ECCP at Work

Inflation rises to 3.9 percent in May

Inflation picked up for the fourth straight month in May due to rising electricity and fuel costs, the Philippine Statistics Authority (PSA) said. The consumer price index reached 3.9 percent, higher than the 3.8 percent recorded in April.

April unemployment rate at 4%, up from 3.9% in March
The country’s unemployment rate in April rose to 4 percent fueled by more jobless Filipinos in the agricultural sector who were affected by the El NIño, the Philippine Statistics Authority (PSA) reported on Thursday. This translated to 2.04 million unemployed Filipinos.

WB keeps PHL growth projection for 2024, 2025

In its Philippine Economic Update report, the lender said it expects growth at 5.8% this year and 5.9% next year. World Bank Senior Economist Ralph van Doorn mentioned that growth will increase to an average of 5.9% between 2024 and 2026, which will be anchored by a strong domestic demand and a pickup in global growth. These are below the government’s 6-7% target for 2024 and 6.5-7.5% for 2025.

Businesses attain EPR target in 2023
Registered businesses have met their target of diverting by 20% of their plastics footprint in the first year of the implementation of the Extended Producers’ Responsibility (EPR) Act. According to the DENR-Environmental Management Bureau, a total of 624,547 tons unaudited footprint of  plastics were recorded in 2023 and 20 percent or 124,986 tons of plastic packaging were reported to have been diverted.

NEDA board OKs low tariff regime amid rising prices

The board of the National Economic and Development Authority (NEDA) has approved a medium-term plan to lower tariffs on agricultural and industrial products, as the Philippines struggles with rising prices and declining factory performance.

BSP may cut policy rate before Fed

The BSP can cut its policy rate before the US central bank despite a volatile peso, Governor Eli M. Remolona, Jr. said. The BSP chief earlier said the earliest the central bank could cut the rate is by August. The Monetary Board last month kept its key rate steady at a 17-year high of 6.5%. The central bank raised borrowing costs by 450 basis points (bps) from May 2022 to October 2023 to tame inflation. 

PHL requires up to P31 trillion in investment to hit energy targets

The Philippines will need between P20 trillion and P31 trillion worth of investment to properly implement the Philippine Energy Plan (PEP), which will involve boosting the share of renewable energy (RE) in the power mix, the Department of Energy (DoE) said.

Green transition may open economic opportunities for Philippines

The green transition is seen opening economic opportunities for the Philippines, but incentives will be needed to encourage investments in this space, the Department of Transportation said. The green economy shift involves adopting practices that minimize carbon emissions, promote resource conservation and encourage renewable energy sources.

PHL cuts rice tariffs to temper inflation

President Ferdinand R. Marcos Jr. is set to issue a new Executive Order (EO), which will slash rice tariffs to 15 percent amid the soaring international prices of the staple. The government expects the tariff reduction to stabilize rice prices in the next four years and temper inflation.

PHL seeks strong collaboration among member economies to revitalize Apec

The Philippines has called for stronger collaboration among Asia-Pacific Economic Cooperation (Apec) economies to address current challenges and “revitalize” the multilateral trading system.Through the lens of the Philippines, Trade Undersecretary Allan Gepty raised agriculture as the country’s priority.

Market plunges on inflation, peso woes

Share prices retreated amid concerns on inflation as well as the peso, which slumped for a second straight trading day to fresh 19-month lows. The benchmark Philippine Stock Exchange index ended its brief two-day climb as it slipped back below the 6,400 level, plunging by 1.3 percent or 84.32 points yesterday to end at 6,386.42. Claire Alviar of Philstocks Financial said the decline reflects negative investor sentiment due to concerns about rising inflation and a weakening peso.

BSP: 150-bps rate cut ‘too aggressive’

Cutting borrowing costs by 150 basis points in two years is possible, but it will be “too aggressive” based on the economy’s current growth trajectory, according to Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr.

Native garlic to raise local sufficiency to 20 percent

The Department of Agriculture (DA) is raising the country’s self-sufficiency in garlic to 20 percent next year by expanding domestic output in the Ilocos region and other areas nationwide. Agriculture Undersecretary Cheryl Marie Natividad-Caballero said the DA is aggressively pushing garlic as one of the banner high value crops programs given its growing demand, both for household and processing use. Boosting domestic production will slash the country’s dependency on imported supplies.

DOH: ‘FLiRT’ variant here, but PH remains ‘low risk’

The Department of Health (DOH) on Tuesday confirmed that the so-called “FLiRT” sub variants of COVID-19, which are causing new waves of infections globally, have been detected in the country. However, the agency assured the public that all regions nationwide remained at “low risk” for COVID-19, and the uptick in cases has remained “slow, mild and manageable.”

Metal prospects rosier in 2024

The Chamber of Mines of the Philippines (COMP) is expecting the demand for metals, especially copper, to be “relatively higher” this year on the back of the global shift to green energy. COMP chair Michael Toledo on Monday said the uptrend in copper demand will also be driven by limited supply since no new mining projects will come on-stream in the next few years.

ASF: 58 provinces still under ‘red zone’

Fifty-eight provinces are still classified as red zones for African swine fever or infected with ASF, according to the Bureau of Animal Industry (BAI). Data from the BAI’s National ASF Prevention and Control Program showed that as of May 31, hog farms in three provinces in Ilocos, five in the Cordilleras, four in Cagayan Valley, six in Central Luzon, four in Calabarzon, three in Mimaropa and five in Bicol were among those that remain infected with the swine disease.

Palawan Group of Companies partners with DOLE MIMIROPA for underbanked beneficiaries

As part of its commitment to making digital financial services available to all sectors, especially the marginalized and vulnerable, the Palawan Group of Companies has partnered with the Department of Labor and Employment (DOLE) MIMAROPA Region. Palawan’s partnership with DOLE MIMAROPA has significantly improved and simplified the department’s disbursement processes for releasing stipends and salaries to the many beneficiaries.

House commits P10 billion in 2025 for Pambansang Pabahay

The Department of Human Settlements and Urban Development (DHSUD) on Wednesday announced that the House of Representatives committed to allocate P10 billion as interest support to the administration’s Pambansang Pabahay para sa Pilipino (4PH) Program for 2025.

DA sees rice price drop in July; farmers grumble
Consumers can start benefiting from lower rice prices as early as next month following the government’s decision on Tuesday to slash the tariff on imports, the Department of Agriculture (DA) said on Wednesday.

Security tightened in camps as PH, US finalize intel pact
Security has been tightened across military camps nationwide as part of requirements for the completion of a long-delayed intelligence-sharing pact between the Philippines and the United States, the Armed Forces of the Philippines said on Wednesday. Manila and Washington are working to finalize a General Security of Military Information Agreement (GSOMIA) that has been under negotiation since late 2021.

Alternergy starts building P10-B Tanay Wind Power Project

ALTERNERGY Holdings Corp. announced on Wednesday the start of the construction of its 112-megawatt (MW) Tanay Wind Power Project in Rizal.The wind farm project has a total cost of P10 billion, of which up to P8 billion in funding came from the Bank of the Philippine Islands and Security Bank Corp.

Prime Infra says P1-B Porac facility to address Pampanga’s waste challenges
THE new waste processing facility of Razon-led Prime Infrastructure Capital, Inc.’s (Prime Infra) unit in Porac, Pampanga, will serve as an alternative solution amid the looming closure of sanitary landfill facilities that cater to Clark City, the company said on Wednesday.

More travels noted as inflation hits 3.9% 
ROAD TRIPS that took families and friends from one part of the country to another for vacation or to attend various gatherings fueled the country’s inflation rate in May 2024, according to the Philippine Statistics Authority (PSA). Data showed inflation picked up to 3.9 percent on the back of higher electricity and liquefied petroleum gas (LPG) as well as transportation costs, namely, gasoline, passenger transport by sea, and diesel.

Exports targets to be slashed

The government is poised to temper the targets under the Philippine Export Development Plan (PEDP) due to the less favorable global environment. Bianca Sykimte, director of the Export Marketing Bureau of the Department of Trade and Industry said discussions have started on recalibrating the export targets although the timing for doing so is yet to be determined.

Singapore, five other Asean economies see stronger investments
Singapore and five other Asean countries have received most of the investment flows as companies diversify their supply chains and adopt a China-plus-one strategy, economists said. Foreign direct investment (FDI) inflows into the Asean economies of Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam have been gaining traction, although there are some differences across sectors and countries, they added.

Govt to expedite ROW delivery
President Ferdinand Marcos Jr. wants a law expediting the settlement of right-of-way (ROW) issues to hasten the infrastructure programs of the government. This developed as the President endorsed the use of the “old process” of settling ROW issues — an upfront 15 percent down payment on the concerned land or property — to enable the immediate turnover of the property and start the project, pending passage of new laws or amendments to the “Right of Way Act” or Republic Act 10752 that was passed in 2016.

Peza approvals rose 10% in May to P36.827B
Investment approvals by the Philippine Economic Zone Authority (Peza) hit P36.827 billion in May, 10 percent more than in the same month last year, driven by new and expansion projects in the manufacturing sector.

Two million Filipino children living in severe food poverty — UNICEF
AROUND TWO MILLION Filipino children are living in severe food poverty, putting them at risk of malnutrition, according to a new report by the United Nations Children’s Fund (UNICEF). In a report entitled “Child Food Poverty: Nutrition deprivation in early childhood,” UNICEF said 18% of Filipino children under five years old, equivalent to two million, are considered severely food poor since they consume two or fewer of the eight major food groups a day.

House panel chairman promises RCEF support after rice tariff cut
LEADERS of the House of Representatives said on Thursday that they will continue to support farm modernization despite the potential loss of funding from rice import tariffs, which the government reduced to 15% from 35%. The Rice Competitiveness Enhancement Fund (RCEF), which finances industry modernization, is by law the recipient of P10 billion a year from rice import tariffs. RCEF tariff support is authorized by the Rice Tariffication Law of 2019.

Meat imports rise 11% led by pork, chicken
MEAT IMPORTS rose 11.3% during the four months to April, led by increased shipments of pork, chicken, and beef, the Bureau of Animal Industry (BAI) reported. The BAI tallied imports of 397 million kilograms of meat during the four-month period, against 356 million kilos the prior year. Meat imports in April rose 35.6% to 122.74 million kilos.

E-commerce platforms  told to adhere to ITA
The Department of Trade and Industry (DTI) said it is enforcing to the fullest extent  the Internet Transactions Act (ITA) on all platforms, including TikTok, with which it is collaborating to accelerate electronic commerce in the country. DTI Secretary Alfredo Pascual led a  Philippine delegation in welcoming the introduction of TikTok’s Safety Enforcement Tool (TSET), a platform designed to promote consumer protection.

Aghon’s agri, infra damage tops P1 billion — NDRRMC
Typhoon Aghon's damage to infrastructure and agriculture reached P1 billion nationwide, the National Disaster Risk Reduction and Management Council (NDRRMC) reported on Thursday. Aghon, the first cyclone to hit the country this year, impacted 123 facilities in CALABARZON, bringing the cost of infrastructure damage to over P942.5 million. 

Marcos wants 24/7 port operations
President Marcos has ordered a round-the-clock deployment of customs and agriculture department teams to ports to ensure uninterrupted processing of shipments, including the screening of imported goods such as food and agricultural products. At a meeting with the Private Sector Advisory Council (PSAC)-Infrastructure Sector Group last Wednesday, Marcos said the operations of all ports and the processing of shipments should be continuous to accommodate the arrival of more ships.

Sweden’s defense chief visits Philippines
Exploring ways to deepen relations and cooperation, Defense Secretary Gilbert Teodoro Jr. welcomed Sweden’s Defense Minister Pål Jonson to the Philippines yesterday, marking the first  time that a Swedish defense chief visited Manila.

Luzon Corridor, TPB ‘to create quality jobs’
THE Luzon Economic Corridor and the Trabaho Para sa Bayan (TPB) Plan are expected to create quality jobs for Filipinos, according to the Department of Finance (DOF) and the National Economic and Development Authority (Neda). The Luzon Economic Corridor is the first Partnership for Global Infrastructure and Investment (PGI) economic corridor in the Indo-Pacific region following the inaugural Trilateral United States-Japan-Philippines Leaders Meeting.

Kanlaon Volcano blast ruins crops, taints water
The eruption of Mt. Kanlaon and the lahar flow induced by rains after the blast on Monday night not only contaminated water sources but also damaged millions of pesos worth of crops on Negros Island, local officials said. In Negros Occidental province, damage to crops reached P9.99 million as the eruption affected farms in the cities of Bago and La Carlota and the towns of La Castellana, Moises Padilla and Pontevedra.