MANILA, Philippines — Ayala Corporation chairman Jaime Augusto Zobel de Ayala expressed optimism that the Philippine economy and Ayala Group are well-positioned to manage market volatility resulting from newly announced US tariffs.
Speaking at the company’s annual stockholders’ meeting last Friday, Zobel noted that the Philippine economy demonstrated resilience in 2024, recording 5.6 percent growth despite global uncertainties and geopolitical tensions. He cited favorable demographics, strong remittance inflows from overseas Filipino workers, robust performance from the business process outsourcing (BPO) sector, and historically low unemployment as key factors supporting the country’s economic stability.
Zobel said that domestic consumption, which accounts for about 72 percent of the country’s gross domestic product, would continue to serve as a buffer against external economic pressures, including shifts in trade dynamics and tariffs such as those announced by the United States.
Nevertheless, he advised vigilance amid ongoing market fluctuations. “We may need to adjust our economic forecasts, as the United States’ reciprocal tariffs could impact exports, industrial output, and agricultural prices,” he said. Zobel added that it remains to be seen whether these developments represent short-term disruptions or indicate a broader structural shift in the global economy. Overall, he expressed the view that the impact on the Philippine economy would likely be limited.
Within Ayala Group, Zobel pointed out that Integrated Micro-Electronics Inc. (IMI) has notable exposure to the US market. However, he said IMI’s extensive global footprint and diversified customer base would help mitigate the effects of the tariffs by allowing the company to adjust across its Asian, European, and North American operations.
Ayala Corporation president and CEO Cezar Consing also addressed the issue, stating that while the group is not fully insulated from market volatility, its core businesses remain strong. He highlighted that BPI started the year on a positive note, Ayala Land continues to expand its cash-generating assets, ACEN is increasing its energy capacity, and Globe Telecom is maintaining growth in a challenging market.
Consing said earlier strategic moves by Ayala’s major and emerging businesses have positioned the group favorably. “With everything happening in the market, all things considered, I think we’re in reasonable shape,” he said.
Earlier this month, US President Donald Trump imposed a 17 percent reciprocal tariff on Philippine goods, which was lower compared to tariffs on other Southeast Asian countries. However, following negotiations, the US temporarily paused most of the new tariffs, including those affecting the Philippines, and reduced them to 10 percent for a 90-day period.
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