Tariff drag felt by year-end

Singapore - based ASEAN+3 Macroeconomic Research Office (AMRO) has projected that the tariffs imposed by the United States (US) on its trade partners in the region, including the 19-percent duty on the Philippines, will be felt by the end of 2025.

- By DERCO ROSAL

Such drag will serve as friction to gross domestic product (GDP) expansion, which is expected to edge down to 5.6 percent this year from the faster 5.7-percent growth last year. Even if this materializes, the weaker growth would still fall within the government's downscaled target of 5.5 to 6.5 percent for 2025.

Based on the ASEAN+3 Regional Economic Outlook (AREO) October Update, AMRO has retained its July forecasts for 2025 and 2026, with growth seen slowing further to 5.5 percent next year. This would fall below the revised target of sixto seven-percent economic expansion for 2026.