ECCP at Work

Fitch affirms PH's 'BBB' rating
Fitch Ratings has affirmed the Philippines' investment grade rating at "BBB" with a stable outlook after noting the country's robust medium-term growth potential and stable debt level. Fitch Ratings expects Philippine economic growth to hit 5.8 percent this year from 5.5 percent in 2023.

IMF cuts Philippine growth outlook
THE INTERNATIONAL Monetary Fund (IMF) trimmed the Philippines’ growth outlook for this year, after a slower-than-expected first-quarter expansion. The IMF now sees Philippine gross domestic product (GDP) expanding by 6% this year, lower than its 6.2% forecast in its World Economic Outlook (WEO) in April. Its revised forecast is still within the government’s 6-7% target this year.

FDI inflows up 23% in March
THE PHILIPPINES’ foreign direct investment (FDI) net inflows jumped by 23% year on year to $686 million in March, bringing the first-quarter inflows to nearly $3 billion, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed. Net inflows plunged by 49.8% in March from $1.366 billion in February, based on the data.The FDI net inflows in March were the lowest in five months or since the $670 million recorded in October 2023.

Nomura cuts Philippines inflation forecasts
Nomura Global Markets Research slashed its inflation forecasts for the Philippines in the next two years due to the reduction of import tariffs on rice to 15% from 35%. Nomura has lowered its full-year inflation forecasts to 2.8 percent from 3.7 percent for 2024 and to 2.3 percent from 3.3 percent for 2025.

Exporters group backs CREATE amendments

The umbrella organization of Philippine exporters is supporting a bill seeking to amend the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to clarify uncertainties in the implementation of the law, particularly provisions on the value-added tax (VAT) and tax administration.

Tax on sugary drinks needs adjustment — think tank
The government should consider modifying the rates on sugar-sweetened beverages (SSB) as the tax measure has weakened since its implementation. According to the latest policy brief of the Congressional Policy and Budget Research Department (CPBRD) of the House of Representatives, the initial impact of the SSB tax has diminished due to sustained inflation and ever-changing market dynamics.

PH factory output bounced back in April, up 6.7% 
Factory output bounced back in April, buoyed by higher food manufacturing production, from a contraction in the previous month, the Philippine Statistics Authority (PSA) reported on Friday. Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI) showed factory output, as measured by the Volume of Production Index (VoPI), grew by 6.7 percent year-on-year in April.

Bill revamping Philippine medical law OK’d on 2nd reading
The House of Representatives has approved on second reading a measure that will finally amend a 65-year-old law prohibiting foreign medical students who studied in the country from practicing the profession in their home country.

DOTr eyes solicited bids for Davao airport
The Department of Transportation (DOTr) is planning to offer the development, operations and management of the Davao International Airport as a solicited project after rejecting the unsolicited proposal submitted by Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp.

DA eyes use of drone tech for palay wet cropping season
The Department of Agriculture (DA) on Monday said it is looking to utilize drone technology to help farmers in planting play (unhusked rice) for the wet season. In an interview, DA Undersecretary for Rice Industry Development Christopher Morales said it may increase efficiency in dispersing seeds, fertilizers, and other farm inputs using a farm layout mapping.

Logistics industry sees robust growth in 2024
Logistics businesses are seen to thrive as the growing e-commerce industry boosts demand for last-mile delivery and warehousing services. The Global Contract Logistics 2024 Report by market research firm Ti Insight noted that the logistics market would be mainly driven by the Asia Pacific region, which is estimated to grow by 7.1 percent this year.

Philippine dollar reserves hit new two-year high
Fresh foreign borrowings by the Philippine government during its first trip to the international bond market this year pushed the country’s dollar reserves up to a new two-year high in May, the Bangko Sentral ng Pilipinas (BSP) reported. Preliminary data from the BSP showed the country’s gross international reserves (GIR) rose by 1.8 percent month-on-month to $104.48 billion, the highest since April 2022.

Stakeholders await implementation of anti agri economic sabotage law
The ratification of the Bicameral Conference Committee Report on the Anti-Agricultural Economic Sabotage bill by the Senate signals the government’s determination to eradicate the smuggling of agricultural products.

The bill classifies the smuggling and hoarding of agricultural and fishery products, including tobacco, as economic sabotage, which carries severe sanctions.

DA lifts suspension of poultry imports from US

THE Department of Agriculture (DA) lifted the temporary ban on poultry products from the United States. Agriculture Secretary Francisco Tiu Laurel Jr. issued Memorandum Order (MO) 23, rescinding the temporary import ban imposed in mid-January of this year due to a confirmed outbreak of High Pathogenicity Avian Influenza (HPAI) in the State of Ohio, USA.

No looming garbage crisis in Luzon–BCDA’s Lorenzana
BASES Conversion and Development Authority (BCDA) Chairman Delfin N. Lorenzana on Monday allayed fears of a looming garbage crisis in Central Luzon, pointing out the presence of three operational facilities that may serve as alternatives once the contract for the operations of the Kalangitan sanitary landfill in Capas, Tarlac, expires in October.

Balisacan defends decision to cut tariffs on imported rice
NATIONAL ECONOMIC and Development Authority (NEDA) Secretary Arsenio M. Balisacan on Monday defended the government’s decision to slash tariffs on rice until 2028, saying this would reduce the impact of elevated global rice prices on Filipino consumers.

PHL eyes ODA from France to fund projects
THE PHILIPPINES and France have signed a government-to-government agreement to secure funding for the former’s priority projects, the Finance department said. The Agreement on Financial and Development Cooperation (AFDC) was signed by Finance Secretary Ralph G. Recto and France’s Ambassador to the Philippines Marie Fontanel on June 7.

Local airlines seen to achieve higher growth this year
LOCAL airlines are expected to achieve higher growth this year, according to a report by the International Air Transport Association (IATA) projecting sustained earnings for global airlines. “Airlines continue to shore up their profitability. The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses,” IATA Director General William M. Walsh said in an IATA report dated June 3.

El Niño damage to agri nears P10B
Damage to agriculture due to the effects of the  El Niño phenomenon has reached P9.89 billion, according to latest data from the Department of Agriculture’s (DA) Disaster Risk Reduction and Management Operations Center.

Natl digital ID launched
The government yesterday launched the Digital National ID, along with authentication platforms, National ID eVerify and National ID Check. According to the Philippine Statistics Authority (PSA), over 87 million Filipinos who have registered to the National ID are now capable of accessing their Digital National ID online and be verified through the stronger authentication platforms.

Globe sees low-cost as next growth area
Telco giant Globe Telecom Inc. is shifting its focus toward the low-cost segment to build up its customer base as the broadband market in the Philippines is close to becoming overcrowded. Globe said it is doubling down on its strategy to expand presence among low-income families, offering them prepaid internet to support their growing need for connectivity services.

Aquaculture to drive up Philippine fish harvest, says FAO
The country’s fisheries production is projected to rise by 12 percent to almost 2.9 million metric tons (MT) in 2032 on the back of higher aquaculture output, the United Nations’ Food and Agriculture Organization (FAO) said.

New SSS savings scheme eyes 7.2 percent annual returns
State-run pension fund Social Security System (SSS) has started a new savings scheme projected to yield 7.2 percent annually as it moves to encourage members to boost their retirement fund.

A1E sets sights on natural gas-fired plant
Atimonan One Energy Inc. (A1E), a wholly owned subsidiary of Meralco PowerGen Corp. (MGen), is proceeding with the development of the 1,280-megawatt (MW) natural gas-fired combined cycle gas turbine power plant which was once considered as a coal power plant project.

Government raises ₱15 billion from sale of short-term debt papers
The national government successfully borrowed P15 billion from the domestic market through the sale of Treasury bills (T-bills) as average auction yields fell slightly after rising for two consecutive weeks.