Bohol News Daily » Business

Inflation to peak in Q3

magnolia — Sat, 10 Jul 2010 10:42:42 +0000

PRICES of major commodities may peak sometime in the third quarter following a slowdown in June, but it is still possible that full-year inflation may be lower than the 4.7 percent average forecast, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

“We already lowered our forecast (during the last monetary policy stance meeting) to 4.7 percent from 5.1 percent. We may lower it again on the next meeting. We will study the data we have,” BSP Gov. Amando Tetangco said.

At the start of the year, the BSP said that inflation for this year would be within the target range of 3.5 percent to 5.5 percent, and set a forecast average of 4.7 percent for the full year.

But the BSP is not counting out the possibility of inflation going higher in the coming months even if it went down to 3.9 percent in June.

On Tuesday, the National Statistics Office said the headline inflation rate decelerated to 3.9 percent in June from 4.3 percent in May, further bolstering the central bank’s view that inflation this year will be “fairly safe.”

“June inflation at 3.9 percent is just a tad above the lower end of our forecast range for the month and nearly half a percentage point lower than the level in May of 4.3 percent. This inflation path therefore puts the full year inflation targets for 2010 and 2011 fairly safe,” Tetangco said. (PIA-Bohol)

Government to review borrowing program

magnolia — Fri, 09 Jul 2010 01:47:22 +0000

THE Aquino administration will embark on an aggressive liability management effort by exploring various options available to government, Finance Secretary Cesar Purisima said on Wednesday.

Purisima said the new government would review the current borrowing program set by the previous administration.

“What we want is to lengthen maturities,” said Purisima, adding that in three to four years, there would be some bunching up of maturities.

As such, he said the government would embark on a liability management effort by reviewing existing borrowing strategies and future plans.

Options include doing debt swaps and bond exchanges.

“We will consider all instruments available to us based on the right price and the right cost. It will also depend on the timing,” he said.

Purisima did not provide details on when the review would be concluded. (PIA-Bohol)

Consumers to enjoy lower money transfer fees – BSP

magnolia — Thu, 08 Jul 2010 02:21:53 +0000

THE Bangko Sentral ng Pilipinas (BSP) said that consumers will continue to enjoy lower money transfer and remittance costs due to heightened competition between banks and companies that offer money transfer and remittance services.

BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that companies that offer money transfer and remittances services have been forced to lower their fees in light of the strong competition from banks that offer similar services as well as providers of mobile banking services.

He pointed out that the central bank no longer needs to step in and intervene in the sector as competition has forced companies engaged in the money transfer and remittance business to lower their fees.

To date, the BSP said there are about eight million users of mobile banking in the Philippines boosting the central bank’s efforts to provide financial services in rural and hard to reach areas at a lower cost and higher efficiency.

These users of electronic money (e-money) transact through Smart Money of PLDT-controlled Smart Communications and G-cash of Ayala-controlled Globe Telecom in the Philippines.

Espenilla said the number of banks offering mobile banking for microfinance operations has reached 49 rural banks from none before 2005. (PIA-Bohol)

Institute of International Finance sees 6.2% RP growth this year

magnolia — Wed, 07 Jul 2010 03:33:05 +0000

THE economy is poised to grow by 6.2 percent this year on the back of a recovering global environment, the Institute of International Finance (IIF) said in its latest report on the country.

IIF said that aside from a recovery in the global economy, investors’ optimism on the new government also bodes well for the country.

The global research firm believes that President Aquino is likely to take the “window of opportunity” provided by favorable economic trends, in pursuing fiscal reforms that would boost gross domestic product (GDP).

It also welcomed the news that Mr. Aquino’s priority would be to address the fiscal slippage which he described as “alarming.”

IIF said the Aquino administration should be able to reverse the worsening budget deficit trend before it undermines investor confidence. (PIA-Bohol)

DTI approves removal of expiry dates on gift checks

magnolia — Tue, 29 Jun 2010 03:08:56 +0000

Manila, Philippines – the Department of Trade and Industry has issued an administrative order removing the expiration of gift certificates, checks and cards.

Zenaida Maglaya, Trade Undersecretary said, the order was issued last June 25 and would become effective upon its publication in July.

Maglaya added that the issue on the expiration of gift checks had already been discussed at the time when Peter Favila was still Trade secretary in response to the complaints of consumers about the short usage period given by the sellers.

Commercial establishments usually give an expiration term of one-year from date of issuance on their gift checks.

According to the DTI, the practice is contrary to state policy on protection of consumer welfare and interest and promotion of fair, honest, and equitable relations between parties in consumer transactions.

Click here for full article from Philippine Star

RP economy expected to benefit from yuan rise

magnolia — Wed, 23 Jun 2010 07:27:43 +0000

CHINA’S move to allow the yuan to appreciate could benefit the Philippines, the central bank and analysts said on Sunday.

Removal of the dollar peg would, in particular, make Philippine exports more attractive, some analysts said, although others pointed out that any gains — trade or otherwise — required a significant appreciation of the currency.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said in a text message to reporters that the move by [Chinese] authorities to improve the exchange rate mechanism and increase the regime’s flexibility reflects an assessment from authorities that the recovery in Chinese economy is on a more solid footing.

The People’s Bank of China (PBOC) last Saturday announced that it would “increase the … exchange rate flexibility” of the yuan, effectively signaling a departure from the 23-month-old dollar peg which the government installed at the height of the 2008 financial crisis.

The announcement came shortly before a G20 summit in Canada this weekend, where China was expected to receive flak for keeping the yuan weak to fortify its external trade advantage.
(PIA-Bohol)

Consumer confidence hits record high of 10% in Q2 – BSP

magnolia — Sat, 12 Jun 2010 03:37:29 +0000

CONSUMER confidence in the next 12 months has become more optimistic due to the outcome of the recent elections.

In the latest Consumer Expectations Survey (CES) of the Bangko Sentral ng Pilipinas (BSP), the consumer confidence index (CI) for the year ahead jumped to a record 10 percent from 5.1 percent a quarter ago and -7.6 percent a year ago.

In particular, the survey showed that the next three months’ CI reached its second highest level since the nationwide survey started in 2007, although the pessimists continued to outnumber the optimists but only by a small margin.

CI for the next quarter reached -1.8 percent, higher from the -4.8 percent recorded in the previous quarter.

“The positive outlook for the next quarter mirrored the rebound in consumer confidence in other countries such as the United States, China, Mexico, Hungary, Slovenia, and Czech Republic,” BSP said. (PIA-Bohol)

March exports grow 43.7%, highest since 1991

magnolia — Fri, 14 May 2010 01:50:40 +0000

MERCHANDISE exports rose 43.7% in March as demand from the country’s main markets continued to recover along with the global economy.

Data from the National Statistics Office (NSO) showed that the country’s export earnings for the third month of 2010 rose to $4.18 billion from the year-ago level of $2.9 billion. On a monthly basis, exports rose 17% from $3.57 billion in February. Overall, exports jumped 42.9 % in the first quarter.

Acting Socioeconomic Planning Secretary Augusto Santos said this is the highest year-on-year increase since the National Statistics Office started compiling monthly exports statistics in 1991.

Shipments of electronics, which dominate exports and are largely assembled from imported parts, climbed 49.1% year-on-year to $2.42 billion in March after a 53.3% jump in February.

The Philippines expects exports to grow 12% and imports to rise 18% in 2010. In 2009, exports fell 21.9%, not as sharp as the government’s forecast drop of 25%.

The main electronics industry group expects shipments to grow 20% or more this year on strong demand from China and India.

The government may consider raising its 2.6%-3.6% economic growth target for 2010 amid a slew of strong indicators this year. (PIA-Bohol)

February exports rise for four straight months

magnolia — Thu, 15 Apr 2010 01:37:44 +0000

Philippines’ exports grew for the fourth straight month in February driven by increased demand for the country’s electronic goods.

Exports grew 42.3% year-on-year after a 42.5% rise in the previous month, the National Statistics Office said Tuesday. Economists were looking for a 39.9% increase. Export earnings in February jumped to $3.567 billion from $2.506 billion in the previous year.

However, on a monthly basis, export revenue dropped 0.4% in February. In January, revenue rose 8.1% on a monthly basis.

Electronic products with a revenue share of 58.1% topped the list of exported goods in the country by earning a total revenue of $2.072 billion during the month. Export earnings of electronic goods grew 53.4% year-on-year after 51.2% in January. On a monthly basis, export earnings from electronic goods rose 1.9%, following the 8.1% growth in the previous month.

Semiconductors, accounting for 42.3% of the total export earnings, earned an export revenue of $1.508 billion, up 59.6% compared from the previous period.

Japan emerged as the top export destination for the country, comprising 17.6% share of total exports. Total export earnings from Japan increased 55.4% annually to $627.04 million in February. Exports to the U.S. accounted for 16.9% of the total exports and the revenue stood at $603.83 million. The export value increased 29.5% year-on-year, making it the second largest market for Philippine goods. (PIA-Bohol)

ADB hikes RP growth forecast to 3.8%

magnolia — Thu, 15 Apr 2010 01:35:19 +0000

THE Asian Development Bank (ADB) has upgraded its growth forecast for the Philippine economy this year to 3.8 percent, from an earlier estimate of 3.1 percent, driven by increased private consumption on the back of robust remittances and election spending.

In the latest Asian Development Outlook (ADO) 2010, the ADB’s flagship annual economic publication reported that from a very weak 0.9 percent growth in 2009, the country’s gross domestic product (GDP) will recover significantly to expand 3.8 percent and 4.6 percent in 2010 and 2011, respectively.

However, the ADB said the Philippines still needs to seriously address several constraints to growth if it is to reach its full potential. The growth forecasts remain below both potential growth and average growth (5.5 percent) during 2004-2008, the report pointed out.

But the ADB said investments are forecast to rebound from last year’s low levels, while external trade will be considerably stronger this year. Exports will also grow in line with the global recovery. (PIA-Bohol)