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Q3 DEBT-TO-GDP RATIO OF 61.3% ABOVE TARGET www.businessmirror.com.ph
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Saturday, November 9, 2024 Vol. 20 No. 31
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MINISTERS DISCUSS ’RULES’ TO ENHANCE, REGULATE AI IN TOURISM AT WTM
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By Reine Juvierre S. Alberto
HE Philippines’ outstanding debt as a share of its overall economy climbed to 61.3 percent as of the third quarter of 2024, above the government’s target and global benchmark as economic growth slowed during the period. Latest data from the Bureau of the Treasury (BTr) showed the latest debt-to-GDP, or the country’s debt compared against its gross domestic product, is higher than the 60.9 percent debt-to-GDP recorded in the second quarter of 2024 and the 60.2 percent a year ago. This is also above the govern-
ment’s full-year debt-to-GDP target of 60.6 percent, as set by the Cabinet-level Development Budget Coordination Committee (DBCC), and the international accepted threshold of 60 percent. The ratio is used to evaluate the country’s economic stability and debt repayment ability. A low-
Finance Secretary Ralph G. Recto: “We are using debts to spur our stronger economic recovery by investing in more infrastructure and human capital development projects, which have the highest multiplier effect on the economy.”
er ratio indicates the country has a more sustainable debt level, which can affect its ability to source financing, attract foreign investments and pay off its obligations.
“The debt ratio reflects the accomplishment of 89.5 percent of the full-year borrowing program to fund 2024 expenditures,” the Treasury said. The latest debt-to-GDP data comes after the Philippines’ economy slowed to 5.2 percent in the third quarter of the year, the slowest since the second quarter of 2023 at 6.4 percent and slower than the 6 percent recorded year-on-year. Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort said the tax and other fiscal reform measures will help increase the government’s revenue collections, thereby reducing the debt-toGDP ratio. Continued economic growth would also help the country’s fiscal management and debt management be sustainable over the long Continued on A2
PHL assesses Trump presidency impact on semiconductor sector By Malou TalosigBartolome
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HE Philippine government is now taking stock of the effects of the presidency of Donald Trump on the country’s semiconductor industry. “The economic side of our bilateral relations is really what we should be watchful for. What we are doing right now is to see what the parameters are where we need to have some renegotiations,” Philippine Ambassador to Washington D.C. Jose Manuel Romualdez said in a Zoom interview with the Foreign Correspondents Association of the Philippines (Focap). Romualdez said he had a telephone conversation recently with Frederick Go, special assistant to
the President for Investment and Economic Affairs, on a strategy to handle the economic relations with the US under the incoming administration of Trump. Trump had earlier threatened to impose 10 percent tariffs on all imported goods, and up to 60 percent and 100 percent for China and Mexico, respectively. For foreign manufacturers to be able to enter the US market, many will move their manufacturing factories to the US. Romualdez said Manila is eyeing to have a piece of the $80-billion semiconductor industry that is expected to exit from China. Romualdez said the Philippines has been identified as a “trusted partner” in semiconductors, with some of the US semicon-
Philippine Ambassador to Washington D.C. Jose Manuel Romualdez: “We are gunning to have more of that business pie, so to speak. And we’re competing here with Thailand, with Indonesia and even Malaysia, and also Vietnam,” highlighting the competitive landscape.
TOURISM Secretary Christina Garcia Frasco (far left) participates in the World Travel Market Ministers’ Summit on November 6 at ExCeL London. She talked about how smart technology is now being used by several Philippine hotels and resorts in their operations, as the Department of Tourism has extended incentives to accommodation establishments introducing digital innovations, to improve their star ratings accreditation. To her right are Sierra Leone Minister of Tourism and Cultural Affairs Nabeela Farida Tunis, Zimbabwe Minister of Tourism and Hospitality Industry Barbara Rwodzi, and lead facilitator BBC’s Greta Guru-Murthy. STELLA ARNALDO
By Ma. Stella F. Arnaldo
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ONDON—Teach the machine, and it will learn. That’s what Egypt’s Minister of Tourism and Antiquities Sherif Fathy said, as he urged the adoption of a global regulatory framework to control the dangers of using artificial intelligence (AI), during the Ministers’ Summit on November 6 at the World Travel Market (WTM), which discussed “AI for Good in Tourism: Exploring AI and Emerging Technologies.” “AI is very much driven by machine learning, and when the machine learns, it develops very quickly. So there is no room for stagnant regulations,” he said on the challenges of AI. Even as Egypt uses AI in its marketing campaigns and its museums to enhance the visitor’s experience, he stressed, “We need to have more control … through a strong and firm code of conduct. The control has to be done by defining where the machine should stop in order to allow us Continued on A2
October GIR shrinks on forex withdrawals–BSP
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HE country’s gross international reserves (GIR) contracted in October 2024 on the back of foreign currency withdrawals, according to the Bangko Sentral ng Pilipinas (BSP). The data showed the GIR settled at $112.43 billion as of endOctober 2024, a 0.24-percent decline from $112.71 billion posted at the end of September 2024.
The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve position in the IMF, and special drawing rights. “The month-on-month decrease in the GIR level reflected mainly the National Government’s (NG) net foreign currency withdrawals from its deposits with the Continued on A2
ductor companies already establishing manufacturing firms here. “So we’re hoping that [our] semiconductor industry can supply [the US] and at the same time, we are a trusted partner,” he said. In 2023, the Philippines exported $221 million (P12 billion) worth of semiconductor devices such as diodes, transistors, solar cells and LEDs. Around $20.7 million worth of these exports landed in the US. The other top export markets for Philippine semi-conductors are Hong Kong, Japan, Singapore, the Netherlands and Germany. “We are gunning to have more of that business pie, so to speak. And we’re competing here with Thailand, with Indonesia and even Malaysia, and also Vietnam,” Romualdez said.
PESO EXCHANGE RATES n US 58.7470 n JAPAN 0.3841 n UK 76.2947 n HK 7.5602 n CHINA 8.2215 n SINGAPORE 44.5053 n AUSTRALIA 39.2312 n EU 63.4820 n KOREA 0.0426 n SAUDI ARABIA 15.6492 Source: BSP (November 8, 2024)