7.6% growth fastest, but incomes still low
THE Philippine economy may have breached P20 trillion for the first time, but per capita incomes of Filipinos are not yet back to what they were before the pandemic.
Trade gap widens 38%; exports, imports grow slower
THE country’s lackluster external trade performance in December 2022 left exports and imports posting slower full-year growth compared to last year, according to data released by the Philippine Statistics Authority (PSA).
ADB lends PHL $0.5B for growth
THE Philippine government has secured a new loan from the Asian Development Bank (ADB) worth $500 million to address the impact of the pandemic on jobs and livelihoods.
Hot money inflow inched higher in 2022
DESPITE posting outflows in half the year, “hot money” still managed to end the year on a positive note, according to the latest data released by the Bangko Sentral ng Pilipinas (BSP).
PBBM to bare ‘Build Better More’ project list next week
The administration of President Ferdinand R. Marcos Jr. is expected to release a list of Build Better More (BBM) projects, according to the National Economic and Development Authority (Neda).
Economy grows by 7.6% in 2022, GDP up by 7.2 % in 4Q
The economy posted a growth of 7.6 percent in 2022, according to the latest data released by the Philippine Statistics Authority (PSA).
PSA keeps GDP growth at 7.6% in 3rd quarter
DESPITE upward adjustments made on the growth of certain sectors such as real estate and the financial sectors, the Philippine Statistics Authority (PSA) maintained GDP growth at 7.6 percent in the third quarter of 2022.
Government needs to spend more for social protection in 2023
IF Filipinos will be able to chart the troubled waters of 2023, Ibon Foundation Inc. said the national government would have to increase social protection to households and micro, small and medium enterprises (MSMEs) nationwide this year.
Pinoys believe quality of life improved, but still far from pre-Covid level–poll
Adult Filipinos who believed their quality of life improved in the past 12 months increased, but the growth was still nowhere near pre-pandemic levels, according to the Social Weather Stations (SWS).
Despite Covid-19, cardio, cerebrovascular diseases, cancer remain top killers in PHL
The Covid-19 virus that crippled the global economy and shuttered many businesses in the process has also continued to cause the death of thousands of Filipinos as of September 2022, according to the Philippine Statistics Authority (PSA).
Mindanao provinces post high teen pregnancy cases
NORTHERN Mindanao and Davao Region account for the largest percentage of teen girls aged 15 to 19 who were ever pregnant, based on the Philippine Statistics Authority (PSA).
Ibon: Expect new taxes, more
borrowings, less ayuda in ’23
WHILE the price of onion is expected to decrease, Filipinos will still be facing a number of challenges this year including new taxes, more borrowings, and less ayuda, according to Ibon Foundation Inc.
Listing in govt housing program free–DHSUD
THE Department of Human Settlements and Urban Development (DHSUD) disclosed that no membership fees are needed in order to be listed in the government’s housing program.
2022 BOP deficit at $7.26B, widest gap in 52 years
THE Philippines ended 2022 with its widest overall balance of payments (BOP) deficit in over five decades, according to data released by the Bangko Sentral ng Pilipinas (BSP).
Prices of construction items grew most in 14 years–PSA
METRO Manila last year saw the highest increase in construction material retail prices in 14 years, according to data released by the Philippine Statistics Authority (PSA).
Ukraine war, climate, China reopening to keep prices up
THE war in Ukraine, China’s reopening and climate change will continue making commodities expensive this year, according to London-based think tank the Economist Intelligence Unit (EIU)
SWS: Families reported feeling hunger amid Christmas preparations
THE number of families experiencing hunger in Metro Manila and Mindanao were on the decline but their numbers in Balance Luzon and the Visayas were on the rise even if the country was already in the thick of Christmas preparations, according to the latest Social Weather Stations (SWS) survey.
‘Government, banks need to invest more to fight cyberattacks’
PHILIPPINE banks and the government may need to make additional investments to guard against possible cyberattacks, according to experts.
In its latest Global Cybersecurity Outlook 2023, the World Economic Forum (WEF) warned that geopolitical instability could pave the way for a “catastrophic cyberattack” in two years.
‘Tax billionaires, not luxury goods’
WHILE the proposal to tax luxury items is desirable, it is not a good substitute for a wealth tax on the country’s billionaires, according to nongovernment Ibon Foundation Inc.
BSP tracks food price hikes beyond NCR
THE rise in prices of food and other commodities may be more pronounced in regions outside Metro Manila making it necessary to monitor these conditions for the country’s price and financial stability, according to the Bangko Sentral ng Pilipinas (BSP).
LinkedIn’s list: Positions needing lifelong learning most in demand
AS millions of Filipinos struggle to find jobs in a tight economy, LinkedIn’s Jobs on the Rise List showed that positions in high demand are those that encourage workers to be lifelong learners.
BSP squeezes out only ₧334.785B from system
THE Bangko Sentral ng Pilipinas (BSP) partially awarded Term Deposit Facilities (TDFs) as investors preferred shorter tenors during the auction on Wednesday.
Upbeat on ’22, wary of ’23 risks
SINGAPORE-BASED AMRO CITES BETTER-THAN-EXPECTED GROWTH PERFORMANCE LAST YEAR
Holiday economics needs review– NEDA
THE bill allowing long weekends to boost tourism and domestic consumption warrants careful study, according to the National Economic and Development Authority (Neda).
BSP’s 2-in-1 tack: Old notes for digital cash
A FRUIT vendors and other wet market sellers in Bohol province were recently able to exchange unfit banknotes and coins with digital cash, according to the Bangko Sentral ng Pilipinas (BSP).
Remittances at 5-month low; global risks cited
CASH remittances from overseas Filipinos only reached $2.644 billion in November 2022, the lowest in five months, according to data released by the Bangko Sentral ng Pilipinas (BSP).
New York Supreme Court has jurisdiction over case vs RCBC
THE Supreme Court of the State of New York, the first instance trial court, affirmed that it has jurisdiction over the case filed by the Bangladesh Bank against RCBC and its current and previous employees.
Decline in earnings signals systemic risk–BSP
THE recent increase in employment may not be enough to ensure higher incomes for Filipinos and guarantee the country’s recovery, according to the Bangko Sentral ng Pilipinas (BSP).
BSP: PHL dependence on oil imports a cause for concern
THE Bangko Sentral ng Pilipinas (BSP) expressed concern that with the country’s energy sector’s dependence on imported refined oil, the Philippines is more vulnerable to refining margins in China, South Korea and Singapore than rising crude prices.
New PopCom chief to focus on improving quality of life
THE newly sworn-in Commission on Population and Development (Popcom) Executive Director intends to focus on the commission’s development aims.
PHL FDIs shrink to $7.6B in January-October 2022—BSP data
THE country’s foreign direct investments (FDIs) contracted 8.3 percent in the January-October 2022 period, according to data released by the Bangko Sentral ng Pilipinas (BSP).
Risks dampen growth forecasts of WB, experts
HOUSEHOLD consumption as well as infrastructure projects are expected to boost economic growth this year to 6 percent, according to First Metro Investment Corporation-University of Asia & the Pacific Capital Markets Research.
Peso boost only ‘temporary,’
seen at ₧57-₧59 to $ in 2023
THE Philippine peso is not expected to continue strengthening this year and the recent performance of the currency is only temporary, according to a local think tank.
Disruptions keeping fertilizer expensive
FERTILIZER prices have already eased from the peak levels recorded in 2022 but prices remain high due to disruptions and restrictions that make it more expensive, according to World Bank economists.
Experts cite tool kit to bust inflation, stimulate economy
LOCAL economists are proposing a number of measures, including going after smugglers and hoarders as well as raising real wages, to rein in inflation and stimulate the economy this year.
Holiday jobs boost PHL employment by 49.71M, highest in 17 years–PSA
Preparations for the holidays boosted the country’s employment numbers and brought down unemployment to its lowest level in nearly two decades, according to the Philippine Statistics Authority (PSA).
PH inflation up 8.1% in December
Expensive food items caused inflation to post its highest rate in December since the Global Financial Crisis, according to the Philippine Statistics Authority (PSA).
Central bank orders Ayala-led BPI to explain banking snafu
THE Bangko Sentral ng Pilipinas (BSP) has instructed the Ayala-led Bank of the Philippine Islands (BPI) to submit a timeline and updates regarding reversals on the double debit transaction incidents last Wednesday.
NG to raise public infraspend to 6% of GDP by 2028, per PDP
THE national government intends to raise public infrastructure spending to 6 percent of GDP by 2028, according to the Philippine Development Plan (PDP).
PDP to cut child stunting by 20%, reduce undernourishment, obesity
The government aims to decrease stunting to below 20 percent in the medium term as part of its efforts to address the triple burden of malnutrition, according to the Philippine Development Plan (PDP).
High wages, huge demand
to drain PHL of more HCWs
THE “huge wage differential” and the high demand for healthcare workers (HCW) due to aging populations could cost the Philippines more of its healthcare professionals in the medium term, according to the Philippine Development Plan (PDP).
DHSUD readies construction of housing projects in 2023
The Department of Human Settlements and Urban Development (DHSUD) expects to start the construction of various housing projects under the Pambansang Pabahay Para sa Pilipino Program in the first semester of the year.
BSP taps bankers to promote cybersecurity
THE Bangko Sentral ng Pilipinas (BSP) has partnered with the Bankers Association of the Philippines (BAP) and the Bank Marketing Association of the Philippines (BMAP) to fight cybercrime through the “Check-Protect-Report” (CPR) information drive to foster cyber hygiene among Filipinos.
PHL economy off to slow start in ‘23
THE Philippine eco-nomy is in for a slow start this year, especially with China recovering and increasing their demand for oil in 2023, according to local economists.
NG looks to more green jobs to cut unemployment to 5%
THE national government aims to bring down unemployment to below 5 percent starting in 2024, according to the recently released Philippine Development Plan (PDP).
Medium-term plan includes nuke option in energy mix
THE national government aims to explore the option to include nuclear energy in the country’s energy mix in the medium term, according to the recently crafted Philippine Development Plan (PDP).
Wider social protection mantle for OFW, seniors, poor households in PDP
THE government intends to increase and improve social protection (SP) coverage in the country to include Overseas Filipino Workers (OFWs), seniors, and more poor households, according to the Philippine Development Plan (PDP).
Govt eyes taxing self-employed, luxury items in 5-year devt plan
THE Marcos administration aims to expand tax coverage in the medium term, according to the recently released 2023-2028 Philippine Development Plan (PDP).
Silver lining in traffic jams? High Q4 growth
THE traffic jams and Christmas decorations are among the few indicators that GDP growth in the fourth quarter will be robust, according to the National Economic and Development Authority (Neda).
‘Omnibus’ PPP law to cover govt, private infra eyed
THE Marcos administration aims to create an “omnibus” public-private partnership law that will push for the consolidation of all infrastructure undertakings between the government and the private sector.
Issues with ‘aging population’ easier to handle–Neda
WHICH is more challenging? To have a fertility rate declining below replacement rate and be confronted with providing for an aging population, or see a fertility boom that makes poverty reduction harder?
BSP encourages public to send electronic aguinaldos
WITH less than a week until Christmas, the Bangko Sentral ng Pilipinas (BSP) is encouraging Filipinos to bring the yuletide cheer to loved ones through electronic aguinaldos (e-aguinaldos).
50-bps rate hike seen to dent 2023, 2024 growth
THE Monetary Board’s decision to raise the country’s benchmark rates by 50 basis points (bps) on Thursday would likely have an impact on the country’s growth rate in the next two years.
ADB raises PHL growth forecast for 2022 to 7.4%
THE Philippine economy’s performance, especially in the third quarter, “shattered” the expectations of the Asian Development Bank (ADB) prompting the Manila-based multilateral development bank to raise its forecast for the country’s GDP growth this year.
‘PHL may avoid recession, but growth still fragile’
The Philippine economy has a “big chance” of escaping a recession next year, thanks to strong domestic consumption, but growth remains fragile as threats remain, according to a local economist.
ADB to extend $12.9B worth of loans, grants to PHL until 2025
THE Asian Development Bank (ADB) is extending $12.9 billion worth of loans and grants to the Philippines in the next three years under its new assistance framework for 2023 to 2025. The amount is equivalent to P718.659 billion at current exchange rates.
October export earnings up, but $100-B goal dims
THE country’s prospects of seeing export earnings rise to $100 billion are dim, with local economists highlighting the global economic slowdown and issues surrounding the local manufacturing industry among the biggest challenges for attaining this.
Don’t tie BSP hands for Maharlika–Neda chief
THE use of the Gross International Reserves (GIR) and lowering the reserve requirement of banks to finance the Maharlika Investment Fund (MIF) may limit the tools at the disposal of the Bangko Sentral ng Pilipinas (BSP) during times when inflation is high.
Digital trade integration, key driver in pandemic recovery
DIGITAL trade integration will positively impact its emerging digital services trade and become a key driver in the post-pandemic economic recovery, according to researchers from the Philippine Institute for Development Studies (PIDS).
‘Law allowing teens access to RH services may prevent pregnancy’
PASSING legislations such as the pending bill allowing adolescents to access reproductive health services will help maximize the 10-year old Responsible Parenthood and Reproductive Health Law, according to the Commission on Population and Development (Popcom).
Electronics helps PHL export earnings post highest growth since May 2021
SHIPMENTS of electronic products boosted the country’s export earnings to its highest growth in over a year, according to the Philippine Statistics Authority (PSA).
FDI inflow in 3 quarters shrinks 10% to $6.7 billion
FOREIGN investments received by the country posted a double-digit decline in the first three quarters of the year, according to data released by the Bangko Sentral ng Pilipinas (BSP).
Moody’s arm sees 50-bps interest rate hike by MB
THE Monetary Board is expected to hike interest rates by as much as 50 basis points in its meeting this week, according to Moody’s Analytics.
‘Government failure to make farms competitive behind inflation’
INFLATION is high in the Philippines not because of importation but because of the country’s failure to increase competition in the market and encourage greater productivity in the agriculture sector, according to a former Socioeconomic Planning Secretary.
9-month external debt breaches full-year ‘21
BORROWINGS made by Philippine residents and non-residents or external debt in the January to September period this year has already exceeded the full-year amount recorded in 2021, according to the Bangko Sentral ng Pilipinas (BSP).
IMF experts flag added inflation risk: La Niña
GOVERNMENTS across the world should focus on protecting the purchasing power of citizens as the La Niña weather phenomenon is expected to further increase inflation in 2023, according to the International Monetary Fund (IMF).
Many teen moms have partners over 10-20 yrs older, PSA data shows
OVER a thousand births by adolescent Filipinas were sired by fathers who were more than 20 years older than them in 2020, according to data from the Philippine Statistics Authority (PSA).
PHL still among worst performers in world talent index
THE Philippines is still one of the worst performers in Asia and the Pacific despite a three-notch improvement in its Institute for Management Development’s (IMD) World Talent Ranking (WTR) for 2022.
Debt, forex operations slash end-November GIR to $93.95b
THE country’s Gross International Reserves (GIR) stood at $93.95 billion as of the end of November 2022, according to the Bangko Sentral ng Pilipinas (BSP).
‘Poor-quality jobs helped lower unemployment’
TODAY’S hard times make it difficult for Filipino workers to “lose” or change their jobs, no matter if they are of poor quality, and this may have led to an increase in employment and a decline in unemployment in October, according to local economists.
Manufacturing posts 5th month of growth, up 5.1% in October
THE country’s manufacturing output posted its fifth consecutive month of positive growth in October, according to the latest Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority (PSA).
World Bank flags debt spike even in mid-income countries like PHL
EFFORTS to reduce debts should be implemented even among middle-income countries like the Philippines as external debt levels have significantly risen during and after the pandemic, according to the World Bank.
ADB lends $40M for 380 telco towers in Mindanao, Visayas
A local infrastructure firm was able to secure a $40 million worth loan from the Asian Development Bank (ADB) to improve digital connectivity in Visayas and Mindanao.
BPI eyes ₧5B from peso fixed-rate bonds issue
AYALA-led Bank of the Philippine Islands (BPI) intends to raise P5 billion from its peso fixed rate bonds to help finance or refinance the business requirements of eligible Micro, Small and Medium Enterprises (MSMEs).
PHL unemployment improves to 17-year low of 4.5% – PSA
The country’s employment situation improved with the jobless rate reaching 4.5 percent in October, the lowest in 17 years, according to the Philippine Statistics Authority (PSA).
Neda: PDP adoption to blunt risks from global recession
CHINA’S spiking Covid-19 cases and zero Covid policy are among the identified headwinds that may significantly affect the country’s economic performance next year, according to the National Economic and Development Authority (Neda).
Creation of sovereign wealth fund backed
CREATING a sovereign wealth fund (SWF) even if the Philippines does not yet have an aging society would still be a good move, considering that it will ensure future generations could still enjoy the country’s current wealth in the years to come, according to the National Economic and Development Authority (Neda).
Inflation, weak demand a drag on growth till ’23 Q2
HIGH inflation and weak external demand will cast a dark cloud over the country’s economic growth prospects until the second quarter of next year, according to Oxford Economics.
‘Maharlika Fund’ pilloried; wealth tax seen better bet
IF the government is looking for a way to raise much-needed revenues, Ibon Foundation Inc. said creating the Maharlika Investment Fund (MIF) would not be the best way to do it.
AUB taps Ant app for use of e-wallet in payments
OVER a million users of the e-wallet app of Asia United Bank (AUB) Corp. can now make cross-border payments as the lender tapped the use of the Alipay-Plus system owned by Hangzhou, China-headquartered Ant Group Co. Ltd.
TDF undersubscribed; BSP cites preference for cash, rate hike pass-through
THE preference for cash as the holidays approach, as well as the recent policy rate hike implemented by the Monetary Board caused the Bangko Sentral ng Pilipinas (BSP) Term Deposit Facility (TDF) to be undersubscribed.
On Tuesday, the BSP accepted P232.469 billion of the P233.469 billion tenders it received for the TDFs. The BSP awarded P110.737 billion from P111.737 billion bids in the 8-day tenor and accepted all bids received in the 15-day tenor amounting to P121.732 billion.
The total offer volume was allocated between the 8-day and 15-day tenors at P180 billion from P200 billion and P150 billion from P160 billion, respectively.
“The results of the TDF auction continue to reflect the pass-through of the recent BSP policy rate hike. In addition, the undersubscriptions could be attributed to eligible counterparties’ increased preference for cash in preparation for the holidays,” BSP Deputy Governor Francisco Dakila Jr. said.
“Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added.
The resulting weighted average interest rates (WAIR) for the awarded bids in both tenors continued to rise from last week.
The WAIR for the 8-day TDF increased by 25.9370 basis points (bps) to 5.7514 percent, while that for the 15-day TDF rose by 20.2688 bps to 5.8662 percent.
The yields accepted likewise shifted higher, but narrowed to a range of 5.4900-6.0250 percent in the 8-day tenor and 5.6000-6.1750 percent in the 15-day tenor.
Earlier, the Bangko Sentral ng Pilipinas (BSP) decision to hike interest rates due to the recent policy action of the US Federal Reserve may temper the country’s growth prospects, according to the National Economic and Development Authority (Neda) and local economists.
The recent decision of the Monetary Board to raise interest rates by 75 basis points increased the BSP’s overnight repurchase facility rate to 5 percent from 4.25 percent.
BSP Governor Felipe M. Medalla said in light of the 75 basis points (bps) increase in US interest rates, the Monetary Board will match the policy action of the US Federal Reserve in its upcoming policy rate setting on November 17. (Full story: https://businessmirror.com.ph/2022/11/03/bsp-to-increase-interest-rates-by-75bps/).###
Young Pinoys not keen on going abroad to seek jobs
MAJORITY of young Filipinos do not want to leave the country to find work, according to the YouthLed 2021 National Youth Survey.
NG subsidies to GOCCs, GFIs inched up 2.09% in Jan-Oct
SUBSIDIES extended by the national government (NG) to government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) inched up 2.09 percent in the January to October period this year, according to the Bureau of the Treasury (BTr).
‘Deficit-to-GDP ratio, fiscal data improving’
THE Department of Finance (DOF) said the government’s fiscal indicators are improving as the increase in the deficit to GDP ratio slowed and revenue generating agencies hit double-digit growth in their collections.
Poverty declining, but PHL one of most unequal nations
NEARLY half or 44 million of the Philippine population are considered economically secure but the country remains one of the most unequal in the world, according to the World Bank.
NG eyes ₧135B via sale of treasuries
THE national government aims to raise P135 billion from the auction of debt papers in December, according to the Bureau of the Treasury (BTr).
CIMB Bank to double loan offers next year
CIMB Bank Philippines Inc. expects to double the amount of loans it extends to Filipinos next year on the back of the encouraging performance of its loan portfolio this year.
PIDS study presents alternatives to address PHL housing backlog
Housing in the country remain expensive for most Filipinos as wage increases are just enough to cover for rising commodity prices, according to the Philippine Institute for Development Studies (PIDS).
Popcom flags need to rush creation of jobs for Pinoys
THE Philippines needs to fast-track efforts to create jobs for 69.4 million working age Filipinos, according to the Commission on Population and Development (Popcom).
Southeast Asian economies not yet tapping Chiang Mai fund
Southeast Asian economies such as the Philippines and Indonesia still have sufficient buffers preventing them from tapping the Chiang Mai Initiative Multilateralization (CMIM), according to the Asean+3 Macroeconomic Research Office (AMRO).
Term deposits take hit after policy tweak
THE recent policy rate setting may have had a “partial pass-through” on the recent auction of interest-bearing term deposits, the central bank said.
RCBC thrift bank offers loan facility
YUCHENGCO-led Rizal MicroBank Inc. (RMB) introduced a loan facility targeting the underbanked agricultural sector.
Government likely lost ₧.5B in tariff cuts on agri imports
THE government may have lost over half a billion pesos in tariff collections due to Executive Order 171 which reduced tariffs on imports of various commodities, according to the Federation of Free Farmers (FFF).
Middle class needs not met by pro-poor policies
PRO-POOR policies that are being touted to achieve a middle-class society may be insufficient as the Philippine middle class has significantly expanded and their needs are different from those of the lowest income class, according to local economists.
Filipinos want to get cash via digital hubs
NEARLY half of Filipinos now prefer to receive money transfers through digital platforms, according to a study conducted by Western Union Co.
NG raises ₧10.55B of ₧15-billion Treasury bills offered
THE national government raised P10.55 billion from the partial award of Treasury Bills on Monday, according to the Bureau of the Treasury (BTr).
BOC conducts deeper probe into foiled ₧80-M jewelry smuggling try at Naia
The Bureau of Customs (BOC) have seized some P80 million worth of assorted jewelry from the lavatory of an aircraft that recently arrived from Hong Kong.
Digitalization of government processes gets ₧12.47-B budget from DBM
A transparent government requires digitalization, and the current administration is investing billions of the national budget for next year to finance various digital interventions, according to the Department of Budget and Management (DBM).
Finance chief courts Italian business investors, highlights game-changing reforms, perks
The Department of Finance (DOF) told Italian businessmen that investing in the Philippines would also entitle them to perks from recent game-changing reforms of the Philippine government.
‘New taxes key to PHL fiscal sustainability’
The introduction of new taxes is crucial to ensure the country’s fiscal sustainability, according to a study from the state-owned think tank Philippine Institute for Development Studies (PIDS).