Maniolas

The country’s GDP growth accelerated to seven percent in the second quarter from the revised 6.8 percent in the first quarter on the back of a strong boost from election related spending. MANILA, Philippines – More investment banks are upgrading the country’s economic growth prospects after a stronger than expected gross domestic product (GDP) expansion in the second quarter. David Mann, managing director and chief economist for Asia at Standard Chartered Bank (SCB), said the bank now expects the country’s GDP to grow faster at 6.8 percent instead of 6.4 percent this year and to 6.7 percent instead of six percent for 2017. “Consumption has been relatively robust,” Mann said. He said there is a lot of positivity under the Duterte administration because of its commitment to pursue the reforms undertaken by the previous administrations and further liberalize the country’s economy. The country’s GDP growth accelerated to seven percent in the second quarter from the revised 6.8 percent in the first quarter on the back of a strong boost from election related spending. This brought in the first half of the year to 6.9 percent from 5.5 percent in the same period last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Weak global demand and the lack of government spending under the previous administration pulled down the GDP growth to 5.9 percent last year from 6.1 percent in 2014. The Development Budget Coordination Committee (DBCC), slashed the GDP growth target this year to a range of six to Read More …

MANILA, Philippines – The Philippines is likely to lose its status as the world’s major exporter of seaweed product carrageenan as neighboring country Vietnam increases its yield support for the industry. “We are the No.1 exporter of carrageenan. But our market share is now lower because Vietnam provides better support and therefore produces better yields,” Senate Committee on Agriculture and Food Chair Francis Pangilinan said. Carrageenan is an input in meat processing, processed food, dairy products, condiments, personal care products and pet food products. The country is known as a leading producer of the seaweed derivative, whose produce reaches an average of 13,100 metric tons annually with cumulative amount of $101.5 million, government data showed. Pangilinan emphasized the skewed focus and budget towards land resources at the expense of aquatic resources. “Four-fifths of our territory is aquamarine, only one-fifth is land, but in the DA (Department of Agriculture) budget, the ratio is the other way around: 90 percent is for land and 10 percent only for aquamarine,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The DA is able to fulfill its mandate for aquamarine and fisherfolk, but in a limited sense. We should correct this by creating a high-level government agency that will focus on this,” he added. The senator, who served as presidential adviser for agriculture during the previous administration, continues to push for the creation of a single agency to handle the fisheries industry, separate from the DA. In terms of carrageenan, Pangilinan said Read More …

Euben Paracuelles, economist at Nomura, said in its latest insight titled “Philippines: stable trade deficit in July” that imports would continue to grow despite a 1.7 percent drop in July. MANILA, Philippines – Nomura Securities Co. Ltd. sees sustained growth in imports but expects exports to remain weak this year amid soft global demand. Euben Paracuelles, economist at Nomura, said in its latest insight titled “Philippines: stable trade deficit in July” that imports would continue to grow despite a 1.7 percent drop in July. He pointed out the contraction in July was due to a post-election normalization of demand. “Notwithstanding monthly fluctuations, we still expect import growth to remain strong, underpinned by a solid domestic demand outlook, particularly in light of the Duterte administration’s focus on boosting infrastructure spending,” he said. The Duterte administration raised the budget deficit ceiling to three percent of gross domestic product (GDP) instead of two percent of GDP under the leadership of former president Benigno Aquino III. On the other hand, exports fell by a larger-than-expected 13 percent in July after contracting 11.4 percent in June, led by weaker exports of manufactured goods and petroleum products. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We still expect exports to remain weak over the remainder of the year given the external backdrop and as electronics demand is likely to soften,” Paracuelles said. Latest data from the Philippine Statistics Authority (PSA) showed the country’s trade in goods deficit widened to $14 billion from January to July Read More …

MANILA, Philippines – A weather-based crop insurance coverage for farmers is being pushed by a former Agriculture secretary now serving as a legislator at the House of Representatives. Bohol Rep. Arthur Yap, who served during the Arroyo administration, wants to protect farmers from the effects of climate change by ensuring they get money depending on the weather. “This can be part of the package of social protection for the poor to help them stay afloat and be one of the tools that we can use to increase food security,” Yap said. “If we can afford to give P60 billion to P70 billion for CCT (conditional cash transfer), why can’t we set aside for index-based insurance?” he added. Under House Bill 40, farmers will be paid cash depending on the measures of indices of wind, water and dry spell, among others, as computed by the state weather bureau. The index-based program could also be triggered by extreme weather conditions, which may impact from the planting to the harvesting of crops. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Currently, the Philippine Crop Insurance Corp. pays only up to P1 billion to cover for damaged crops. This, even as data showed that the country is losing around P40 billion every year from it. “That does not even cover all crops and that is the very eloquent testimony to the absence of crop insurance in the country. Without that, how are you gonna protect the farmers?” Yap said. Yap emphasized that the Read More …

MANILA, Philippines – The Energy Regulatory Commission (ERC) is working on another settlement with Manila Electric Co. (Meralco) after the power distributor asked a local court to stop the new rules on the retail competition and open access (RCOA). “We’re preparing our defense. Meralco’s doing the same. In the meantime, we’re trying to talk to them,” ERC commissioner Alfredo Non told reporters. “I have talked to (Meralco president and CEO) Oscar Reyes, (Meralco senior vice-president) Al Panlilio to see how we can manage the earlier settlement,” he added. In May, Meralco sought court relief after the government issued new RCOA rules that it claimed were not in accordance with Republic Act 9136 or the Electric Power Industry Reform Act and its implementing rules and regulations. The company secured a temporary restraining order from the Pasig regional trial court, but ERC said it has no jurisdiction over the case. Currently, other qualified RES are continuing under the RCOA scheme. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The injunction on the new RCOA rules only brings disadvantage to distribution utilities (DUs) like Meralco because this prevents them from participating in the open market, the ERC commissioner said. “I cannot understand why DUs like Meralco and VECO would oppose the change. The longer they are in injunction, the longer they cannot participate in the CREM (Competitive Retail Electricity Market),” Non said. Under the RCOA regime, end-users who are part of the contestable market, or contestable customers, are given the choice to Read More …