On Friday, Philippine stocks declined sharply, pushing the country’s benchmark index toward a bear market due to worries over lackluster economic growth and mounting global challenges.
The Philippine Stock Exchange Index dropped as much as 1.2% to 6,037.16, marking a decline of over 20% from its October peak.
This week’s downward trend was fueled by a Thursday report indicating economic growth fell short of analysts’ expectations, impacted by storms and flooding, alongside escalating inflation concerns.
Official data revealed a 5.2% growth in the country’s economy in the fourth quarter, falling short of projections. Despite this, the economic planning agency expressed confidence in achieving the lower end of the 2025 growth target of 6.5% to 7.5%.
Investor sentiment in the region remained subdued over concerns raised by the White House regarding potential tariffs on Canada and Mexico, following President Donald Trump’s pledge.
With a looming Feb. 1 deadline for imposing tariffs on Chinese imports, the uncertainty surrounding global trade dynamics could adversely impact exports and investments, potentially denting economic prospects for Asian economies, noted market strategist Poon Panichpibool of Krung Thai Bank.
