Phl needs P2.3 T to fix transpo system – JICA

 Economy
Nov 122013
 
Phl needs P2.3 T to fix transpo system – JICA

MANILA, Philippines – The Philippine government will have to spend a total of P2.293 trillion from next year until 2030 to improve its transport system and fix the traffic problem in the Greater Capital Region which covers Metro Manila, Central Luzon and the CALABARZON (Cavite-Laguna-Batangas-Rizal-Quezon), according to the Japan International Cooperation Agency (JICA). Speaking at the Management Association of the Philippines’ Special General Membership Meeting yesterday, JICA project manager Shizuo Iwata said that based on a roadmap prepared by the agency for transport infrastructure development in Metro Manila and surrounding areas, the investment would be used for projects to address the worsening traffic congestion in the area. Among the projects being pushed by the JICA is to connect the North and South Luzon Expressways. “We already have good expressways in north and south but it is not connected. It can contribute in reduction in EDSA traffic,” he said. Connecting the two expressways, he said, would also lead to improved port access which would be beneficial for operations of businesses. Aside from linking the expressways, the JICA is also proposing to elevate the rail tracks of the Philippine National Railways in Metro Manila, as well as to build a new subway from San Jose Del Monte in Bulacan until Dasmarinas in Cavite, so that new roads could be created. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He noted that if the investment is made,the country would be able to generate savings in vehicle operating costs amounting to P2.1 billion Read More …

DOT to meet 5-M tourist arrivals target for 2013

 Economy
Nov 102013
 
DOT to meet 5-M tourist arrivals target for 2013

MANILA, Philippines – The Department of Tourism (DOT) is optimistic that it will still meet its five million tourist arrival target for this year despite the projected slowdown in global tourism in 2013. Tourism Secretary Ramon Jimenez Jr. told The STAR that while there are some obstacles to tourism growth, the international visitors arrival target for 2013 is still achievable. “Yes, we are confident that we will breach the five million mark for foreign and the targeted 44 million domestic travelers for 2013. There are challenges but we will overcome them,” he said. Latest report by the World Tourism and Travel Council indicated that “the global travel and tourism industry will grow marginally slower in 2013 than previously indicated.” WTTC forecasts that the total contribution from travel and tourism to the world economy will be 2.9 percent in 2013, down from the 3.2 percent growth initially forecast in February this year. “However, the reduction in growth in travel and tourism is driven by reduced investment growth in the economy as a whole, impacting on the industry and slowing global economic growth,” WTTC said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Oxford Economics, WTTC’s research partner, forecasts global economic growth to be 2.1 percent, a slight downgrade from the 2.4 percent forecast at the start of the year. WTTC president and CEO David Scowsill said, “Travel and Tourism is a growth industry which generates nine percent of global gross domestic product (GDP) and supports 260 million jobs, or one Read More …

Port cargo volume rises 5.3% in H1

 Economy
Sep 142013
 
Port cargo volume rises 5.3% in H1

MANILA, Philippines – The volume of cargo shipped in and out of the Philippines grew 5.3 percent in the first half, mainly driven by the continued expansion of the local economy according to data from the Philippine Ports Authority (PPA). Total cargo volume reached 97.96 million metric tons (MT) from January to June or 4.93 million higher than the 93.03 million MT recorded in the same period last year. Cargo shipped within the Philippines rose 8.2 percent to 40.77 million MT, while cargo shipped in and out of the country climbed 3.34 percent to 57.18 million MT. Private ports handled 58.5 million MT, accounting for 59.7 percent of the total cargo volume, while government-run ports handled 37.5 million MT for a share of 40.3 percent. PPA general manager Juan Sta. Ana attributed the increase in cargo volume to the expansion of the country’s domestic output as measured by the gross domestic product (GDP) by 7.6 percent in the first semester, from 6.4 percent in the same period a year ago. For the second quarter alone, the country’s GDP grew 7.5 percent from 6.3 percent in the same period last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Sta. Ana also traced the improvement to the increase in cargo volume handled in 16 port management offices (PMOs). The port of Tagbilaran booked the highest growth of 49.7 percent followed by Legazpi with 46.3 percent due to the increase in domestic shipment of aggregates, heavy equipment and construction materials and Read More …

Key BSP rates to hold up until 2014 – DBS

 Economy
Sep 142013
 
Key BSP rates to hold up until 2014 – DBS

MANILA, Philippines – The Bangko Sentral ng Pilipinas is expected to keep rates steady until the second quarter of next year, Singapore-based DBS said. This, as inflation remains manageable and amid the country’s favorable external balances, the bank said in its quarterly report published Friday. “From a price stability standpoint, there is again no urgency for the central bank to hike rates. Despite multiple quarters of strong GDP (gross domestic product) growth, inflation has been trending lower,” DBS said. “Stable food prices and depressed commodity prices have gone a long way towards keeping a lid on headline inflation. Barring an upward shock to these two components, a mild updrift in CPI (consumer price index) is expected as the global recovery gains traction, eventually translating into higher commodity prices,” DBS continued. Inflation has averaged 2.8 percent in the eight months to August, below the central bank target range of 3 to 5 percent for the year. The level is also below the BSP’s forecast of 3 percent. At the same time, DBS noted credit expansion may grow in the next few months as funds being flushed out of the central bank’s special deposit accounts find their way into the financial system. This may stoke inflation in the coming months, but DBS pointed out the rise in consumer prices is expected to remain manageable. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We maintain that inflation will average 3.1 percent in 2013 before rising to 4.1 percent in 2014. Monetary tightening Read More …

Phl matches China’s growth … posts fastest economic expansion in Southeast Asia

 Economy
Aug 292013
 
Phl matches China’s growth ... posts fastest economic expansion in Southeast Asia

MANILA, Philippines – The Philippines sprinted to a fourth consecutive quarter of above seven-percent growth, beating forecasts with a strong 7.5-percent expansion in the April-June period to match China as the fastest-growing economy in Asia. The National Statistical Coordination Board (NSCB) reported yesterday that the 7.5-percent gross domestic product (GDP) growth in the second quarter topped the 7.2-percent median forecast by analysts as well as the 6.3-percent pace recorded a year ago. “The growth came mainly from consumer and public spending, buttressed by increased investments in fixed capital,” Jose Ramon Albert, secretary general of the NSCB, told reporters, adding that the services sector and manufacturing and construction also pushed up growth. For the first half of the year, GDP accelerated 7.6 percent, faster than the 6.4-percent clip in the same period last year. “The composition of our growth shows signs of an economy that is in the process of rebalancing, moving from being largely consumption-driven to becoming investment-led and industrialized, with the ability to provide higher quality jobs for Filipinos,” Socioeconomic Planning Secretary Arsenio Balisacan said in a statement. He said for the past three quarters, capital formation has been growing more rapidly than household consumption and the growth of industry has so far outpaced that of the services sector. Notable are the double-digit growth rates in fixed capital and the manufacturing subsector in the last quarter. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He pointed out that with the latest GDP results, the Philippines remains the fastest Read More …

Higher Phl growth, stable rates seen by BofA, Barclays

 Economy
Aug 242013
 
Higher Phl growth, stable rates seen by BofA, Barclays

MANILA, Philippines – The Philippine economy is expected to have grown 6.8 percent in the second quarter, faster than the six percent expansion in the same period last year.  “We expect growth to remain supported by consumption and investment,” UK-based Barclays said in its Global Economics Weekly report published Friday. The bank’s forecast is within the government’s target of a six to seven percent economic growth this year but is slower than the higher-than-expected 7.8 percent expansion in the first quarter. Second quarter gross domestic product (GDP) data is set to be released by the National Statistical Coordination Board next week. Amid strong economic growth and a manageable inflation, Barclays noted the Bangko Sentral ng Pilipinas may keep policy rates steady in the coming 12 months. “With a favorable growth-inflation balance, we expect the central bank to keep rates unchanged in the coming 12 months,” Barclays said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The central bank has kept overnight borrowing and lending rates at 3.5 percent and 5.5 percent, respectively, since the start of the year. Rates were kept steady amid a benign inflation environment and a robust Philippine economy. Likewise, Bank of America Merrill Lynch (BofA), in its Asia Economic Weekly report said it expects the Monetary Board to keep rates unchanged at its next policy meeting on Sept. 12. “We do not think that monetary authorities will consider a policy rate reduction at this stage,” BofA said. The bank also noted it has raised its Read More …

Public infra spending seen to more than double

 Economy
Jul 172013
 
Public infra spending seen to more than double

MANILA, Philippines – Public infrastructure spending is seen to more than double to P834.5 billion by 2016 as the Aquino government allocates more funds to build more roads, railways, airports and bridges to support its goal of inclusive and sustainable growth. In a briefing yesterday, Budget and Management Secretary Florencio Abad said the government would continue to bolster infrastructure spending to further spur economic growth to as much as seven percent this year. For this year, the Aquino administration expects to spend P299.4 billion for infra-related projects, equivalent to 2.5 percent of gross domestic product or GDP. The amount excludes projects under the government’s Public-Private-Partnership program. For next year, infrastructure spending is forecast to rise by 28.4 percent to P418.2 billion or three percent of GDP.  The budget is expected to increase further to P601.5 billion and P834.5 billion by 2015 and 2016, respectively, corresponding to 4.1 percent and 5 percent of GDP. The Philippines trails behind its Asian neighbors in terms of government infrastructure spending. According to the World Bank and the Asian Development Bank, the Philippines needs to jack up infrastructure investments to keep pace with its Asian peers in attracting foreign direct investments. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Across Southeast Asia, public works are being given priority by governments seeking to maintain growth amid the global economic downturn. Improved infrastructure would contribute to reduced costs of doing business, increased market accessibility and enhanced competitiveness, the ADB said. Higher tax collections and improved public Read More …

Poverty, income inequality remain high in Phl

 Economy
Jun 292013
 
Poverty, income inequality remain high in Phl

MANILA, Philippines – Despite robust economic growth so far this year and a series of international credit rating upgrades, inclusive growth and poverty alleviation still elude the Philippines. The country’s gross domestic product (GDP) grew an impressive 7.8 percent in the first three months of 2013, after an equally strong growth rate of 6.8 percent in whole of 2012. But Socioeconomic Planning Secretary Arsenio M. Balisacan said compared to other Asian countries, the Philippines still has the lowest total investment share to GDP from 2010-2012 relative to India, Indonesia, Malaysia, Thailand and Vietnam. “Poverty incidence remains high, and so does income inequality. Moreover, more than 60 percent of the entire country’s economic growth is concentrated in Metro Manila, Calabarzon, and Central Luzon,” Balisacan said at a recent forum by the Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD). Substantial poverty reduction achieved in developing countries in the past two decades was due to rapid economic growth and structural transformation in these countries, particularly in Asia. Globally, this growth contributed nearly two-thirds of the observed poverty reduction in the developing world. “A one-percent increase in GDP per capita reduces poverty by 1.7 percent,” Balisacan said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Likewise, the country’s economic growth barely exceeded the population growth rate, which has continued to expand relatively rapidly at about two percent a year. Thus shifting the economy to a higher growth path – and keeping it there for the long term – Read More …

AS PHILIPPINES BOOMS, OVERSEAS WORKERS EYE RETURN HOME

 News
Jun 092013
 
AS PHILIPPINES BOOMS, OVERSEAS WORKERS EYE RETURN HOME

Mateo Ragonjan took a leap of faith in August last year. The executive sous-chef of a seven-star luxury hotel in Abu Dhabi packed his bags to take up a similar job back home in the Philippines. He is one of a small group of like-minded Filipinos returning to jobs back home, a sign of confidence in an economy that for decades has seen millions leave in search of better prospects overseas. Ragonjan now helps run a 300-man kitchen that caters to guests and high-rollers flocking to Manila’s newest and most luxurious casino resort, one of 400 overseas Filipinos who came home to work at the hotel. “The Philippines is booming at the moment, so I thought it was the right time to go back,” Ragonjan, 41, said on a break from his 10-hour shift at the Solaire Resort & Casino in Manila Bay, developed at a cost of $1.2 billion. The Philippines economy is leaving behind its reputation as a regional laggard. It reported annual GDP growth of 7.8 percent in the first three months of the year, outstripping China to make it Asia’s fastest-growing economy. Earlier this year, the government secured an investment grade credit rating, reducing its borrowing costs, while the stock market has reached a series of record highs this year. Returnees like Ragonjan are just a trickle compared to those still leaving the country, but the hope is that the more the country can draw the diaspora back to the Philippines the more that the entrepreneurial Read More …

Gov’t on track to meeting revenue targets – Purisima

 Economy
Jun 052013
 
Gov’t on track to meeting revenue targets – Purisima

MANILA, Philippines – Finance Secretary Cesar Purisima said yesterday the country remains on track to meeting its revenue collection targets following a strong economic growth in the first quarter. Bucking a worldwide economic slowdown, the Philippine economy expanded by 7.8 percent in the first quarter of the year – the fastest pace since 2010 – mainly driven by growth in the construction and manufacturing industries. It outpaced Asian powerhouse China, where the economy surprisingly grew by only 7.7 percent. “We are still on track to meet our goals for the tax effort and revenue effort, especially given our high first-quarter growth. We note that in the past, tax effort has gotten a significant boost from the first quarter of the year to the second, and we anticipate the same given our very successful tax collections in April this year,” Purisima said. Tax effort is an index measure of how well a country is doing in terms of tax collection relative to what could be reasonably expected given its economic potential. The Bureau of Internal Revenue, the government’s main tax collection agency, posted collections amounting to 9.2 percent of GDP while the Bureau of Customs’ collections stood (BIR), at 2.6 percent of GDP. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Bureau of Treasury, meanwhile, recorded collections of 0.9 percent of GDP while other offices collected 0.1 percent of GDP. The government aims to increase the country’s tax effort to 16 percent by the end of Pres. Aquino’s term Read More …

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