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2nd State of the Nation Address
Anti-inflation measures Crafting of Medium-Term Fiscal Framework supported by Congress Implementation of strategies to capacitate economic sectors Results (1) 7.6 percent growth in 2022 — highest rate in 46 years. (2) January to March 2023 — 6.4 growth percent (within 6 to 7 percent target) (3) Philippines considered to be among fastest-growing economies in the Asian region and in the world (4) Strong and stable financial system (5) Banks have strong capital and liquidity positions. (6) Digital economy contributed P2 trillion in 2022, the equivalent of 9.4 percent of our GDP. (7) World Bank projects a 6 percent overall growth rate due to strong local demand, consumer spending, strength from the BPO industry, steady flow of remittances, and continuing jobs recovery (8) Inflation rate eased up from 8.7 percent in January to 5.4 percent in June. (9) Bureau of Internal Revenue posted P1.05 trillion collections — an increase of almost 10 percent over the last year (10) Bureau of Customs increased collection by 7.4 percent for the first seven months of 2023, amounting to P476 billion. (11) PAGCOR increased collection by 47.9 percent (12) PCSO increased collection by 20 percent Reduction of prices of commodities like rice, meat, fish, vegetables and sugar Roll out of more than 7,000 KADIWA stores nationwide that link farmers with consumers, benefited 1.8 million families Agriculture Science-based methods toward food security Revision of Fisheries Code Unify 300 farm and fisheries clusters composed of 900 cooperatives Extensive technology training like the use of local bio-fertilizers Distribution of farm machinery, tools and inclement Distribution of more than 5 million rice seedlings and other crops Fuel at fertilizer discount vouchers Geo-Agri map of farm-to-market roads Irrigated 49,000 hectares of farmlands across the country. Constructed 4,000 additional fabrication labs, production at cold storage facilities Built 24 multi-species hatcheries to increase fisheries production Anti-animal pest monitoring, medicines, and vaccines Cloud seeding and buffer stocks in preparation for El Niño 70,000 agrarian land titles distributed Signing of EO No. 4. Or New Agrarian Emancipation Act the condoned P57-billion farmers’ loans Smuggling and hoarding Days of smugglers and hoarders are numbered Water Supply Creation of Water Resources Management Office Working for legislation of Department of Water Resource Management Allocated P14.6 billion for water supply projects Completion of Wawa Bulk Water Supply Project Phase 1 Installed 6,0000 rainwater collection systems across the country Infrastructure 8.3-trillion peso “Build, Better, More” Program in progress 194 flagship projects Continuation of “Build, Build, Build” projects Infrastructure spending stays at 5 to 6 percent of GDP 1,200-kilometer Luzon Spine Expressway Network Program will effectively connect Ilocos to Bicol from 20 hours to just 9 hours of travel Under Mega-Bridge Program, 12 bridges totaling 90 kilometers will be constructed including Bataan-Cavite Interlink Bridge and the Panay-Guimaras-Negros Island Bridges, and Samal Island-Davao City Connector Bridge As of June 2023, 4,000 kilometers of roads and 500 bridges have been constructed, maintained and upgraded Completed Cebu’s Pier 88 smart port, new passenger terminal buildings of Clark Airport and Port of Calapan. North-South Commuter Railway System now in full swing Strategic financing Enactment into law of Maharlika Investment Fund Social security Funds for the social security and public health insurance intact and separate Energy and Power Generation Price of crude oil stabilized Since last year, gasoline and diesel prices have gone down by 18 to 29 percent, respectively. Built 8 new additional power plants, bringing to 17 the total number of power generation facilities Energy production increased by 1,174 megawatts. Almost half a million homes given access to electricity; 100 percent household electrification by June 2028 Renewable energy is the way forward Promotion of renewables targets 35 percent share in the power mix by 2030, and 50 percent by 2040 Opened renewable energy projects to foreign investments Since last year, an additional 126 renewable energy contracts with potential capacity of 31,000 megawatts awarded. To date, more than 1,000 active projects all over the country — 299 are solar, 187 are wind, 436 are hydroelectric, 58 are biomass, 36 are geothermal, and 9 are ocean-powered. Malampaya project is boon, energizing 20 percent of Luzon; renewal of the contract guarantees continued revenues and energy production for another 15 years Push for more gas exploration in other parts of the country Partnered with the BARMM in regard to energy exploration and development The Philippines now has a Unified National Grid with the interconnection of the Luzon, Visayas and Mindanao grids “One Grid, One Market” will enable more efficient transfers and more competitive pricing of electricity Performance review of National Grid Corporation of the Philippines to complete all of its deliverables, starting with the vital Mindanao-Visayas and Cebu-Negros-Panay interconnections. Social welfare Enough funds for underprivileged DSWD, DoLE, DepEd, TESDA and CHEd involved in providing assistance Programs like AICS, TUPAD, TVET for Social Equity, Social Pension for Indigent Senior Citizens, Cash-for-Work for PWDs, and Integrated Livelihood Program-Kabuhayan available for indigents Social protection Pension of the military and the uniformed personnel is as important, urgent, and humanitarian as that of all other civilian Filipino employees Working closely with Congress to ease the transition from the old system to the new one, to guarantee that no effects are felt by those in the uniformed services. The post 2nd State of the Nation Address appeared first on Daily Tribune......»»
China s Jiangsu sees steady growth of int l ships in March
NANJING, April 11 (Xinhua) -- East China's Jiangsu Province saw its international routes register steady growth in the number of entry-exit ships and passengers in March, showing a strong recovery of its foreign trade. The number of ships and passengers passing through the river and sea ports in Jiangsu increased by 27.6 percent and 29.2 percent year on year, respectively, in March, according to the provincial e.....»»
Merchandise exports to remain subdued
Philippine merchandise exports will stay subdued amid weaker economic prospects for major export markets, including the United States, Japan and the People’s Republic of China, according to a report by the Asian Development Bank. The Asian Development Outlook September 2023 also sees the current account deficit narrowing from 2022, supported by the strength in service exports and steady growth in remittances from overseas workers. The ADB report said net exports weighed on the Philippine gross domestic product (GDP) growth in the first half of 2023, as merchandise exports declined by 8 percent in real terms on weak external demand while merchandise imports also fell though to a lesser extent by 2.4 percent. Decline in merchandise exports It attributed the decline in merchandise imports partly to the subdued demand for raw materials and components for export-oriented manufacturing, as well as the slowdown in domestic demand. “Strong services exports (14.8 percent higher in H1 2023), driven by tourism and business process outsourcing partly cushioned the merchandise trade deficit,” it said. The report said services largely fueled the growth in GDP with broad expansion across major subsectors. Transport, accommodations and restaurants sustained double-digit growth on buoyant tourism. Growth in retail trade, accounting for nearly a fourth of total services, remained buoyant at 6.6 percent as well as in finance (6.9 percent) and professional and business services (7.2 percent), it added. Demand slowdown The ADB report said a slowdown in global demand is holding back exports in developing Asia’s economies, particularly for electronics and semiconductors. “Sales of semiconductors continue to decline, but the decline appears to be bottoming out. With the slowdown in global demand, semiconductor sales fell sharply in late 2022 and the trend has largely continued this year,” it said. The report cited the World Semiconductor Trade Statistics expecting a 10.3-percent contraction in global sales for this year, deeper than the 4.1 percent expected earlier this year, with the steeper-than-expected downturn in this market. However, the uptick in the growth of global semiconductor sales averaged over three months suggests the downturn started to bottom out in June, it added. The post Merchandise exports to remain subdued appeared first on Daily Tribune......»»
Proposed P5.768T 2024 budget 9.8% higher than 2023
The Philippines would be "one step closer" to realizing the government's "transformative vision" for the country once Congress accepts the proposed National Budget for 2024, President Ferdinand Marcos Jr. said. The Chief Executive made the remarks in his Budget Message on Wednesday as the Department of Budget and Management turned over the Marcos administration’s proposed 2024 budget or National Expenditure Program worth P5.768 trillion to Congress. In his message, Marcos explained that the proposed budget aims to provide the resources required for government operations and the ongoing pursuit of economic reform. Initial information from the DBM showed that the proposed budget is 9.8 percent higher than the P5.268 trillion General Appropriations Act or the enacted budget for 2023. "With the Congress's approval of the proposed (Fiscal Year) 2024 National Budget, we will be one step closer to achieving our transformative vision for the country, the Agenda of Prosperity," Marcos said. "Our journey has just begun. We will march on — one nation, one people building a better future together," he added. The President said that the proposed budget for 2024 was a key part of the Philippine Development Plan 2023–2028, which aims to strengthen the country's capabilities, protect the buying power of Filipinos, and improve output sectors to create more good jobs and products that can compete globally. "In turn, these strategies are to be supported by an enabling environment characterized by macroeconomic stability, infrastructure development, bureaucratic efficiency, strong rule of law and effective climate action," Marcos said. The President also highlighted the "strong headwinds" the country had to deal with last year as it tried to get its economy back on track. He pointed out that his economic managers made the Medium-Term Fiscal Framework, which is now the "bedrock" of the plan to change the economy, to deal with these problems. The Chief Executive said that the Philippines' gross domestic product grew by 7.6 percent for the whole year of 2022, the biggest since 1976. Marcos said that the country's growth "set the stage" for continued growth in 2023, mentioning that the country's economy expanded by 6.4 percent for the first quarter of 2023, surpassing its Asian peers such as Indonesia, China and Vietnam. The World Bank, he also said, declared that the country could reach above-middle-income status within two years. "Likewise expressing confidence in our country's economic growth, the International Monetary Fund said that it was 'highest among the ASEAN-5', noting its resilience to global pressures," the Filipino leader added. Marcos Jr. likewise cited the country's good credit quality standing, improved revenue performance and high employment rate. "Our immediate economic recovery was the result of the collective effort of the Filipinos. Unity was what made it happen," Marcos said. "For the next five years, we must do more, building on all the gains that we have made – through the same whole-of-government and whole-of-society approach. We need this not only to be effective but to be transformative," he concluded. The post Proposed P5.768T 2024 budget 9.8% higher than 2023 appeared first on Daily Tribune......»»
QC, Pasig launch new initiatives
The local governments of Quezon City and Pasig City recently launched new initiatives that aim to make their streets more walkable, cyclable and environment-friendly. The said initiatives were launched through a memorandum of understanding signed by Quezon City Mayor Joy Belmonte and Pasig City Mayor Vico Sotto. Funded by the International Climate Initiative of the German Federal Ministry for Economic Affairs and Climate Action and the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, the Sparking Active Mobility Actions for Climate-friendly Cities aims to increase the role of active mobility in building resilient and safe transport systems, contribute to national emission reduction targets, and promote climate-friendly mobility behavior. The two cities were selected due to their strong commitment to promoting and supporting active transport (cycling or walking) based on their development plans and priorities and their capacity to inclusively implement the project in close collaboration with community stakeholders. Quezon City has been proactive in developing its bike lane plan in order to provide safer and more accessible cycling infrastructure for its residents. On the other hand, Pasig City has expanded its “People’s Streets” initiative which sees select roads being closed to vehicular traffic every Sunday to provide exclusive spaces for pedestrians and cyclists. The two cities also have dedicated offices for green and active transport initiatives, further underscoring their commitment to people-centric and sustainable transportation. Furthermore, both Quezon City and Pasig are partners of ICSC and the broader CSO network in the Bilang Siklista Project, a volunteer-driven initiative in 18 cities nationwide doing a manual count of people making daily trips on bicycles during commuter peak hours. Both are also members of ICLEI, a global network working with over 2,500 local and regional governments committed to sustainable urban development. Walking and cycling are often overlooked yet essential modes of transportation that offer greater environmental benefits than motorized vehicles. Motorized transport contributes to approximately 30 percent of energy-related greenhouse gas emissions in the Philippines, making it a significant contributor to air pollution in the country. Active mobility can potentially reduce 3.46 million tons of emissions in highly urbanized cities while contributing to public health, equity and green socio-economic recovery. With the SPARK project, these cities further reinforce their existing commitments to promote and enable active transport. The SPARK project aims to catalyze innovation and progress through the application of tactical urbanism, a community-driven short-term action that involves the use of quick, small-scale, and often informal interventions to improve the urban environment and test out new ideas before implementing larger and more permanent changes and open-data. The concerted effort is expected to bring about tangible and lasting improvements in promoting cycling and walking as viable and legitimate means of transportation, contributing to healthier and liveable communities, the LGU said. ICLEI and Quezon City have previously worked together in various climate action-related projects including the Asian Cities Climate Change Resilience Network, Circle Lab for Cities and the One Planet City Challenge. Meanwhile, ICLEI and Pasig City have recently worked together on Ambitious City Promises, Building Efficiency Accelerator and the One Planet City Challenge, among others. The post QC, Pasig launch new initiatives appeared first on Daily Tribune......»»
El Niño offers opportunities — DA
The Department of Agriculture on Saturday said that El Niño can also increase yield for some crops, especially when its strength is weak or moderate or in water-sufficient irrigated rice areas. While many fear El Niño because of crop losses, reduced food supplies, and water resources depletion, the DA said when El Niño is preceded by normal to above-normal rain, this allows water reservoirs to stock enough water for irrigation. Sunny weather brings higher palay yields and better milling recovery from better quality palay harvest. Agriculture Undersecretary for Rice Industry Development Leocadio Sebastian exhorted DA field officials to apply their knowledge of agricultural science (crop science, crop physiology, agronomy, and agro meteorology) when analyzing historical and current data on El Niño’s impact on agriculture. He further advised them to carefully examine the PAGASA El Niño advisories and climate data to guide their decisions. He expected to be negatively impacted by El Niño during the dry season are water-deficient areas like those in the tail ends of irrigation systems and the rain-fed areas. According to Sebastian, when El Niño is weak to moderate, such as those occurrences in 2002, 2004, and 2007, this may lead to increased production, while the weak El Niño of 2019 caused declines in output in non-irrigated areas while production in irrigated rice fields increased. He asked the field officials to maximize production in irrigated areas and diversify crops in areas expected to suffer from water deficits. Seven El Niño episodes have so far hit the country since 2000. These were in 2002, 2004, 2007, 2010, 2015 and 2016, and 2019. During mild El Niño, palay production still increased, such as in 2002, 2004, and 2007. Data from the Philippine Statistics Authority from 2000 to 2022 showed that palay production in 2001 was at 12.95 million metric tons, rising in 2002 to 13.27 MMT (El Niño), and then inching up to 14.5 MMT in 2004 (El Niño) from 13.50 MMT in 2003, and from 15.33 MMT in 2006 to 16.24 MMT in 2007 (El Niño). Production declined to 15.77 MMT in 2010 (El Niño) from 16.27 MMT in 2009, and rice production was 18.97 MMT in 2014 before dipping again to 18.15 MMT in 2015 (severe El Niño) and sliding even more to 17.63 MMT in 2016 (continued severe El Niño). Production recovered after the 2015-2016 El Niño more dramatically at 19.28 MMT in 2017, dropping in the 2019 El Niño to 18.81 MMT before recovering ground to 19.29 MMT in 2020. So far, PAGASA has been forecasting moderate to strong El Niño by December this year. This should not indicate a doomsday scenario for the rice sector, depending on the amount of rainfall and water reserves accumulated in the dams and reservoirs for the 2024 dry season. And depending on the availability of precipitation or rainfall and water reserves, this should not indicate a doomsday scenario for the rice sector just yet, Sebastian calculated. The US National Weather Service has forecasted a 96 percent probability of El Niño greater than 0.5 degrees Celsius from July 2023 to January 2024; 93 percent from December to February; 90 percent from January to March further receding to 85 percent in February to April. At 1 degree Celsius, the probability of El Nino is 76 percent from August to October; 82 percent from October to December; dropping to 81 percent from November to January 2024; and 64 percent from January to March to 52 percent by February to April 2024. A recent ENSO (El Niño-Southern Oscillation) report said chances of a moderate event are at 84 percent while the odds of it becoming strong at its peak are pretty good at 56 percent. ENSO is a recurring climate pattern involving changes in the temperature of waters in the central and eastern tropical Pacific Ocean. A World Bank study of the impact of El Niño in the Philippines in 2016 cited seven severe ENSO events since 1980, which include both El Niño, ENSO’s warm phase, and La Niña, ENSO’s cold phase. In 1982–1983, El Niño–related droughts affected 450,000 hectares of farmland in the Philippines. The most severe El Niño occurred in 1997–1998, when rainfall fell to half of the historical levels, causing drought in two-thirds of the country. This led to forest fires that destroyed almost 10,000 hectares of natural forests, the WB said. In 2015–2016, dry El Niño conditions lasted for 18 months and affected about a third of the country. In total, six cities, 16 provinces, and 65 municipalities declared a state of calamity. By May 2016, over 400,000 farmers and 550,000 hectares were directly affected by El Niño–induced drought. Later, La Niña caused flooding in low-lying farm areas causing increases in crop pests and diseases. Overall, the most recent El Niño event in 2015–2016 caused $327 million in agricultural production losses, the WB report stated. The post El Niño offers opportunities — DA appeared first on Daily Tribune......»»
Malnutrition, hunger shade Phl growth
The Asian Development Bank’s outlook for the Philippines remains unchanged since April, maintaining that the country’s economy would expand by 6.0 percent for the remainder of the year and grow by 6.2 percent in 2024. In April, Kelly Bird, ADB country director for the Philippines, noted that the economy was in expansion mode after the gross domestic product grew 7.6 percent throughout 2022. “It (Philippine economic growth) is expected to moderate this year (2023) from the previous year’s forecast-beating outturn, but will remain on a healthy expansion mode underpinned by rising domestic demand and a recovery in services, particularly tourism,” he said. In the latest update of its quarterly Asian Development Outlook 2023 report, the ADB said domestic demand and services continue to drive growth in Southeast Asia, with many economies in the region, including the Philippines’, benefiting from strong tourism recovery. It said robust investment and private consumption, along with rising employment, growth in production and retail sales, and upbeat activity in private and public construction, is propelling the Philippine economy forward, making the country a strong candidate for the fastest-growing economy in the region in 2023, even surpassing Singapore’s and Vietnam’s. Filipinos look forward to ADB’s forecast that growth will remain strong, albeit slowed by global headwinds, high inflation, and tighter monetary policy. GDP growth should pick up even more as the external environment improves. Hopes are pinned on private consumption and investment to continue to expand, though easing from 2022’s brisk pace while household spending will be buoyed by rising employment and steady remittances from Philippine workers overseas. The bank’s outlook on the Philippine economy should get President Marcos into a pumped-up mood as he gets ready to address the country in his 2nd State of the Nation address on Monday. But ADB’s sobering notes on hunger and malnutrition threaten to dim whatever bright disposition he may have at the moment. In its report, the ADB notes that despite rapid economic growth in recent years, these “impressive gains” along with whatever efforts to reduce poverty have not lowered hunger, particularly among people in lower income levels. The ADB cites data from the UN Food and Agriculture Organization indicating the prevalence of food insecurity in the Philippines, averaging 43.8 percent of the total population from 2019 to 2021 with 5.2 percent of the people undernourished. An Expanded National Nutrition Survey in 2021 revealed that under-nutrition rates were “very high,” with 26.7 percent of children under five years old stunted. Among school-age children (5-10 years old), the stunting rate was 19.7 percent and much higher among the poorest quintile at 32.7 percent. Alarming figures indicate that chronic malnutrition and stunting are strongly linked to disease and premature death; they adversely affect crucial stages of development (of children), causing cognitive and behavioral deficits, learning disabilities and ultimately a sub-optimal and uncompetitive labor force. The government’s response, the ADB observed, was short-term measures providing social support to vulnerable groups and temporarily easing import restrictions on some agricultural products. And this note should be of particular concern to the President, who remains unmoved by calls to designate a full-time, hands-on expert thoroughly steeped in agriculture at the agency. These data are also alarming: Agriculture growth in the Philippines has underperformed for the past two decades; it grew 3.5 percent on average annually from 2000 to 2010, then by 1.5 percent from 2011 to 2022; Agriculture’s share of GDP has declined from over 15 percent in early 2000 to an average of 9 percent in the past five years, with one-fifth of employment remaining in agriculture; and today’s Philippine agriculture labor productivity continues to lag behind its peers in the Southeast region. The ADB recommended that government strengthens food security and nutrition through social protection responses. Data on poverty incidence showed it declined from 23.5 percent of the population in 2015 to 16.7 percent in 2018 but rose again to 18.1 percent in 2021 because of the pandemic. As the President prepares to take on another year in office, we hope that the President is aware of the urgencies that need to be effectively tackled in the sector he insists on overseeing and of the sociopolitical costs and the not-so-flattering image the country — and the world — would have of his leadership if he leaves these issues substantially unresolved. The post Malnutrition, hunger shade Phl growth appeared first on Daily Tribune......»»
MIAA reports NAIA passenger volume, flight activity increases
The Manila International Airport Authority has reported that in the first half of this year, passenger volume and flight activity in the Ninoy Aquino International Airport has substantially increased. From January to June 2023, MIAA recorded a combined total of 22,221,933 international and domestic passengers, or a rise of 78 percent over the same period in 2018 and only 8 percent less than pre-pandemic levels in 2019. On the other hand, the number of flight movements was recorded at 135,883, which is 100 percent of flights handled at NAIA during the first half of 2019 and an increase of 42 percent compared to the same period in 2022. Strong indication MIAA Officer-in-Charge Bryan Co said the Authority is pleased to experience these surges in statistics, a strong indication that passengers have regained the confidence to travel again. The double-digit surge in flight movements and passenger volume is enough ground for optimism that the aviation industry is steadily heading toward full recovery. Co added that when comparing the first two quarters of this year, the 11,357,156 passengers who flew from and to NAIA from April to June indicate a 5 percent growth over the 10,864,777 passenger volume in the first quarter. MIAA also saw a two percent uptick in flight movement, with 68,689 flights handled in the second quarter of this year, up from 67,194 flights handled from January to March of this year. Moreover, a close look at this year’s international and domestic figures indicates a notable boost in international passengers in June at 1,752,098, accounting for 82 percent of June 2019’s figures, compared to January’s international foot traffic which is equivalent to 74 percent of January 2019’s tally. Consistent strength Meanwhile, domestic operations in the first half of 2023 demonstrate consistent strength, outperforming the flight movement and passenger volume of the same period in 2019. The acting NAIA chief also said that comforted by the consistent growth in numbers, with airlines introducing new routes, and with new airline players coming in, the MIAA will pursue without let up “our improvement projects, especially those that would highly impact the passenger experience inside and outside of the terminals.” MIAA recently completed its Schedule and Terminal Assignment Rationalisation, or STAR, program aimed at optimising the capacity of the four NAIA terminals. The STAR program entails the reassignment of some international airlines from NAIA Terminal 1 to NAIA Terminal 3 and the moving of all Philippine Airlines international flights to NAIA Terminal 1. This strategy paved the way for confining international flight operations to only NAIA Terminals 1 and 3, while NAIA Terminal 2 became a purely domestic terminal, together with NAIA Terminal 4, which caters to turboprop operations. This also benefitted partner agencies like the Bureau of Immigration, Bureau of Customs, and Bureau of Quarantine, as their NAIA Terminal 2 personnel are now re-deployed to NAIA Terminals 1 and 3, thereby ensuring full manning of their counters in the two terminals. All PAL domestic flights NAIA Terminal 2 now services all domestic flights of PAL, AirAsia Philippines, and Royal Air Philippines, accommodating some 10 million passengers per year, and up from its design capacity of 7.5 million passengers per year. The removal of immigration counters and other infrastructure mandated for international flight operations provided the needed space for unhampered passenger movement inside the terminal. Domestic AirAsia and Royal Air passengers, who account for around 10,000 passengers per day on average, now have more space at NAIA Terminal 2. This change also reduces congestion at NAIA Terminal 4 by 75 percent, providing adequate space for Cebgo, AirSwift and Sunlight Air passengers. STAR program The implementation of the STAR program has brought an increased number of passengers to NAIA Terminal 3, which is why MIAA stayed true to its commitment to the Bureau of Immigration to expand the agency’s work area in the terminal. From the 26 immigration counters at the start of 2023, MIAA has successfully added 18 more counters, placing the number to date at 44 departure immigration counters for NAIA Terminal 3. By the end of 2023, MIAA hopes to further deliver on its commitment to complete the construction of an immigration annex adjacent to BI’s existing location at the departure level. Once in place, an additional 24 counters will become available to service OFWs, senior citizens, differently or specially-abled persons, pregnant women, diplomats, and other passengers needing special handling. The post MIAA reports NAIA passenger volume, flight activity increases appeared first on Daily Tribune......»»
BSP cuts 2-year BOP forecasts
The Bangko Sentral ng Pilipinas on Friday lowered its forecasts for the country’s balance of payments for this year and 2024 due to weaker global growth prospects and the downside risks of the trade outlook. The BSP expects the BoP to be in deficit this year, with a shortfall of $1.2 billion, down from the $1.6 billion deficit that the BSP forecasted in March. “The overall BoP position is expected to post lower deficit levels in 2023 and 2024 than previously anticipated due to revisions made in the forecasts for both the current account and financial account,” the BSP said. In a briefing, BSP Director Sittie Hannisha Butocan of the Department of Economic Research explained that domestic and external risks affect the country’s BOP. She added that these risks come from inflation, less pent-up demand because of higher interest rates, and tighter fiscal space. China risks Butocan noted that China poses risks and opportunities for global trade, especially for regional trade that affects BOP. Even though China’s economy is reopening and getting back to normal after supply-side problems, especially with oil, it is growing more slowly than projected. The BSP said that weak external demand is likely to continue, which will “weigh on the trade and investment prospects in emerging market economies, including the Philippines. Even as the domestic economy continued to recover strongly from the pandemic, the spillover effects from the global economic slowdown can be a major drag.” The BOP shortfall is $3.3 billion as of the end of April this year. The BSP only gives information about the current account, which is a big part of the BOP, every three months. Monetary Policy Subsector officer-in-charge Paolo M. Alegre Jr., for his part, said the latest current account showed a deficit of $4.3 billion as of the first quarter of this year. He said that this was because of the growing trade-in goods deficit and lower net receipts in the main income account. The increase in net receipts in the trade-in services account helped to lessen the effect of these factors. The BSP now thinks that this year’s current account deficit will be $15.1 billion, which is less than its earlier prediction of $17.1 billion. Butocan said that the current account will be helped by a steady recovery in the BPO and tourist industries and by remittances that keep coming in. 2024 expectations Next year, the Central Bank expects the country’s BOP to have a $0.5 billion deficit, which is -0.1 percent of GDP. “For 2024, the overall BOP position is projected to post a slightly lower deficit relative to the previous forecast. This is hinged mainly on the foreseen normalization and return to pre-pandemic levels of global and domestic economic activity,” the BSP said. The central bank predicts a $15.4 billion current account deficit next year as the trade-in goods gap narrows. The BSP also predicted 6 percent export growth and 8 percent import growth for next year.The Central Bank also expects the services exports to rise by 16 percent and imports by 10 percent in 2024. Next year, BPO receipts may climb by 9 percent and travel receipts by 50 percent. Growth prospects “Growth prospects for BPO and travel sectors remain on a steady course. The latter is forecasted to exceed its pre-pandemic level by 2024 buoyed by much-improved international mobility and supported by government-led tourism promotion programs to regain market losses from the pandemic,” the BSP said. The central bank also expects 3 percent cash remittance growth in 2024 as Filipino workers fill in for the labor shortage resulting from pandemic-induced job losses and aging populations in host economies. Meanwhile, BSP reduced its financial account prediction to $14.4 billion from $15.7 billion next year. It also expects the Foreign Direct Investments net inflows to reach $11 billion and foreign portfolio investments net inflows at $3.5 billion. The central bank said its forecasts are limited due to persistent external concerns. The BSP assured that it would regularly monitor external sector developments and risks affecting its pricing and financial stability objectives. The post BSP cuts 2-year BOP forecasts appeared first on Daily Tribune......»»
Economic managers court Singaporeans
The country’s economic managers on Thursday boasted of the government’s aggressive infrastructure development plan and strong consumer spending among Filipinos post-pandemic as they hope to attract more investments from Singaporean firms. In their second economic briefing in Singapore, Philippine economic managers updated the foreign business community on the 194 infrastructure projects approved by the National Economic and Development Authority in March. NEDA Secretary Arsenio Balisacan shared 93 of them are already being built, of which 19 are expected to be completed this year and 61 in the next five years. “These investments will ease the process of doing business, expand market opportunities and foster job creation and innovation,” Balisacan said. The infrastructure program totaling around P8.3 trillion includes transportation, energy, water, agriculture and digitalization projects, among others. Committed to increase infrastructure spending Under the current administration of President Ferdinand Marcos Jr., Balisacan said the government has committed to increase infrastructure spending ranging from 5 percent to 6 percent of the gross domestic product or at least $20 billion to $40 billion each year. “In the previous administrations, we didn’t have ready-to-implement infrastructure projects. We had to develop them ourselves. Now there are such, with feasibility studies and some detailed engineering, so you can come in and invest,” Finance Secretary Benjamin Diokno added. Through public-private partnerships or PPPs in the infrastructure industry, Balisacan said the government can improve other basic services to the people. “We’re pushing for PPPs to support certain programs and have the rest of the funds support other basic programs such as social protection, health and education.” To boost funds for infrastructure spending, Diokno said the government has proposed the Maharlika Investment Fund, a sovereign wealth fund which could have sub-funds for specific industries, such as those contributing to fight climate change. Economy expanded the most in Asia Meanwhile, Bangko Sentral ng Pilipinas deputy governor Francisco Dakila Jr. said the Philippine economy expanded the most in Asia at 6.4 percent in the first quarter this year, higher than Malaysia’s 4.9 percent, India’s 4.6 percent and Thailand’s 2.8, due to strong consumption of goods and services. Dakila reported sales from hotels and restaurants jumped by 23.8 percent and 30.1 percent from automobile shops. He added domestic consumption was also partly driven by the continued flow of remittances from overseas Filipino workers which increased by 3 percent in the first quarter despite global inflation. While the banking sector has seen moderate growth, Dakila said financial firms remain stable and optimistic for more clients as more Filipinos have been able to find jobs, with the unemployment rate falling to 4.5 percent in April from 5.7 percent in the same month last year. “We see that the banking sector is pretty much stable. The central bank did an outlook survey for the non-performing loans ratio showing it rising to 8 percent during the pandemic and that didn’t happen. Now it’s 3.5 percent, so banks are well capitalized. Investments in the financial sector should be very attractive.” Middle-income society Balisacan said the government aims to achieve economic growth of at least 6.5 percent each year and make the country a predominantly middle-income society by 2040. To achieve this goal, Balisacan said the government will be expanding trade agreements with other countries, including members of the Association of Southeast Asian Nations (ASEAN). “His marching order to us is to expand the opportunities in trade with other countries. The Philippines has the lowest number of bilateral agreements in ASEAN. The country has improved employment but the quality of employment is below par.” The post Economic managers court Singaporeans appeared first on Daily Tribune......»»
Kuya Bong backs across-the-board wage hike
As the economy continues to gradually recover from the adverse impacts of the Covid-19 pandemic, Senator Christopher Lawrence “Bong” Go expressed strong support for initiatives in the Upper Chamber seeking an across-the-board increase in daily wages nationwide. “No Filipino should be left behind in our road towards full and inclusive economic recovery. By being inclusive, we mean not just business owners and investors benefiting from the improving economy but also even the most ordinary workers, especially the daily wage earners,” said Go, who is also a member of the Senate Committee on Labor. To recall, the Philippine Statistics Authority on 11 May reported that the Philippines’ gross domestic product grew by 6.4 percent in the first quarter of this year. It exceeded estimates made by economists. No Filipino should be left behind in our road towards full and inclusive economic recovery. It is, by far, the fastest growth rate in Southeast Asia, beating Indonesia with 5.03 percent and Vietnam with 3.32 percent. The International Monetary Fund, however, stressed recently that the country’s economic growth must be sustained at 6 percent this year considering the inflation rate that remains high. In a statement, the Fund said that “risks to inflation remain on the upside, and a continued tightening bias maybe appropriate until inflation falls decisively within the 2-4 percent target range.” While the senator acknowledges that the government has to balance the interest of the employers and workers, Go reminded that companies and enterprises recently enjoyed a lower income tax through the passage of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act or “CREATE” which was approved by former President Rodrigo Duterte. On 14 March, Senate Bill 2002, also known as the Across-the-Board Wage Increase Act of 2023, was filed by Senate President Juan Miguel Zubiri which targets to increase private-sector daily wages in all regions by P150. Zubiri expects that the committee report will be ready within two weeks, hoping that the measure be approved by the Senate before its adjournment next month. The Committee on Labor and Employment, chaired by Senator Jinggoy Estrada, recently approved in principle the said bill, co-authored also by Senate President Pro Tempore Loren Legarda. Go also plans to co-author the bill. Other similar measures tackled by the committee were SBN 2018 filed by Senator Bong Revilla, and proposed measures reviewing labor and wage policies and the Wage Rationalization Act of 1989 which created the Regional Tripartite Wage and Productivity Boards, filed by Senator Raffy Tulfo and Estrada. Go, an ardent advocate of labor welfare, also filed measures seeking to provide better protection and benefits to workers. He filed SBN 2107, or the “Freelance Workers Protection Act”, which seeks to provide protection and incentives for freelance workers. The measure aims to recognize the rights of freelance workers and ensure that they are protected and adequately compensated for their services. The post Kuya Bong backs across-the-board wage hike appeared first on Daily Tribune......»»
Correct fiscal moves feed robust growth
Good financial decisions have helped the economy grow, even though the growth was slower in the first quarter, Finance Secretary Benjamin Diokno recently said. The economy expanded by 6.4 percent in the first quarter of 2023, beating market expectations and surpassing other major emerging economies in the region. “This is very good news, especially in the midst of a slowing global economy and elevated inflation,” Diokno said during his weekly talk with the reporters. “This is slightly higher than the median forecast of private analysts of about 6 percent and is well within our target growth range of 6 to 7 percent for this year,” Diokno added. Demand remains resilient Diokno attributed the broad-based expansion to the country’s resilient domestic demand, despite the increase in domestic and international commodity prices. The labor market also showed remarkable improvement, with a lower unemployment rate of 4.7 percent and the lowest underemployment rate since April 2005. Diokno noted that the government’s initiatives to improve labor conditions in the country contributed to the positive outcome. On the debt front, the total outstanding debt of the national government amounted to 13.86 trillion as of end-March 2023, a marginal 0.8-percent increase from the previous month. Diokno remained optimistic, saying that the country’s strong growth momentum will help the government outgrow its debt and achieve its targets set on the Medium-Term Fiscal Framework. The fact that the debt-to-GDP ratio dropped to 61 percent in the first quarter of 2023 from 63.5 percent in the same period last year is seen as a positive sign. The government aims to bring down the debt-to-GDP ratio to less than 60 percent by 2025 and further down to 51.1 percent in 2028. Despite global headwinds, the Philippine economy has remained strong in the first quarter of 2023. “All in all, the Philippine economy remains resilient and continues to be one of the fastest-growing economies in the region,” Diokno said. Slower expansion in store As the government continues implementing sound macroeconomic policies and initiatives to improve the country’s labor conditions, experts predict that the Philippines will continue to see slow economic growth in the coming months. In a commentary, BMI Country Risk & Industry Research, a unit of the Fitch Group, said that while it maintains its 2023 growth forecast for the Philippines at 5.9 percent, the projection implies that “real GDP growth to remain on a slowing trend over the coming quarters.” According to BMI, the primary reason for the anticipated deceleration is the increase in interest rates, which may dampen the enthusiasm for investment. BMI stated that the Philippines would receive minimal external assistance due to sluggish global demand, despite the recovery in Mainland China which may provide some compensation. Additionally, BMI anticipates that pent-up demand will diminish, and increased inflation rates and higher borrowing expenses will significantly impact consumer spending growth in the future. “Risks to our growth forecast are skewed slightly to the upside. We are currently expecting external demand to remain weak throughout the year,” the Fitch unit said. “However, a stronger recovery in Mainland China could provide a more significant offset. If inflation declines faster than expected, this would also enable the BSP to loosen financial conditions earlier,” it added. The post Correct fiscal moves feed robust growth appeared first on Daily Tribune......»»
Megaworld beats pre-Covid income
Property developer Megaworld Corp., led by businessman Andrew Tan, exceeded its pre-pandemic performance after net income reached P4.6 billion during the first quarter of the year. The figure is 30 percent higher than the reported P3.5 billion profit a year ago. In a stock report on Wednesday, the company said the improvement of profit was buoyed by the topline growth of all of the company’s core businesses. Consolidated revenues grew by 24 percent to P16.2 billion. “We start the year strong as we continue sustaining the recovery momentum of our businesses and finally grow past our pre-pandemic performance for the first time since the pandemic began in 2020,” Megaworld chief strategy officer Kevin L. Tan said. Adapting to new environment “This affirms our position in the industry and ability to quickly adapt to this new environment and capture opportunities,” he added. Consolidated revenues and net income from January to March are already nine percent and 11 percent higher, respectively, compared to the first quarter of 2019. Likewise, net income attributable to the parent company’s shareholders stood at P4.1-billion and grew by 33 percent compared to the same period last year. Real estate sales Real estate sales for the quarter also grew by 17 percent year-on-year to P9.4 billion due to the higher completion rate of its projects. Also, residential pre-sales surged by 71 percent to P39.6 billion during the quarter and already accounts for 30 percent of the company’s year-end pre-sales target of P130 billion. In its report, Megaworld pointed out that there was “renewed demand” in Metro Manila during the quarter, especially for its projects in McKinley West and Uptown Bonifacio in Taguig City. Leasing revenues, meanwhile, grew by 18 percent to P4.4 billion with the growth led by the performance of the mall segment. To date, Megaworld has 30 master planned integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country. The post Megaworld beats pre-Covid income appeared first on Daily Tribune......»»
OFW remittances post strong growth
Remittances sent home by overseas Filipino workers recorded a strong growth for the second straight month in March amid the reopening of borders in host countries and the continued rollout of COVID-19 vaccines, according to the Bangko Sentral ng Pilipinas......»»
Remittances grow for second straight month in March
Money sent home by Filipinos abroad posted another month of growth in March, but mainly due to benefits of low base that hardly tell a convincing recovery......»»
AirAsia sees signs of recovery
The AirAsia Group, Asia’s largest low-cost carrier, expects air travel to bounce back soon as it sees strong signs of recovery in its key domestic markets, including the Philippines......»»
DOF sees strong recovery as restrictions ease in Q4
Finance Secretary Carlos Dominguez III said over the weekend he expects a “strong recovery” for the Philippine economy if mobility restrictions will continue to be eased in the fourth quarter to allow more people to safely return to work while complying with minimum health standards......»»
Biden knocks Trump as rivals barnstorm heartland in election finale
Joe Biden intensified his attacks Friday on President Donald Trump as they battled over the American Midwest, chasing every last vote with four days to go in a region that propelled the Republican to victory in 2016. RUS President Donald Trump speaks during a campaign rally at Rochester International Airport October 30, 2020 in Rochester, Minnesota. With Election Day only four days away, Trump is campaigning in Minnesota despite the recent surge in coronavirus cases in the state. In accordance with state orders, only 250 people will be able to attend the rally with Trump while thousands of others will gather outside the airport to watch on a large television screen. (Chip Somodevilla/Getty Images/AFP) Trump and Biden barnstormed three heartland states each — with a resurgent coronavirus passing the milestone of nine million cases as they hit the stump — highlighting their differences in a race overshadowed by the pandemic. Trump, heralded a “big day” of campaigning as he left the White House, then held a rally in Michigan before heading to Wisconsin and Minnesota, all states battling climbing numbers of virus cases. “We just want normal,” Trump told supporters — many of them unmasked — at an outdoor rally near Detroit as he pushed states to relax public health restrictions and resume daily life. He again bucked his own administration’s health experts as he downplayed the Covid-19 threat, saying “if you get it, you’re going to get better, and then you’re going to be immune.” Covid-19 has killed nearly 230,000 people in the US, which is experiencing surges in most states as the winter flu season looms. The outbreak has ravaged the economy, and while there have been signs of recovery, millions remain jobless. Biden was also stumping in Wisconsin and in Minnesota, where he sharpened his attacks on the president on everything from Trump seeking to dismantle Obama-era health care protections and keep his taxes secret to climate change and trade policy with China. “We can not afford four more years of Donald Trump,” the 77-year-old Democrat said at a socially distanced drive-in rally in St. Paul, Minnesota. “So honk your horn if you want America to lead again!” he said, embracing the awkward pandemic-era campaign trend of rallying supporters in their vehicles. “Honk your horn if you want to have civility again, and honk your horn if you want America to be united again!” Earlier in Iowa he attacker Trump over his handling of the pandemic. “Donald Trump has given up (and) waved the white flag,” Biden told a drive-in rally with more than 300 cars in Des Moines. – ‘Less divided’ – Trump flipped Iowa, Michigan and Wisconsin from the Democrats to clinch his shock victory four years ago. Now polls show Biden leading in all three, albeit narrowly in Iowa. It was Biden’s first visit to Iowa since his inauspicious campaign start in February, when he placed a dismal fourth in the opening Democratic nominating contest. So can Biden win over enough voters to prevail in the Hawkeye State? “I wouldn’t put money on it,” Iowa attorney Sara Riley, 61, said at Biden’s event, although she was more confident about him clinching the White House. “I think Americans, even Trump supporters, want to get to a place where the country is less divided,” Riley said. With voters concerned about the health hazards of crowded polling stations on November 3, a record 86 million have already cast early ballots by mail or in person. Even as the US hit a grim new high in daily Covid-19 infections Thursday, Trump has stuck to his guns, downplaying the dangers and branding Democrats as rampaging “socialists” intent on shuttering the country. And while Trump has touted the economic successes of his presidency, including positive GDP figures Thursday, US stocks closed out their worst week since March, highlighting concerns about a shaky recovery. – ‘Turn Texas blue?’ – After a campaign largely muted by the pandemic, Biden is on the offensive, pushing Trump onto the back foot in unexpected battlegrounds like Texas, a large, traditionally conservative bastion now rated a toss-up by multiple analysts. On Friday the state reported that a staggering nine million residents had already voted, surpassing its entire 2016 total. Biden’s running mate Kamala Harris visited Texas Friday in a bid to turn the state Democratic for the first time since president Jimmy Carter in 1976. “We have a chance to turn Texas blue,” the 96-year-old Carter said in a fundraising email. Biden winning there would be a dagger to Trump, but the president dismissed the notion, saying: “Texas, we’re doing very well.” Trump and Biden are focusing their greatest efforts on traditional battlegrounds that will decide the election — such as Florida, where both campaigned on Thursday. On Saturday Biden returns to the Midwest bringing with him perhaps his strongest surrogate: ex-president Barack Obama, making his first joint in-person campaign appearance of the year with his former VP. Motown music legend Stevie Wonder will join them, the Biden campaign said. Trump will spend the day campaigning in the critical state of Pennsylvania, where he narrowly trails Biden in polls. Biden will follow suit there both Sunday and Monday in a clear sign that his campaign sees the Keystone State as absolutely crucial to his victory......»»
No strong recovery in fourth quarter
When the Duterte administration decided on March 14 to place Metro Manila and Luzon, and the rest the country, under Enhanced Community Quarantine and General Community Quarantine, respectively, after having banned international airline flights, economists and financial analysts went back to their drawing boards to prepare forecasts of Philippine economic activity in the pandemic-afflicted period that lay immediately ahead......»»
Puyat sees strong recovery of tourism industry from pandemic effects
MANILA, Philippines – The tourism industry can bounce back stronger from the effects of the various quarantine levels imposed nationwide to prevent the spread of COVID-19, Tourism Secretary Bernadette Romulo-Puyat said in a statement issued on Monday. According to Puyat, this forecast is based on the tourism industry’s increased contribution to the country’s gross domestic […] The post Puyat sees strong recovery of tourism industry from pandemic effects appeared first on Cebu Daily News......»»