MANILA: Over ten years ago, when Fatima Macud brought home roughly 30,000 pesos ($509) a month, the money was enough to cover her expenses and still leave room for savings.

Though she now earns 45,000 pesos, Macud finds herself unable to save any money as she struggles with rising prices to cover daily spending. 

“Yes, I got a salary increase, but the thing is, the cost of living here in the city also increased,” the 52-year-old resident of Metro Manila told Arab News on Saturday.

“Now for me, it barely covers my basic needs because the price of commodities just keeps rising — goods, services, everything … Everything feels way too expensive … Now, I can’t save money at all. It’s not enough.” 

The Philippine economy has slowed to the weakest pace in nearly 15 years outside of the pandemic, with data from the Philippines Statistics Authority showing just 3.0 percent growth in October to December, compared with 5.3 percent from the same period a year earlier. 

The full-year growth in 2025 settled at 4.4 percent, below the 5.7 percent posted in 2024 and lower than the government’s revised target of at least 4.8 percent. 

It was the result of “several converging factors,” Economic Planning Secretary Arsenio Balisacan told reporters earlier this week. 

“These include the adverse economic effects of weather and climate-related disruptions. Admittedly, the flood control corruption scandal also weighed on business and consumer confidence,” he said. 

But on the ground, Filipinos were more concerned about their day-to-day lives, and the state of the economy has begun to spark new worries about the future. 

“I am worried about my future,  especially my retirement. If the government is in a bankruptcy state or ends up in financial trouble, will they be able to pay my pension? Can I still avail the free health services with full benefits?” Macud said. 

“I’m also worried about my family’s future; the rising cost of living and the lack of employment opportunities.”

Olga Resureccion, a 52-year-old worker in Manila, is among those who believes the government has been “trying its best,” and is keeping her hopes alive. 

“You can’t lose hope,” she said. “Most people are still able to provide for themselves and their family. Like (me), I’m able to provide. You just really need to work hard.” 

Yet for entrepreneurs such as John Paul Maunes, the economic slowdown was taking a toll on his small restaurant in Cebu City, as he struggled with increasing prices of supplies, taxes and cost of government permits. 

“I think people from the ground, especially business owners, are really struggling right now. Particularly those who are SMEs (small and medium enterprises),” Maunes said. 

“We cannot increase our prices the way we want it because we’ll lose our customers. And at the same time, we are also struggling on how we can cope with the rising prices of commodities. Plus, the government permits and taxes are increasing every year.” 

Over the years, the 41-year-old has had to lay off employees to survive, while hoping for more government support and opportunities through economic growth. 

“We have this fear of impending doom as small business owners … With the increasing prices and economic impact on us on the ground, it’s a huge challenge,” he said.

 “We’re just hoping that better things will come for our government, for our economy.”