business – Page 21 – Author Carlo Carrasco

IMF sees Philippine economy growing by more than 6% in 2025

October 11, 2024October 3, 2024carlocarrasco

Citing key factors in its research, the International Monetary Fund (IMF) predicts that the economy of the Philippines will expand by more than 6% in 2025, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…

The Philippine economy successfully navigated multiple external headwinds in recent years and is expected to grow by over 6 percent next year, an International Monetary Fund (IMF) official said.

In a briefing at the Bangko Sentral ng Pilipinas office in Manila on Wednesday, IMF Mission Chief Eli Arbatli Saxegaard said the Philippines remained among the best performing economies in the region.

An IMF team led by Saxegaard held meetings in Manila from Sept. 18 to Oct. 2 to conduct discussions on the Philippine economy for the 2024 Article IV Consultation.

Saxegaard said the Philippine economy is projected to grow by 5.8 percent this year and will further accelerate to 6.1 percent in 2025.

“This pick-up in growth will be supported by more accommodative financial conditions and higher investment,” she said.

The latest projection, however, was lower than the 6 percent and 6.2 percent previous forecast for 2024 and 2025.

“The downward revision from our July forecast reflects our view that private consumption is going to grow slightly with less momentum. So I would like to highlight that the downgrade is very small, 0.2, and reflects the fact that the first half (of the year) private consumption growth was lower than what we had anticipated. And this might be in part driven by the high food prices,” Saxegaard said.

Despite the revision, Saxegaard said the Philippines continues to be one of the highest growing economies in the region.

“I would also like to highlight that the growth forecast for the Philippines remains one of the highest in the region. It’s 6.1 percent growth for 2025, is a very respectable growth rate… So it’s a very small adjustment reflecting the outturns the first half,” she said.

Downside risks to the country’s growth outlook include a slowdown in major economies that could disrupt trade and financial flows; commodity price volatility and supply shocks; and an escalation of geopolitical tensions or regional conflicts.

Easing of global financial conditions, or faster than anticipated private investment linked to public-private-partnerships and larger foreign direct investment inflows, on the other hand, could stimulate higher growth.

The IMF believes that the Philippine economy holds significant potential with its abundant natural resources, untapped blue economy, and a sizable demographic dividend.

Saxegaard, however, said that unlocking the medium-term growth potential will depend on structural reforms and strengthened social protection programs.

She said priority areas include upgrading infrastructure, making significant investments in healthcare and education, addressing land fragmentation and low productivity in agricultural sector, and enhancing governance.

Inflation, meanwhile, is projected to settle within the government’s target for both 2024 and 2025.

“We believe that the decisive monetary tightening and other measures have helped mitigate inflationary pressures in the Philippines, recent tariff cuts on imported rice and other non-monetary measures helped reduce food prices, and should further reduce headline inflation by the year end,” Saxegaard said.

“For this year, our expectation is that for inflation to average 3.3 percent, and for next year, 3 percent. That would be supported by lower food and core inflation remaining well within the target.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines still has momentum to grow better in 2025 than what the IMF predicted?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

President Marcos signs into law VAT on foreign digital services

October 10, 2024October 2, 2024carlocarrasco

Foreign entities that provide digital services to their customers here in the Philippines will have to pay their fair share of taxes as President Ferdinand “Bongbong” Marcos, Jr., recently signed into law Republic Act Number 12023 (RA12023) which imposes the 12% value-added tax (VAT) on foreign digital service providers (DSPs), according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…

President Ferdinand R. Marcos Jr. signed into law on Wednesday a measure imposing a value-added tax (VAT) on foreign digital services providers (DSPs).

A priority measure of the administration, Republic Act (RA) 12023 imposes a 12 percent VAT on foreign DSPs, such as Netflix, Disney, and HBO, to generate additional revenue for the government.

In his message, Marcos said the new law would level the playing field for local providers.

“If you are reaping the rewards of a fruitful digital economy here, it is only right that you contribute also to its growth. After all, whether you are a small tech startup or a global tech giant based halfway around the world, if you are making money here in the Philippines, you’re a part of our community, and with that comes a shared responsibility,” Marcos said.

According to the President, about PHP105 billion in revenue is expected to be collected in the next five years due to RA 12023.

The amount is enough to build 42,000 classrooms, more than 6,000 rural health units, and 7,000 km of farm-to-market roads, the Chief Executive noted.

Additionally, 5 percent of the revenues generated by the law will be allocated to the local creative industry.

“This means our artists, filmmakers, musicians, the very people who fill our platforms with storage and the content, will directly benefit. It ensures that our creative talents are not just surviving in a competitive digital market, but will be allowed by fairness and progress,” Marcos said.

The President thanked the legislators for passing the measure even as he called on companies covered by the law to support and heed the rules of the Act.

‘Fair and square’ tax policies – Senator Sherwin Gatchalian, meanwhile, said the new law is expected to address revenue losses by clarifying the taxability of non-resident digital service providers and addressing the ambiguity in the previous law.

“We believe in the importance of creating an environment where our digital services providers, whether they are nonresident or local, operate under fair and square tax policies,” Gatchalian said in a statement. He said the new measure does not mean a new tax imposition.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the new law will be good for the economy of the Philippines? Do you think that the foreign digital service providers will somehow raise the subscription rates and fees for their customers here in the Philippines in response to the new law?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagement, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Philippines inflation down to 1.9% this past September, lowest since May 2020

October 7, 2024October 4, 2024carlocarrasco

The inflation rate of the Philippines fell down to 1.9% for the month of September 2024 which marks a 4-year-low, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…

The country’s headline inflation further eased to 1.9 percent in September this year, the lowest recorded since the 1.6 percent in May 2020.

Headline inflation was at 3.3 percent in August and 6.1 percent in September last year.

In a briefing on Friday, National Statistician Dennis Mapa said the latest data brought the year-to-date inflation to 3.4 percent, which is well within the government’s 2 to 4 percent target.

Mapa said the downtrend in the overall inflation was due to the slower annual increase in food and non-alcoholic beverages at 1.4 percent from 3.9 percent in August.

Food inflation, in particular, eased to 1.4 percent in September from 4.2 percent the previous month.

Mapa said the deceleration in food inflation was due to the slower inflation rate of rice at 5.7 percent from 14.7 percent in August.

Other contributors to the lower food inflation include the faster decline in the inflation of vegetables, tubers, cooking bananas, and pulses.

Lower inflation rates were also reported for corn, flour, bread and other bakery products, meat and other parts of slaughtered land animals, and ready-made food and other food products.

In a separate statement, the National Economic and Development Authority (NEDA) assured the public that the government remains committed to stabilizing commodity prices.

“The continued slowdown in inflation is expected to boost consumer confidence, driving higher spending and consumption and fueling business expansion,” said NEDA Secretary Arsenio Balisacan.

“Additionally, easing food prices will relieve low-income households, enabling them to allocate more to other essential needs such as education and health. We will sustain the momentum as we assure the public that we will continue to pursue and carry out strategies to maintain stable prices of food and other commodities,” he added.

Balisacan said the Executive Order issued by President Ferdinand R. Marcos Jr., which reduced the rice tariffs to 15 percent, helped bring down rice prices.

“While we expect lower tariffs to reduce rice prices, we should continuously support local production through increased agricultural funding to complement this short-term measure,” Balisacan said.

The NEDA chief assured the public that the government is ready to address other inflationary pressures affecting food, such as the continuing prevalence of African swine fever (ASF), through the delivery of vaccines.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the lower headline inflation will be helpful for local businesses that have been struggling with cutting down their expenses?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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World Bank says that Philippines inflation will likely slow down this year

October 6, 2024October 4, 2024carlocarrasco

The World Bank (WB) recently announced that it sees inflation in the Philippines likely to go down this year and fall within the target range set by the Bangko Sentral ng Pilipinas (BSP), according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the BusinessWorld report. Some parts in boldface…

PHILIPPINE INFLATION is likely to slow this year to fall within the central bank’s target range, but higher transport charges and domestic rice production pose upside risks, the World Bank said.

In its latest monthly update, the World Bank said that the entry of more rice imports under lower tariffs should help keep inflation within the government’s 2-4% target.

“Inflation resumed its downward trend in August and is on track to fall within target this year,” the Washington-based lender said.

The consumer price index (CPI) eased to 3.3% in August from 4.4% in July. Inflation averaged 3.6% in the first seven months.

The Bangko Sentral ng Pilipinas (BSP) projects inflation to average 3.4% this year.

“The balance of risks to the outlook has shifted toward the downside given expected reductions in rice prices as more imports arrive under the reduced tariff regime,” the World Bank said.

An executive order cutting tariffs on rice to 15% from 35% took effect in July. This helped rice inflation ease to 14.7% in August from 20.9% in July.

However, the World Bank said higher transport and electricity charges, as well as possible global oil and food price shocks still provide upside risks to the inflation outlook.

“Domestic rice production and prices also remain vulnerable with the La Niña weather phenomenon expected to bring more rainfall and intense typhoons in the remaining months of the year,” World Bank said.

Meanwhile, the World Bank said recent external and domestic developments have given the BSP more space for policy easing.

“Peso appreciation, driven by a wider US interest rate differential, supports domestic disinflation. This gives more room for further normalization of domestic monetary policy,” it said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think inflation in the Philippines will continue to slow down as the end of 2024 approaches?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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What to watch on YouTube right now – Part 35

October 2, 2024October 1, 2024carlocarrasco

Welcome back, my readers, YouTube viewers and all others who followed this series of articles focused on YouTube videos worth watching. Have you been searching for something fun or interesting to watch on YouTube? Do you feel bored right now and you crave for something to see on the world’s most popular online video destination?

I recommend you check out the following topics and the related videos I found.

#1 The disappointing 9^th console generation – If you are a long-time gamer who owns a PlayStation 5 (PS5) and/or an Xbox Series X or Xbox Series S console, you might have noticed how disappointing the 9^th console generation (started in late 2020) has been when compared to the previous four generations.

Apart from the fact that the COVID-19 pandemic deeply altered the games industry on the sides of gamers and game developers, the 9^th console generation has seen lots of unfulfilled promises from the console makers, Xbox Game Pass (XGP) changing for the worse, great gaming experiences not being realized, consumers getting screwed, the lack of focus towards the fans, woke garbage involved in game productions and a lot more. To understand what is going on in the 9^th console generation, I urge you to watch the selected videos below.

#2 Illegal immigration in America is the new slave trade – More than ten million people illegally entered the United States through the US-Mexico border since 2021, resulting in rising crime, increased taxpayers’ money spending on illegal aliens, and more hardship for America’s own citizens. That’s not all. There are cartels taking advantage of the open border in the south that kept thousands of people – including children – flowing into America and those illegal aliens themselves are forced to repay the debts to the cartels. These should remind you how bad immigration became in America under Joe Biden and Kamala Harris (border czar who loves criminals and terrorists). This PrageU video is a must-watch.

#3 Retro gaming reported by KTLA 5 – It is not every day you get see retro gaming reported on mainstream news outlets. In America, KTLA 5 made a video news report about the resurgence of retro gaming and it’s not limited to gamers buying collected editions of decades-old games for their modern game consoles. In fact, the video game store in KTLA 5’s report is selling old games in physical copies as well as old game consoles at affordable rates. Watch the video below.

#4 The history and American origin of the Lawson convenience store enterprise – Here in the Philippines, the convenience store chain Lawson has been gradually growing and becoming more competitive with the likes of 7-Eleven and Uncle John’s. Not only that, Lawson is gaining a following of customers who keep on returning because of the variety of food and beverage items offered plus convenient ways of doing financial transactions. While it is common knowledge that Lawson is from Japan and is a Japanese enterprise, not too many people are aware of its American origin. To learn about the history of Lawson, watch the video below.

#5 Israel’s intensified campaign against Hezbollah – After the recent attacks against several members of the Iranian-sponsored terrorist group Hezbollah through their pagers, Israel’s military campaign against the terrorists intensified. This happened even as Hezbollah kept on firing at Israel (in response to the pagers attacks) and even hitting Nazareth which itself has many Arabs and Muslims in its local population. Don’t let the pro-terrorist, pro-Islamist mainstream news media fool you with their persistent lying. Watch the videos from credible news sources below to realize the truth. Lastly, keep praying to the Lord to support Israel and bring down the forces of evil.

6. Kamala Harris’ dishonesty and pathetic acting about border security explained

In recent times, the Communist Vice President of the United States Kamala Harris visited the US-Mexico border to check on the situation there as illegal immigration added so much to crime. The problem here is that Kamala was simply acting to be responsible and working, and it is not a secret that the Democrats hired Communist Hollywood people to stage it behind the scenes. Sky News Australia’s video below is a must-see and remember that Democrats always love illegal aliens, criminals, abortion and terrorists. Kamala herself publicly declared her support for illegal aliens and defended them.

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Dark Asia with Megan features Antonio P. Antonio story

September 29, 2024September 28, 2024carlocarrasco

In recent times Dark Asia with Megan – a YouTube channel that specializes on true crime stories that happened from around Asia – released an episode that featured the story of the late Antonio P. Antonio (APA) who was killed by his own son in BF Homes in 2013. I encourage you all to watch the video below right now.

For the newcomers reading this, I have been blogging about the Antonio family’s pursuit for justice of the late APA and this past March, justice was realized when the suspect Nelson Antonio was found guilty beyond reasonable doubt by Branch 274 of the Parañaque Regional Trial Court (RTC) for the killing of his father. For my past blogs about the Antonio P. Antonio and his family, click here, here and here.

About Dark Asia with Megan, the YouTube channel is managed by South Korea-based journalist-turned-YouTuber Megan Lee (for her social media click here and here) who has produced lots of episodes of Asian true crime stories which involved deep research, archived images and insights. She already released episodes about Philippine crime stories such as the Vizconde Massacre, the Maguindanao Massacre and the Chop Chop Lady story to name a few. Megan Lee is very good with her presentation and approach to explaining details to the audience in English.

Her YouTube channel now has more than five hundred forty thousand subscribers worldwide as of this writing. Visit Dark Asia with Megan by clicking https://www.youtube.com/@DarkAsiawithMegan

For more updates, follow Justice for APA at https://www.facebook.com/JusticeforAPA

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

What to watch on YouTube right now – Part 33

September 25, 2024September 10, 2024carlocarrasco

I recommend you check out the following topics and the related videos I found.

#1 Google in legal trouble in America – Did you notice how overwhelming power Google really is in business as well as in your daily lives? Are you aware that Google made multi-billion Dollar deals with its competitors to ensure its dominance on search, online advertising and other forms of business? Google is now in legal trouble with the Department of Justice (DOJ) in America and ColdFusion’s video below is a must-watch!

#2 Games to look forward to while subscribing to Xbox Game Pass – In recent times, there were changes on Xbox Game Pass (XGP) implemented by Microsoft which I did not like (click here and here to learn the details). If you own an Xbox and you still have not yet subscribed to XGP, you should decide first based on how much you can afford to pay the new rates (note: there are different tiers to subscribe to in Game Pass), what kind of games you really like and how much time you can spare for playing in the comfort of your home. If you are into adventure gaming, then the video by YouTuber Skycaptin 5 below is a must-watch for your reference. Take note that one of the games shown has yet to be released and a few of the games may require the Ultimate tier of XGP.

#3 A look back at Amazing Spider-Man movies of Sony Pictures – Do you have any fond memories of the two movies that had actor Andrew Garfield as the cinematic Spider-Man? I saw The Amazing Spider-Man (2012) and The Amazing Spider-Man 2 (2014) in the cinemas and I can say that they never thrilled me nor satisfied me as much as the first two Spider-Man flicks of Tobey Maguire. Those movies directed by Marc Webb were not terrible actually but flawed works. Whether you loved or felt disappointed with the two Amazing Spider-Man movies, I urge you to watch the analytical video by YouTuber Owen Likes Comics below.

#4 25 years of the American launch of the Sega Dreamcast – It has been over twenty-five years since Sega launched the Dreamcast console in America. In gaming history, the date of September 9, 1999 is still remembered as the time when Sega really made a very serious effort to re-establish trust with American gamers and they made record-setting numbers in the first 24 hours. As such, it was no surprise that “25 years” or “25^th anniversary” videos about the Dreamcast suddenly appeared on YouTube and posted below are videos I selected for your viewing.

#5 You, Me and the Movies’ video reaction of Clash of the Titans (1981) – Whenever I search YouTube for movie reaction videos about the 1981 film Clash of the Titans, not too many pop out for some reason. If you are interested to see the film but don’t have the time or money to watch it in full, then the reaction video by You, Me and the Movies should entertain you.

#6 The fall of Circuit City explained – Way back in 2001, I visited a branch of Circuit City in California. I visited because I was curious and also interested in video games and also movies on DVD format. What I found was a variety of consumer electronic products and the presence of TV units with built-in DVD drives caught my attention. It was my one and only Circuit City visit and many years later, their brand re-emerged when there were these widespread news reports about its bankruptcy and liquidation. If you want to learn about the rise and fall of Circuit City, watch the video below.

#7 GoodBadFlicks’ comprehensive video about The Blob (1988) – The Blob remake of 1988 has always been very entertaining to watch. Not only does it have a really solid story to tell, it has a fine blend of spectacle with well-crafted action/stunt scenes and top-notch practical effects. On 4K Blu-ray, the movie looks better than ever and it is worth purchasing. When it comes to the making of The Blob (1988), the best video to watch online is the one from YouTuber GoodBadFlicks which is posted below for your viewing pleasure.

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Official website and social media presence launched by New NAIA Infra Corporation (NNIC)

September 25, 2024September 19, 2024carlocarrasco

In its pursuit to keep the public informed and oriented, the new operator of the Ninoy Aquino International Airport (NAIA) – San Miguel-led New NAIA Infra Corporation (NNIC) – recently launched its official website as well as social media accounts, according to a Manila Bulletin news report.

For the newcomers reading this, the operations of NAIA were recently turned over to NNIC which is a private entity. NAIA is still owned by the national government.

To put things in perspective, posted below is an excerpt from the Manila Bulletin news report. Some parts in boldface…

San Miguel-led New NAIA Infra Corporation (NNIC), the new private operator of the Ninoy Aquino International Airport has launched the official website and social media pages of NAIA as the transformation of the Philippines’ primary gateway begins.

The new website, www.newnaia.com.ph, focuses on providing comprehensive information about NAIA — including details on the ongoing transformation project, its progress, and the future vision for the airport.

It serves as a hub for travelers, offering real-time flight information as well as updates on airport services and amenities.

In honor of the Philippines’ modern-day heroes, the website will feature a regular section called Bagong Bayani dedicated to inspiring stories about Overseas Filipino Workers (OFWs).

NNIC has also launched its social media pages on Facebook and X (formerly Twitter) under the name newnaiaph. These will serve as additional channels for sharing updates, engaging the public, and building a community around the NAIA transformation.

The public can also connect via email (feedback@newnaia.com), hotline (+63 2 8877 1111), and SMS (TextNAIA) at +63 917 839 6242.

“The launch of our website and social media pages is part of our commitment to open communication and transparency,” said San Miguel Corporation Chairman and NNIC President and CEO Ramon S. Ang.

For your general reference:

https://www.newnaia.com.ph/

https://www.facebook.com/newnaiaph

https://x.com/newnaiaph

Let me end this piece by asking you readers: What is your reaction to this recent development? As a traveler, have you tried searching for relevant information on newnaia.com.ph? Have you been following NNIC’s accounts on Facebook and Twitter? Is the flight status tool of the official website working properly?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Rehabilitation of airport begins as government formally turns over NAIA operations to San Miguel-led group

September 19, 2024September 18, 2024carlocarrasco

The rehabilitation of the Ninoy Aquino International Airport (NAIA) has officially started as a result of the government’s recent turnover of airport operations to the New NAIA Infra Corp. (NNIC) which is a San Miguel-led group, according to a news report by GMA Network. To be clear, the government still owns NAIA and the operations will be handed back by the private group many years from now. Over P140 billion will be invested on managing and improving the NAIA.

To put things in perspective, posted below is an excerpt from the GMA news report. Some parts in boldface…

The government turned over Saturday the operation of the Ninoy Aquino International Airport (NAIA) to the San Miguel-led New NAIA Infra Corp., setting in motion the rehabilitation of the Philippines’ main gateway.

In a news release, the Department of Transportation (DOTr) said key officials of the agency and Manila International Airport Authority (MIAA) handed over the airport to its new private operator during a ceremony at NAIA’s Terminal 3.

“The baton has been passed and now it is our turn in NNIC to carry it forward to the finish line,” said NNIC general manager Lito Alvarez.

Transportation Undersecretary for Aviation Roberto Lim expressed support to NNIC, saying the takeover would be a precursor to a world-class and modernized NAIA.

“Today, we celebrate the competitive spirit of the winning consortium, which brings financial muscle, management expertise, and the technical operations strength and experience of Incheon Airport,” said Lim.

The turnover of NAIA’s rehabilitation, operations, and further development to NNIC, formerly SMC SAP & Co. Consortium, is seen to boost the airport capacity to meet growing demand by handling more flights and passengers, while improving service quality and compliance with International Civil Aviation Organization (ICAO) standards.

San Miguel-led NNIC is investing approximately P144 billion to manage and improve NAIA under a 15-year concession, extendable by 10 years, which would be contingent on meeting key performance targets.

The DOTr clarified that ownership of the airport will remain with the government. The agency said that at the end of the concession period, NNIC will return to the government the operations of NAIA.

The government signed the landmark concession agreement for the NAIA Public-Private Partnership (PPP) project on March 18.

Among the expected improvements in NAIA that the traveling public and other stakeholders can expect include expansion of the Passenger Terminal Buildings (PTBs), additional aircraft parking bays, increase in vehicular parking slots, installation of world-class systems and technology, more food and beverage (F&B) and retail options, more convenient land transport connectivity, among others.

Furthermore, flight delays and cancellations due issues with airport facilities are expected to be significantly reduced.

NNIC Chairman Ramon Ang said, “A world-class airport means more jobs, more tourists and a much more stronger and prosperous Philippines.“

The consortium is committing to modernize NAIA, increasing its capacity from 35 million passengers to 62 million passengers. Air traffic movement is also expected to be increased from 40 movements per hour to 48.

The rehabilitation is expected to generate at least 58,000 jobs for Filipinos.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think that the NAIA operations will improve under the San Miguel-led group? Do you think this will lead to improved travel efficiency, convenience and comfort for millions of air travelers in the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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NEDA sees faster Philippines GDP growth in the 2nd half of 2024

September 17, 2024September 12, 2024carlocarrasco

Citing some factors, the National Economic and Development Authority (NEDA) sees faster gross domestic product (GDP) growth for the Philippine economy in the 2^nd half of this year which should result in a full 2024 growth rate of 6% to 7%, according to a BusinessWorld new report.

To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…

PHILIPPINE gross domestic product (GDP) growth in the second semester could be faster than the 6% average in the first half amid easing inflation and lower policy rates, the National Economic and Development Authority (NEDA) said.

“Now, with inflation lower, with policy rates lower, with the labor market continuing to be robust, I think we would see an even better second half than in the first half,” NEDA Secretary Arsenio M. Balisacan told BusinessWorld on the sidelines of a Senate hearing on Wednesday.

In the second quarter, GDP expanded by 6.3%, bringing the first-half growth to 6%.

“We are expecting 6-7% (GDP growth) for the full year, and I think that the likelihood that we’ll achieve that is now very high,” Mr. Balisacan said.

However, even as inflation eased to a seven-month low of 3.3% in August, Mr. Balisacan noted that the economy remains sensitive to inflationary pressures.

Year to date, inflation averaged 3.6%, settling within the 2-4% target range of the Bangko Sentral ng Pilipinas (BSP).

The inflation downtrend has allowed the BSP to begin its easing cycle with its first rate cut in nearly four years last August. The Monetary Board lowered the policy rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.25% previously.

Mr. Balisacan noted the impact of lower policy rates “is not almost instantaneous.”

Despite this, the Philippine and US central banks’ expected easing path should help boost investment activity and support growth, he said.

“Especially now that the expectations everywhere with the Fed expected to decrease (interest rates)… then, there is now greater stimulus for us to continue lowering the policy rates,” he said. “With the business community hearing that, they are likely to rethink their investment plans.”

BSP Governor Eli M. Remolona, Jr. earlier signaled another 25-bp cut in the fourth quarter. The last two Monetary Board meetings for the year are scheduled on Oct. 17 and Dec. 19.

Meanwhile, GDP growth is expected to settle within the government’s target range this year, but may fall short of the growth goals in the next two years, according to the latest forecasts from the BSP’s Policy Analysis Model for the Philippines.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines has enough momentum to achieve GDP growth of 7% for 2024?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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