PHL to fix weak spots in path to $500-B dream PHL to fix weak spots in path to $500-B dream Adjusted 7.4% Q2 growth signals decline–think tank B S A B A C S A By Cai U. Ordinario News Bloomberg A C
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HILIPPINES’S incoming economic secretary ArHILIPPINES’S incoming ecoHEplanning country's 7.4-percent senio Balisacan plans to bol-Arnomic planning secretary GDP growth in the second ster thesenio economy’s weak spots as Balisacan plans bolquarter not tomake hester targets least should 6-percent the ateconomy’s weak annual spots as Filipinos complacent that the econgrowth throughout term of Preshe targets at leastthe 6-percent annual omy is on the mend, according to a ident-elect Ferdinand Marcos Jr. growth throughout the term of Prestank. local The think next Ferdinand administration ident-elect Marcosmust Jr. boostIn investment inMarket agriculture and latest Call reTh eitsnext administration must manufacturing and build infrastrucport, Metro Investment Corboost First investment in agriculture and ture to grow the and economy between manufacturing build poration-University of infrastrucAsia and 6-8 percent annually to 2028, Baliture to grow the economy Capital the Pacific (FMIC-UA&P) between sacan said in an interview Wednes6-8 percent annually to 2028, BaliMarket Research said the seasonday. sacan said in an interview Wednesally adjusted growth in the second Farm and industry output curday. showed the economy iscuron quarter rently account less than 40 perFarm andfor industry output the decline. cent of gross domestic product, while rently account for less than 40 perFurther, the think tank while said, cent of gross domestic product,
services contributes the majority. “I wouldcontributes like to see those weakest services the majority. points the priority of the adminischallenges such the rise in com“Ias would like toassee those weakest tration,” said who’s modity prices as64-year-old, wellofasthe theadminisimpact points as thethe priority currently of the nation’s tration,” said the Reserve's 64-year-old, who’s the USchairman Federal pending of antitrust commission. currently chairman of the nation’s rate hikes on the peso could still Consistently growing at the rate antitrust commission. imperil the economy's full recovery. of 6 percent for sixgrowing years will make Consistently the rate “The continuation ofateasing of Philippines a for half-a-trillion dollar of 6 percent six years will make alert levels, removal of tourism economy, according to Bloomberg Philippines a half-a-trillion dollar restrictions, return to to Bloomberg work and calculations. economy, according school, among other initiatives Th e nation’s fi rst-quarter expancalculations. sion of percentthe already among should economy which Th8.3 e support nation’s fiis rst-quarter expanAsia’s thanks the reopenshows recovery with respect sionfastest, ofgradual 8.3 percent istoalready among ing from the pandemic. MarAsia’s fastest, thanksperformance,” toStill, the reopento pre-pandemic cos’s faces immediate challengingteam from the pandemic. Still, Marthe think tank said. “We should, es:cos’s inflation is at its fastest inchallengthree team faces immediate however, avoid excessive enthuyears, budget cit has widened es: infl ation isdefi atQ2 its performance.” fastest in three siasm over the and the global outlook dimmed. years, budget deficithashas widened The think tank that on Still, said noted the and theBalisacan global outlook haseconomy dimmed. a expand seasonally basis, the can by atadjusted leastsaid 7 percent this Still, Balisacan the economy country’s GDP slightly contracted can expand by at least 7 percent this
year, within the official growth estimate, from the year,riding withinthe therecovery official growth esti0.1 quarter-on-quarter record contraction in 2020 from due tothe mate,percent riding the recovery the pandemic. He said will (QoQ). This was mainly duepush to the record contraction inhe2020 due to for2.7-percent more targeted support measures the pandemic. He said he push contraction inwill Housetohold easemore infl ation’s burden on the poor for targeted support measures Final Consumption Expendiwhile ensuring “tight” government to ease infl ation’s burden on the poor tures’ and the 0.4-percent decline finances are managed properly. while ensuring “tight” government Services growth. in“We canare achieve moreproperly. with less,” finances managed In terms of challenges, the group he said, adding that more a review “We can achieve withand less,” said, inflation is expected to averstreamlining of benefi are he said, adding that aciaries review and age 6 percent in second half of needed. The nation also cannot af-are streamlining of the benefi ciaries ford removal certain onafyear.ThThis, however, assumes the needed. e of nation also taxes cannot goods proposed some sectors, that there would be a minor reducford as removal of by certain taxes on hetion said.inascrude goods proposed by some oil prices andsectors, there he said.be a slowdown in consumer would Experienced economist spending. BALISACAN willeconomist draw from his exExperienced The in peso is another concern as perience crafting a newfrom economic BALISACAN will draw his exit has already depreciated by 8 perdevelopment plan. Before taking perience in crafting a new economic cent the USbody, dollar oftaking June helm ofagainst the antitrust heasserved development plan. Before 2022. FMIC-UA&P Capital Market helm of the antitrust body, he served
as economic planning secretary of theas late president Benigno Aquino of economic planning secretary from 2016. Research said the US Fed's aggresthe2012 late to president Benigno Aquino To sustain economic growth of at sive policy rate hikes will maintain from 2012 to 2016. least 6pressure percent, nextpeso. administrasustain the economic growth of at theTo on the tion must address redthink tape administraand build least 6 percent, the next However, the tank said infrastructure needed totape attract intion must address red and build the peso may have a little respite vestment in manufacturing and ag-ininfrastructure needed to attract from itssaid recent weakness as OFW riculture, who holds vestment inBalisacan, manufacturing and aagremittances strengthened in the PhD in Economics from the Univerriculture, said Balisacan, who holds a last quarter of the year. sity of Hawaii. PhD in Economics from the UniverAofweak peso may also Given a budget deficit inflnot atedbe sity Hawaii. bygood pandemic-era support for net importing Given a budget defiprograms, citcountries inflated companies and multilateral devellike the Philippines but, the think by pandemic-era support programs, opment agencies bedepreciation tappeddevelto companies and multilateral tank said, the may peso finance roads, rail heto opment agencies mayirrigation, be tapped will benefit theand families of Oversaid. Balisacan helped thehe finance roads,Workers rail andmanage irrigation, seas Filipino (OFWs), BusiAquino administration’s flagship said. Balisacan helped manage the ness Process partnership Outsourcinginfra(BPO) public-private Aquino administration’s fl agship firms and the country's exporters. public-private partnership infra-
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HE Bangko Sentral ng Pilipinas (BSP) chose the more aggressive path to monetary policy tightening, as it unleashed a fresh 50-basis-point hike in its main benchmark rates on Thursday.
In the monetary policy virtual press briefing, BSP Governor Felipe Medalla said the decision came as their latest baseline forecast for inflation has shifted higher for 2022. Meda l la said the Monetar y Board decided to raise the interest rate on the BSP’s overnight reverse repurchase facility by 50 basis points to 3.75 percent, effective August 19. Accordingly, the interest rates on the overnight deposit and lending facilities were raised to 3.25 percent and 4.25 percent, respectively. Just last month, the BSP also
tightened its monetary policy via an off-cycle hike of 75 basis points. Medalla has been telling markets since that they will still likely hike rates in their August meeting by either 25 or 50 basis points. According to the latest BSP projections announced on Thursday, average inflation is projected to further deviate from the 2 to 4 percent target range of the government for the year at 5.4 percent. In their June meeting, the BSP’s forecast for 2022 inf lation was to average at 5 percent.
READY FOR MONDAY The Department of Education’s Public Assistance Command Center (PACC), part of the department’s Oplan Balik Eskwela 2022, is seen on Thursday, August 18, 2022, at DepEd headquarters in Pasig City. According to DepEd, the PACC will handle “immediate virtual assistance to the public in answering queries, concerns, complaints and clarifications” about the resumption of face-to-face classes on Monday, August 22, 2022. NONOY LACZA
See “BSP,” A2
NEDA: SUSTAINED GROWTH SEALS HIGH-INCOME STATUS
DSWD allots ₧500-M cash aid for indigent students
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HE Department Social plies whatever that June they1, 2022, needcompleting its maiden voyage from Japan. Constructed by Mitsubishi Shipbuilding Co. in Japan, the ship, named THE BRP Melchora Aquino, the second of two multi-role response vessels procured by the Philippine government from Japan, is welcomed by the Philippineof Coast Guard at the Port Areaor in Manila on Wednesday, after Sora,HE the Grand the the Spanish colonial is part ofthe the Maritimefrom Safety Capability Improvement Project ofCoast the Coast ROY DOMINGO Philippine economy Balisacan noted that and Development school such on asWednesday, school supplies, THETandang BRP Melchora Aquino, theWoman secondofof twoRevolution multi-roleduring response vessels procured byperiod, the Philippine government Japan, isWelfare welcomed by the Philippine GuardGuard. at thein Port Area in Manila June 1, 2022, completing its maiden voyage from Japan. Constructed by Mitsubishi Shipbuilding Co. in Japan, the ship, named needs two Woman more decades sametheoutcome canperiod, alsoisbe (DS WImprovement D) h a s Project a l locofated school fees, uniform, shoes, etc.," after Tandang Sora, the Grand of the Revolution during Spanish colonial partfaof the Maritime Safety Capability the Coast Guard. ROY DOMINGO C U. O @caiordinario of highB economic growth cilitated by a reduction in inP500 million to provide cash Tulfo said. B C U. O @caiordinario before it can finally consider itequality of opportunities and aid to indigent students to help The program will run from
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a relatively low level of inflaHE performance of the Philippine tion. In 2021, income inequalHE performance of the Philippine economy in the second half as measured ity in the country the second by squarely the Gini half coefficient was reofeconomy the year in will rest duced to 0.4119 in 2021 from of the yearofwill squarely on the shoulders therest incoming 0.4267 in 2018. “Expanding the economic pie on the shoulderseconomic of the incoming administration’s team, quickly and sustainably leads administration’s economic team, more resources for social according to a local thinkto tank. services like health and educaaccording to a local think tank. self a high-income country and make poverty a thing of the past, according to the National Economic and Development Authority (Neda). In the 2022 Economic Journalists Association of the Philippines-San Miguel Corporation Economic Forum, Socioeconomic Planning Secretary Arsenio M. Balisacan said rapid poverty reduction can only be achieved sustaining a high In itsbylatest Market Call report, Firstlevel Metro of Investment University of Asia First and the growth. Ineconomic itsCorp. latestand Market Call report, Metro
tion, better infrastructure like railways, ports, roads, and
cabinet can handle the emerging scenario,” the report stated. See “Neda,” A2 scenario,” the cabinet can handle the emerging One of the major risks that post the most Pacifi c (FMIC-UA&P) Capital Markets Research report stated. Investment Corp. and University of Asia and the uncertainty is the Russia-Ukraine saidPacifi thecgrowth momentum which gave rise to One to of the the economy major risks that post the most (FMIC-UA&P) Capital Markets Research waruncertainty which willtomark its first 100 days. The war thesaid 8.3-percent growth in the fiwhich rst quarter the economy is the Russia-Ukraine the growth momentum gave will rise to began February 24 this and will reach spillthe over to the second quarter. n japan 0.4132 ndays. UKThe 67.2815 war in which will mark its fiyear rst 100 war 8.3-percent growth in the first quarternwillUS 55.8260 100began days on 3. FMIC-UA&P Capital However, of the economy in in June February 24 this year and Markets will reach spill over tothe theperformance second quarter. Research saidoncommodity prices, particularly oil the third and fourth quarters will of bethe determined 100 days June 3. FMIC-UA&P Capital Markets However, the performance economy in prices, could remain elevated until the particularly war in East- oil by the the third policies be implemented the new Research said commodity prices, andtofourth quarters will by be determined ernprices, Europecould is resolved. This uncertainty lead economic will greet remain elevated until the will war in Eastby the team. policiesMuch to beuncertainty implemented by thethenew to an ation of above 5 percent in economic managers as the pandemicwill continues ernaverage Europe infl is resolved. This uncertainty willthelead economic team. Much uncertainty greet the country year. inflation of above 5 percent in the andeconomic commodity prices remain to anthis average managers as theelevated. pandemic continues In April, “Thecommodity robustness in the economic country thisthe year.Philippine Statistics Authority and prices remain elevated.recovery, (PSA) reported ation nationwide increased founded“The heavily on employment gains, should In April,that theinflPhilippine Statistics Authority robustness in the economic recovery, to 4.9 percent in April Thenationwide average inflincreased ation spillfounded over intoheavily Q2 [theonsecond quarter].gains, And while (PSA) reported that 2022. inflation employment should for tothe4.9first four months of theThe yearaverage stood at a tighter fiscal andsecond inflation pose And serious percent in April 2022. infl3.7 ation spill over intospace Q2 [the quarter]. while headwinds anation economic for the first four months of the year stood at 3.7 a tighterinfiH2 scal[second space half], and infl poseteam serious S “H,” A of high-quality the new President’s headwinds intechnocrats H2 [secondinhalf], an economic team S “H,” A of high-quality technocrats in the new President’s
PESO exchange rates
Sotto closes ‘productive’ Sotto closes ‘productive’ PANDEMIC CHALLENGE PANDEMIC CHALLENGE session; Zubiri next SP? MARKS 18TH CONGRESS session; Zubiri next SP? MARKS 18TH CONGRESS
them buy school supplies for the August 20, 2022 to September resumption of classes next week. 24, 2022. In a press conference on ThursTulfo noted that qua lified day, Social Welfare Secretary Erbeneficiaries or their parents win T. Tulfo disclosed the fund must present enrollment cerB the J M N. D C for initiative will be sourced and tificate and school ID to DSWD strengthened our political and from P42-billion budget office to avail themselves of and the institutions. B their J@joveemarie M N. D C for governmental and strengthened our political “Despite the many their Assistance for Individuals in following cash aid: challenges P1,000 for @joveemarie governmental institutions. HE Situation House of Representatives happened during tenurefor Crisis (AICS) program. that those elementar y; my P2,000 “Despite the many challenges onHEWednesday ended tothe your happened Speaker, we have risen and House of Representatives during myP3,000 tenure "This program is aimed help asthat those in high school; highlighting ourselves to One Conon Congress, Wednesday ended the proven as Speaker, webe have risen and our18th indigent students all over foryour those in senior high school; itsthe 3-year achievements, including to for serve people,” 18th Congress, highlighting proven ourselves toour be in One Concountry, which means to say gress, and ready P4,000 those college laws to children helpachievements, the country told histo colleagues. its 3-year including gress, ready serve our people,” that coming navigate from poor Velasco or vocational course. through and emerge stronger from “One Congress, ready to scrutilaws to help the country navigate Velasco told his colleagues. families will be given cash asthe Covid-19 pandemic. nize the national budget, pass through and emerge stronger from “One Congress, ready sistance to buy their school supSee “DSWD,” A2 to scrutiIn Covid-19 his valedictory laws, conduct hearings, the pandemic. speech, nizetothe national budget,totopropass Speaker Velascospeech, said vide oversight on the implementaIn Lord his Allan valedictory laws, to conduct hearings, to prothe was8.2333 a key n and tion of40.4097 laws, and to generally make Speaker Lord Allan Velasco said vide oversight the implementan HK18th 7.1178Congress n CHINA singapore n on australia 38.7153 n steady partner of President easier theand next the 18th Congress was aDuterte key and it tion offor laws, to Congress generally and make insteady passing lawsof that promoted to continue the legpartner President Duterte itsitleadership, easier for the next Congress and economic development, work for the sake of our in passing laws thatstrengthpromoted islative its leadership, to continue thekalegened the administration justice babayans,” he added. economic development,ofstrengthislative work for the sake of our kaand thethe ruleadministration of law, enhanced the He said the ened of justice babayans,” hepandemic added. forced the protection of labor andenhanced social welto be dynamic, and the rule of law, the House Heleadership said the pandemic forced the fare, improved of and and proactive. protection of the laborquality and social wel- innovative House leadership to be dynamic, increased access to “Despite the lingering threat fare, improved theeducation quality ofand and innovative and proactive. information, enhanced our health increased access to education and “Despite the lingering threat C A and emergencyenhanced response our system, information, health C A and emergency response system,
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UTGOING Senate PresiDrilon moved to elect Majority dent Vicente Senate Sotto PresiIII Leader Juanmoved MigueltoZubiri as the UTGOING Drilon elect Majority declared at 7:41 Sotto pm ofIII acting Senate Pro Temdent Vicente Leader Juan President Miguel Zubiri as the Wednesday as adjourned sinepm dieof pore fromSenate noon President of June 30 declared at 7:41 acting Prountil Temthe third regular session of thedie July 25,from when the of 19th Congress Wednesday as adjourned sine pore noon June 30 until 18th on thesession part ofofthe convenes. the Congress third regular the first July 25, when the 19th Congress Senate, capping on what Minority in the day, colleagues 18th Congress the part of the fiEarlier rst convenes. Leader Franklin Drilon thatinZubiri had colleagues secured Senate, capping whatdescribed Minority signaled Earlier the day, asLeader “one of Franklin the most Drilon productive sesthe “votes” that of majority senators described signaled Zubiri of had secured sions” of the chamber, a feat made sit in 19th Senate, a as “one of the most productive ses- who thewill “votes” ofthe majority of senators remarkable by chamber, the fact that much confisit rmed by Drilon. sions” of the a feat made matter who will in the 19th Senate, a ofremarkable it was in a pandemic. Zubiri confi appears to be the by the fact that much matter rmednow by Drilon. peers heaped praise on only Zubiri likely candidate to stand ofHis it was in a pandemic. appears now to befor the EU 56.8141 n leadership, KOREA 0.0425 n SAUDI 14.8707 Source: (August 18, 2022) Sotto for his and laudelection as the next BSP Senate PresiHis peers heaped praise on arabia only likely candidate to stand for edSotto and thanked as well theand seven after as Sen. Cynthia Villar, earfor his leadership, laud- dent, election the next Senate Presiother “graduating” members of seven the lier touted a strong contender, ed and thanked as well the dent, afterasSen. Cynthia Villar, earchamber, including two other of pilwithdrawing other “graduating” members the announced lier toutedshe as awas strong contender, lars—Drilon and Senate the race. she was withdrawing chamber, including twoPresident other pil- from announced Pro Tempore Ralph “Walathe nang [There is no] SP race,” lars—Drilon and Recto. Senate President from race. As Tempore his “last Ralph officialRecto. act,” Drilon she told reporters, Pro “Wala nang [Thadding, ere is no]“ISPwant race,” introduced resolution meant to a she simple and explained As his a“last official act,” Drilon told life” reporters, adding, “I she want prevent a month-long leadership to “take of my adintroduced a resolution meant to just a wanted simple life” andcare explained she gap in the aSenate, as the terms of vocacy, agriculture,” heradprevent month-long leadership just wanted to “takesignaling care of my Sotto and endasatthenoon ofof desire to keep her chairmanship gap in theRecto Senate, terms vocacy, agriculture,” signaling of her Butch Fernandez June 30. and Recto end at noon of that committee. Sotto desire to keep her chairmanship of June 30. that committee. Butch Fernandez
PESO EXCHANGE RATES ■ US 52.4120 ■ JAPAN 0.4073 ■ UK 66.0496 ■ HK 6.6799 ■ SINGAPORE 38.2625 ■ AUSTRALIA 37.6004 ■ SAUDI ARABIA 13.9750 ■ EU 56.2643 ■ CHINA 7.8555 Source: BSP (June 1, 2022) PESO EXCHANGE RATES ■ US 52.4120 ■ JAPAN 0.4073 ■ UK 66.0496 ■ HK 6.6799 ■ SINGAPORE 38.2625 ■ AUSTRALIA 37.6004 ■ SAUDI ARABIA 13.9750 ■ EU 56.2643 ■ CHINA 7.8555 Source: BSP (June 1, 2022)