Investments lured by the Philippine Economic Zone Authority (PEZA) dipped by over a fifth in September, while employment they generated also sustained a historic downtrend ahead of an expected Senate vote on a bill ultimately trimming down tax perks in years to come.
Data released to the Philippine Star showed approved investments at the country’s largest economic zone operator amounted to P68.5 billion in September, down 22.41% from P88.3 billion recorded a year ago.
That translated to 215 job-generating projects in September, down by nearly half from previous year’s level. PEZA exports also declined 3.2% annually to $30.2 billion. PEZA did not cite reasons for the decline.
In an email, ING senior economist Nicholas Mapa said, “I think the dimming economic outlook had more to do with the substantial drop off in PEZA investments. The Philippines is currently in a recession but so is most of the world economy, which will definitely put a damper on demand for electronics on a global scale.”