Global slowdown justifies lower growth targets
T
WORLD | A12
AN EXPANDING NATO USES ITS DIVERSITY AS STRENGTH; RUSSIA IS CLOSELY WATCHING
HE slower-than-expected global recovery makes a âgood caseâ for the government to revise its growth targets for this year, according to the National Economic and Development Authority (Neda). Socioeconomic Planning Secretary Arsenio M. Balisacan told reporters even if growth targets are lowered to 6 to 7 percent this year, this would still be a âgood rangeâ that will work toward the countryâs economic development goals. Balisacan also noted that high interest rates continued to persist. In the Philippines, lagged effects of the 450-basis-point rate hikes of the Monetary Board are expected to persist.
âThere is a good case for revisiting the assumptions. We donât have yet [the] first quarter results and that what would be a factor that we would have to consider,â Balisacan said. âBut even if we set it from the range of 6.5 to 7.5...to, say 6 to 7, thatâs still to us, a good range,â he added. Balisacan said other factors that would impact the economy adversely include the El Niño phenomenon which would increase inflation. Nonetheless, Ba lisacan remained confident that inflation would continue to slow and that the temporary uptick in inflation in February 2024 was temporary. Given this, the countryâs Chief
Economist said if the global economy improves, the government could have a better chance of attaining a 6.5 to 7.5 percent growth. âAchieving a growth of 6 percent would be, as I said, would be very impressive. And I think that 6 to 7 percent, if we can get that for this year,â Balisacan said. âAs the global economy improves next year, hopefully that we go back to the 6.5 to 7.5 or even 6.5 to 8. But I think for this year, Iâm okay with the 6 to 7, itâs very much achievable,â he added. Earlier, the Bangko Sentral ng Pilipinas (BSP) said that as the economy is shelled by more supply shocks than before, monetar y policy has become quite a
challenge. In a recent forum hosted by the Financial Executives Institute of the Philippines (Finex), BSP Governor Eli M. Remolona Jr. said supply shocks such as higher oil and food prices increase inflation. This would eventually create second-round effects such as wage hikes whose effects on inflation do not dissipate quickly. Combatting second-round effects is being done by the BSP through the appropriate monetary policy. These supply shocks, Remolona said, include increased electricity rates; higher transport charges, oil prices, food prices; and strong El Niño weather conditions. Cai U. Ordinario
BusinessMirror A broader look at todayâs business
PHL EXPORT EARNINGS GROW 9.1% IN JANUARY www.businessmirror.com.ph
n
Wednesday, March 13, 2024 Vol. 19 No. 150
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
T
HE government chooses not to rest on its laurels and will continue efforts to boost exports amid the recent rebound in the countryâs export growth in January, according to the Department of Trade and Industry (DTI). Trade and Industry Officer in Charge Ceferino S. Rodolfo told reporters on Tuesday that the department welcomed the rebound in the countryâs export performance in January 2024. The countryâs export earnings grew 9.1 percent in January, a rebound from the contraction of 0.5 percent in December 2023 and 10.6 percent in January 2023. Imports, meanwhile, contracted 7.6 percent, a deeper decline from the 3.5 percent posted in December 2023 See âExport,â A2
LAGUNAâS ANILAG BECKONS The colorful float of Paete town is seen during the land float parade at the opening of 15th Anilag festival in Sta. Cruz, Laguna at the weekend. Local and foreign tourists are flocking to the province of Laguna for this fun-filled week and festival, which will end on March 18, 2024. BERNARD TESTA
PCCI TO CONGRESS: GO EASY ON LOW-CARBON TAX SCHEME
T
HE Philippine Chamber of Commerce and Industry (PCCI) is calling on Congress to weigh the costs and benefits of the carbon tax and carbon trading system proposed in the Low-carbon bill as well as its potential impact on businesses financially. House Bill (HB) 7705, currently the subject of Technical Working Group meetings by the House Committee on Climate Change, seeks to promote a lowcarbon economy by establishing an emission trading system and implementation mechanism to
achieve national climate targets. In a statement on Tuesday, PCCI said the bill is looking to impose annual reduction targets and caps on greenhouse gas (GHG) emissions on industries that are seen to âmaterially contribute to GHG emissions as determined by the government.â The business group said these include energy, transportation, building construction and operations companies, IPPC industrial processes and product use sectors such as cement, steel, glass See âPCCI,â A2
Klook: Pinoy Swifties buy big in SG show+stay sales By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
F
ILIPINOS are making more travel plans abroad this year, after enjoying their trips last year to Hong Kong, Singapore, Japan, and Thailand. In a news briefing on Tuesday, Klook Philippines and Thailand General Manager Michelle Ho said their latest Travel Pulse study showed 76 percent of respondents were planning international trips this year, from 46 percent who actually traveled abroad in 2023. Filipinos plan their trips abroad carefully, â booking four to 6
months before their trip, while experiences [i.e., tours in the destination] are booked four months ahead,â she added. The study also showed that most Filipinos allocate a budget of P15,000 to P50,000 when they travel abroad, as they go on sightseeing tours, shopping and engage in outdoor adventures.
Domestic travel remains popular
THIS developed as Ho said Klook was able to sell its Taylor Swift The Eras Tour package (concert ticket and overnight stay) âin six hours,â with almost 2 million worldwide See âKlook,â A2
PESO EXCHANGE RATES n US 55.5120 n JAPAN 0.3777 n UK 71.1442 n HK 7.0978 n CHINA 7.7305 n SINGAPORE 41.7258 n AUSTRALIA 36.6990 n EU 60.6635 n KOREA 0.0424 n SAUDI ARABIA 14.8012 Source:
BSP (12 March 2024)