Factories Hike Output In June

Manufacturing conditions in the country stabilized in June as manufacturers raised output for the first time since February, according to the latest IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI). The headline manufacturing PMI for the Philippines...

COVID-19 Raises Gov’t Debt To P9 Trillion In May

The country’s response to coronavirus crisis continues to push the national government’s debt stock as the Bureau of the Treasury reports its total obligations to creditors jumped by nearly a trillion pesos in May this year...

KKR Unit Completes First Gen Share Purchase

A Singapore-Based holding company of New York-listed KKR & Co., Inc. has completed its share purchase at Lopez-led First Gen Corp...

Emperador Posts P10.7Bn In Revenues

Emperador Inc., the world’s largest brandy company which owns the Emperador Brandy and Fundador Spanish Brandy de Jerez, posted revenues of P10.7 billion in the first three months of 2020...

Public Sector Loans More Than Double in 2018

Public sector loans approved by the Bangko Sentral ng Pilipinas (BSP) more than doubled to $7.35bn last year from $3.48bn in 2017 amid the government’s massive infrastructure build up. According to a report released by the central bank, the public sector loans approved by the BSP increased by...

Gov’t infrastructure Spending Rebounds in May

State infrastructure spending recovered in May, according to a report the Department of Budget and Management (DBM) released to media on Monday, citing in part projects of the Transport and the Public Works departments. Data in the report showed that...

Inflation Slowest In Almost Two Years In June

Inflation eased in June to post its slowest reading in almost two years, the Philippine Statistics Authority (PSA) reported, giving more room for the central bank to continue ...

Fitch: Banks to Ride PH's Robust Growth

The Philippines’ “fairly robust” economic growth — though below official target so far — can be expected to generate profit and expansion opportunities for banks in the country, Fitch Ratings said on Thursday, adding that liquidity conditions will likely ease further due to...

Central Bank Chief Sees 'A Lot of Policy Space'

Monetary authorities will have “a lot of policy space” ahead amid global monetary policy easing and as inflation slows further next quarter, the head of the Bangko Sentral ng Pilipinas (BSP) said on Wednesday. “We have a lot of policy space considering the global trend of monetary easing,” BSP Governor Benjamin E. Diokno told reporters...

PHL Firms' Confidence Eases, Still Highest

Businessmen in the Philippines have turned out to be the most bullish globally, according to a press statement released on Tuesday by P&A Grant Thornton that summarized findings of Grant Thornton’s International Business Report (IBR) for the first half, even as net optimism was...

Factory Activity Bares 'Marginal' Growth

Business for manufacturers in the country improved just slightly in June, as a boost from “a solid rate of output expansion” was capped by “asofter increase in total new orders and the fastest drop in export sales” in the country’s three-and-a-half-year survey series, according to the latest Philippine monthly tracking IHS...

Analysts expect slower price hike in June

Inflation likely resumed easing last month following a surprise uptick in May, according to most analysts in a BusinessWorld poll late last week who cited declines in food and fuel prices. A poll among 12 economists yielded a 2.9% estimate median for June inflation, close to the ceiling for the Bangko Sentral ng Pilipinas’ (BSP) own 2.2-3.0% range for the same month...

Prepare for Disappointing Q2 Growth, Says Moody’s

The Philippines’ economic growth in the second quarter could turn out to be a disappointment amid government underspending, bad weather and the escalation of trade tensions between economic giants UnitedStates and China, debt watcher Moody’s Investors Service said. “Don’t be excited about the second quarter...

Gov't to Borrow Less Next Quarter

The government plans to borrow P230Bn from the domestic market next quarter through a mix of short and long-term securities, smaller than the amount offered in April-June and in last year’s third quarter. The Bureau of the Treasury said it will auction off P90 billion in Treasury bills (T-bill) and P140Bn worth of...

Firms More Bullish, Families Bearish in Q2

Businesses were on the whole more confident of prospects this quarter compared to the preceding three months as they expected improved demand— marking the second straight quarter of improvement— but households turned slightly more pessimistic in the same comparative periods in the face of rising prices...

Inflation for Poor Families Rose to 4.6% in May

Inflation among the country’s poorest families inched up to 4.6% in May, cutting short six straight months of easing year-on-year price increases. The Philippine Statistics Authority (PSA) attributed the higher inflation rate of the consumer prices index (CPI) for the bottom 30% income households in May...

April Debt Service Bill P53.84 Billion, up 93%

The national government had a debt service bill of P53.84 billion in April, up 93.35%, the Bureau of the Treasury (BTr) said. Based on BTr data, total debt payments for the first four months amounted to P274.019 billion, up 21.22%....

BSP Leaves Policy Rates Untouched

The Bangko Sentral ng Pilipinas (BSP) on Thursday kept rates unchanged on expectations of steady inflation and economic growth, and as it monitors the impact of recent monetary adjustments...

BOP Posts Surplus For 7th Straight Month​

The Philippines continued to register strong inflows resulting to a surplus in the balance of payments (BOP) position for the seventh straight month with $928 million in May, reversing the $583 million deficit booked in the same month last year...

PCC Shortens M&A Review Period

The Philippine Competition Commission (PCC) will shorten its review period to 15 days for certain merger and acquisition (M&A) transactions as part of the government’s efforts to improve the ease of doing business in the country. The PCC said the review period would be cut by half from the existing 30 working days and...

Remittances Slow in April, But Remain Above BSP Target

Remittance growth slowed last April, but remained above the target set by the Bangko Sentral ng Pilipinas (BSP). BSP Governor Benjamin Diokno said personal remittances inched up by 3.7% to $2.71bn in April from $2.62bn in the same month last year. This was slower than the 6.4% growth recorded in March​...

BoP Turnaround Continues with May Surplus

The Bangko Sentral ng Pilipinas (BSP) said it estimates that the balance of payments in May continued to reflect a surplus, of about $3.7bn, continuing the turnaround from a deficit of $3.5bn as recently as November. It added that the May estimate for BoP heralds an improvement in the domestic economy in the second half of the year​...

Bids for BSP's Term Deposits Decline

Bids for term deposits dropped on Thursday as the central bank placed a lower volume on offer two weeks ahead of the second round of cuts to banks’ reserve requirement ratio (RRR). The Bangko Sentral ng Pilipinas (BSP) received...

Reforms Eyed to Boost FDI Inflows

Foreign direct investments (FDI) inflows to the Philippines dropped in 2018 even as most Southeast Asian countries saw gains that pushed the region’s overall haul for the year to an all-time high. While admitting that challenges to the Philippines’ investment environment persist, Trade Secretary Ramon M. Lopez said the...

FDI Inflows Slow Further in March, Q1

Foreign direct investment (FDI) inflows remained weak in March, slipping by 14% to $586Mn from $681Mn in the same month last year due to lower exposure in the stock market, the Bangko Sentral ng Pilipinas (BSP) said yesterday. Data released by the central bank showed equity and fund shares...

BSP Chief 'Cautiously Optimistic' on PH Economy

BSP Governor Benjamin E. Diokno is “cautiously optimistic about the current state of the Philippine economy,” amid lingering global headwinds. “(We) recognize the uncertainty in the global economic environment, with the IMF (International Monetary Fund) further revising down its global growth prospects...

Tourism Contribution to GDP Biggest since 2012

The tourism industry’s contribution to the economy grew in 2018, according to data from the Philippine Statistics Authority (PSA). Tourism’s direct gross value added (TDGVA) accounting for 12.7% of gross domestic product (GDP) in 2018, bigger than the 12.2% in 2017....

Inflation Rises to 3.2% in May

Inflation quickened in May after six consecutive months of slowdown but remained within the government’s target. Consumer price growth clocked in at 3.2% in May, faster than the 3% in April. A year ago, the inflation figure stood at 4.6%. “This is the first time that it rose after six consecutive months of slowdown...

Factory Activity Growth Recovers in May

Manufacturing in the country picked up in May after business for factories improved at the slowest pace in nine months in April, with the increase in new orders “the most marked in four months” on the back of a “moderate” improvement in demand that was nevertheless “the greatest since February...

More Monetary Easing Looms

Prices are expected to have risen between 2.8%-3.6% in May— broadly unchanged from the previous month’s moderate pace—due to the combined effects of a transport fare hike in the Visayas and the higher cost of selected food items, according to central bank economists. In a statement...

Credit Watchers Expect Over 6% Philippines GDP Growth​

The national government’s debt pile contracted slightly to P7.787 trillion as of end-April due mainly to the strengthening of the peso which lowered the value of the country’s external debt, according to the Bureau of the Treasury. According to latest data from the BTr, the national government’s outstanding debt...

Credit Watchers Expect Over 6% Philippines GDP Growth

International credit rating agencies are still expecting economic growth of above six percent for the Philippines this year despite lowering their forecasts due to the slower-than-expected expansion in the first quarter. Christian de Guzman, senior credit officer at the sovereign ratings group at Moody’s Investors Service...

PH Competitiveness Ranking Remains Low

The Philippines boosted its ranking by four notches in the 2019 global competitiveness research by Swiss business school IMD, with the country’s skilled workforce, economic dynamism, costcompetitiveness, open and positive attitudes and high educational level of people cited among the most compelling reasons...

Economists See Stronger Peso This Year

Bank economists expect a stronger peso amid the dovish sentiment by the BSP as well as external factors led by the US-China trade war. According to Robert Dan Roces, chief economist at Security Bank Corp., the peso may settle at an average of 53 to $1 in the second quarter and at 53.50 by the third and fourth quarters...

Easing of Investment Rules Pushed

The country’s chief economist is pushing for Congress’ approval of the bills aimed at further opening up the economy to bolster not only foreign investments but also economic growth. “We are urging Congress to pass critical reforms such as the amendments to the Public Service Act, the Foreign Investment Act and the Retail Trade Act to encourage investments in industry...

Hot Money Outflow Hits $299Mn in April

More foreign portfolio investments or speculative funds exited the Philippines for the second straight month as net outflow reached $298.8mn in April, reversing the $279.29 million net inflow recorded​...

Small-Scale Miners Selling Gold To BSP Tax Exempt​

Small-scale miners who will sell their gold to the Bangko Sentral ng Pilipinas (BSP) may avail themselves of the exemptions from paying excise tax after President Duterte signed Republic Act (RA) 11256 into law on March 29. Under the new law...

SMC Propose P35Bn for Water Source Project​

San Miguel Corp. (SMC) is planning to submit an unsolicited proposal to build a new water source that will deliver up to 3,800 million liters per day (MLD) at a much cheaper cost for consumers than...

BoP Marks 6th Month of Surplus in April​

The country’s balance of payments (BoP) registered a surplus for the sixth month in a row in April due to inflows from the central bank’s foreign exchange operations and income from its investments abroad that were partially offset by state foreign debt payments, the Bangko Sentral ng Pilipinas (BSP) reported...

IC Cuts Risk Charges On Insurers’ Infra Investments

In a bid to encourage insurance companies to make a stake in infrastructure investments, the Insurance Commission (IC) has issued a circular letter providing for better capital charges when investments are part of the infrastructure blueprint under the Philippine Development Plan (PDP)...

BSP Cuts Big Banks' Reserve Requirement

Fresh from slashing benchmark interest rates just a week ago by 25 basis points in the face of easing inflation and slowing economic growth, the Bangko Sentral ng Pilipinas (BSP) on Thursday fired off a...

March OFW Remittances Rise 6.6%

Remittances from overseas Filipino workers (OFWs) surged in March after a low base from a year earlier, when money sent home was dampened by the government-imposed ban on deployment to Kuwait. The Bangko Sentral ng Pilipinas (BSP) reported that cash remittances rose 6.6% to $2.5Bn in March. The March increase topped the recent high of...

Car Sales Flat in April

Auto sales in April roughly steadied from a year ago, even as they dipped from the preceding month, according to latest data which the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association sent to reporters on Tuesday. The data showed car sales edging up by...

Moody’s Analytics Sees Faster Growth,

Philippine gross domestic product (GDP) expansion should pick up this year despite disappointing first-quarter growth, Moody’s Analytics said over the weekend, citing a boost from continued monetary policyloosening that can be expected from the Bangko Sentral ng Pilipinas (BSP) as inflation eases further. “GDP growth is forecast at...

Q1 GDP Growth Slowest in 4 years

Philippine gross domestic product (GDP) grew by 5.6% in the first quarter, its worst performance in four years. The first-quarter outcome was lower than the 6.3% in the preceding quarter and 6.5% in the first quarter of 2018....

PH Trade Gap Widens to $9.8B

Merchandise exports dropped for the fourth straight month in March while imports sustained growth for three consecutive months partly due to a surge in products from China, widening the trade-in-goods deficit by more than a fifth to $9.8 billion at the end of the first quarter...

Inflation Lowest in 16 Months

Inflation eased to a 16-month low of 3% year-on-year in April mainly on slower increases in prices of food and beverages. The latest Philippine Statistics Authority (PSA) data showed that headline inflation last month was the lowest since the 2.9% posted in December 2017...

Data Drives Globe Profit Higher in 1st Qtr

Earnings of Globe Telecom, Inc. rose 44% in the first quarter, on strong revenues from sustained increase in data usage by mobile and home broadband subscribers. Its attributable net income stood at P6.7 billion in the January to March period, up from P4.7 billion in the same period last year....

Foreign Tourist Arrivals in Q1 2019 up 7.6% to 2.2 Million

Foreign tourist arrivals rose 7.6% in the first quarter to 2.2 million, such that Tourism Secretary Bernadette Romulo-Puyat sees the country hitting another record-high number of tourists from abroad for the entire year. Romulo-Puyat told reporters that arrivals from January to March exceeded the 2.05 million posted...

Factory Expansion Slowest in 9 Months

Manufacturers in the Philippines marked the smallest improvement in business conditions in nine months as the second quarter began as output growth dropped to a 19-month low, according to the latest monthly survey IHS Markit conducted for Nikkei, Inc. that also showed new orders rose at the weakest...

Money Supply Expands Slightly

The amount of money circulating in the country’s financial system grew at its weakest level in more than six years at 4.2% in March from 7.1% in February. Latest data released by the BSP showed money supply or M3 reached P11.38Tn as of end-March from P10.92Tn in end-March last year...

Lower Rice Prices Seen

Economic managers and government officials have assured consumers that the deregulation of rice trade in the country would fast-track the availability of affordable rice in the market before the year ends. Officials of various agencies involved in the implementation of the newly enacted rice import liberalization law...

Inflation Seen Falling Within 2 to 4% Target

Private economists expect inflation this year to fall within the two to four percent target set by the Bangko Sentral ng Pilipinas (BSP), according to a survey conducted by the central bank. BSP Governor Benjamin Diokno said inflation expectations of private sector economists are now lower and aligned to the inflation target...

SMIC to Double the Number of Alfamart Stores by 2020

SM Investments Corp. (SM, P950.00, Reduce) will add more Alfamart branches within the next two years to bring its total portfolio in the country to at least 1,000. The Indonesian mini-mart chain, which the SM Group brought to the country, currently has at least 500 branches...

Fitch Cuts Philippines Growth Forecast

Fitch Ratings has slashed the country’s gross domestic product (GDP) growth forecasts for 2019 and 2020 due to the delayed passage of the 2019 national budget, the series of rate hikes by the Bangko Sentral ng Pilipinas (BSP) and the trade war between the US and China. Fitch Ratings said the Philippine economy may grow by...

Ayala on Track to Post P50-billion Profit

Ayala Corp. said it remains on track to register a net income of P50 billion as early as this year despite subdued earnings in 2018. Ayala Corp. chief finance officer Jose Teodoro Limcaoco said the group’s net income would be boosted by the partial sale of the group’s coal power assets in the Philippines to Aboitiz Power Corp. 

BDO Net Profit Jumped by 17% in ’18

BDO Unibank posted a record-high net profit of P32.7 billion in 2018, exceeding its full-year goal despite a challenging macroeconomic environment. BDO also became the first Philippine bank to breach the P3-trillion asset milestone

‘Underspending’ Shaves Deficit in Q

The State’s fiscal deficit shrank last quarter amid “underspending” with delayed enactment of the 2019 national budget, according to preliminary Bureau of the Treasury (BTr) data which the Finance department released on Thursday. Finance Secretary Carlos G. Dominguez said “P.1.01Bn daily underspending for primary...

Tax Reform Uncertainty to Persist

The remaining packages of the tax reform program — a key support of the government’s P8-Tn stepped-up infrastructure development push,will continue to face uncertainty in the new 18th Congress that opens on July 22, according to one legislative leader. Asked on prospects of future tax reform bills after two...

Remittance Growth Slowest in Six Months

Money sent home through banks by Overseas Filipino Workers (OFWs) — which fuels household spending that, in turn, contributes nearly 70% to gross domestic product — grew in February, according to data the central bank released on Monday, but at the slowest pace in six months due to what one analyst said was...

P4.1-Tn 2020 National Budget Set

Troubles with this year’s national spending plan notwithstanding, the Budget department has earmarked cash-based 2020 appropriations that are nearly a tenth bigger year-on-year as the government pushes infrastructure development and social services, according to an April 12 National Budget Memorandum...

Monday Budget Signing Canceled; Seen after Easter

The 2019 budget could be delayed at least one week more after Palace officials took a ceremonial signing scheduled for Monday off the President’s calendar, saying that the General Appropriations Bill was still under study. The President’s spokesperson, Salvador S. Panelo, said: It was on the calendar...

FDI Inflows Dropped by 38.2% in January

Long-term foreign investments in the Philippines shrank in January, as fewer businessmen placed their bets on the local wholesale and retail trade sector during the period, the latest data from the Bangko Sentral ng Pilipinas (BSP) showed. Foreign direct investments (FDI) fell by 38.2% to $609 million, from last year’s $986 million. FDI is the type of investment that is often more...

IMF cuts PH growth forecast to 6.5% for 2019

The International Monetary Fund (IMF) has reduced its 2019 growth forecast for the Philippines to 6.5% in line with less rosy global economic prospects. In its April 2019 World Economic Outlook (WEO) report the IMF cut its growth projection for this year from 6.6% previously, even as it projected growth next year at a slightly faster 6.6%. The growth forecasts in the next two years were...

March Inflation at 15-Month Low

Inflation further eased to a 15-month low of 3.3% in March as increases in prices of food and beverages continued to slow down. A Philippine Statistics Authority (PSA) report showed that the year-on-year rate of increase in prices of basic commodities last month was the lowest since the 2.9% posted in December 2017...

Q4 2018 GDP Expansion Scaled Up​

The economy grew faster than previously estimated in the fourth quarter of 2018, the Philippine Statistics Authority (PSA) reported on Thursday. The PSA said its latest estimate shows the country’s gross domestic product (GDP) — which indicates the value of final goods and services produced within a country...

ADB Cuts ’19 PH Growth Forecast

Amid slower global demand and the potential negative impact of the prolonged dry spell due to El Niño on the economy, the Asian Development Bank (ADB) has cut its 2019 growth forecast for the Philippines to 6.4 percent. However, ADB country director for the Philippines Kelly Bird pointed out during a press conference...

Customs Collections up 12.6% in March, Still Off Target​

Customs duties and taxes collected by the BOC went up in March from a year ago level, but failed to hit target due to the impact of the congestion in some of the country’s ports, an official said yesterday. According to preliminary data posted in the agency’s website, the BOC’s collections last March reached P50.95Bn...

AEV Prepares P5-Bn Bond Issue

Aboitiz Equity Ventures, Inc. (AEV) will be issuing P5Bn worth of bonds within the first half of this year for debt refinancing. AEV said it has filed the registration statement for the first tranche of the P30-billion bonds under its debt securities program. The first tranche will consist of P3Bn with an oversubscription option of up to P2Bn. Upon issuance, the...

Fewer Firms to Expand, But More Workers Eyed

Fewer companies are looking to expand their business operations in the second quarter, but more have signified their intent to employ new workers, according to a survey conducted by the BSP. According to the latest Business Expectations Survey (BES), the percentage of businesses in the industry sector with expansion plans for the next...

Business, Consumer Sentiment Improves

Investor and consumer sentiment received a huge lift as the year opened, riding expectations of more business and job opportunities, according to latest results of quarterly surveys which the Bangko Sentral ng Pilipinas (BSP) released on Thursday. Business confidence recovered in the first quarter to end four consecutive quarters of...

Economists Count Budget Delay's Q1 Cost

Economic growth this quarter could hover close to last quarter’s pace but will be substantially slower than the year-ago clip when official data is reported on May 9, according to economists asked on Wednesday, citing primarily the impact of delayed enactment of the P3.757-Tn national budget for this year. The bicameral dispute over the 2019 national budget — which was supposed to have been...

Senate Sends 2019 Budget to Duterte

The bicameral deadlock over this year’s P3.757-Tn national budget — which threatened to drag overall economic growth — ended on Tuesday as Senate President Vicente C. Sotto III announced that he has signed, with “reservations,” and transmitted the spending plan to ...

Tighter Watch Looms on Realty Loans

The central bank plans to roll out by next year new tools to better monitor lending to the volatile real property sector, according to a senior official of the BSP. A March 19 BSP working paper outlined three new measures designed to tighten watch on banks’ ...

PHL 'Out of the Woods' with Inflation

The Philippines appears “out of the woods” as far as inflation is concerned, with the overall rise in prices of basic goods seen consistently lower until the last few months of 2019, a senior central bank official said, although rising oil prices and the impact of severe weather may be...

Interest Rates Unchanged As Inflation Slows

As expected, the Bangko Sentral ng Pilipinas (BSP) decided anew yesterday to keep interest rates steady for the meantime as it recognized risks to economic growth due to the failure of Congress to pass the 2019 national budget. BSP Governor Benjamin Diokno said...

Term Deposit Rates Mixed, 7-Day Tenor Falls Below 5%

Term deposit rates were mixed yesterday as the yield of the seven-day tenor fell below 5% for the first time in four months as the Bangko Sentral ng Pilipinas (BSP) is widely expected to keep interest rates unchanged today after a tightening cycle last year​...

Philippines Books 4th Straight Month Of BOP Surplus

The country’s external payments position strengthened for the fourth straight month with the balance of payments (BOP) surplus hitting $467mn in February, a complete reversal of the $429mn deficit recorded in the same month last year due to.​..

Budget Surplus Soars To P44.5Bn In January 2019

The Philippines booked a budget surplus of P44.5bn in January, four times the P10.2bn surplus recorded in the same month last year due to lower disbursements as a result of the failure of Congress to pass the 2019 national budget. Data released by the Bureau of the Treasury (BTr) showed...

Philippines External Debt Up 8% to $79Bn in 2018

The country’s external debt climbed by 8% last year due to higher borrowings by the private sector particularly banks, the Bangko Sentral ng Pilipinas (BSP) reported. Newly installed BSP Governor Benjamin Diokno said the country’s external debt reached $79bn or 23.9% of GDP in 2018 from $73.1bn or 23.3% of GDP in 2017. Diokno attributed ...

Local Stocks Drew Large ‘Hot Money’ Inflows in February

The flow of so-called “hot money” into the Philippine economy swung to positive in February reversing a large outflow in the same period last year, and boosting the year-to-date amount of fast-moving investments, most of which were channeled into the local stock market. According to data from the Bangko Sentral ng Pilipinas, last month saw net portfolio investments of ...

Budget Delay To Cut Growth to 8-Yr Low

Economic growth will slide to its lowest in eight years if the government operates on a reenacted budget for the entire year, the country’s chief economist said on Wednesday. Citing estimates of the state planning agency National Economic and Development Authority (Neda), Socioeconomic Planning Secretary and Neda chief Ernesto Pernia said that if Congress...

Trade Deficit Widens in January

The country incurred a trade deficit of $3.76 billion in January, higher than the $3.16-billion gap a year earlier, as imports rebounded and exports continued to drop, the Philippine Statistics Authority (PSA) reported yesterday. In its latest trade report, the PSA said imports reached $9.03 billion in January, up by 5.8 percent from $8.54 billion in January 2018. This was also...

Foreign Investments Drop in 2018

Foreign direct investment (FDI) inflows declined by 4.4 percent to $9.8 billion last year from $10.3 billion in 2017 due to a sharp drop in equity placements as investors were spooked by external headwinds led by the US-China trade war and accelerating inflation in the domestic front. The latest figure was lower than the $10.4 billion target set by the Bangko Sentral ng..

Gov’t Borrowings Reach P947Bn in 2018

The national government’s total borrowings rose to P947.55 billion in 2018 as it increased its credit from foreign lenders and other development partners, according to the Bureau of the Treasury (BTr). Based on the Treasury’s latest cash operations report, the government’s gross borrowings as of end-December 2018 grew 5.09 percent to P947.55 billion from...

GIR Back On Track, Hits 3-Year High in February

The Bangko Sentral ng Pilipinas (BSP) took advantage of clearer economic conditions and the stronger value of the peso against the US dollar to build up its dollar defenses to a three-year high in February. On Thursday, the Central Bank reported...

Gov’t Overspends for Infrastructure in 2018, says DBM

The national government’s spending on infrastructure went above program last year following the completion of major projects, as well as implementation of budget reforms, according to the Department of Budget and Management (DBM). In a forum, outgoing budget chief and newly appointed Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said...

Inflation Eases to Slowest in 12 Months

Inflation further eased to 3.8% year-on-year in February, the slowest rate of increase in prices of basic goods in a year. The inflation rate last month returned within the government’s full-year target range of 2%-4% after 11 straight months of above target rates. But headline inflation averaged 4.1% during the first two months, still beyond the target range...

Diokno is the New Central Bank Governor

President Rodrigo Duterte has appointed Budget Secretary Benjamin Diokno as the new governor of the Bangko Sentral ng Pilipinas (BSP), Executive Secretary Salvador Medialdea told the INQUIRER.net on Monday. Medialdea said Diokno’s appointment was announced during the 35th Cabinet meeting in Malacañang. Diokno will replace Nestor Espenilla Jr., who died on Feb. 23 after fighting tongue cancer...

PHL Factory Improvement Weakest In Six Months

Philippine manufacturers in February registered their weakest improvement in operating conditions in six months after the softest rise in new orders in seven, according the latest survey compiled by IHS Markit for Nikkei, Inc...

BSP Sees Even Slower Feb. Inflation

Inflation likely eased further in February, the Bangko Sentral ng Pilipinas (BSP) said on Thursday, citing chances that the overall increase in prices of widely used goods fell below four percent as rice prices dropped. In a statement, the BSP’s Department of Economic Research gave a...

Banks Mark Q4 with Bigger Returns

Fourth-quarter growth of assets and loans of the country’s biggest banks continued to post double-digit rates even as they recorded smaller increases than year-ago levels. BusinessWorld’s 4th Quarter Banking Report shows the combined assets of the country’s 45 universal and commercial banks (UK/Bs) grew...

BDO Books Higher Net Earnings in 2018

BDO Unibank, Inc. saw its net income rise in 2018, buoyed by robust earnings from its core businesses. The Sy-led lender reported a record-high net income of P32.7Bn last year, climbing by 17% from the P28.1Bn tallied in the same period in 2017. The bank attributed its full-year income growth to the “solid” performance of its core lending and deposit-taking businesses, resulting in a...

Strong Demand Expected for Retail Treasury Bonds

Retail Treasury bonds (RTB) to be auctioned off today can expect strong investor demand amid additional liquidity in the market due to the government’s payment of matured debts. The Bureau of the Treasury (BTr) announced on Thursday last week that it will offer at least P30Bn worth of five-year debt papers to individual and institutional investors. This is the first RTB offer....

Budget Gap Widens, Exceeds Ceiling

The government breached its budget deficit ceiling in 2018 as it spent beyond the amount programmed for public goods and services. Data obtained by reporters on Thursday showed that the budget deficit last year widened to P558.3 billion, bigger than the P526.8-billion adjusted program set by the Cabinet-level, interagency Development Budget Coordination Committee (DBCC) in October last year....

BPI Posts Higher Net Income in 2018

Bank of the Philippine Islands posted a higher net income in 2018 on the back of strong revenues. It posted a full-year income of P23.08 billion in 2018, up 3% from the P22.42 billion it
booked in 2017. For the fourth quarter alone, BPI’s net income grew 13% to P6.07 billion from the P5.37-billion income tallied in the same period in 2017....

Vehicle Sales Skid 15% in January 2019

Local vehicle assemblers registered a 15% decline in sales in January from a year ago on continued weak demand for cars. The joint report of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association Inc. (TMA) released yesterday showed total vehicle sales reached 26,888 units in January, down from 31,645 units in the same month last year....

SEIPI Sees 2019 Electronics Export Growth of 3%

The Semiconductor and Electronics Industries in the Philippines Foundations, Inc. (SEIPI) said it set its 2019 export growth target at  3%, which is higher than its assumption for growth in the global industry of 2% and slightly higher than the industry’s growth in 2018...

Meralco Kicks Off Micro-Grid Venture

Manila Electric Company (MER) finally got its micro-grid venture off the ground with its pioneering electrification of Isla Verde in Batangas, an island-mode domain within its service area. The utility firm said the energization initiative was concretized via the installation of a 32-kilowatt solar panel and 192 kilowatt-hour battery storage, which it had undertaken in collaboration...

High Stocks, Bond Yields Cause Surge in ‘Hot Money’​

Short-term financial investments into the country surged in January, with fund managers attracted by the prospects of companies listed on the PSE and higher yields on peso-denominated debt securities—with both asset classes benefiting from the bullish sentiment on the local currency. In a statement, the Bangko Sentral ng Pilipinas said that registered...

Inflation Seen Back at 2 to 4% Target by 2Q19

The Department of Budget and Management (DBM) expects inflation to settle within the government’s two to four percent target by the second quarter, a top official said yesterday. During his weekly press briefing, Budget Secretary Benjamin Diokno said inflation may continue to ease in the coming months, and settle back within the government target for 2019. “Around second quarter,” Diokno said...

Trade Gap Swelled to $41Bn in 2018

The Philippines posted a record trade deficit of $41.44Bn in 2018 as imports surged to sustain robust economic growth and exports failed to pick up pace. For Socioeconomic Planning Secretary Ernesto M. Pernia, the widening trade-in-goods deficit was “an issue of concern but manageable.” “The bulk of imports are in the nature of capital goods...

FDI Inflows Drop 3.2% in 11 Months

The amount of foreign direct investments (FDIs) flowing into the Philippines declined by 3.2 percent in the first 11 months of 2018 as investors remained wary of the trade war between the US and China, as well as rising inflation in the domestic front. The Bangko Sentral ng Pilipinas (BSP) reported yesterday net FDI inflows reached $9.06Bn from January to November last...

BSP Downplays El Niño Impact on Inflation

The Bangko Sentral ng Pilipinas (BSP) has downplayed the impact of the occurrence of El Niño this year on the sustained easing of inflation. BSP Deputy Governor Diwa Guinigundo said the impact of the prolonged drought could be addressed by mitigating measures laid down by the government. For one, Guinigundo said the National Food Authority (NFA) has approved the...

Key Policy Rates Unchanged, Inflation Forecast Cut Anew

The Bangko Sentral ng Pilipinas (BSP) decided yesterday to keep interest rates unchanged to allow the economy to absorb the effects of the previous rate hikes. BSP Governor Nestor Espenilla said the Monetary Board believes the prevailing monetary policy remains appropriate after ...

More Groups To Gain Headway In Reg’l Airport Proposals

More private proponents are expected to gain headway for their respective unsolicited offers to operate and upgrade some of the country’s major regional airports this month. Transportation Undersecretary for aviation Manuel Tamayo said about three groups are expected to be granted...

January Inflation Slowest In 10 Mos

The inflation rate rose to 4.4% yoy in January, which was the lowest in 10 months given that the full impact of the second round of oil excise tax hike under the government’s tax reform program was not yet fully felt at the start of the year...

PH Mfg, Exports Growth Slows as China Econ Weakens

Manufacturing growth slowed to its lowest in four months in January as export orders declined mainly due to a slower Chinese economy, the latest Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI). The seasonally adjusted PMI declined to 52.3 last month from 53.2 in December last year, posting a second straight month of decline. Since the January PMI score was above 50...

BSP Sees Even Slower Jan. Inflation

The overall increase in prices of widely used goods likely dropped sharply in January for the third straight month, the Bangko Sentral ng Pilipinas (BSP) said, as lower rice prices and power rates may have offset higher fuel prices as the year opened. The BSP Department of Economic Research said it expects inflation to have settled at...

AEV to Issue P30-Bn Retail Bonds

Aboitiz Equity Ventures, Inc. will be issuing up to P30-Bn worth of retail bonds to raise money that would finance future acquisitions and investments. The listed power conglomerate said its board of directors has approved the issuance of...

Senate Body Finalizing Bill Raising Tobacco Tax

The Senate Ways and Means committee aims to report for plenary action by Feb. 6 the bill further increasing excise taxes on tobacco products before Congress takes its Feb. 7-May 19 break. “We’re looking to sponsor it by next week… But I think the process is also important so we need to hear those who were not able to speak today so I think...

Central Bank Official Sees Sustained FDI Inflows

Foreign direct investments (FDI) could roughly sustain estimated 2018 inflows this year as conditions turn more enticing for investors, a senior central bank official said, citing slower inflation and robust domestic activity. “We are confident that in 2019 — with inflation down, sustained government spending, with consumption expenditure being resilient and robust — we should see more...

Economy Ripe for Bank Reserve Cut --- BSP Chief

The economy is ripe for another cut in bank reserves, the BSP signaled to the banking industry, even as one senior monetary official noted that liquidity conditions need to be tight enough to warrant such adjustments. BSP Officer-in-Charge and Deputy Governor Chuchi G. Fonacier said 2019 is off to a good start with inflation on its way down, which in turn will allow the...

PHL Grows 6.1% in Q4 2018, Misses Full-Year Target

The Philippine economy grew slightly faster in the final three months of 2018 but failed to meet the government’s full-year target, the country’s statistics agency reported Thursday. Gross domestic product expanded 6.1% in the fourth quarter last year against ...

Q3 Growth Revised Downward To 6%

The gross domestic product (GDP) growth figure for the third quarter of 2018 was revised downward to 6.0% from 6.1% on the slowdown in several sectors, the Philippine Statistics Authority (PSA) reported yesterday. This downward adjustment was brought about by ​...

Wage, Tax Concerns Weigh Down Japanese Firms’ Plans

Fewer Japanese firms operating in the Philippines expect to expand this year and in 2020 compared to the previous year, amid concerns on rising wages and taxation procedures, a survey from Japan External Trade Organization (JETRO) showed​...

Senate OKs 2019 Budget, Reenacted Timeline Cut

The Senate, voting 14-0, on Monday passed the Palace-proposed P3.757T 2019 budget bill, paving the way for bicameral talks with the House of Representatives to quickly hammer out a reconciled Senate-House version of the annual money measure. The goal is to have the reconciled version...

Economy Likely Grew at a Slower Pace in Q4

Local economists may have opposing views on GDP growth in the fourth quarter of 2018, but their projections agree on one thing: the pace of expansion was likely slower compared to that seen in 2017. Bank of the Philippine Islands (BPI) economist Emilio Neri Jr. believes that GDP in the fourth quarter likely grew by 6.4%. This is higher than ...

2018 'Hot Money' Flows Turn Positive​

The Philippine financial system ended 2018 in the black as far as short-term investment flows were concerned, reversing the previous year’s net outflows, thanks to a P34-billion equity raising exercise of San Miguel Food and Beverage Inc. In a statement, the Bangko Sentral ng ...

Gov’t to Liberalize Sugar Imports

After moves to remove import restrictions on rice, the government this year plans to also liberalize sugar importation, Budget Secretary Benjamin Diokno said on Wednesday. The next big item among agricultural products whose importation would be further opened up by the Duterte administration was sugar, noting that it is a raw material in a number of potential...

Low Inflation, High Growth Seen This Year

The Philippines will likely return to a high-growth, low-inflation regime this year, allowing the local stock barometer to recover to as high as 8,800 after a challenging period last year, local investment house First Metro Investment Corp. said. In a separate research note, however, Dutch financial giant ING said Philippine growth might hit a speedbump in the next two...

Car Sales Skid 16% in 2018

Local vehicle assemblers ended 2018 with a 16 percent decline in sales compared to a year ago, but are confident of seeing better performance this year. A joint report of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association Inc. (TMA) released yesterday showed total vehicle sales reached 357,410 units last year...

PEZA Investment Pledges Down 41% in 2018

Investment pledges with the Philippine Economic Zone Authority (PEZA) fell 41 percent last year from 2017 amid investor concerns on government’s plan to change the incentives regime under its tax reform program. Data from the PEZA showed investments approved by the agency reached P140.24 billion last year, lower than the P237.57 billion...

Banks Grapple with Biggest Default in PH History

Five of the country’s largest banks are rushing to cover a combined loan exposure of $412 million, most of it lent without the benefit of collateral protection, after the local shipbuilding unit of Korean conglomerate Hanjin declared bankruptcy earlier this week—the biggest corporate default in Philippine history....

AC to Acquire PHINMA’s Stake in Energy Subsidiary

AC Energy of the Ayala group will be acquiring the majority shareholdings of 51.48% of the PHINMA in its energy subsidiary PHINMA Energy Corporation. AC said this will be carried out through secondary shares sale– of which total transaction had been estimated at...

Aboitiz to Start Operating 2 Airports by end-2019

The infrastructure unit of Aboitiz Equity Ventures, Inc. hopes to start operating two regional airports by the end of 2019, including the P42.7-billion Laguindingan Airport in Misamis Oriental. Aboitiz InfraCapital, Inc...

Forex Reserves Rise to $78.5 Billion, Fall Short of Target

The country’s foreign exchange buffer continued to recover with gross international reserves (GIR) rising by 3.7% to $78.46 billion as of the end-December 2018 from $75.68 billion as of end-November 2018. The amount, however, is lower than the $80 billion year-end forecast...

Inflation Downtrend Continues in December

Inflation averaged 5.2% in 2018, its quickest pace since the global financial crisis a decade ago, as domestic consumer prices rose faster than expected last year due to food supply bottlenecks, excise taxes slapped on consumption and skyrocketing global oil prices...

GDP Growth Slowdown Expected to Persist

Economic expansion will likely ease further in 2019 as last year’s interest rate hikes are expected to pull down consumer spending, Natixis Research said, even as it noted that the Philippines will remain “resilient” to global slowdowns. The global economic research outfit projects Philippine gross domestic product growth at...

Factory Business Growth Slows in December

Factory activity in the Philippines improved in December at the slowest pace in three months on milder output and order growth, though overall input cost hike “eased noticeably,” according to the latest survey IHS Markit conducted for Nikkei, Inc. Vietnam continued to outperform the Philippines to lead the seven covered Association of Southeast Asian Nations (ASEAN) members for the...

Gov't Debt Yields End Flat

Yields on government securities (GS) traded on the secondary market continued to move sideways as traders awaited the release of government’s planned borrowing program for the first quarter. On average, GS yields inched up by 1.48 basis points (bp) week on week, according to...

BBB Widened Budget Deficit by 96% to P477.2B

The budget deficit almost doubled to P477.2 billion at end-November as the growth in government spending on public goods and services, especially infrastructure, outpaced revenue collections during the first 11 months. The latest Bureau of Treasury data showed that the 11-month deficit ran by the national government was 96% wider than the P243.5 billion posted a year ago....

Gov’t Debt Payments Up 5% in Jan-Oct

The amount of debt paid by the government during the first 10 months of the year increased by 5% to P649.7 billion, the latest Bureau of the Treasury data showed. Debt payments from January to October rose from P616.9 billion a year ago...

Work On NAIA Upgrade To Start Sept Next Year

The private sector consortium seeking to operate and upgrade capacity at Manila’s congested Ninoy Aquino International Airport (NAIA) is expected to start work around September 2019 or a year and half since it was first proposed. Undersecretary for Aviation Manuel Tamayo of the Department of Transportation (DOTr) shared the prospective timeline...

Fitch Affirms Philippines’ Debt Rating

Fitch Ratings has maintained its grade for Philippine debt, citing the country’s sustained strong overall economic growth even as it flagged overheating risks evidenced by rapid bank lending and a growing trade gap. The global debt watcher kept the Philippines’ credit rating at “BBB”— one notch above minimum investment grade— with a “stable” outlook....

BOP Posts $847mn Surplus In November 2018

Strong inflows boosted the country’s external payments position with the balance of payments (BOP) swinging back to a surplus in November, ending two straight months of deficits, according to the Bangko Sentral ng Pilipinas (BSP). Based on BSP data, the country posted a BOP suplus of $847mn in November​...

Electronics Exports Up 5.2% in 10Mos to $31.71Bn

The value of electronics exports in the first 10 months of the year rose 5.20% to $31.71bn, with the industry maintaining its place as the Philippines’ biggest source of merchandise exports. According to the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), the 10-month exports reflected gains by six of the nine product categories...

SM Investments Earnings up 8%

SM Investments Corp. (SM) reported an 8% increase in earnings for 1Q 2017, propelled by growth across its various businesses. It booked a net income of P7.7 Bn in the January to March period, from the P7.1 Bn recorded in the same period last year. Consolidated revenues also jumped 8% to P84.5 Bn. The property business had the biggest...