PH CURRENT ACCOUNT LOGS DEFICIT IN JAN-JUNE PERIOD

The country’s current account logged a lower deficit in the first half of the year, according to the Bangko Sentral ng Pilipinas (BSP).
BSP Department of Economic Statistics Senior Director Redentor Paolo Alegre said on Sept. 13 that for the January-June period, the country’s current account recorded a deficit of $7.1 billion, going down by 17.8% from the $8.6 billion deficit in the first half of 2023.
The lower current account deficit was mainly due to the narrowing trade in goods deficit and the higher net receipts in the primary and secondary income accounts.
According to the BSP, the current account deficit during the period is equivalent to -4.1% of the country’s gross domestic product (GDP).
For the second quarter alone, the current account deficit, however, went up by 25%.
“For the second quarter we see an increase in the current account deficit to $5.1 billion from $4.1 billion,” said Alegre.
“It’s really driven by trade in goods deficit which increased in the second quarter,” he added.

NIA TRANSFER TO OFFICE OF THE PRESIDENT CRUCIAL FOR FOOD SECURITY GOALS
The transfer of the National Irrigation Administration (NIA) from the Department of Agriculture (DA) to the Office of the President (OP) is crucial in realizing the current administration’s target to achieve food security.
President Ferdinand R. Marcos Jr. ordered the reorganization and transfer of the NIA from the DA to the OP under Executive Order No. 69.
NIA Administrator Eduardo Guillen said on Sept. 12 that the President’s move only shows his “sincerity” for the country to achieve food security as part of his 8-point economic agenda.
“What is really needed for food security is irrigation. So, for us to quickly address this, we are now placed) under (the) Office of the President,” he said in Filipino.
Under the OP, Guillen assured that the implementation of NIA’s big-ticket projects in convergence with other government agencies including the DA and the Department of Public Works and Highways (DPWH) will be streamlined.
“We are now directly under the Office of the President. Before, the process is very tedious, but now it will be faster,” he said, citing the possibility to reduce two to three months of processing time for major irrigation projects.
The NIA has numerous projects lined up for irrigation and water or flood management for around 1.2 million hectares of irrigable farm lands.

PAGCOR CASINOS TO BE PRIVATIZED STARTING 2026
The Philippine Amusement and Gaming Corp. (PAGCOR) will start privatizing its casinos in 2026 instead of next year.
“As to the privatization of PAGCOR casinos, we intend to start the process by early 2026,” PAGCOR Chairman and Chief Executive Officer Alejandro Tengco.
“Since day one, we have been very vocal about our plans to focus solely on PAGCOR’s role as a regulator to provide a level playing field for all our stakeholders,” he added.
Tengco said PAGCOR expects to generate at least P50 billion from the privatization of over 40 casinos nationwide.
However, the PAGCOR charter must first be amended before its casinos can be privatized, which is expected to happen in 2025.
Tengco assured employees who will be affected by the privatization will be given compensation.

PH TOTAL EXTERNAL TRADE IN GOODS UP 4.5% IN JULY
The country’s total external trade in goods increased by 4.5% in July, according to the Philippine Statistics Authority (PSA) on Sept. 10.
PSA data showed that the country’s total external trade in goods reached $17.37 billion, up from the $16.62 billion of the same period last year. About 64% of the total amount were imported goods, while the remaining 36% were exported merchandise.
Export revenues slightly went up to $6.249 billion in July from $6.246 billion in July last year.
Copper concentrates logged the highest increase in exports in July followed by other manufactured goods, coconut oil, machinery and transport equipment, and other mineral products.
By commodity group, electronic products remained the country’s top exports as earnings reached $3.25 billion.
The United States is still the biggest export market of the Philippines at $1.06 billion, followed by Japan, China, Hongkong, and South Korea.
Imports, meanwhile, amounted to $11.12 billion, an increase of 7.2%from the $10.37 billion in July last year. China remained the biggest source of imports at $3.08 billion.
“In July 2024, the commodity group with the highest annual increment in the value of imported goods was electronic products with $268.32 million. This was followed by iron and steel, which increased by $194.40 million, and industrial machinery and equipment with an annual increase of $92.31 million,” the PSA said.

FILIPINO CEOS NOW MORE OPTIMISTIC
Filipino chief executive officers (CEOs) chiefs are now more optimistic since the pandemic, with more than 80% expecting better prospects for their industries and companies in the next 12 months.
According to the Philippine CEO Survey of PwC Philippines and the Management Association of the Philippines (MAP) on Sept. 9, about 86% of the CEO respondents are confident about their industry’s prospects for the next 12 months, while 85% of CEOs are confident that their company will experience revenue growth in the next 12 months.
“Even during the pandemic our CEOs are optimistic… But this year is the highest since the pandemic,” said PwC deals and corporate finance partner Trissy Rogacion at the press launch of the result of the survey.
She clarified that large companies, representing the majority of the respondents, are more optimistic than the small and medium enterprises (SMEs), given that large firms have more resources.
Rogacion said CEOs are also expecting that the Philippine economy will continue to grow over the next 12 months driven by infrastructure development, domestic consumption, and foreign direct investments.
However, the CEO survey showed that current geopolitical uncertainties are still causing worries for them.

(Photo from PNA)