The Bangko Sentral ng Pilipinas (BSP) is expecting the inflation rate for May 2024 to settle between the 3.7% to 4.5% range.
“Continued increases in electricity rates and vegetable prices alongside recent peso depreciation are the primary sources of upward price pressures for the month,” the BSP said in a statement on May 31.
The peso has been trading above P58 to a dollar for most of the last two weeks of the month, while the Manila Electric Company has announced that power rates in May increased by P0.4621 per kilowatt hour (kWh) to P11.4139 per kWh from P10.9518 per kWh in the previous month.
Philippine inflation has been on an uptrend since February, or 3.4% in February, 3.7% in March, and 3.8% in April. The May inflation rate will be announced on June 5.
MERALCO UNIT TO SUPPLY ENERGY TO HYPERSCALE DATA CENTER
A unit of the Manila Electric Company – Meralco Energy Inc. (MSERV) – will provide energy for the country’s largest hyperscale data center ST Telemedia Global Data Center (STT GDC PH).
In a statement on May 31. MSERV said its partnership with STT GDC PH will push for innovation and technological advancement in the local digital industry. STT GDC PH is a joint venture of Globe Telecom, Inc., Ayala Corp, and Singapore-based STT GDC. The facility is located in Fairview, Quezon City.
It also has data center facilities in Metro Manila, Cavite, and Davao.
“This collaboration goes beyond just securing electricity; it fuels a shared vision for a transformative digital future that unlocks innovation and growth across the nation,” STT GDC head of design and construction Pierre San Diego said.
MEGAWORLD TO DEVELOP INFORMATION TECHNOLOGY PARK IN PASIG
Megaworld Corp. and the The Philippine Economic Zone Authority (PEZA) announced on May 30 that they have executed an agreement to develop the P817.5-million IT (information technology) park Arcovia City in Ugong, Pasig City.
PEZA Director General Tereso Panga and Megaworld Executive Vice President Kevin Tan signed the registration agreement for the project.
“Megaworld’s commitment to nation-building is evident through their active participation in the country’s ecozone program. By establishing new zones, we can host global players in the IT-BPM industry, thereby giving more opportunities for Filipinos,” Panga said.
The IT Park of Megaworld’s township project in Pasig.
PH ECONOMIC GROWTH TO ACCELERATE IN SECOND QUARTER
The country’s economic growth can accelerate in the second quarter of this year, fueled by ramped up government spending, easing inflation, and better employment figures.
The May issue of The Market Call released on May 29 said that the country’s gross domestic product (GDP) is projected to grow by 5.9% in the second quarter of the year, or higher than the 5.7% increase in the first quarter of the year.
“We retain our nuanced optimism with respect to an acceleration that should start in Q2 (second quarter) continuing for the rest of 2024,” the latest issue of The Market Call said.
The Market Call is published by First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P).
PH MANUFACTURING SEEN RECOVERING IN APRIL
The country’s manufacturing output is forecast to have slightly recovered in April after contracting or decreasing in March, according to an economist from the private sector.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said on May 29 that the decline in value and output of the manufacturing sector in March was caused by the reduced number of working days during the Holy Week.
“More working days in April 2024 would lead to month-on-month recovery in manufacturing,” Ricafort said.
The latest report from the Philippine Statistics Authority (PSA) on the value of production index showed that it decreased by 1.7% in March, a reversal from the 9.1% increase in March last year and the 5.7% growth seen in February this year.
Also, volume of production index also declined by 0.8% from the 7.2% expansion in February.
BSP VOWS COMMITMENT TO INTEGRITY, PROFESSIONALISM
The Bangko Sentral ng Pilipinas (BSP) said on May 28 said it remains committed to upholding integrity and professionalism in the organization amid reports that four employees in the offices of two Monetary Board (MB) members received salaries but never reported for work.
“In October 2023, the Office of the General Counsel triggered an investigation after receiving credible information that several staffers in the offices of two MB members had not been reporting for work for extended periods of time but were nonetheless receiving their salaries,” the BSP said.
“The irregularities appear unprecedented in an organization that upholds integrity and professionalism at all levels. The BSP remains committed to upholding that,” it added.
The Monetary Board of the BSP decides on the key policy rates in the country, which greatly influences the interest rates on loans for consumers and businesses.
PH ECONOMY SEEN BECOMING ‘ECONOMIC GIANT’ BY 2033
The Philippine economy as measured by gross domestic product (GDP) is expected to make sustained growth and become one of the world’s economic giants by 2033, Department of Finance (DOF) Secretary Ralph Recto said on May 27.
In his speech at the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, Recto said that based on the views of global research firms and analysts, the country’s GDP is projected to grow by 5.8% to 6.3% this year, outperforming other Southeast Asian economies.
For 2025, Philippine GDP growth is projected to hit 5.9% to 6.5%.
“This trajectory puts us firmly on course to become a trillion-dollar economy in less than a decade. This means that by 2033, our economy will nearly triple in size, placing us in the league of economic giants like China, Japan, India, and South Korea,” Recto said.
“And we are expected to continue outpacing the growth of Asia’s economic powerhouses in the years to come. Fast forward to 2075, the Philippines will overtake France to become the 14th largest economy in the world,” he added.
71-KM RAILWAY LINE IS LUZON CORRIDOR FLAGSHIP PROJECT
The 71-kilometer railway project connecting Batangas, Manila, Subic and Clark has been identified as the flagship project of the Luzon Economic Corridor, Special Adviser to the President for Investment and Economic Affairs Secretary Frederick Go said May 27.
Go called the project the Subic-Cargo-Manila-Batangas (SCMB) railway.
“The only line we approved is only Subic to Clark, but we will extend it to Manila and to Batangas – one line,” Transportation Secretary Jaime Bautista said.
“We’re in the process of procuring the consultant who will prepare the feasibility study. Hopefully, in a few weeks or a few months, we will already start the procurement,” he added.
(PHOTO FROM PNA)
