Q3 growth spurs hike in WB’s PHL forecast
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THE WORLD ›› A12
NORTH KOREA ORDERS NEW ARTILLERY FIRINGS OVER SOUTH’S LIVE-FIRE DRILLS
H E b e t te r - t h a n - e x p e c te d growth in the third quarter prompted the World Bank to raise its GDP forecast for the Philippines, but the coming global recession will likely dampen the country’s economic prospects in the new year. In a virtual briefing on Tuesday, World Bank Senior Economist Ralph van Doorn told reporters the country’s GDP growth is now forecasted to hit 7.2 percent in 2022 and 5.4 percent in 2023. In September 2022, van Doorn said the World Bank initially estimated GDP growth to average 6.5 percent in 2022
and 5.8 percent in 2023. “High inflation tends to inflict the greatest harm on low-income households where inflation often outpaces wage growth, which these households rely on,” van Doorn, World Bank Senior Economist, said. “Besides managing the interest rate, addressing inflation entails employing various measures including freer trade, lower tariffs and non-tariff barriers to help augment domestic supplies as needed and support agriculture production through extension services, seeds, fertilizers,” he added.
The World Bank said the risks next year include reduced consumer demand, high inflation and high interest rates that are expected to temper household spending and investments. The Washington-based lender said higher interest rates will limit the growth of private lending and investments at a time when public spending will likely slow as the country undertakes “fiscal consolidation” or implements measures to rein in government deficits and reduce debt. Also, with global growth expected to decelerate next year, external
demand from advanced economies, which are key buyers of Philippines merchandise exports, will be subdued, the World Bank said. Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand said that given these developments, sustaining the country’s investments in health and education is crucial in order to reduce vulnerabilities from the scarring impact of the pandemic, especially among the poor and most vulnerable. See “Q3,” A2
BusinessMirror A broader look at today’s business
www.businessmirror.com.ph
Wednesday, December 7, 2022 Vol. 18 No. 56
INFLATION-EASING PLAN LACKING; IT’S 8% IN NOV n
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
By Cai U. Ordinario
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@caiordinario
ILIPINOS will continue to suffer under the weight of high commodity prices, especially if no measures to address supply-side issues are undertaken to cool down inflation, according to local economists. On Tuesday, the Philippine Statistics Authority (PSA) reported that inflation averaged 8 percent in November on the back of expensive food and non-alcoholic beverages as well as furnishings, household equipment and routine household maintenance. Inflation in November was the highest since November 2008, during the Global Financial Crisis, when commodity prices increased 9.1 percent. The highest inflation in the latest data series was in January 1999 at 10.7 percent.
“The inflation right now is not at its peak yet. Global conditions remain in flux, but more importantly, we don’t have an inflation plan apart from the BSP’s [Bangko Sentral ng Pilipinas] interest rate policy. Unfortunately, this is not enough since the inflation is caused by supply-side factors,” Ateneo de Manila University economist Leonardo Lanzona Jr. told the BusinessMirror. Ateneo de Manila University See “Inflation,” A2
PBBM urged to issue EO on farm supply bottlenecks
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S the inflation rate rose to 8 percent from 7.7 percent in October 2022, an economist-lawmaker on Tuesday urged President Ferdinand Marcos Jr. to issue an executive order ensuring that all supply bottlenecks for food and other farm producers are eased. House Committee on Ways and Means Chairman Joey Sarte Salceda said there is an abundance of tools available to the President and his economic team to combat inflation. “Immediate executive action may still take time to actually address fundamental drivers of inflation, but would be proper
signaling for the public and private sectors. Inflation remains the toughest economic storm we must weather, and our ships must sail in the same direction,” he added. Salceda said the primary driver of high inflation remains food prices, which have increased by 10 percent year-on-year. “That is in part due to our rigid food trade regime in crops in short supply, such as sugar and onions. We already know what happens when we open up our food markets: Because of rice tariffication,
ARANGKADA FORUM (From left) Jeffrey Manalo, Deputy Director V, Public-Partnership Project Center; Dr. Sarah Lynne S. Daway-Ducanes, Assistant Secretary, Policy and Planning Group, Neda; Engr. Emil K. Sadain, Senior Undersecretary, DPWH; Chris Matthew Ilagan, Corporate Affairs Director, Cargill Philippines; Assistant Secretary Leonel De Velez, Planning and Project Development, DOTr; Edwin S. Ligot, Assistant Secretary for Digital Transformation, DICT; Michael de Guzman, Managing Director, Infrastructure, Kohlberg Kravis Roberts & Co., are seen at the 11th Arangkada Philippines Forum panel discussion at Marriott Hotel in Pasay City on Tuesday, December 7, 2022. Launched in 2010, Arangkada Philippines is the major advocacy platform of the Joint Foreign Chambers to increase investment and employment in the Philippines. NONOY LACZA
ILO EYEING CONVENTION PROTECTING GIG LABOR By Samuel P. Medenilla @sam_medenilla
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INGA POR E —T he International Labor Org a n i z a t i o n ( I L O) i s now eyeing the creation of a new convention or recommendation which can help provide additional protection for workers in the “gig” or platform economy. The labor arm of the United Nations made the statement as countries continue to impose varying regulations for workers involved in the production and delivery of
services such as food delivery or booking a ride, which are coordinated through digital platforms. In a press conference before the formal opening of the 17th Asia and the Pacific Regional Meeting (APRM) on Tuesday, ILO Director-General Gilbert F. Houngbo said the proposed international labor standards (ILS) is already being d iscussed by their governing board. They are currently considering, he said, issuing a new See “ILO,” A2
See “EO,” A2
PESO EXCHANGE RATES n US 55.8220 n JAPAN 0.4082 n UK 68.0582 n HK 7.1869 n CHINA 8.0198 n SINGAPORE 41.1060 n AUSTRALIA 37.3784 n EU 58.5740 n KOREA 0.0428 n SAUDI ARABIA 14.8522 Source:
BSP (6 December 2022)