CYCLING THROUGH HISTORY Cycling enthusiasts joined the #SintangLakbay event to honor Manila’s rich heritage, marking the 120th founding anniversary of Polytechnic University of the Philippines (PUP) with a memorable ride through the city’s historical landmarks. Led by mobility advocates, including PUP, The Constantino Foundation, and 350 Pilipinas, the cyclists explored 12 significant sites, including a stop at the Manila Grand Opera Hotel, once the Philippine Assembly venue and cycling racetrack. They also paused at Manila City Jail, where Gen. Macario Sakay and other historical figures were imprisoned, immersing themselves in the city’s vibrant past. The event highlighted the crucial role of mobility in connecting communities with their cultural roots. LEO M. SABANGAN II
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BSP: PHL EXTERNAL DEBT n
Monday, June 17, 2024 Vol. 19 No. 244
P25.00 nationwide | 2 sections 24 pages |
HITS $128.7B AT END-Q1 B
By Cai U. Ordinario
@caiordinario
ILLIONS of dollars worth of loans were added to the country’s total external debt on the back of higher debts incurred by the private sector, according to the Bangko Sentral ng Pilipinas (BSP).
The country’s total external debt (EDT) stood at $128.7 billion as of end-March 2024, $3.3 billion or 2.6 percent higher than the $125.4billion level as of end-December 2023. Private sector debt rose to $49.8 billion at the end of the January to March period in 2024. This was $2.2 billion more, or a 4.7-percent increase, from the end-2023 level of $47.6 billion. “[The increase in private sector debt] was due mainly to bond issuances by local private banks amounting to $1.8 billion,” BSP said in a statement. “Its share to total debt [increased] to 38.7 percent from 37.9 percent last quarter.” Nonetheless, the bulk of the country’s EDT was due to government loans which amounted to $78.9 billion or 61.3 percent of the total country’s external loans. The BSP said public sector loans increased $1.1 billion or 1.4 percent in the first quarter of 2024 from the $77.8 billion posted in the last quarter of 2023. The data showed the increase in public sector external loans were
driven by the net acquisition by non-residents of public sector debt securities aggregating to $1.6 billion, and the $331 million loans for national government projects/ programs. “About $72.3 billion—or 91.6 percent—of public sector obligations are attributed to the NG, while the remaining $6.6 billion—or 8.4 percent±pertained to borrowings by government-owned and controlled corporations, government financial institutions and the BSP,” the data showed. In terms of loan sources, the BSP listed the major creditor countries: Japan with $15.2 billion worth of debts, followed by the United Kingdom at $4.6 billion; and the Netherlands at $3.9 billion. BSP said loans from official sources accounted for the largest share, or $50.7 billion or 39.4 percent of the total outstanding debt. The data showed these loans included debts from multilaterals worth $34.8 billion and bilateral creditors at $15.9 billion. See “BSP,” A2
Oxford poll: Little chance of global recession in ’24, ’25
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ESPITE expectations that global growth will be slower than in the past decade, businesses see little chance of a global recession occurring this year or next year, according to Oxford Economics. In its latest economic brief, the UK-based think tank said global growth is expected to grow 2.25 percent throughout the remainder of 2024 and early 2025. However, Oxford Economics said, only 1 in 10 businesses believe there is a chance of a global recession, in the magnitude of the 2009 Global Financial Crisis, this year or next year. “The latest data also confirm that businesses have become less concerned about downside risks to the global economy,” Oxford Economics said. “They continue to see only a
minimal chance of an economic slump on the scale experienced in 2009 during the global financial crisis,” it added. The think tank said the expected growth rate of the global economy, at 2.2 percent in the first quarter of next year, remains 0.5 percentage points lower than the pace of growth in the past 10 years. “Overall, businesses expect global growth to remain relatively stable in the year ahead,” the think tank said. “The probability of growth surprising significantly to the downside is seen as contained in the near term.” Oxford Economics said the estimates are based on its Global Business Sentiment Index. It said businesses expect stable growth in 2025 and “worries over tail risks have receded further since April.” See “Oxford,” A2
GRAIN EXPECTATIONS Different varieties of rice are displayed with price tags at the Baguio Public Market. The Philippines, the world’s top rice importer, plans to cut tariffs on rice from 35 percent to 15 percent through 2028 to combat inflation. Analysts are concerned this move might benefit foreign producers while leaving Filipino farmers struggling to compete. NONIE REYES
SANS CHINA, PHL MUST LURE OTHER ASIANS, EUROPEANS By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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ITH the China arrivals market still sluggish, efforts must be made to attract more tourists from other Asian countries and Europe to fill up hotel rooms in the Philippines. In a recent press briefing, Philippine Hotel Owners Association (PHOA) president Arthur Lopez said, “China is not moving. They’re not traveling the way they used to. So we have to start looking again at Japan, Thailand, Taiwan, and India. We need to invite them to come. The DFA [Department of Foreign Affairs] is already working on making it easier for Indian nationals to get a tour-
ist visa.” India was the second largest source of outbound travelers in Asia in 2022. They also spend about $1,200 per capita on a holiday, versus Americans ($700), and Europeans, ($500). Lopez added that hotel rates in the country must also be “comparable” to the hotels in other Southeast Asian countries. “We want Europeans to come and take an extended trip to the Philippines once they are in Thailand.” Data from the Department of Tourism (DOT) showed arrivals from China reached 164,065 from January 1 to May 25, 2024, accounting for just 6.63 percent of the 2.47 million in total arrivals for the period. In 2019, arrivals from China reached 1.74 million, making it the second largest tourist market for the Philippines. See “China,” A2
SM SUPERMALLS HOSTS 100TH JOB FAIR SM Supermalls proudly hosted its 100th job fair, reinforcing its commitment to provide meaningful job opportunities to Filipinos across the country. The milestone underscores SM Supermalls‘ dedication to nation-building and economic empowerment. This year, SM Supermalls significantly scaled up its efforts, hosting weekly job fairs in various malls across the country. The job fairs saw thousands of job seekers converge at SM malls nationwide. CONTRIBUTED PHOTO, SM SUPERMALLS
PESO EXCHANGE RATES n US 58.5890 n JAPAN 0.3732 n UK 74.7478 n HK 7.5015 n CHINA 8.0787 n SINGAPORE 43.3671 n AUSTRALIA 38.8679 n EU 62.9363 n KOREA 0.0426 n SAUDI ARABIA 15.6175 Source: BSP (June 14, 2024)