Economists weigh impact of Trump policies By Cai U. Ordinario
T
HE United States’ withdrawal from the Paris agreement would be the most harmful thing or decision to the Philippine economy among the slew of executive orders recently signed by President Trump, according to analysts. Ateneo de Manila University economist Leonardo Lanzona Jr. told BusinessMirror that when advanced economies turn their backs on climate change and ignore its impacts, vulnerable countries like the Philippines suffer. Studies conducted by think tanks here and abroad highlight
TRUMP REDUX President Donald Trump and first lady Melania Trump stand on stage at the Commander in Chief Ball, part of the 60th Presidential Inauguration, Monday, Jan. 20, 2025, in Washington. Stories on Trump inauguration in World, A6. AP PHOTO/BEN CURTIS
the billions of dollars lost due to rising sea levels and more frequent typhoons, especially in countries like the Philippines. The Philippine economy’s recent lackluster third quarter performance is only one of many instances when climate change led to economic losses (See: https://businessmirror.com.ph/2024/11/08/ climate-risks-to-agri-infra-tohurt-growth/). “Of all the pronouncements of Trump, I think the most disconcerting is his lack of appreciation of climate change. This will affect the country more than the immigration and tariff policies he intends to pursue,” Lanzona said.
“This is where Trump’s policies create a grave concern. Once large countries, like the US, ignore climate change, it is the climate- vulnerable countries like the Philippines that carry the brunt of the extreme climate disruptions,” he also said. Lanzona said in terms of immigration policies, Trump intends to go after illegal aliens. This will be good for the illegal immigrants because living illegally in the US will not lead to better lives for them and their families. He said Filipino illegal immigrants in the US are usually people who are “disillusioned by the poor conditions here” only to find “even
worse conditions there.”
Higher tariffs
IN the case of higher tariffs, Lanzona said trade has not played a major factor in the country’s economic growth. It can be noted that 70 percent of the economy is driven by consumption spending. “We would be in a much better position if we transform our economic structures and do a reset of the kinds of exports we produce, engaging in more efficient and sustainable processes,” Lanzona said. Meanwhile, Unionbank Chief Economist Ruben Carlo O. Asuncion agreed on the points raised See “Economists,” A2
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Wednesday, January 22, 2025 Vol. 20 No. 102
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HIGH, BSP CAUTIONED By Cai U. Ordinario @caiordinario
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FORMER Deputy Governor of the Bangko Sentral ng Pilipinas (BSP) has offered a word of caution on the central bank’s plans to further ease monetary policy, saying that the “precarious rice situation” will not lead to slower inflation this year. In his latest economic brief, Diwa Guinigundo, currently the Country Analyst for Global Source Partners, said rice prices, which carry an 8.9 percent weight in the Consumer Price Index (CPI), have the ability to cause inflation to spike again. Given that the country is one of, if not the world’s largest rice importer, the weak peso and “creeping fuel price increases” could lead to more expensive rice in the country. These, See “Inflation,” A2
Newly delivered rice from Regions 2 and 3 is stored at a National Food Authority (NFA) warehouse in Valenzuela on Monday, January 20, 2025. The Department of Agriculture is poised to declare a food security emergency to address persistently high rice prices. The declaration would allow NFA to release 300,000 metric tons of rice from buffer stocks to stabilize prices while replenishing these reserves with locally produced rice to support Filipino farmers. However, the emergency declaration could fan rice inflation, a former central bank deputy governor has warned. NONOY LACZA
FOR 3RD MONTH, BOP IN DEFICIT, AT $1.5-B, IN DEC
BOI tweaks SIPP, promotes
EETING the country’s foreign debt obligations led the country’s balance of payments (BOP) to post a deficit for the third consecutive month, according to the Bangko Sentral ng Pilipinas (BSP). The BOP posted a $1.508 billion deficit in December 2024, a reversal from the $642 million surplus in December 2023. With this, the country’s overall BOP surplus declined to $609 million at the end of 2024 from a $2.117 billion surplus as of the end of November 2024 and $3.672 billion surplus in 2023.
T
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“The BOP deficit in December 2024 reflected the BSP net foreign exchange operations and drawdown on the national government’s [NG] deposits with the BSP to pay off its foreign currency debt obligations,” BSP said. BSP said the lower BOP surplus recorded in 2024 was largely due to the country’s wider trade in goods deficit as well as lower net receipts from trade in services and net foreign borrowings by the national government. “This decline was partly muted, however, by the continued net inSee “BOP,” A2
‘education cities,’ branch campuses By Andrea E. San Juan @andreasanjuan
HE Board of Investments (BOI) said it has made key amendments to the 2022 Strategic Investment Priority Plan (SIPP) aimed at encouraging the establishment of education cities and branch campuses. This is seen to enable access to expertise from foreign education institutions. “The changes in the [memorandum circular] MC include considering global industry updates involving the development of education cities and branch campuses. The guidelines include provisions for the establishment of branch campuses in the Philippines, as defined under the Republic Act [R.A.] No. 11448 or the Transnational Higher Education [TNHE] Act,” BOI said in a statement on Tuesday. In particular, the investment promotion agency attached to the Department of Trade
and Industry (DTI) said Foreign Higher Education Institutions (FHEIs) may establish branch campuses in partnership with local entities, provided that the local partner is at least 60 percent Filipino-owned. According to the BOI, Education City, now under the Infrastructure and Logistics of the SIPP, encompasses the development of a “contiguous” area for the establishment and operation of education facilities and buildings with digital infrastructure as well as the provision of auxiliary services that will “enhance” students’ education experience. Education facilities and buildings, the investment promotion agency noted, may include research, healthcare, athletic, culture, and art facilities. BOI Executive Director Ma. Corazon HaliliDichosa of the Industry Development Services (IDS) explained the importance of these See “BOI,” A2
NOTICE OF FILING OF APPLICATION/S FOR ALIEN EMPLOYMENT PERMIT/S (AEP/S) Notice is hereby given that the following companies/Employers have filed with this Regional Office application/s for Alien Employment Permit/s: ESTABLISHMENT / ADDRESS No.
NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION
QUALIFICATION AND SALARY RANGE
3O BPO INCORPORATED 2/f Lcs Bldg South Super Highway, San Andres Cor Diamante St., 087, Barangay 803, Santa Ana, City Of Manila LUBAG, FRANCIS Customer Service Agent Dutch
1.
Brief Job Description: Customer Service Agent plays a pivotal role in delivering exceptional customer experience to our clients’ customers. The first point of contact, assisting with inquiries, resolving issues, and ensuring satisfaction through effective communication and problem-solving skills.
Basic Qualification: Able to speak fluent in English and Dutch languages. Salary Range: Php 30,000 - Php 59,999
See “dole ncr” on A9
PESO EXCHANGE RATES n US 58.5290 n JAPAN 0.3762 n UK 72.1546 n HK 7.5228 n CHINA 8.0408 n SINGAPORE 43.1630 n AUSTRALIA 36.7211 n EU 60.9755 n KOREA 0.0407 n SAUDI ARABIA 15.5994 Source: BSP (January 21, 2025)