Weak private consumption may have slowed Q3 growth By Cai U. Ordinario @caiordinario
THE Philippine economy may have slowed in the third quarter of the year due to tepid private consumption, according to ANZ Research. In its Asia Macro Weekly report, ANZ Research said the country’s GDP may have slowed to 5.7 percent in the July to September 2024 period. This will be slower than the 6.3-percent growth posted in the second quarter and the 5.8 percent recorded in the first quarter of 2024. This will be the slowest growth since the 5.5-percent growth in the last quarter of 2023. “Leading indicators of private
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consumption [passenger car sales, consumer goods imports] softened in Q3 [third quarter], while other indicators [consumer credit growth, remittance flows] recorded steady growth. This points to a moderation in private consumption growth in Q3,” ANZ Research said. The think tank also expects the national government’s consumption to slow to 6.4 percent in the third quarter year on year compared to the 18 percent posted in the second quarter of 2024. “Capital goods imports picked up pace in Q3, and construction and manufacturing credit grew indicating sustained growth in fixed capital formation. We expect the improvement in net exports to
have stalled, with exports growing less than imports in Q3 2024,” ANZ Research said. Meanwhile, the think tank said inflation could average 2 percent in October 2024, slightly faster than the 1.9 percent posted in September 2024. Higher costs of select food items will drive inflation but lower rice and electricity prices in October will help offset the impact of expensive food items on overall inflation. Given that inflation is expected to still be within the target of the Bangko Sentral ng Pilipinas (BSP), ANZ Research expects another 25-basis-point reduction in key policy rates to 5.75 percent in December 2024.
Earlier, the BSP said more expensive food items may have increased inflation in October compared to September. (See: https://businessmirror.com.ph/2024/11/01/ bsp-sees-october-inflation-at2-2-8-on-food-prices/). In its Month Ahead inflation forecast, BSP said October inflation may have averaged 2 to 2.8 percent. In September 2024, inflation averaged 1.9 percent, the lowest in four years or since the 1.6 percent posted in May 2020. Nonetheless, BSP said lower prices of rice and meat along with reduced electricity rates are expected to cushion the impact on inflation by higher prices of select food items.
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NG SUBSIDIES TO GOCC SHRINK 14% TO P18.22B By Reine Juvierre S. Alberto
T
HE government’s budgetary support to state-run corporations contracted to P18.217 billion in September 2024, data from the Bureau of the Treasury (BTr) showed.
Subsidies extended to governmentowned and -controlled corporations (GOCCs) declined by 14.33 percent to P18.217 billion as of September 2024 from P21.264 billion in the same month a year ago. Other government corporations obtained the highest share of subsidies in September at P10.661 billion, followed by major nonfinancial government corporations and government financial institutions with P6.914 billion and P642 million, respectively. The Philippine Health Insurance Corporation (PhilHealth) cornered the bulk of subsidies for the month, amounting to P9.339 billion. The National Irrigation Administration (NIA) trailed behind PhilHealth with P5.496 billion and National Electrification Administration (NEA) with P1.014 billion in terms of recipients of biggest subsidies in September. From January to September 2024, subsidies also decreased to P105.242 billion, 23.25 percent lower from P137.127 billion in the same period a year ago. See “NG,” A2
DECKING OUT DAPITAN Famous for celebrating Christmas earlier and longer than any
other nation, the Philippines kicks off its holiday season in September, when the “Ber” months begin. In Dapitan, Manila, a lively street known for holiday shopping, colorful Christmas decorations line the bustling avenues, giving early shoppers a chance to immerse themselves in the festive spirit. The scene draws locals and visitors alike, who flock to enjoy the vibrant displays and pick up decorations for their homes. NONIE REYES
UK STILL TOP TOURIST MARKET DESPITE DIRECT FLIGHTS LACK By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror
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HE United Kingdom continues to be a top source market for tourists, with arrivals in the Philippines reaching 128,235 in the first 10 months of the year, despite the lack of direct flights between both countries. While this was some 24-percent less than the 168,954 arrivals prepandemic, the growth has been steady, having slightly exceeded 125,009 arrivals in the same period last year. The
UK placed eighth among the top tourism markets from January to October 31, 2024. In terms of nationalities, 141,083 British tourists arrived in the Philippines in the reference period. As such, the Department of Tourism (DOT) and its marketing arm, the Tourism Promotions Board (TPB) will be sending a large delegation to the World Travel Market (WTM) in London in a bid to encourage more British and foreign nationalities to visit the Philippines. This year’s event, with the theme, “Travel See “UK,” A2
Congress resumes sessions; 2025 budget tops agenda By Jovee Marie N. Dela Cruz @joveemarie
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HE House of Representatives will resume its sessions on Monday, focusing on the ratification of the proposed 2025 P6.35-2 trillion General Appropriations Act, the main priority for the remainder of the year. Majority Leader Manuel Jose M. Dalipe said that the House anticipates the Senate will soon approve the budget proposal, enabling a bicameral conference committee to finalize a unified version. Also on Sunday, Senate President Chiz Escudero confirmed that
the chamber will give top priority to the 2025 General Appropriations Bill that the House sent to it at the height of tropical storm Kristine last week. Earlier, he said investigations in aid of legislation will take a backseat to the budget process, because senators want to wrap up deliberations within two weeks, to allow time for the bicameral panel to do its work. Besides the budget, the only measure getting Senate priority this week is a bill to postpone the 2025 parliamentary elections in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), to See “Congress,” A2
PESO EXCHANGE RATES n US 58.2540 n JAPAN 0.3800 n UK 75.5321 n HK 7.4955 n CHINA 8.1875 n SINGAPORE 44.0784 n AUSTRALIA 38.2845 n EU 63.2580 n KOREA 0.0423 n SAUDI ARABIA 15.5112 Source: BSP (October 31, 2024)