PSA cuts 2023 growth estimate to 5.5%; Q4 to 5.5%
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HE faster increase in the prices in the overall economy, not just those experienced by households, led to the latest downward revision of the country’s economic growth in 2023. The Philippine Statistics Authority (PSA) said fourth quarter growth in 2023 was slower at 5.5 percent from the initial estimate of 5.6. As a result, the country’s full-year 2023 GDP growth was also revised downward to 5.5 percent, also lower than the initial estimate of 5.6 percent. On the sidelines of a recent briefing, National Statistician Claire Dennis S. Mapa told BusinessMirror that the “reason there [is that the] price, [the] implicit
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price index, is like a proxy for prices in the overall economy. This inflation is [consumer-led], consumed by households. The prices in the overall economy [which is proxied by the implicit price index], that’s the one with a big effect.” Mapa said the initial estimate for prices in the overall economy was at 4.5 percent. But additional data that were not included in this computation, and subsequently increased the estimate to 4.6 percent, leading to a slower GDP growth. This was especially observed in the estimate of constant GDP data. Mapa said in current terms, which is not adjusted for inflation, the country’s GDP value increased. In constant GDP terms,
which is compared to the 2018 base year to adjust for inflation, the data showed a lower figure. Based on PSA data, this estimate is now at P7.05 trillion in the fourth quarter and P24.319 trillion in the full year of 2023. Initially, the PSA estimated the country’s GDP in current terms at a lower P7.051 trillion in the fourth quarter of 2023 but in the whole year of last year, GDP in current terms was higher at P24.319 trillion. Data showed that in constant terms, in the last quarter of 2023 it was at P5.885 trillion while full year was at P21.052 trillion.
Initially, the estimate for GDP in constant terms was at P5.886 trillion in the fourth quarter and P21.054 trillion in the full year of 2023. Nonetheless, last year still marked milestones for the economy. It was the first year that the country’s constant GDP value breached the P20-trillion mark, the first time since the earliest full year GDP growth of P447.43 million estimate for 1946. Based on the data of PSA, it is also the first time for the country to record a constant GDP value of above P5 trillion in the second and third quarters in any year since quarterly GDP data was estimated in 1981. Cai U. Ordinario
BusinessMirror
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GIR POSTS 3-YEAR HIGH AT $104B IN END-MARCH n
Monday, April 8, 2024 Vol. 19 No. 174
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By Cai U. Ordinario
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@caiordinario
HE country’s dollar reserves posted a threeyear high in the period ending in March 2024 on the back of higher foreign exchange and investments, according to the Bangko Sentral ng Pilipinas (BSP).
Data showed the country’s Gross International Reserves (GIR) increased to $104 billion in end-March 2024, the highest since the $108.79 billion posted in end-December 2021. In the end-February period this year, the GIR was at $102 billion while the reserves amounted to $101.55 billion in the end-March period of 2023. “The month-on-month increase in the GIR level reflected mainly the National Government’s [NG] net foreign currency deposits with the BSP,
CLIMATE CRISIS CHRONICLES The scene at Sol y Mar Iloilo Family Beach Resort in Tigbauan, Iloilo, depicts a dried-up pond with dead fish, creating a stark contrast against the resort’s vibrant features such as the man-made lagoon and cogon-thatched cottages. This image reflects the impact of the scorching sun on the environment. Amid this contrast, the resort’s serene ambiance, filled with the chirping of birds and rustling of pine trees, mercifully still provides visitors some refuge from a cruel season. BERNARD TESTA
See “GIR,” A2
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RESIDENT Ferdinand R. Marcos Jr. has issued Executive Order No. 58, which adopts the National Cybersecurity Plan (NCSP) 2023-2028 developed by the Department of Information and Communications Technology (DICT). This move is part of the government’s overarching strategy to fortify the security and resilience of the nation’s cyberspace. In the two-page EO 58, President Marcos emphasized that bolstering the security and resilience of the Philippine cyberspace is a pivotal component in ensuring safety and security across cyber and physical domains as outlined in the Philippine Development Plan 2023-2028. “The NCSP 2023-2028 is hereby adopted as the whole-
of-nation roadmap for the integrated development and strategic direction of the country’s cybersecurity,” stated EO 58, signed by Executive Secretary Lucas P. Bersamin on April 4. Pursuant to Section 15 of Republic Act 10844, also known as the DICT Act of 2015, the DICT has crafted the NCSP 20232028 to delineate the nation’s policy trajectory and furnish operational guidelines aimed at establishing a trusted, secure, and resilient cyberspace for all Filipinos. Under EO 58, all concerned national government agencies, instrumentalities, and local government units (LGUs) are directed to support and cooperate towards the successful implementation of the NCSP 2023-2028 while the DICT is See “E.O.,” A2
NG subsidies to GOCCs in February up 35% to ₧12.7B By Reine Juvierre S. Alberto
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UBSIDIES extended by the national government to government-owned and -controlled corporations (GOCCs) in February 2024 increased by one-third compared to the same month a year ago, mitigating the effects of El Niño on agricultural products. Subsidies given to state-run corporations rose by 35.25 percent to P12.715 billion in February this year from P9.401 billion in the same month in 2023. This was the highest among the funds released in February to GOCCs, based on Bureau of the Treasury (BTr) data. For the first two months of the year, the government has disbursed the same amount this year in GOCC subsidies since there were no subsidies released in January. Broken down, the bulk of the subsidies for February, or P9.781 billion (76.92 percent), went to major nonfinancial government
corporations, up by 30.45 percent or P2.283 billion from the previous year’s P7.498 billion. Subsidies worth P2.822 billion or 22.19 percent went to other government corporations—also an expansion, by 60.43 percent or P1.063 billion from 2023’s P1.759 billion. The remaining 0.89 percent or P112 million of the subsidies were disbursed to the National Home Mortgage Finance Corporation (NHMFC), the only agency under the government financial institutions given budgetary support. The National Irrigation Administration (NIA) obtained the bulk of the amount, getting P7.093 billion or 55.78 percent of the total subsidies disbursed in February to address the ongoing El Niño’s effects. Higher food prices drove the inflation rate to increase in March at 3.7 percent. See “NG,” A2
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PESO EXCHANGE RATES n US 56.4130 n JAPAN 0.3728 n UK 71.3286 n HK 7.2062 n CHINA 7.8005 n SINGAPORE 41.8494 n AUSTRALIA 37.1536 n EU 61.1573 n KOREA 0.0418 n SAUDI ARABIA 15.0403 Source: BSP (April 5, 2024)