Maniolas

WORLD BANK ECON UPDATE: World Bank lead economist Birgit Hansl answers queries from the press after giving an economic update on the Philippines. Also in photo is economist Kevin Chua. MIKE AMOROSO MANILA, Philippines – The World Bank has retained its three-year economic growth forecasts for the Philippines, but stressed these projections can be exceeded if the government can ramp up its infrastructure spending as planned and provide clarity on its economic policies. Drawing from its earlier forecast in April, the multilateral lending institution said it still expects the Philippine economy to grow 6.4 percent this year and 6.2 percent in the next two years. In its October update on the domestic economy titled “Outperforming the Region and Managing the Transition,” the World Bank said the country has weathered the challenging global economy and grown at a rapid pace over the past five years, “supported by strong macroeconomic fundamentals and a highly competitive workforce.” Domestic consumption is seen to prop up the economy driven by increased purchases from an expanding middle class, remittances from overseas Filipino workers, and increased employment. “The economic outlook is optimistic with risks tilted to the upside,” said the report, noting “substantial” improvements in macroeconomic stability by way of low and stable inflation rates, prudent fiscal management, and comfortable level of foreign reserves. The proposed budget for 2017 would increase infrastructure spending to 5.4 percent of gross domestic product (GDP) in order to address infrastructure bottlenecks and “enhance connectivity between the country’s wealthier and poorer areas.” Read More …

The peso still emerged as the least volatile currency in the region despite shedding four percent last month due to uncertainties brought about by the impending increase in US interest rates. MANILA, Philippines – The peso still emerged as the least volatile currency in the region despite shedding four percent last month due to uncertainties brought about by the impending increase in US interest rates. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the year-to-date volatility of the peso stood at 1.21 percent better than the Thai baht’s 1.3 percent, Indonesian rupiah’s 1.94 percent, Taiwanese dollar’s 2.01 percent, Singaporean dollar’s 2.1 percent, and the Malaysian ringgit’s 3.03 percent. The volatility of the Chinese yuan stood at 1.11 percent. The volatility of the euro stood at 1.48 percent, while that of the British pound or sterling averaged 4.45 percent after the United Kingdom decided to leave the European Union (Brexit) through a referendum held last June 23. The Indian rupee emerged as the least volatile currency with a rate of 0.86 percent, while Brazil’s real was the most volatile at 8.26 percent. The Swiss franc had a volatility rate of 1.56 percent followed by the Turkish lira with 2.05 percent, the Australian dollar with 3.05 percent, the Mexican peso with 3.33 percent, and the New Zealand dollar with 3.82 percent. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 BSP Governor Amando Tetangco Jr. told members of the Rotary Club of Makati West during a lunch meeting that the Read More …

The benchmark Philippine Stock Exchange index (PSEi) gained 48 points, or 0.62 percent, to finish at 7,677.73, while the broader All Shares index rose by 26.24 points or 0.57 percent to end at 4,559.48. File Photo MANILA, Philippines – The stock market recovered yesterday, tracking regional markets following reports Deutsche Bank has moved a step closer to reaching a US settlement. The benchmark Philippine Stock Exchange index (PSEi) gained 48 points, or 0.62 percent, to finish at 7,677.73, while the broader All Shares index rose by 26.24 points or 0.57 percent to end at 4,559.48. Most counters likewise closed in the green, with the mining and oil leading the gains. The mining and oil index gained 1.98 percent, up 216.65 points to finish at 11,156.14 as oil investors cheered the decision of the Organization of Petroleum Exporting Countries (OPEC) to cap supply, stabilizing market prices. Total value turnover reached P4.88 billion. Advancers beat decliners, 93 to 88 while 50 stocks were left unchanged. Deutsche Bank was slapped with a $14 billion fine by the US Department of Justice over its sale of mortgage-backed securities. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Deutsche Bank is Germany’s biggest bank which has been struggling for years, highlighting the need to push through with much needed financial sector reforms. However, over the weekend, there were news that Deutsche and the US Department of Justice were close to agreeing on a settlement of $5.4 billion, or more manageable than the $14 billion fine. Read More …

IMPORTERS could once more resort to a voluntary disclosure program for errors in their Bureau of Customs (BoC) records, with a draft memorandum order for the implementation of the post-clearance audit provisions of the Customs Modernization and Tariff Act (CMTA) providing for a Prior Disclosure Program (PDP), restoring the bureau’s post-clearance audit functions.

Investment pledges approved by the Philippine Economic Zone Authority (PEZA) continued to increase in the first nine months despite a slowdown prior to the elections and growing foreign investor concerns in the country’s political landscape. File photo MANILA, Philippines – Investment pledges approved by the Philippine Economic Zone Authority (PEZA) continued to increase in the first nine months despite a slowdown prior to the elections and growing foreign investor concerns in the country’s political landscape. Citing preliminary data, PEZA deputy director general Justo Porfirio Yusingco said investment commitments approved by the agency grew between three and five percent to about P78 billion from January to September. PEZA promotion and public relations group manager Elmer San Pascual, however, said these figures are still lower than the actual numbers. He said final figures would be released this week. “What supported the investments growth is the expansion and new projects that are being approved. There is also a slight increase in the number of locators because of new companies coming in but the substantial amount of investments still come from expansion projects of the existing companies,” Yusingco said. “As of July we have already created about 75,000 this year for additional jobs,” the PEZA official added. Yusingco said sustained investment commitments received and approved by the agency as of end September puts PEZA on track to hitting a five percent growth by year-end. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He said there was a slight slowdown in investments prior to Read More …