Pinoys spend more on food outside–PSA By Cai U. Ordinario @caiordinario
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ILIPINOS are spending more on food consumed outside their homes, transportation, and education, according to the latest data released by the Philippine Statistics Authority (PSA). The latest poverty data showed the shares of these items to total family expenditure posted the highest increases in 2023. Filipino families spent an average of P258,050 in 2023, an increase of 12.8 percent compared to the P228,800 expenditure in 2021 from P238,750 in 2018. Based on the data, the share to family expenditures of the food regularly consumed outside the home increased to 5.6 percent in
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2023 or 1.5 percentage points from the 4.1 percent posted in 2021. As for transportation, its total share to family expenditures increased to 6.8 percent in 2023, a 1.2-percentage-point increase from the 5.6 percent posted in 2021. In terms of education, PSA data showed its share to family expenditures increased to 3.3 percent in 2023, 1.8 percentage points higher than the 1.5 percent posted in 2021. There were also less than 1- percentage-point increases in the share of Furnishings and Routine Household Maintenance at 0.7 percentage points; clothing and footwear as well as recreation, sports and culture, 0.4 percentage points; and special family occasions, 0.3 percentage points. However, the largest decrease in share was food consumed at home which contracted 3.2
percentage points to 35.3 percent of total family expenses in 2023 from 38.5 percent in 2021. This was followed by Housing, Water, Electricity, Gas and Other Fuels the share of which to total family expenditure contracted 1.2 percentage points, or to 22.9 percent in 2023 from 24.1 percent in 2021. There were also contractions in the share of certain items from family expenditures such as Personal Care, Social Protection and Miscellaneous Goods and Services at 0.7 percentage points and Durable Furniture and Equipment, 0.4 percentage points. The data also showed contractions in the shares of Alcoholic Beverages and Tobacco, Health, Insurance and Financial Services at 0.3 percentage points as well as Information and Communication at 0.1 percentage points.
Highest spending in NCR
MEANWHILE, the National Capital Region or Metro Manila recorded the highest average annual family expenditure among the regions at P385,050 in 2023. The PSA said this was followed by Calabarzon at P310,320 and Central Luzon at P298,700 in 2023. Meanwhile, BARMM, Mimaropa, and Eastern Visayas registered the lowest average annual family expenditure at P168,910, P189,770, and P199,910, respectively. Moreover, all regions had an increasing average annual family expenditure from 2021 to 2023. Zamboanga Peninsula had the largest percentage increase in the average annual family expenditure from 2021 to 2023 at 20.8 percent, while the Cordillera Administrative Region posted the lowest increase at 2.1 percent.
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GROWTH SEEN TO BOOST REVENUE TAKE FOR 2024 W By Reine Juvierre S. Alberto
ITH tax revenues reaching P2.216 trillion in the first seven months of 2024, Finance Secretary Ralph G. Recto said collections will further increase on the back of accelerated economic growth.
In a social media post by the Department of Finance (DOF), Recto said the recent reduction of key policy rates by the Bangko Sentral ng Pilipinas (BSP) and the upgrade of the Philippines’s credit rating to A- by R&I will spur economic growth. The DOF said preliminary data showed the Bureaus of Internal Revenue (BIR) and Customs (BOC) generated P2.216 trillion from January to July 2024, or 58 percent of this year’s P3.820-trillion tax revenue target. This is 10.85 percent higher than the P1.998-trillion tax revenues recorded in the same period in 2023. Month-on-month, tax revenues grew by 21.96 percent from the P1.817 trillion collected as of end-June 2024. Broken down, preliminary data showed the BIR had collected P1.68 trillion from January to July 2024, higher by 13 percent from the P1.49 trillion recorded in the same period in 2023. Revenues from the BOC, meanwhile, rose by 6 percent to P536.42 billion in the first seven months of 2024 from the P506.49 billion posted the same period a year ago. The DOF said that at the third Command Conference on August 16, Recto commended the two agencies for their “sustained efforts in strengthening” tax and customs administration to secure much-needed revenues to bankroll the administration’s programs and projects. Tax revenues from the BIR and BOC are pegged at P3.820 trillion this year, based on the Cabinet-level Development Budget Coordination Committee’s fiscal program. The bulk or P2.849 trillion will come from the BIR and the remaining P939.694 billion will be raised by BOC. Meanwhile, about P31.679 billion in tax revenues will be generated by other offices. In meeting these revenue targets, See “Growth,” A2
IN a presentation at the HSMA 3rd general membership meeting, Leechiu Property Consultants projected 6-million inbound tourists by yearend, missing the government’s goal by 22 percent. Per the presentation, full recovery of the tourism sector will likely happen in 2026, instead of the government’s target of 2025, with a shortfall in foreign visitors occurring this year. Full story on page A2. BM GRAPHICS BY ED DAVAD
CHINA TO PHL: GET TIES BACK ON ‘RIGHT TRACK’ By Joel R. San Juan
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By VG Cabuag
@jrsanjuan1573
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EIJING, CHINA—The Ministry of Foreign Affairs-Department of Asian Affairs, (MFA-DAA) has urged the Philippine government to work with China in bringing back their relations “to the right track” in time for the 50th celebration of the diplomatic relations of the two countries next year. In a meeting with a Philippine media delegation, former Ambassador to Brunei and now head of the MFA-DAA Yu Hong vowed China would exhaust all means to resolve the differences of the two countries through consultations. “Next year we will celebrate the 50th anniversary of our bilateral relations, the establishment of diplomatic ties of the two countries. We hope to see a better future for our bilateral relations, See “China,” A2
Country outperforming peers in terms of FDI, says ING PHL
CHINA’S Ministry of Foreign Affairs-Department of Asian Affairs head, Ambassador Yu Hong, hosts a meeting with a Philippine media delegation. He expressed China’s desire to iron out its differences with the Philippines over the South China Sea and improve bilateral relations through continued cooperation and communication. JOEL SAN JUAN
NG Philippines said the country has been outperforming the region with solid foreign direct investment flows, pointing to a positive outlook from international investors. “The Philippines could position itself as a key player in the ‘China plus one’ strategy, though infrastructure limitations and geopolitical tensions pose challenges,” Rob Carnell, head of research at ING Asia Pacific, said. For one, geopolitical tensions with China could result in trade frictions, he said. “The Philippines offers significant opportunities for investors, but it’s essential to understand the complexities of the local and global economies,” Carnell said.
He said the Philippine peso has improved on a quarterly basis to align with other Southeast Asian currencies. Carnell said the peso will be one of the more responsive Asian currencies to shift to the Japanese yen, which could impact performance against dollar-yen. He projects the peso could end at P55.50 to the dollar before yearend, and could hold the almost at the same position in much of 2025. Inflation in the country could go down to 2.9 percent in the third quarter and 2.5 percent in the fourth quarter.
Growth outlook
GROSS domestic product, meanwhile, could go down to 5.4 percent in the See “FDI,” A2
PESO EXCHANGE RATES n US 57.0360 n JAPAN 0.3820 n UK 73.3255 n HK 7.3162 n CHINA 7.9488 n SINGAPORE 43.1437 n AUSTRALIA 37.7008 n EU 62.5913 n SAUDI ARABIA 15.1995 Source: BSP (August 16, 2024)