Asean+3 seen providing 45% of global growth till ’30
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BILISI, Georgia—The Association of Southeast Asian Nations Plus three (Asean+3) Finance Ministers and Central Bank Governors expect the region to contribute nearly half of global growth until 2030. The Asean+3 Finance Ministers and Central Bank Governors said over the weekend, that medium term growth in the region is expected to outpace that of the global economy and contribute 45 percent to global growth. However, the Finance Ministers and Central Bank Governors noted that monetary policy should continue to re-
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main tight in many member countries to ward off rising inflation, deemed a threat to near-term growth. “Risks could affect Asean+3 prospects in the near-term, including potential geopolitical tensions, a spike in global commodity prices and transportation costs, and a slowdown in growth of major trading partners, as well as heightened foreign exchange market volatility driven by negative spillovers from external factors; in the medium to long term, these risks could include climate change and aging population,” the statement read. The Asean+3 region is expected to
post an average growth of 4.5 percent this year and 4.2 percent in 2025, but growth is threatened by high commodity prices, transportation costs, and geopolitical risks, among others. “We view that monetary policy should remain relatively tight as necessary in many member economies to ensure inflation expectations are firmly anchored in the view of the continued risks to inflation,” the Finance Ministers and Central Bank Governors said.
Fiscal policy
APART from a tight monetary policy, the Asean+3 Finance Ministers and
Central Bank Governors said the economies in the region must also prioritize fiscal policy to help restore buffers. The positive outlook for the region, they said, would help in this regard. Better growth prospects are expected to allow economies in the region to “rebuild” the policy space lost during the pandemic. Earlier, the Bureau of the Treasury reported that the country’s outstanding debt had already reached P14.925 trillion as of the end of the first quarter of 2024. See “Asean+3,” A2
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Monday, May 6, 2024 Vol. 19 No. 202
P25.00 nationwide | 2 sections 24 pages |
74.3% TO P986.04B IN Q1 T By Reine Juvierre S. Alberto
HE national government disbursed a total of P986.036 billion in the first quarter of 2024 for payment of its domestic and external debts, with amortization outpacing interest payments for March, based on the latest data from the Bureau of the Treasury (BTr).
Data showed the government’s debt payments as of end-March surged by 74.30 percent, or P420.32 billion, from P565.716 in the same period in 2023. Broken down, amortization, or the repayment of loan principal over time, increased by 87.15 percent to P793.044 billion from the P423.739 billion made last year; while interest payments, or the payment determined by the interest rate of an account, also expanded by 35.93 percent to P192.992 billion from last year’s P141.977 billion. Under amortization, domestic amortization reached P699.673 billion as of the first quarter; while payments for external amorti-
zation stood at P93.371 billion. The amounts are higher by 85.67 percent and 99 percent than the amortizations recorded in the same period in 2023, respectively. Domestic Bond Exchange was allotted P243.449 billion while the Bond Sinking Fund received P455.789 billion. The remaining P435 billion under domestic amortization went to Agrarian Reform Beneficiaries (ARBs). In terms of interest payments, Treasury data showed that the state’s domestic and foreign interest payments both posted doubledigit growth rates during the first three months. See “Debt,” A2
ADB SEES HIGHEST NET INCOME ALLOCATION FROM OCR IN ‘23
By Cai U. Ordinario @caiordinario
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BILISI, Georgia—The Asian Development Bank (ADB) recorded its highest net income allocation in history from its ordinary capital resources (OCR) last year. Addressing the ADB Board of Governors at the Business Session on Sunday, ADB President Masatsug u A sa k awa said the 2023 financial statements of the Manila-based
multilateral bank ’s net income reached $1.42 billion. “ADB’s major capital management reforms from the past year unlocked up to $100 billion in new lending capacity for the next decade. Similarly, our new operating model [NOM] has enabled us to deliver better, faster, and more tailored support to our developing member countries,” Asakawa said. “More broadly, our performance last year demonstrated See “ADB,” A2
AWESOME MAYON, THRILLING RIDE With Mayon Volcano in the background, colorful balloons rise in Bicol for the recent Bicol Loco Hot-Air Balloon Festival. The pioneering endeavor, meant to boost local tourism and create jobs, will now become a year-round attraction for the region, according to Ako Bicol Rep. Elizaldy Co. Making the hot-air balloon attraction available daily will “create more jobs for locals because that is what we need most here in Bicol,” Co said. The event showcased colorful balloons, skydiving exhibitions, kite flying, drone racing and drone-light show aerobatics. It also showed Mayon’s beauty to the world. No government funds were used for the 3-day festival, “because the bidding failed,” said Co, who shouldered the costs to ensure the festival’s success. CONTRIBUTED PHOTO
PHL to ADB: Fund MSMEs more, push competitiveness
TBILISI, Georgia—The Philippine government encouraged the Asian Development Bank (ADB) to provide more support to local micro, small and medium enterprises (MSMEs) to increase their competitiveness. In a written statement submitted through Department of Finance Undersecretary Joven Z. Balbosa, the Philippines said help for the MSMEs is crucial to the country’s development. Balbosa served as Temporary Alternate Governor on behalf of Secretary Ralph G. Recto. T he statement noted t hat MSMEs account for 99.58 percent of the country’s business sector. Helping MSMEs could also be an “enormous opportunity” for the Manila-based multilateral development bank, the statement read. “There is enormous opportunity for the Bank to develop and improve the capacities of our Micro Small and Medium Enterprises [MSMEs]
which comprises 99.58 percent of our business sector,” it added. Apart from help for MSMEs, Manila also urged the ADB to provide financial support for the longterm sustainable development aims of developing member countries (DMCs), including the Philippines. T he n at ion a l gover n ment sought more ADB grants and concessional financing resources for developing countries to address development gaps. The Philippines, as a Middle Income country that is poised to graduate to Upper Middle Income country, obtains financing from the ADB’s Ordinary Capital Resources (OCR) which represents less concessional financing. “We hope that the ADB will make further headway on improving and enhancing its organization and structure, operational approaches, and financial capacit¡ies See “PHL,” A2
EXPLAINER »B4
UNVEILING CHINA’S HIP-HOP EVOLUTION:
FROM CENSORSHIP CHALLENGES TO AUTHENTIC EXPRESSION
PESO EXCHANGE RATES n US 57.5840 n JAPAN 0.3746 n UK 72.1931 n HK 7.3694 n CHINA 7.9701 n SINGAPORE 42.5194 n AUSTRALIA 37.7981 n EU 61.7646 n KOREA 0.0422 n SAUDI ARABIA 15.3537 Source: BSP (May 3, 2024)