ECCP at Work

5-month PHL external debt 8% higher at $128.7B
The country’s total external debt reached $128.692 billion in January to May 2024. This was 8.32 percent higher than the $118.812 billion in the same period last year. Private external debt during the period grew 14.07 percent to $49.79 billion in the January to May period this year from $43.649 billion last year.

Philippines Gets Credit Classification Upgrade of A- From Tokyo-Based Ratings Firm
Respected independent rating agency Rating and Investment Information, Inc. (R&I) has given a major credit assessment upgrade to the Philippines after careful scrutiny of the country’s recent economic performance.

DoF lowers revenue projections from mining fiscal reform bill to P6.3 billion
The DoF has lowered its yearly revenue estimates to P6.3 billion from P10.23 billion in the next four years from a proposed five-tier margin-based tax system for the mining industry amid lower metal prices.

Putting Up The Country’s First Pharmazone
The PEZA recently signed a registration agreement for the Victoria Industrial Park in Tarlac, which is the country’s first pharmaceutical ecozone (pharmazone), as well as a MOA with the FDA for the electronic and green lane facilitation of Registered Business Enterprises’ permit applications.

Major business groups, key sectors unite in backing Cayetano's push for 'Konektadong Pinoy Act'
Leading business organizations, industry leaders, and government bodies in the Philippines are rallying behind Senator Alan Peter Cayetano's push to fast-track the "Konektadong Pinoy Act" as a step toward improving the country's internet services and boosting economic growth.

BOP surplus hits $1.5 billion in January-July, down 46.7%
BSP data showed the BOP surplus reached $1.504 billion between January and July 2024 while the surplus in July reached $62 million. The data showed the surplus in January to July this year contracted 46.74 percent from the $2.2 billion posted in the same period last year. However, the surplus in July was a reversal from the $53-million deficit in July 2023.

Closing In On Improving The Country’s Mining Sector
The government recognizes that mining is one industry that has the potential to be a key driver of the Philippine economy. It is one of the priority sectors that President Ferdinand R. Marcos, Jr. directed the OSAPIEA to look into. OSAPIEA and the DENR have been discussing potential policy and regulatory reforms to make the industry an attractive proposition to potential investors.

Meet The Country’s New Trade and Industry Chief
Former Undersecretary, now Acting Secretary, Cristina Aldeguer-Roque, is no stranger to the Department of Trade and Industry (DTI), as well as to the government’s economic team, having served as a DTI official for years. As Undersecretary, she has led the DTI’s micro, small and medium enterprises (MSMEs) group that focuses on the growth and development of small-scale businesses.

DOH detects new mpox case after global health emergency declared
The DOH has detected one new mpox (formerly monkeypox) case in the Philippines, its tenth case overall and the first case reported since the WHO's latest declaration of the outbreak as a "public health emergency of international concern."

Growth seen to boost revenue take for 2024
With tax revenues reaching P2.216 trillion in the first seven months of 2024, Finance Secretary Ralph G. Recto said collections will further increase on the back of accelerated economic growth. In a social media post by the Department of Finance (DOF), Recto said the recent reduction of key policy rates by the Bangko Sentral ng Pilipinas (BSP) and the upgrade of the Philippines’s credit rating to A- by R&I will spur economic growth.

Central bank eyes more incentives in sustainability financing push
The Bangko Sentral ng Pilipinas (BSP) is looking to provide more regulatory incentives to encourage green and sustainability financing among banks. In its latest Sustainability Report, the central bank said it will “explore other viable regulatory incentives to promote financing for adaptation and transition, with due consideration to moral hazard concerns and legality.”

BOC’s E-TRACC now covers barge transfer of goods
The implementation of BOC Electronic Tracking of Containerized Cargo (E-TRACC) system now covers containerized goods shipped through domestic vessels, according to the Philexport. In a statement at the weekend, Philexport told port users to take note that the BOC has just released an order establishing E-TRACC coverage over barge or domestic vessel transfer of containerized goods.

Investors still high on BSP rate cut, market up anew
The Bangko Sentral ng Pilipinas (BSP)’s rate cut last week continued to make a positive impact on the local stock market, driving up share prices anew yesterday. The benchmark Philippine Stock Exchange index was off to a strong start this week, climbing by 0.62 percent or 42.50 points to settle at 6,889.87. Also finishing in positive territory was the broader All Shares index, which gained by 0.41 percent or 15.03 points to 3,706.45.

External debt service declines at end-May
The country’s external debt payments declined by 14.8% as of end-May, preliminary data from the BSP showed. The Philippines’ debt service burden on its external borrowings fell to $5.62 billion from $6.595 billion a year ago.

Country outperforming peers in terms of FDI, says ING PHL
ING Philippines said the country has been outperforming the region with solid foreign direct investment flows, pointing to a positive outlook from international investors.  “The Philippines could position itself as a key player in the ‘China plus one’ strategy, though infrastructure limitations and geopolitical tensions pose challenges,” Rob Carnell, head of research at ING Asia Pacific, said.

DPWH to fast-track bridge, road network projects
The DPWH in partnership with the ADB targets to fast-track the implementation of priority infrastructure projects, including the Bataan-Cavite Interlink Bridge and Laguna Lakeshore Road Network Phase 1. Last week, DPWH held a consultation meeting with ADB focused on key infrastructure projects, including funding strategies, project timelines and addressing potential challenges through coordinated efforts.

Farm consolidation urged as priority for DA funding
The Department of Agriculture’s (DA) budget requests for next year should reflect a high priority for farm consolidation, which it needs to pursue to enhance production efficiency, an analyst said. At a budget hearing last week, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the DA will focus its spending on low-productivity areas.

BIR misses end-July collection goal by 8%
The Bureau of Internal Revenue (BIR) fell short of its end-July collection target by 8.2%, data from the Department of Finance (DoF) showed. Preliminary data posted on the DoF’s Facebook page showed that BIR collections as of end-July stood at P1.68 trillion, falling short of its P1.83-trillion collection goal for the period by 8.2%.

Policy rate seen at 4.5-5% in 2025
The Bangko Sentral ng Pilipinas’ (BSP) rate-cutting cycle is expected to continue into early 2025, with the terminal rate seen as low as 4.5-5%, analysts said. HSBC said it expects the BSP to deliver another 25-bp cut this year and 100 bps in reductions in 2025 to bring the policy rate to 5%. HSBC economist for ASEAN (Association of Southeast Asian Nations) Aris D. Dacanay said that the BSP’s easing cycle will likely be gradual.

Treasury bill, bond rates may be mixed after BSP policy decision
Rates of Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may end mixed after the Bangko Sentral ng Pilipinas’ (BSP) decision to cut borrowing costs for the first time in almost four years. The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion each in 91- and 182-day papers and P7 billion in 364-day debt.

BSP: P1B worth of reserves raised in ’23 from sustainable bonds issued by PHL banks
The Philippines raised P1 billion worth of reserves from sustainable bonds issued by banks in 2023, according to a report of the Bangko Sentral ng Pilipinas (BSP). Based on its Sustainability Report, BSP reported that a total of P236.5 billion worth of peso-denominated sustainable bonds were issued in the first semester of 2024.

Weak peso, balikbayans won’t help PHL hit ’24 arrivals goal
Full recovery of the tourism sector will likely happen in 2026, instead of the government’s target of 2025, with a shortfall in foreign visitors occurring this year. Leechiu Property Consultants Director for Hotels, Tourism, and Leisure Alfred Lay told the BusinessMirror, not even a bump in balikbayans (homecoming Filipinos) in December, nor the weak peso can lift visitor arrivals in the Philippines to reach the government’s target of 7.7 million this year.