Economic anxiety and personal resilience sit side by side in the Philippines as 2026 begins. Inflation is low by past standards. Interest rates have been cut several times. Yet many Filipinos still say money feels tight.
The gap between official numbers and daily experience is hard to miss. Stability shows up in reports, but not always at the market stall or the utility bill. That gap explains why easing policy has not delivered the sense of relief many expected.
The recent pause by the Bangko Sentral ng Pilipinas reflects that reality. After five straight rate cuts, the central bank has signaled caution. Growth slowed last year, but inflation has started to move again.
December’s increase was modest. Still, it mattered. Food and basic goods led the rise, and those are the prices households notice first. When rice or vegetables go up, even slightly, the effect feels immediate. Inflation averages may stay low, but lived inflation rarely feels average.
From the BSP’s perspective, the room for error has narrowed. Cut too much and price expectations could shift. Hold steady and risk weaker growth. For now, the signal is restraint rather than stimulus.
Economic Anxiety and Personal Resilience in a Slowing Economy
Survey data help explain why anxiety lingers. A late-2025 survey by Social Weather Stations found that most Filipinos expected prices to rise over the next year, even as headline inflation remained subdued. Self-rated poverty and hunger also edged higher toward year-end, pointing to pressure that statistics alone do not capture.
These perceptions shape behavior. Households respond to what they feel, not what averages suggest. Food inflation matters more than core inflation. Monthly volatility matters more than annual trends. A few unstable weeks can outweigh a year of calm data.
Rate cuts, meanwhile, do not reach everyone evenly. Formal borrowers benefit first. Many households operate outside the banking system or rely on informal credit. For them, lower policy rates remain distant, almost theoretical.
This is where personal resilience fills the gap left by policy. Families adjust spending, lean on relatives, or take on extra work. These coping strategies soften shocks, but they come with limits. Resilience keeps households afloat; it does not remove anxiety.
The 2026 national budget fits into this picture more as a stabilizer than a growth engine. Rather than pushing aggressive expansion, fiscal policy aims to cushion households while the economy regains momentum. In that sense, budget policy and monetary policy are aligned in tone: cautious, measured, and aware of constraints.
When Stability Isn’t Reassurance
Economic anxiety and personal resilience persist together because stability on paper does not always feel reassuring. Rate cuts help formal borrowers first. Low inflation averages mask volatile essentials. Surveys capture this disconnect clearly.
For policymakers, the challenge is not just managing indicators, but managing expectations. For Filipinos, resilience remains the default response. In 2026, that resilience is still holding, but it is being tested by an economy that feels paused rather than secure.
