Hot money inflows rebound in Oct after 5-mo decline
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HORT-TERM investments made by foreign investors rebounded in October after five consecutive months of decline, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday. Transactions on foreign investments registered with the BSP, through Authorized Agent Banks (AABs), recorded net inflows of $83 million in October 2022. In September 2022 and October 2021, the country recorded net outflows of $367 million and $221.11, respectively. “This resulted from the $645
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million gross inflows and $561 million gross outflows for the month,” BSP said in a statement. The data showed the country recorded $645 million worth of investments in October 2022. This, however, reflected a decrease of 27.7 percent or by $247 million compared to the $892 million registered in September 2022. Majority of registered investments or 73 percent were in publicly listed securities while the remaining went to investments in Peso government securities at 27 percent and other instruments
at less than 1 percent. BSP said these investments were mainly in property; banks; holding firms; food, beverage and tobacco; and telecommunications. “Investments for the month mostly came from the United Kingdom; United States (US); Singapore; Luxembourg; and Hong Kong with combined share at 84.4 percent,” the BSP added. The data also showed $561 million gross outflows for the month were lower by 55.4 percent or by $698 million than the $1.3 bil-
lion recorded in September 2022. Majority or 67.7 percent of total outward remittances went to the United States. Meanwhile, year-on-year, registered investments in October 2022 decreased by 32.1 percent or by $305 million from the $950 million recorded in October 2021. Gross outflows were also lower by 52.1 percent or by $610 million than the outflows recorded for the same period last year at $1.2 billion. See “Hot,” A2
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FISCAL DATA IMPROVING’ By Cai U. Ordinario @caiordinario
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HE Department of Finance (DOF) said the government’s fiscal indicators are improving as the increase in the deficit to GDP ratio slowed and revenue generating agencies hit double-digit growth in their collections.
Finance Secretary Benjamin E. Diokno told reporters on Thursday that the national government’s deficit as percent of GDP for the first three quarters slowed to 6.5 percent from 8.3 percent a year ago. He added that for the 10-month period, the Bureau of Internal Revenue (BIR) also collected P1.9 trillion, up by 12.6 percent while the Bureau of Customs (BOC) increased its collections by 35.8 percent to P713.5 billion in the same period. “Tax effort, defined as taxes as percent of GDP, rose to 15.3 percent from 14.8 percent in 2021,” Diokno told reporters via Viber. See “Deficit-to-GDP,” A2
POVERTY DECLINING, BUT PHL ONE OF MOST UNEQUAL NATIONS
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SUPERHEROES The Tajonera residence in Concepcion Dos, Marikina City, is seen decorated with lifesize superhero and fairytale figures. A local Christmas season
EARLY half or 44 million of the Philippine population are considered economically secure but the country remains one of the most unequal in the world, according to the World Bank. Inequality, the World Bank also said, is expected to worsen in the Philippines due to the pandemic. Its latest report estimated that the country’s gini coefficient reached 45.3 percent in 2020; 45.2 percent in 2022; and 45.3 percent in 2024. In 2018, the country’s Gini coefficient, a measure of inequality, averaged 42.3 percent. This rate was already considered one of the highest income inequality rates in
East Asia, second to Thailand and the 15th most unequal country in the world. “The Philippines aims to become a middle-class society free of poverty by 2040, but we know from global experience that no country has managed to make this transition while maintaining high levels of inequality,” said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand. “Inequality of opportunity and low mobility across generations wastes human potential and slows innovation, which is crucial for building a competitive and prosperous See “Poverty,” A2
attraction for the last 10 years, the house is lit with festive lights from 6 pm to 8 pm this November and will be extended until 10 pm in December. NONOY LACZA
Neda Board approves ₧11.2-B project to boost fishing sector By Samuel P. Medenilla
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@sam_medenilla
ROUND 355,000 fisherfolks are expected to benefit from a newly approved P11.2-billion Philippine Fisheries and Coastal Resiliency (FishCoRe) Project, which aims to rehabilitate and boost the competitiveness of the local fishing sector. During its first meeting on Thursday in Malacañang, the National Economic and Development Authoriry (Neda) Board gave the go-ahead for the imple-
PESO exchange rates n US 57.2030
mentation of the project, which will be funded through multiple sources. The bulk or P9.6 billion of the budget will come from official development assistance (ODA) provided by the World Bank (WB). Private sector partners and beneficiary groups or cooperatives will shell out P1.16 billion, while the Department of Agriculture-Bureau of Fisheries and Aquatic Resources (DA-BFAR) will allocate P660.6 million for it. ”The seven-year investment
will support the implementation of reforms in fishery and aquaculture management in the Philippines aimed at improving the management of the country’s fishery resources and enhancing the value of fisheries production in selected fisheries management areas (FMAs),” the Office of the Press Secretary (OPS) said in a statement. The project will cover 32 million hectares of coastal and marine area in 24 provinces. See “Neda,” A2
n japan 0.4098 n UK 68.9639 n HK 7.3165 n CHINA 7.9915 n singapore 41.5478 n australia 38.5033 n EU 59.4797 n KOREA 0.0428 n SAUDI arabia 15.2209 Source: BSP (November 24, 2022)