El Niño seen to impact agri, growth entire year By Reine Juvierre Alberto @reine_alberto
W FR. ORBOS WITH ROTARIANS Rotary Club of Manila Secretary Edwin H. Hernandez presents the RCM’s Plaque of Appreciation to Rev. Fr. Jerry M. Orbos, SVD, the Rotary Club of Manila’s 33rd weekly membership meeting guest of honor and speaker, at the Manila Polo Club in Makati City on Thursday. Flanking them are (L-R) Past Director Beda G. Fajardo, Rotarian Isidro “Butch” C. Alcantara, Past President Domingo “Boy” S.B. Guevara Jr., Rotarian D. Edgard A. Cabangon and Rotarian Carlos “Caloy” C. Buendia. Story on A16, Second Front Page.
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ITH the looming threats of El Niño seen to affect agriculture output, former Socioeconomic and Planning Secretary Cielito F. Habito said this situation could extend throughout the year, denting the country’s gross domestic product (GDP) in 2024. At the Ateneo Eagle Watch’s economic briefing on Thursday, Habito said El Niño will “definitely” affect the agricultural output of the country, thereby slowing down the
growth of the agriculture sector. The agriculture sector posted a growth of 1.2 percent in 2023, 0.5 percent higher than the previous year, according to the Philippine Statistics Authority (PSA). “The effect of El Niño in agriculture can still permeate through the performance of industries and services because of the agri-based nature of much of our manufacturing [sector],” said Habito, who served as the National Economic a nd De ve lopment Aut hor it y ’s (Neda) director general during the Ramos administration. Habito added that agriculture
only contributes 9.8 percent of the GDP, which he noted is “not that much,” but El Niño’s effects on agriculture could impact industries and services. Since 50 percent of manufacturing is accounted for by food manufacturing, Habito said this segment could also be affected since food comes from agriculture. The Bangko Sentral ng Pilipinas (BSP) said in its latest discussion paper that higher temperatures brought by climate change will significantly reduce the country’s GDP growth.
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‘WAGE BILL’S DELAY MAY TEMPER MARCH INFLATION’ By Cai U. Ordinario @caiordinario
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HE National Economic and Development Authority (Neda) does not expect inflation to exceed 3.4 percent in March 2024 given the slowerthan-expected progress on the legislated wage. Socioeconomic Planning Secretary Arsenio M. Balisacan told reporters that the legislated wage being proposed by the Senate of the Philippines and the House of Representatives has the potential to fan inflation. On Wednesday, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said inflation in March may have been around 3.9 percent. (See: https://businessmirror. com.ph/2024/03/21/bsp-inflation-couldhave-hit-3-9-in-march/).
SOLE SOLUTION Amid economic challenges in the Philippines, a customer explores budget-friendly imported shoes at a store in Cabantian, Barangay Indangan, Davao City. The recent contraction in merchandise trade, with both exports and imports declining in 2023, has influenced consumer preferences towards more budget-friendly products. BERNARD TESTA
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EX, CURRENT FINANCE CHIEFS: FIRST, INVEST IN HUMAN CAPITAL
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S t he p e r s i s te nt c r i sis of malnutrition and stunting affects children’s brain development, former Finance Secretary Margarito “Gary” B. Teves proposed that more resources be allocated for the “First 1,000 Days” of a child instead of the K-12 basic education program. At the economic briefing organized by the Ateneo Eagle Watch on Thursday, Teves said the absorptive capacity of Filipino children would have been much better if the resources were spent during the “First 1,000 Days” of a child. “In retrospect, instead of the
K-12 [basic education program], given the limited resources of the government, the resources [should be applied] to the first 1,000 days,” Teves said. Teves, who had served the Arroyo administration as secretary of the Department of Finance (DOF) from 2005 to 2010, underscored that redirecting the fund to the beginning—from the moment a child is conceived inside a mother’s womb all the way to two years old—would spur mental and work productivity to the children. See “Ex,” A
PHL Creative Economy up 6.9%, at ₧1.72T in ’23–PSA By Andrea E. San Juan @andreasanjuan
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HE Philippine Creative Economy a mou nted to P1.72 trillion in 2023, up 6.9 percent from the P1.61 trillion recorded value in 2022, according to the Philippine Statistics Authority (PSA). Of the creative domains, PSA noted that Symbols and images and other related activities had the highest share of 31.5 percent, or P541.75 billion, to the total creative economy in 2023; it was higher by 2.4 percent than the P529.12-billion value in 2022.
Advertising, research and development, and other artistic service activities contributed 21.9 percent, while Digital interactive goods and service activities shared 21.1 percent in 2023. According to PSA, the creative economy is composed of the following industries: Audio and audiovisual media activities; Digital interactive goods and service activities; Advertising, research and development, and other artistic service activities; Symbols and images and other related activities; Media publishing and printing See “PHL,” A
PESO EXCHANGE RATES Q US 56.0250 Q JAPAN 0.3706 Q UK 71.6392 Q HK 7.1618 Q CHINA 7.7848 Q SINGAPORE 41.8284 Q AUSTRALIA 36.8588 Q EU 61.1961 Q KOREA 0.0421 Q SAUDI ARABIA 14.9392 Source: BSP (March 21, 2024)