ECCP at Work

PHL to grow fastest in the region this year — AMRO

“The Philippine economy has held up very well despite high inflation and interest rates, and it’s much less dependent on exports than other countries in the region,” AMRO Chief Economist Hoe Ee Khor said. AMRO kept its Philippine GDP growth projection at 6.3% for this year, unchanged from its annual consultation report in November.

Investments conferred CREATE incentives valued at P1.1 trillion

Projects benefiting from incentives under the Law generated investments exceeding P1 trillion, the DOF said. The CREATE Act attracted P1.1 trillion worth of investments between August 2021 and December 2023, with these projects expected to generate 102,304 jobs. 

Marcos urged to harness economic reforms’ potential instead of ‘Cha-cha’ push

President Ferdinand R. Marcos Jr. should work on food security, boost the quality of education and healthcare while improving governance to attract foreign investments instead of pushing for changes to the 1987 Constitution, economists and legal experts said.

Recto calls for study of carbon pricing instruments, underscores need to identify optimal mix for PH

Finance Secretary Ralph G. Recto has called for the study of carbon pricing instruments and its optimal mix, specifically identifying the development of a carbon tax and emissions trading system (ETS) as crucial steps towards achieving a low-carbon economy.

NEDA bets on P1 trillion 'Blue Economy' to boost growth

At the 8th Joint Economic Briefing organized by various foreign chambers in the country, the National Economic and Development Authority (NEDA) said it plans to push for the "Blue Economy" bill this year as the value of the country's maritime sector is estimated to hit over P1 trillion.

House panel endorses CREATE MORE

Substitute House Bill No. 9794 or the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill will amend Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The committee report will be taken up at the House Ways and Means panel next week before it is debated at the plenary.

Cheaper airfares in February as fuel surcharge drops

Expect cheaper airfares in February as the Civil Aeronautics Board (CAB) imposed lower fuel surcharge rates, dropping the fuel surcharge rate from Level 6 to Level 5 covering Feb. 1-29. Philippine air carriers welcomed the advisory. “While aviation fuel prices remain volatile, the adjustment in fuel surcharge cost comes in very timely with many Philippine festivals happening from its period of implementation,” said AirAsia spokesperson Steve Dailisan said.

Philippines to grow at faster pace this year – PIDS

Despite global economic challenges, the Philippine economy is expected to expand at a faster pace this year than in 2023, according to state think tank Philippine Institute for Development Studies (PIDS). “GDP will likely grow between 5.5 to six percent in 2024,” PIDS researchers Margarita Debuque-Gonzales, Mark Gerald Ruiz, and Ramona Maria Miral found in a study. This year’s growth forecast is higher than the authors’ projected 5.2 percent growth in 2023.

Clark airport to connect with NLEX, SCTEX 

Travelers who want to fly through the Clark International Airport will enjoy direct access to the gateway once the government completes its road link to expressways by 2026. The Clark International Airport Corp. (CIAC) yesterday announced that it has started drawing up the detailed engineering design for the CRK Direct Access Link, which will put up a road network that connects the Clark airport with the North Luzon Expressway (NLEX) via the Subic-Clark-Tarlac Expressway (SCTEX).

DICT targets to award 5 big contracts under nat’l broadband plan in Q1

The Department of Information and Communications Technology (DICT) said it aims to award five contracts totaling P941.85 million under the national broadband program this quarter. In DICT’s procurement plan for the year, both the submission of bids and contract signing for the project are scheduled for the first quarter. The national broadband plan is the department’s framework for accelerating fiber optic cable deployment and wireless technology to improve internet speed.

DOH seeks deferment of PhilHealth rate hike

Health Secretary Teodoro Herbosa yesterday said he asked President Marcos Jr. to consider deferring an increase in the premium rate of the Philippine Health Insurance Corporation (PhilHealth) amid high prices of basic commodities and services. Herbosa’s statement comes days after PhilHealth announced it has started to implement the scheduled 5 percent premium rate for 2024 as provided under the Universal Health Care (UHC) Law. Communications Secretary Cheloy Garafil said the President “is studying the request.”

P1.3T investments needed in agri

Agriculture Secretary Francisco Tiu Laurel Jr. said the Philippines needs to invest at least P1.3 trillion over the next few years to boost rice production, reduce wastage of agricultural products, and ensure the country’s food security. Laurel in a briefing in Malacanang on Tuesday said irrigating 1.2 million of farm lands planted  to rice would require P1.2 trillion in capital spending. The Department of Agriculture (DA) also said P90 billion is needed to build integrated rice mills and warehouse complexes to reduce 15 percent in losses in rice due to the lack of post-harvest facilities.

PH vehicle sales hit record high in 2023

Vehicle sales revved up by 21.9 percent last year to a record high 429,807 units, beating the industry’s revised annual sales target of 423,000 as well as their pre-pandemic sales level. Campi president Rommel R. Gutierrez said that 2023 was a very strong year for the local automotive industry, with the group attributing the growth to sustained consumer demand, easier access to credit, and improved supply conditions across all brands that should spill over to 2024.

Tourism, construction expected to drive growth this year — NEDA

Economic growth this year will be driven by a rebound in tourism and construction amid Build Better More and the public mass housing projects, the National Economic and Development Authority (NEDA) said. The Department of Tourism has said that the tourism industry generated P404.02 billion in revenue in the 10 months to October, up 190%. The government hopes to spend the equivalent of 5-6% of GDP on infrastructure annually and targets 6.5-7.5% growth this year.

PHL emerges as ‘new frontier’ in LNG market–BMI Research 

The country’s liquefied natural gas (LNG) market is gaining ground, attracting strong interest from producers and traders overseas, BMI Research of the Fitch Group said while noting that the country’s LNG imports could increase up to 22 mtpa (million ton per annum) when all seven LNG planned terminals are completed. Two LNG facilities by FGen LNG Corp and Linseed Field Corp. have already been completed, with the remaining terminals scheduled to start commercial operation from 2024 to 2026.

 

DoE: 175 power projects endorsed for impact studies

The Department of Energy (DoE) endorsed 175 projects to the National Grid Corp. of the Philippines (NGCP) for system impact studies (SIS) last year. “This is done to assess the impact of a proposed power generation project on the grid so that it can be determined whether it can really connect and inject power at its proposed connection point,” Monalisa C. Dimalanta, chairperson of the Energy Regulatory Commission, said. The process is a step before applying for the certificate of compliance, which serves as a permit for the generation facilities to operate.

Philippines is best country to invest in–Romualdez 

Speaker Ferdinand Martin G. Romualdez highlighted the strong economic foundations of the Philippines, situated in the world’s fastest-growing Asean region, and reaffirmed the Philippine government’s commitment that the country is open for business during the 2024 World Economic Forum (WEF). Romualdez also highlighted efforts to make the Philippines more investor-friendly, particularly the move to relax the restrictive provisions of the 1987 Constitution. 

Recto urges Congress to partner with DOF in passing crucial reforms to reduce PH deficit and debt

Finance Secretary Ralph G. Recto today urged the Congress to partner with the Department of Finance (DOF) in swiftly passing crucial reforms needed to reduce the Philippines’ deficit and debt levels during the 2024 Philippine Economic Outlook Briefing and Luncheon. Secretary Recto acknowledged the Philippines’ strong economic performance, but stresses that “[f]iscal sustainability can only be achieved if we install a system that guarantees fairer and more efficient tax administration.” The Secretary added that the DOF is currently improving its proposals and intends to visit the Senate soon to personally discuss the reforms with Senators.