latest edition of the Prime Global Cities Index by real estate consultancy firm Knight Frank. Manila placed ninth among 46 residential markets, outpacing the 2.5% average annual expansion during the period.

Average annual house price growth across the 46-city basket slowed to 2.5% in the third quarter of 2025, down from 3.0% in Q2. The deceleration reflects growing uncertainty over the timing and scale of interest rate cuts in key global economies, pulling the growth rate further below the long-term average of 5.2%.

Source: Business World

Manila slips in Global Green Finance Index

Manila fell four places to 91^st out of 94 financial centers in the 16^th edition of The Global Green Finance Index (GGFI) released by commercial think-tank Z/Yen Group as part of its Long Finance initiative.

With an overall rating of 486, the Philippine capital ranked lowest among its East and Southeast Asian peers.

The index assesses the quality and depth of green financial products of financial centers, tracking progress toward sustainable and responsible finance.

Source: Business World