ECCP at Work

September inflation revs up to 6.9%

Inflation in the Philippines heated up to 6.9 percent in September from 6.3 percent in August, according to the Philippine Statistics Authority. This brought the year-to-date [January-September] average to 5.1 percent. Inflation in the Philippines heated up to 6.9 percent in September from 6.3 percent in August, according to the Philippine Statistics Authority. This brought the year-to-date [January-September] average to 5.1 percent. Inflation for food alone was pegged at 7.7 percent, faster than 6.5 percent in August. The pace of rising prices in most basic items could not be offset by slower increases in the prices of meat and fruits. September’s results brought inflation back up to the same level last seen in October 2018.

PH jobless tally slightly rises to 2.68M in August; underemployed tops 7M

Around 2.68 million Filipinos aged 15 and up were out of work in August, slightly more than the 2.6 million count the prior month, the Philippine Statistics Authority (PSA) reported. This is equivalent to a national unemployment rate of 5.3% compared to July's 5.2%, said National Statistician Dennis Mapa. The mild uptick in unemployment came with the month-on-month increase in the number of persons in the labor force of about 557,000 according to Mapa, adding that not all new entrants were able to get jobs.

PH most disaster-prone country in the world—study

The Philippines, where Super Typhoon Karding (Noru) recently hit, was identified as the most disaster-prone country in the world due to its high risk, exposure, and vulnerability to disasters and calamities, an international report showed. The World Risk Report 2022 by Germany-based Bündnis Entwicklung Hilft and the Institute for International Law of Peace and Armed Conflict at Ruhr University Bochum (IFHV) showed that the global hot spots of disaster risk from natural hazards are in the Americas and Asia. The World Risk Index, a part of the annual risk report which calculates the disaster risk for 193 counties, showed that the Philippines has the highest disaster risk, with an index score of 46.82.

AMRO slashes Philippine growth outlook for 2023

THE ASEAN+3 Macroeconomic Research Office (AMRO) kept its growth projection for the Philippines this year, but cut its gross domestic product (GDP) forecast for 2023 amid inflationary pressures and the threat of a global recession. In the AMRO Regional Economic Outlook Update, the think tank said it kept the estimate at 6.9% this year, within the government’s 6.5-7.5% target. However, AMRO slashed the Philippines’ GDP forecast to 6.3% for 2023, from the 6.5% projection given in July, as the global growth outlook dims.

Climate change adaptation part of nat’l agenda — Bongbong Marcos

President Ferdinand “Bongbong” Marcos Jr. on Wednesday gave assurance that the country’s resiliency and adaptation to the new normals of climate change are on top of his administration’s national agenda. In his speech at the Department of Environment’s (DENR) multi-stakeholder forum, Marcos described the effects of climate change as the world’s “first truly global crisis” pointing out that every single citizen worldwide is affected. He also noted that mitigating and adapting to climate change will “take the assistance, the help, the understanding of every citizen of the world.” “As your president, I assure you that our environment and our country’s resiliency and adaptation to the new normals of climate change are on top of the national agenda,” Marcos said.

Day of exits: Angeles, Calida resign; Rodriguez out

President Ferdinand Marcos Jr.’s three-month-old administration lost three key officials in one day with the resignation of Commission on Audit (COA) Chair Jose Calida and Press Secretary Trixie Cruz Angeles, and an announcement of former Executive Secretary Victor Rodriguez’s official departure from Malacañang. Angeles cited health conditions in quitting her post, while Calida gave multiple reasons that were not immediately disclosed to the public. Rodriguez, who was supposed to have assumed a new Cabinet-rank office as the presidential chief of staff, “is no longer a member” of Marcos’ official family, according to the new Executive Secretary Lucas Bersamin.

BSP Identifies Legislative Priorities for the 19th Congress

The Bangko Sentral ng Pilipinas (BSP) has outlined its legislative agenda for the 19th Congress to further promote the stability and ensure soundness of the Philippine banking and payment systems.  The BSP supports reforms espoused under the Bank Deposits Secrecy Bill, the proposed Financial Accounts Regulation Act (FARA), SIM Card Registration Bill, and the Digital Payments Bill. “The BSP will work with the 19th Congress on the passage of priority bills that are expected to boost public trust and confidence in the country’s financial and payment systems,” said BSP Governor Felipe M. Medalla.

PH’s move to fully open renewable energy industry to foreigners cheered

Allowing foreigners full ownership of renewable energy projects in the Philippines will help improve overall business sentiments and lure more investments into the country, according to business groups. Reacting to a Department of Justice (DOJ) legal opinion, American Chamber of Commerce senior adviser John Forbes told the Inquirer: “We welcome this development and expect that this will result in new and large inflow of foreign direct investments into renewable energy projects.” 

Policy-induced recession to hurt developing countries – UNCTAD 

The United Nations Conference on Trade and Development (UNCTAD) has warned that monetary and fiscal policy moves in advanced economies risk pushing the world toward global recession and prolonged stagnation, which will especially hurt developing countries. In its Trade and Development Report 2022, UNCTAD said the rapid interest rate increases and fiscal tightening in advanced economies, combined with the cascading crises resulting from the COVID pandemic and the war in Ukraine, have already turned a global slowdown into a downturn, adding that a desired soft landing is looking unlikely. It emphasized that at a time of falling real wages, fiscal tightening, financial turbulence and insufficient multilateral support and coordination, excessive monetary tightening could usher in a period of stagnation and economic instability for many developing countries and some developed ones.

Customs exceeds collection target for 9th straight month 

THE BUREAU of Customs (BoC) said that it exceeded its target for a ninth straight month in September, amid improved collection and higher duties on oil. In a statement, the BoC said September collections hit P79.5 billion, exceeding the target of P61.9 billion by 28.4%. This is the ninth consecutive month it has exceeded its monthly target. In the January to September period, the BoC collected P638.7 billion, surpassing its collection target for the period by 17.8%. Year on year, Customs collections increased by 35.9%, as oil prices soared. The BoC urged all of its offices and collection districts to sustain its performance throughout the year by taking advantage of its modernization programs and reform initiatives of the Marcos administration.

World Bank urges Philippines to cement place in industrial, tech and health value chains

The World Bank said the Philippines has three areas it may elect to focus on: Industrials, Manufacturing, and Transport (IMT); Technology, Media, and Telecommunications (TMT); and Health and Life Sciences (HLS). Trade Secretary Alfredo E. Pascual said the Department of Trade and Industry (DTI) has adopted these recommendations, but notes that it has added another focus area, Modern Basic Needs and Resilient Economy.

PHL lags behind travel publication’s country list

THE Philippines ranked just number 30 among the top countries in the world in which to travel, despite being the first in Asia to reopen to leisure tourists. This, as per a readers’ survey by international travel publication Condé Nast Traveler (CNT). The Philippines scored 86.66, behind Malaysia at no. 27 (86.85),  Singapore at no. 4 (90.09), and Thailand  at no. 3 (90.46). From February 10 to September 12, arrivals in the Philippines reached some 1.47 million, with foreign tourists accounting for 69.4 percent or about 1.02 million, while the rest are overseas Filipinos, according to data from the Department of Tourism. “As we usher in this new era of travel post-pandemic, our focus is to continue building confidence towards travel to the country by improving the ease of access, prioritizing tourist safety and convenience, and encouraging sustainable tourism practices,” said Tourism Secretary Christina Garcia Frasco.