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OUSEHOLD consumption as well as infrastructure projects are expected to boost economic growth this year to 6 percent, according to First Metro Investment Corporation-University of Asia & the Pacific Capital Markets Research. In a briefing on Wednesday, University of Asia and the Pacific economist Victor A. Abola said this is a slowdown from the 7.3-percent GDP growth estimates of the think tank for 2022. The official full-year growth estimates of the government will be released in two weeks.
For 2022, the think tank expects the industry sector to post a full-year growth of 6.5 percent and 6.3 percent in 2023 while services may have grown 8 percent in 2022 and is expected to slow to 6.6 percent this year. “Amidst the unexpected challenges in the global economy in the past year, the Philippines pulled through and grew 7.7 percent [in the first nine months] driven by strong domestic demand,” First Metro President Jose Patricio Dumlao said. “This year, we continue to anticipate external headwinds—slower global growth, interest rates and inflation will remain elevated and
volatility will persist—which will temper growth. In the face of all this, the economy will remain resilient and is expected to expand by 6 percent,” he added. Abola said growth will be driven by domestic demand, given expectations of higher household consumption as well as government spending, mainly for infrastructure and housing programs. The easing of the increase in crude oil prices; slower wheat and industrial commodity prices; and expectations of the slowdown in monetary policy tightening will contribute to higher spending. Abola also noted record employment levels that ensure Filipinos
were receiving salaries and wages; a reduction in personal income tax; and the peso depreciation of 3 to 4 percent which translates to about P60 million to P70 million worth of benefits to spending. For infrastructure, Abola noted that the Department of Public Works and Highways (DPWH) was given a higher budget this year and this will contribute to public sector spending. Some infrastructure projects that this budget will finance include the P122 billion of the P488billion Metro Manila Subway; P35 billion of the P141-billion NorthS “R,” A
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PHL FDIs SHRINK TO $7.6B IN JAN-OCT ’22—BSP DATA ■
PNP cleanup seen to boost PHL’s rights score card
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HE country’s foreign direct investments (FDIs) contracted 8.3 percent in the January-October 2022 period, according to data released by the Bangko Sentral ng Pilipinas (BSP).
Data showed net foreign direct investment declined to $7.6 billion in the January to October 2022 period from $8.3 billion in January to October 2021. “FDI includes [a] investment by a non-resident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent, and [b] investment made by a non-resident subsidiary/associate in its resident direct investor. FDI can be in the form of equity capital, reinvestment of earnings, and borrowings,” BSP said. Of this amount, net debt instruments accounted for more than half or $5.36 billion in the January to October 2022 period. It posted a 10.2-percent contraction from the $5.97 billion in the same period in 2021. The rest or $2.27 billion is accounted for by equity and investment fund shares in the 10-month period of 2022. This also contracted 3.7 percent from the $2.36 billion posted in 2021. Meanwhile, BSP data showed that October FDIs rose 6.3 percent to $923 million in October 2022 from the $868-million net inflows in October 2021. “Despite the global economic headwinds, FDI net inflows rose on account of the increase in nonresidents’ net investments in debt instruments and equity capital of their local affiliates,” BSP said. By country source, equity capital placements emanated largely from Japan, the United States, and Singapore in October as well as in the January-October 2022 period. The BSP said in October, these investments were channeled mainly to the electricity, gas, steam and air conditioning supply at 31 percent; manufacturing at 29 percent; and information and communica-
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CHEAPER SUB Sakurab, a food seasoning used in traditional cuisines in Mindanao and the Visayas, where it is commonly known as sibujing, is shown in Quiapo, Manila. At P50 to P60 per kilo, the native scallion is gaining popularity as an alternative to the much higher-priced onions. ROY DOMINGO
HE ongoing “cleansing” of the ranks of the Philippine National Police (PNP) can also help improve the country’s reputation in terms of compliance with human and labor rights, according to a labor group. In a statement on Wednesday, the Federation of Free Workers (FFW) urged the government to use its ongoing attempts to rid the PNP of officials with links to illegal drugs as an opportunity to reform the organization. “The FFW further calls on the DILG chief to adopt measures to align reforms that will inculcate trade union and human rights standards among the ranks of the PNP,” the labor group said. It noted the country is currently in need of improving its compliance with labor and human rights, especially with the arrival of the International Labor Organization is sending an ILO-High Level Tripartite Mission (ILO-HLTM) on January 23, 2023. The mission will investigate reported extralegal killings, enforced disappearances, intimidations, and violence committed against trade union leaders, organizers, and activists throughout the year. S “PNP,” A
DA REACTIVATES PRICE, VOLUME WATCH BODY B J E Y. A @jearcalas
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HE agriculture department has reactivated its price and volume watch body to ensure proper coordination with the livestock and poultry stakeholders in securing the country’s meat supplies. Senior Agriculture Undersecretary Domingo F. Panganiban issued Special Order (SO) 19 that ordered the recomposition of the price and volume watch committee and advisory groups for livestock and poultry. Agriculture Assistant Secretary Kristine Y. Evangelista said the revival of the price and volume watch group has long been proposed since
it serves as a platform for production guidance among industry stakeholders. “It guides them whether there is enough supply or shortfall and therefore helps them in deciding whether to increase their production or not. It is also helpful to the department since we would have better projections regarding the sufficiency of our meat commodities,” Evangelista told reporters on Wednesday. The technical committee of the price and volume watch group will now be chaired by the Assistant Secretary for Consumer Affairs and co-chaired by the Bureau of Animal Industry (BAI) director. Members of the technical committee are the heads of all the live-
stock- and poultry-related agencies of the Department of Agriculture (DA) as well as representatives from the Agribusiness and Marketing Assistance Service, Minimum Access Volume, National Corn Program and Philippine Coconut Authority. Meanwhile, there will be five livestock and poultry-related advisory groups: swine, broiler and layer, meat importers and processors, ruminants, and vendors. The members of each advisory group would come from prominent livestock and poultry industry groups, most of whom are longtime industry leaders. The primary role of the techniC A
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PESO EXCHANGE RATES ■ US 54.8580 ■ JAPAN 0.4148 ■ UK 66.7018 ■ HK 7.0256 ■ SINGAPORE 41.2094 ■ AUSTRALIA 37.7807 ■ SAUDI ARABIA 14.6218 ■ EU 58.9065 ■ KOREA 0.0442 ■ CHINA 8.0935 Source: BSP (January 11, 2023)