ECCP at Work

Inflation slows to 4.8% in September

Prices of goods and services rose at a slower pace in September mainly driven by transport and food costs, the Philippine Statistics Authority said. PSA chief Dennis Mapa reported an inflation rate of 4.8% for the month, slower than August’s 4.9% but faster than 2.3% in September 2020. The latest outturn brings average inflation for this year so far to 4.5%. It is also within 4.8-5.6% range forecast by the Bangko Sentral ng Pilipinas for the month. However, it is outside its target 2-4% band for the entire year.

Tourism sector seeks staycation ban lifting

Hoteliers are seeking permission to offer staycations soon to boost their revenues amid the continuing international travel restrictions on inbound tourists due to the Covid-19 pandemic. Philippine Hotel Owners Association Executive Director Benito C. Bengzon Jr. said, “We are hoping that the authorities will allow staycations in Metro Manila. The vaccination rate of workers in our hotels is around 90 percent to 95 percent.” Per updated guidelines of the Inter-Agency Task Force on the Management of Emerging Infectious Diseases on the Alert Level System dated September 30, 2021, hotel staycations continue to be prohibited in the National Capital Region, which continues to be under Alert Level 4 until October 15, 2021.

Gov't spending to contribute more in economic recovery

Government spending, which expanded by 0.7 percent year-on-year last July, is expected to post faster growth in the coming months and boost economic recovery. Citing Bureau of the Treasury (BTr) data, the September 2021 issue of Market Call attributed the minute growth in government spending last July to government agencies’ focus on finalizing their proposed 2022 budget with the Department of Budget and Management (DBM). BTr data show that state expenditures posted faster growth of 34.20 percent year-on-year last August, while it jumped by 10.94 percent year-on-year in the first eight months this year. As of end-August this year, government expenditures reached PHP2.963 trillion while total revenues amounted to PHP2.005 trillion. 

Philippines to buy 100 million COVID-19 shots next year – Galvez

The Philippines is planning to procure up to 100 million COVID-19 vaccine doses next year, National Task Force against COVID-19 chief implementer and vaccine czar Carlito Galvez Jr. said. Galvez said the government would sign this week a contract with Johnson & Johnson for six million shots of its single-dose COVID-19 vaccine for delivery in January next year. He said country has so far administered 46.2 million of the more than 77.4 million vaccine doses received by the country. At least 21.7 million individuals or about 28 percent of the target population are now fully inoculated, said Galvez.

Philippines will only have 6 digital banks for now

The Bangko Sentral ng Pilipinas will not be filling the last digital banking seat after applicants competing for the remaining slot failed to submit complete documents. This leaves the Philippines with six digital banks — from the original plan of allowing seven players — during a three-year moratorium on new applications meant to assess the impact of the nascent industry on the local financial system, BSP Governor Benjamin Diokno said. The central bank has awarded digital banking licenses to Overseas Filipino Bank, Tonik Digital Bank, UNObank, Union Digital Bank, GOtyme and Maya Bank.

LIST: Children with comorbidities who will be prioritized in COVID-19 vaccination

The Department of Health on Monday (4 October) listed 11 preexisting illnesses that will be accepted as priority in the rollout of COVID-19 for ages 12-17 beginning Oct. 15. In a separate briefing, vaccine czar Carlito Galvez named six hospitals that will serve as vaccination sites: Philippine Children's Medical Center, National Children's Hospital, Philippine Heart Center, Pasig City Children's Hospital, Fe Del Mundo Medical Center, and the Philippine General Hospital.

PH GDP growth slowed to 4.6% in Q3, says survey

Economists surveyed by the think tank Japan Center for Economic Research (JCER) expect the Philippines’ growth to have slowed to 4.6 percent year-on-year in the third quarter while keeping their full-year expectations intact despite poor pandemic response. The third-quarter gross domestic product (GDP) consensus growth forecast for the Philippines based on JCER’s poll in September declined from the average projection of a 6.6-percent expansion in its preceding June survey. These economists also downgraded their fourth-quarter growth forecast to 5.2 percent from 5.5 percent previously.

ECCP, PEIC reinforcing calls for PH to step up energy self-sufficiency

The European Chamber of Commerce of the Philippines (ECCP) and the Philippine Energy Independence Council (PEIC) have been reinforcing calls to step up the country’s energy self-sufficiency, albeit with caution that technology deployments must lean on cleaner resources to align such goal with the decarbonization targets cast through the climate change diplomacy of the Paris agreement. In a recent forum, Energy Policy and Planning Bureau Director Jesus T. Tamang of the Department of Energy (DOE) conveyed that the country’s stature of energy self-sufficiency hovers at 53-percent, hence, there is still a need to accelerate that in future energy infrastructure installations. On the realm of renewable energy (RE) investments, the DOE official specified that “at the level of 34 percent share of RE in 2020, the Philippines remains to have the highest RE share in total primary energy supply among all ASEAN countries.”

DOE, PEIC, ECCP: PH energy sufficiency at 53%, still needs to rise

The Philippines’ energy industry has to make and carry out firm decisions to become more independent and resilient as it has now arrived at a state of climate justice, which is well beyond mere mitigation.  Its 53-percent energy sufficiency level also has to increase and can be strengthened by tapping into renewable energy resources. Government officials and industry leaders from the energy sector reached this conclusion during the recent webinar, “Energy in Sustainability: Renewable Energy Solutions at the Core of Climate Crisis,” conducted by the European Chamber of Commerce of the Philippines (ECCP) in partnership with the Philippine Energy Independence Council (PEIC).  

‘Vaccine-centric tack in Covid must go with testing, treatments’

The government’s response to the pandemic may be “too vaccine-centric” and should be replaced with a more holistic approach, including serious focus on mass testing and supporting therapeutics, according to former Socioeconomic Planning Secretary Romulo L. Neri. Neri said a holistic approach to manage the crisis is to include quick and low-cost mass testing in the country as well as the endorsement of therapeutics. These therapeutics, he said, include the use of Ivermectin, VCO (virgin coconut oil), and other nasal sprays to help control infections and transmission, among others.

COVID-19 situation in metro and 8 other regions better, says OCTA

Coronavirus infections in the capital region and other key economic hubs have been decreasing, according to researchers from the country’s premier university. The so-called NCR Plus 8 is composed of Metro Manila, Bulacan, Pampanga, Cavite, Rizal, Laguna, Batangas, Cebu City and Davao City. Mr. David said Metro Manila’s coronavirus reproduction number was 0.83, which is lower than the critical cut-off of 1.4.

Philippine economy to take 10 years to recover from COVID-19: NEDA chief

The Philippine economy will take more than a decade to return to pre-pandemic growth, an official said, warning the next two generations of Filipinos would be paying for the cost of COVID-19. "Our long run total cost of COVID and the quarantine both to the present and future society -- meaning our children and our grandchildren -- will reach P41.4 trillion" ($810 billion), Economic Planning Secretary Karl Chua said. The figure is more than twice the Philippines' gross domestic product in 2020, which the World Bank estimates at $361.5 billion. The losses would be felt over the next 10 to 40 years, Chua said.

Philippine factory activity hits 6-month high in September

IHS Markit said the Philippines Manufacturing Purchasing Managers’ Index (PMI) jumped to 50.9 last month from 46.4 in August after the pace of decline in output, new orders, and input purchasing and employment eased. The strict lockdown in Metro Manila was loosened in September, despite a continued rise in coronavirus disease 2019 (COVID-19) infections. The capital region is now under a less strict new alert level system that uses localized lockdowns for areas with higher infection rates. In its report, IHS Markit said local firms have also resumed stockpiling efforts last month as they anticipate greater demand ahead of the holiday season.