PHILIPPINES AND CZECH REPUBLIC SEEKS BETTER TRADE TIES

The Philippines and Czech Republic are seeking to boost trade ties with the holding of the second Joint Committee on Economic Cooperation (JCEC).

Undersecretary Allan Gepty and Ministry of Industry and Trade Director General Eduard Muřický of the Czech Republic led the JCEC discussions, according to the  Department of Trade and Industry (DTI) on August 9.

“The Czech Republic is an important partner of the Philippines in Europe. We believe that the JCEC offers an opportunity for us to enhance not only our trade and investment relations but also achieve more concrete outcomes that would contribute to the sustainable development of our countries. The identified areas of cooperation reflect our mutual interests based on industrial strengths, technical expertise, and resource endowments,” Gepty said.

During the meeting that took place in Pasay City last July 31, both parties discussed strengthening cooperation in areas of agriculture, manufacturing, healthcare industry and medical devices, energy, environment, mining, transportation, information technology and business process management, aerospace and space technologies, defense, education, labor, and tourism.

NON-PERFORMING LOANS AMONG BANKS AT 3.51% IN JUNE

The proportion of non-performing loans (NPLs), also called “bad loans,” of Philippine banks to their total loans was at 3.51% in June this year, data released by the Bangko Sentral ng Pilipinas (BSP) on August 9 showed.

The latest NPL ratio for June is slightly lower than the 3.57% logged in May this year. However, this is higher than the 3.43% recorded in June last year.

BSP data showed that the gross non-performing loans amounted to P502.4 billion, up from the P495.6 billion in May this year and the P437.6 billion recorded in June 2023.

Commenting on the latest BSP data, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the NPL ratio improved in June but was still among the highest in nearly two years amid the recent double-digit growth in loans that increased the denominator and led to the easing of the NPL ratio.

“Further recovery of many businesses since the final lifting of the [coronavirus disease 2019] state of public healthy emergency for more than year already or no more Covid-related restrictions since July 22, 2023 also helped eased the NPL ratio and further increased the demand for loans to fund more investments for new businesses and for expansion projects,” Ricafort said.

LOCAL VEHICLE SALES UP 6.1% IN JULY

Local vehicle assemblers said on July 8, 2024 that their sales increased in July 2024 by 6.1% to 39,331 units from the 37,096 units recorded in the same month in 2023, according to a joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA).

Both passenger car and commercial vehicle segments rose last month. Passenger cars sold 10,923 units in July 2024, up by 14.9% than the sales figure of 9,509 units one year ago.

Meanwhile, commercial vehicle sales for the same period stood at 28,408 units this year from 27,577 units in the previous year.

Month-on-month, sales growth was at 0.6 percent from June 2024’s 39,088 unit sales.

“New product launches, improved product offerings, good sales momentum, as well as supply availability helped neutralize the impact of Typhoon Carina, especially towards the latter part of July,” CAMPI president Rommel Gutierrez said in a statement.

PSA REVISES FIRST-QUARTER GDP TO 5.8%

The first quarter Philippine gross domestic product (GDP) growth has been adjusted to 5.8% from 5.7%, according to the Philippine Statistics Authority (PSA) on August 7.

The PSA said major contributors to the upward revision were financial and insurance activities, rising from 10% percent to 10.3% percent, and wholesale and retail trade repair of motor vehicles and motorcycles, going up from 6.4% to 6.6%.

Also contributing to the upward adjustment of the first-quarter GDP are electricity, steam, water and waste management, up from 6.3% to 6.9%, also contributed to the upward revision.

“The Philippine Statistics Authority revises the GDP estimates based on an approved revision policy which is consistent with international standard practices on national accounts revisions,” the PSA said.

PHILIPPINE PER CAPITA GDP BACK TO PRE-PANDEMIC LEVEL

The latest gross domestic product (GDP) per capita for the Philippines has already surpassed the pre-pandemic level by more than 10%, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said on August 6.

He cited that the GDP per capita in the first quarter of 2024 grew 4.8%and already surpassed the pre-pandemic level by 10%. Also, World Bank data showed that in 2019, the Philippines’ GDP per capita was at $3,413.8. When Covid-19 started in 2020, it declined to $3,224.4.

The GDP per capita, or the average income per person in the country, is now over $3,700.

The NEDA chief said the government was able to attract investments that would create quality jobs, as underemployment in May 2024 settled at 9.9%, a record-low since 2005.

“To boost growth next year, the Marcos administration will continue to implement the strategies we have set in the Philippine Development Plan (PDP) 2023-2028, guided by the lessons we have identified in the Philippine Development Report 2023,” Balisacan said.

DTI AND SMART TO HELP SARI-SARI STORES TO DIGITALIZE

The Department of Trade and Industry (DTI) has partnered with Smart Communications Inc. to support sari-sari (general merchandise) store owners nationwide through the provision of digital solutions.

Smart said on July 6 that it has forged a memorandum of understanding with DTI to support the agency’s Tindahan Mo, e-Level Up Mo Program to support the growth of sari-sari store owners by providing them knowledge on new digital solutions and products, financial and marketing tips, and sustainable practices for store operations via free webinars through the official Facebook and YouTube accounts of the DTI.

“The Sari-Sari Store Advancement Program, entitled Tindahan Mo, e-Level Up Mo, adopts a multifaceted approach to uplift our micro retailers, focusing on digital transformation, financial literacy, sustainable business practices, and consumer protection. Our goal is clear: to make our sari-sari stores more resilient, innovative, and competitive in the digital economy,” DTI Undersecretary Jose Edgardo Sunico said.

2025 BUDGET SEEN BENEFITING ALL FILIPINOS

The proposed P6.352-trillion national budget for 2025 is the “best tool” to sustain economic growth and benefit all Filipinos, said House Speaker Martin Romualdez on August 5.

Romualdez said Congress from the start of deliberations will ensure that every peso in next year’s capital outlay is judiciously allocated and spent by prioritizing programs and initiatives that will contribute to national goals and the well-being of citizens.

“The budget is the best tool we have to ensure that our people, especially the poor, feel the tangible benefits of our economic achievements,” Romualdez said. “It is through the careful and strategic allocation of resources that we can ensure every citizen has a stake in the country’s development.”

The proposed budget for next year is equivalent to 22 percent of the country’s gross domestic product (GDP) and reflects a 10.1 percent increase from the PHP5.768 trillion budget in 2024.

President Ferdinand R. Marcos Jr., in his third State of the Nation Address last week, said the 2025 budget was crafted with the highest levels of care, diligence, and meticulous attention to detail.

“We expect all agencies to ensure that every centavo allocated will be judiciously spent on our urgent priorities and socially impactful programs,” Marcos said.

(PNA Photo by Yancy Lim)