Low inflation and unemployment, high spending and budget deficit

Despite the overall economic pessimism in the country today due to continuing corruption scandals affecting both the executive and legislative branches, there are glimmers of economic optimism we should look forward to.

- BIENVENIDO S. OPLAS JR.

I am referring to the low inflation and low unemployment rate of the country.

This week, the Philippine Statistics Authority (PSA) released the inflation figure for September 2025 of only 1.7 percent, then the unemployment figure for August 2025 of 3.9 percent, both low levels and hence, good news.

I computed the average inflation for January-August 2025, in Asia: Japan 3.4 percent, Vietnam 3.3 percent, Cambodia 3.0 percent, India 2.9 percent, Pakistan 2.3 percent, South Korea 2.0 percent, Taiwan 1.8 percent, the Philippines 1.7 percent, Hong Kong and Indonesia 1.5 percent, Malaysia 1.4 percent, Singapore 0.8 percent, Thailand 0.1 percent, China -0.1 percent. China has deflation, Japan is the new “inflation capital” of East Asia, and the Philippines is back to a low-inflation regime.

Inflation over the same period in America: Brazil 5.2 percent, Mexico 3.9 percent, US 2.7 percent, Canada 2.0 percent.

In Europe: Turkey 36.6 percent, Russia 9.6 percent, Romania 6.1 percent, Poland 4.1 percent, Netherlands 3.4 percent, UK and Austria 3.3 percent, Belgium, Czech Republic and Greece 2.6 percent, Spain 2.5 percent, Germany 2.2 percent, Italy 1.7 percent, France 1.0 percent.

So our inflation this year is midway among Asian countries, lower than those in America and Europe except France.