IRAN DONE FOR GILAS, CHINA NEXT IN SEMIS Justin Brownlee defies his guards as he leads Gilas Pilipinas to an 84-83 squeaker past Iran and into the semifinals where China awaits reeking with vengeance for its horrible loss to host Philippines in the FIBA World Cup in Manila last month. NONIE REYES
Amid headwinds, IMF raises PHL growth forecast By Cai U. Ordinario @caiordinario
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IGH E R pu bl ic s e c t or spending and better external trade would improve the countr y’s economic growth next year, according to the International Monetary Fund (IMF). In a statement distributed during the briefing on the 2023 Article IV Mission to the Philippines on Tuesday, the IMF raised its growth forecast for the country to 6 percent from 5.5 percent estimated in July 2023. For 2023, IMF cut its growth projection to 5.3 percent for this
year from the 6.2 percent estimate in July 2023 based on the weakerthan-expected second-quarter growth forecast. The IMF move is in contrast to the lower projection made by the World Bank on Tuesday. In its latest East Asia and the Pacific (EAP) Economic Update for October, the Bank said the Philippine economy is expected to grow by 5.8 percent next year, down from the initial estimate of 5.9 percent in April. Meanwhile, IMF team lead Jayanath Peiris listed “the main downside risks to the outlook” including “persistently high global and domestic inflation that could necessitate a further tightening of
monetary policy, an abrupt global slowdown putting downward pressure on goods and services exports, an intensification in geopolitical tensions, and depreciation pressures stemming from capital outflows under volatile market conditions.” Peiris added: “On the other hand, a more resilient US economy and a rebound in domestic demand supported by an easing of financial conditions provide upside risks.” Peiris said that even if China, one of the country’s major trade partners, is expected to slow in 2024 and will impact the growth in the region, the Philippines is not
expected to see a deterioration in its growth momentum next year. For one, he noted, the Philippine economy is a service-oriented one, and the problem of China’s economy is a goods-related one. Peiris also said a bigger trade partner for the Philippines is the United States, which could have a significant impact on the country more than China. The IMF team lead also said since the Philippine economy is a service-oriented one, it will benefit from the growth being experienced by the services sector worldwide. This will help boost See “IMF,” A2
BusinessMirror A broader look at today’s business
www.businessmirror.com.ph
Wednesday, October 4, 2023 Vol. 18 No. 352
DESPITE BETTER SUPPLY, PRICE DIPS, EO 39 STAYS n
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Samuel P. Medenilla @sam_medenilla
Signing of EOPT, 2 other bills to boost economy–MBC
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ESPITE sufficient local supply and declining international export price of rice, President Ferdinand R. Marcos Jr. has decided to retain—for now—Executive Order (EO) No. 39, which imposed a price cap for the food staple. The chief executive made the decision even after the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) had reported to him “favorable conditions” which will justify lifting of the price cap. Officials from both agencies reported that local rice production this month is expected to reach 1.9 million metric tons (MMT), which will bring the country’s total rice supply to 4.22 MMT. “That will jump our days to the last of our supply of rice to 74 days...because we are expecting a bumper harvest in October and November. The public can expect a stable supply of our main staple,” DA-Bureau of Plant Industry Director Gerald Glenn F. Panganiban said during a press briefing on Tuesday. Last month, the total rice supply reached 3.28 MMT, sufficient only for 52 days.
Additional interventions
PA NGA NIBA N said they also monitored a lower local market price as well as an easing in the export price for rice in the international market. “That is why we met with DTI as well as the sector council so we can recommend [the possible lifting of the EO]. The President will be the one deciding on it,” the BPI official said. Neda also backed the lifting, but it proposed other measures to cushion the impact of “uncapped” rice prices for rice traders, farmers and consumers. Among its proposed measures are logistics support for rice traders, financial aid for Filipino farmers, and unconditional rice price subsidies for the poor.
Other indicators
ASKED why Marcos has yet to lift EO 39 event after their data
By Andrea E. San Juan @andreasanjuan
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HE Makati Business Club (MBC) is pinning its hopes on President Ferdinand R. Marcos Jr. signing three “economy-boosting” bills into law, including the measure on Ease of Paying Taxes, noting these bills will help create a “more attractive” investment climate and generate more jobs for Filipinos. In a statement on Tuesday, the local business group lauded Congress for a “productive” start to the current session, with three “economy-boosting” bills on their way to the President for signature. T hese measures are the bil ls on Ea se of Pay ing Ta xes a nd on Inter net Tra nsact ions, a nd a me nd me nt s t o t he P u bl i c Pr ivate Pa r t nersh ip Act. According to MBC, the Ease of Paying Taxes bill will “greatly” help individuals and businesses, especially micro, small and medium
WORK FOR DAY’S MEAL Global food prices are at the mercy of El Niño, crop damage, export restrictions, and the Ukraine war. Nations heavily reliant on food imports, like the Philippines, face heightened risks. In Manila, store owners are feeling the strain as prices surge, and customers adapt by buying smaller quantities. “We cannot save money anymore. It is like we just work so that we can have food daily,” said Charina Em, 32, who owns a store in the Trabajo market. AP/JOEAL CALUPITAN
See “MBC,” A2
THE PRICE OF BEING ‘UMIC’: TIGHT ODA ACCESS
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HE Philippines must prepare for the impact of becoming an Upper Middle Income Country (Umic) on its access to concessional financing for various projects and programs, according to the National Economic and Development Authority (Neda). In the 2022 Official Development Assistance (ODA) Portfolio Review, Neda called for a review or assessment of its existing financing policies to prepare for the country’s eventual classification as a Umic. Based on the World Bank, a Umic is a country whose Gross National Income (GNI) per capita is between $4,096
and $12,695. These countries that enjoy higher per capita incomes graduate to less or no concessional funding from sources of ODA. “The country’s transition to Upper Middle-Income Country status may have potential implications on its access to ODA financing. Thus, a review or assessment of existing financing policies would be necessary,” Neda said. Neda said the country needs to address the potential challenges and maintain sustainable financing of development interventions. The government, it said, should adopt comprehensive
measures. These include efforts to intensify domestic resource mobilization and effectively leveraging private sector resources through public-private partnerships and enhancing the regulatory framework and institutionalizing financial sector reforms to strengthen domestic financial institutions. Neda stressed the need for prudent debt management strategies to meet the government’s financing needs and debt obligations efficiently, while minimizing costs and managing risks; and upholding See “Umic,” A2
See “EO,” A2
PESO EXCHANGE RATES n US 56.7280 n JAPAN 0.3786 n UK 68.5898 n HK 7.2431 n CHINA 7.7572 n SINGAPORE 41.3319 n AUSTRALIA 36.0960 n EU 59.4566 n KOREA 0.0418 n SAUDI ARABIA 15.1254 Source:
BSP (3 October 2023)