GLOBAL ECONOMIC GROWTH SEEN SLOWING TO 2.9% THIS YEAR

Global economic growth is seen slowing down to 2.9% in 2024 and 2025 from 3.1% in 2023 primarily caused by geopolitical tensions.
“Geopolitical tensions remain elevated, shaped by ongoing conflicts in the Middle East, the protracted war between Russia and Ukraine, and a noticeable cooling in relations between Western democracies and China,” the Institute of International Finance (IIF) said in a report released on Sept. 20.
“These developments are occurring simultaneously, adding layers of complexity and uncertainty to the global landscape,” it added. “In such a volatile environment, political events gain heightened importance.”
According to the IIF, the US general election this comig November stands out as the most significant political event of the current year on a global scale. It said that the outcome or result of the US polls could have “far-reaching” implications for both domestic and international policy, influencing a big number of areas from trade relations to military engagements.

PH POSTS BALANCE OF PAYMENTS SURPLUS IN JULY

The country’s overall balance of payments (BOP) position continued to post a surplus in August this year, the Bangko Sentral ng Pilipinas (BSP) said.
Data released by the BSP on Sept. 19 showed that the BOP position last month recorded a surplus of $88 million, a reversal from the $57 million BOP deficit recorded in August 2023.
“The BOP surplus in August 2024 reflected inflows mainly from the net income from the Bangko Sentral ng Pilipinas’ investments abroad,” the central bank said.
The BOP is a summary of the economic transactions of a country with the rest of the world for a specific period.
The overall position can be in surplus, deficit or balance.
According to the BSP, the country’s BOP position recorded a surplus of $1.6 billion, lower than the $2.1 billion surplus of in the same period in 2023.

TOURISM ENERGY AND WATER DEMAND INCREASE

The demand for water and energy, and carbon dioxide emission of the country’s tourism sector showed a sustained increase in 2023,
Data released by the Philippine Statistics Authority (PSA) on Sept. 19 showed that total tourism water consumption reached 202.20 million cubic meters (m3) last year, up by 117.2% from the 93.08 million (m3) in 2022.
Of the total consumption, accommodation services for visitors accounted for the highest water consumption.
The total energy consumption of tourism from the use of electricity and petroleum and other fuel products reached 6,135.28 kilotonnes of oil equivalent (KTOE) in 2023, higher by 107.4% from the 2,957.64 KTOE recorded energy consumption in 2022.
“Transport services for visitors posted the highest energy consumption among tourism characteristic products in 2023 at 2,265.79 KTOE. This accounted for 36.9% of the total energy consumption of tourism from the use of electricity and petroleum and other fuel products,” the PSA said.

BSP TO MAKE RESERVE REQUIREMENT CUT

The Bangko Sentral ng Pilipinas (BSP) will make “substantial” reduction in banks’ reserve requirement ratio (RRR) before the end of this year.
“I have promised a cut in the reserve requirement. We’re considering it. We’ve discussed the timing of it. I would say it’s going to happen this year,” BSP Governor Eli Remolona Jr.Remolona said in a briefing at the BSP head office in Manila on Sept. 18.
“We will reduce reserve requirements substantially this year and then there may be further reductions by next year,” he added.
The RRR refers to the percentage of bank deposits and deposit substitute liabilities that banks must set aside in deposits with the BSP that the banks cannot lend out.
In June last year, the RRR of universal and commercial banks and non-bank financial institutions with quasi-banking functions was slashed by 250 basis points to 9.5%.

PEZA APPROVES NEARLY P7-B IN NEW PROJECTS

The Philippine Economic Zone Authority (PEZA) Board of Directors has approved almost P7 billion worth of investments from 21 new and expansion projects.
PEZA said on Sept. 17 that the new project registrations were approved during a board meeting at the West Cebu Estate in Balamban, Cebu last Aug. 27, and comprised of six for manufacturing sector, six information technology (IT) enterprises, four ecozone developments, and one each in agro-industrial, facilities enterprise, ecozone utilities, ecozone domestic enterprise, and ecozone logistics service enterprise.
The agency added these investments are projected to boost Philippine exports by $96.6 million annually.
“From January to August 2024, the total impact of investments and expansions on job generation amounted to 31,827, which is 72.91 percent higher compared to the 18,407 jobs created in the same period last year,” PEZA Director General Tereso Panga said.
JULY OFW REMITTANCES UP 3.2%
Personal remittances from overseas Filipino workers (OFWs) in the month of July went up by 3.2% year-on-year.
According to Bangko Sentral ng Pilipinas (BSP) data released on Sept. 16, personal remittances amounted to $3.43 billion in July from $3.32 billion a year ago.
The BSP said the increase was from higher remittances from land-based workers with contracts of one year or more and sea- and land-based workers with work contracts of less than one year.
“The expansion in cash remittances in July 2024 was due to the growth in receipts from land- and sea-based workers,” the BSP said.