IMF: PHL growth faster, but jobless rate to rise By Cai U. Ordinario @caiordinario
W VISIT ILOILO Iloilo Provincial Governor Arthur Defensor Jr. (center); Cleofe Albiso, managing director of Megaworld Hotels and Resorts; and Allan Tan, president of the Iloilo Festivals Foundation Inc., joined by other tourism stakeholders, have pledged to enhance community collaborations and bolster efforts to draw in both domestic and international tourists through the Visit Iloilo Campaign. JOHN EIRON R. FRANCISCO
HILE the Philippine economy is expected to post faster growth this year, the jobless rate is also expected to increase in 2024 and 2025, according to the International Monetary Fund (IMF). In the World Economic Outlook (WEO), the IMF said the country’s GDP is expected to post
a growth of 6.2 percent this year and next year. This is faster than the 6 percent estimate it released in January 2024. However, IMF’s latest projections see the country’s unemployment rate rising to 5.1 percent this year and 5.2 percent next year. “In the near term, the rollout of artificial intelligence could boost investment in some cases, with firms allocating more resources to integrate innovative tools and
refine production processes,” the report stated. “IMF staff analysis suggests that over the medium term, artificial intelligence could raise worker productivity and incomes and contribute to growth, but also cause job displacement and inequality,” it added. The Philippine Statistics Authority (PSA) data showed the last time the country’s unemployment rate was above 5 percent
was in 2022 at 5.4 percent. It has since declined to recordlow levels with the latest figure pegged at 3.5 percent in February 2024. (See: https://businessmirror.com.ph /2024/04/12/ jobless-rate-slows-but-government-flags-exit-of-womenyouth/) IMF estimated that in emerging economies, which include the See “IMF,” A
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TIGHT POWER SUPPLY SEEN; GRIDS ON ALERT By Lenie Lectura @llectura
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HE Luzon grid may experience tight power supply in May, particularly from May 13 to 26, potentially leading to yellow alerts due to El Niño, a Manila-based think tank said Tuesday. This, as Luzon was placed on red alert and the Visayas on yellow, amid outages in 31 power plants. In a report, Chief Data Scientist Jephraim Manansala of the Institute for Climate and Sustainable Cities (ICSC) said any unplanned outages may further deplete operating reserve levels and affect the grid’s reliability. “As El Niño reduces the available capacity from hydroelectric power plants, all baseload power plants need to be compliant with the approved Grid Operating and Maintenance Program [GOMP] of the NGCP [National Grid Corporation of the Philippines] and DOE [Department of Energy],” he said. This year’s GOMP stated that no baseload plants should undergo any outages, both scheduled and unscheduled, from April to June. “The timely delivery of committed power projects and their expedited testing and commissioning are necessary steps that can enhance the power supply situation,” Manansala suggested. The red and yellow alert status hoisted over Luzon and Visayas grids, respectively, on Tuesday—after a total of 31 power plants conked out while eight more are running at derated capacity—were extended by the NGCP following the implementation of manual load dropping (MLD) in affected areas. The red alert notice was in effect until 11 p.m. Tuesday. “Red alert status in Luzon See “Power supply,” A
RICE, RISING Las Piñas Public Market showcases
a variety of rice prices against the backdrop of a significant 31.2-percent surge in wholesale rice prices in March 2024, according to BUSINESSMIRROR’S report citing Philippine Statistics Authority data. NONIE REYES
SINGAPORE LOOKING TO BUY CARBON CREDITS FROM PHL By Malou Talosig-Bartolome
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INGAPORE is eyeing to buy carbon credits from the Philippines as part of its international commitment to mitigate climate change. A carbon credit is a financial instrument corresponding to the avoidance or removal of one ton of carbon dioxide from the atmosphere. The credits are issued by climate-action projects that capture or stopping CO2 from the atmosphere such as planting trees, stopping deforestation or using efficient cook stoves instead of open fires.
The number of carbon credits generated is based on CO2 the climate-action project saves. Visiting Foreign Minister Vivian Balakrishnan said he discussed with Philippine Foreign Affairs Secretary Enrique Manalo the prospect of buying carbon credits from the Philippines. “We talked about the creation of the carbon credits market that is compliant with Article 6 of the Paris Agreement,” Balakrishnan said, referring to the international agreement See “Carbon credit,” A
FEF to UP economists: FDI boost needs Charter change
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CONOMISTS from the Foundation for Economic Freedom Inc. said it is high time for the Philippines to “try solving the problem” after the country has already spent “100 years of solitude” from Foreign Direct Investments (FDIs). FEF disputed the arguments in the paper released by economists from the University of the Philippines School of Economics (UPSE) that said an economic cha-cha was not necessary to attract FDIs. (See: https://businessmirror. com.ph/2024/04/12/cha-chanot-a-necessary-1st-step-tolure-investments/) Members of the FEF insisted that removing restrictions on
foreign investments is a necessary first step in attracting FDIs in the Philippines. The UPSE economists said improving institutions and processes must be prioritized, but FEF said without “opening the door” to foreign business, they will not benefit from these institutional reforms. “It is easy to find fault with proposed solutions to problems, while being completely comfortable with doing the exact same thing that created the problems in the first place. After 100 years of solitude from FDI, we believe it’s about time we try solving the problem,” FEF said in a rejoinder See “FEF,” A
PESO EXCHANGE RATES Q US 56.7520 Q JAPAN 0.3680 Q UK 70.6392 Q HK 7.2495 Q CHINA 7.8411 Q SINGAPORE 41.6590 Q AUSTRALIA 36.5540 Q EU 60.3047 Q KOREA 0.0409 Q SAUDI ARABIA 15.1299 Source:
BSP 16 April 2024