PH ECONOMY SEEN GROWING UP TO 6.5% IN THIRD QUARTER

Philippine economic growth in terms of gross domestic product (GDP) is forecast to grow within the 6% to 6.5% range in the third quarter of the year, Rizal Commercial Banking Corporation chief economist Michael Ricafort said.

Philippine GDP growth settled at 6.3% in the second quarter of the year and 5.8% in the first quarter.

The economist said on Oct. 18 that the seasonal increase in importation, manufacturing and other production activities in preparation for the increased demand during the holiday season likely helped boost growth during the third quarter.

“Increased infrastructure spending would also contribute to economic growth in view of election-related spending in preparation for the May 2025 elections,” Ricafort said.

However, he said that offsetting risk factors include storms and the La Niña that could have caused some disruptions in the country’s business and other economic activities.

The third quarter GDP growth data will be released in the first week of November.

DOE EYES BILATERAL AGREEMENTS FOR RENEWABLE ENERGY

The Department of Energy (DOE) is intensifying its efforts in closing energy cooperation deals at the bilateral level to enable the country to reach its renewable energy target.

“Our ambitions are not at the same levels. We are a bit behind because it’s 50% by 2040, so we have much to learn from Saudi Arabia,” DOE Secretary Raphael Lotilla said in an interview on Oct. 18.

To help attain that, Lotilla led an energy mission in Saudi Arabia this week, signing the country’s first memorandum of understanding (MOU) with the Saudi Energy Minister Abdulaziz bin Salam Al Saud.

Maharlika Investment Corp. President and Chief Executive Officer Rafael Consing Jr. also joined the energy mission to the Middle East country. Also joining the mission were representatives from Philippine energy firms ACEN Corp., Aboitiz Power, Amber Kinetics, Citicore Renewable Energy Corp., and San Miguel Corp. Power Holdings that held meetings with Masdar, Emirates Nuclear Energy Corp. (ENEC), and the International Renewable Energy Agency (IRENA).

GOVT STREAMLINING MINING APPLICATION PROCESS

The government is pushing for reforms to streamline the mining application process in the country, according to Department of Environment and Natural Resources (DENR) Undersecretary for Integrated Sciences Carlos Primo David.

During a forum organized by the Chamber of Mines of the Philippines (COMP) on Oct. 17, the DENR also rolled out a digital application process in three regions of the country.

“We have rolled out our digital application process. We’ve already gotten feedback. Once it’s okay, this will be rolled out nationwide,” David said during the forum at The Westin Manila in Ortigas.

He said the digital application process rolled out in three regions, including Caraga and Davao, will help cut the mining application process to a maximum of two years.

“When you start to evaluate applications, there are always technical and legal aspects and it depends on the person evaluating that. We want to track where these permits are getting stalled,” David said.

AUSTRALIA LAUNCHES DEVELOPMENT PROGRAM FOR PH

Australia launched on Oct. 17 a five-year development partnership with the Philippines that will last until 2029.

“For the first time, we are actually launching a long-term plan that actually outlines where Australia’s effort is going to be when it comes to development outcomes,” Australian Ambassador to the Philippines Hae Kyong Yu said in her speech during the project’s launch.

She added that the Australian government consulted 85 government agencies and other organizations in crafting her country’s partnership program with the Philippines.

The partnership plan focuses on three objectives: enhancing the condition for stability; bolstering inclusive and sustainable growth; and increasing institutional and community resilience to social, economic, and climate-related shocks.

PPP PROJECTS IN PIPELINE REACH 169 WORTH P3.2 TRILLION

The Public-Private Partnership (PPP) Center now has 169 projects worth P3.2 trillion in the pipeline for undertaking through cooperation between the government and private sector.

The PPP Center said on Oct. 17 that majority or 113 of these projects are at the national level and the remaining 56 projects will be implemented by local government units (LGUs), and 91 are solicited and 78 are unsolicited projects.

Among the projects that will likely be awarded by the end of the year include the upgrade, expansion, operations, and maintenance of the New Bohol International Airport, and Negros Occidental Bulk Water Supply Project.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan earlier said that PPPs are crucial in strengthening disaster resilience in the Philippines, particularly in developing more climate-resilient infrastructure.

“Limited fiscal space, especially in the aftermath of the Covid-19 pandemic, necessitates developing our governance framework for public-private partnerships to finance climate-resilient infrastructure,” he said.

SEPTEMBER VEHICLE SALES UP BY 2.4%

Sales of vehicles in September this year increased by 2.4 percent to 39,542 units from the 38,628 units in the same month in 2023, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) on Oct. 16.

Passenger car sales mainly pushed vehicle sales in September, reaching 10,438 units or 9.2% higher than the 9,558 units sold in September last year. On the other hand, commercial vehicle sales logged a flat growth of 0.1% to 29,104 units from 29,070 units in the same comparable period in 2023.

“The increase can be attributed to new stock arrivals and improved promotions from the brands,” CAMPI president Rommel Gutierrez said in a statement.

He said there were no new model releases last month as most automotive firms will launch launch their latest offerings in the upcoming 9th Philippine International Motor Show from Oct. 24 to 27 at the World Trade Center in Pasay City.

RESOURCES OF PH FINANCIAL RESOURCES UP BY 9.2%

The total resources of the Philippine financial sector went up by 9.2% to P32.14 trillion as of end-August this year, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Preliminary BSP data released on Oct. 15 showed that the total resources of banks and non-bank financial institutions reached P32.14 trillion in August, for an increase of P29.43 trillion in August last year. Meanwhile, banks’ total resources amounted to P26.80 trillion, up from last year’s P24.23 trillion.

Broken down, the resources of universal and commercial banks rose to P25.08 trillion from P22.68 trillion, while the resources of thrift banks rose to P1.13 trillion.

Furthermore, the resources of digital banks amounted to P110.3 billion, while those of rural and cooperative banks reached P478.9 billion.

The total resources of non-banks increased to P5.3 trillion from P5.1 trillion in August last year.
Non-banks include BSP-supervised investment houses, financing companies, investment companies, securities dealers or brokers, pawnshops, lending investors, non-stock savings and loan associations, credit card companies, government non-bank financial institutions, and authorized agent banks and forex corporations.

OFW REMITTANCES UP IN AUGUST

Personal remittances from overseas Filipino workers (OFWs) went up by 3.3% percent in August, according to the Bangko Sentral ng Pilipinas (BSP).

BSP data showed on Oct. 15 that personal remittances during the month reached $3.2 billion, which is higher compared to the $3.1 billion logged in August last year.

“The expansion in personal remittances in August 2024 was due to higher remittances from land-based workers with work contracts of one year or more, and sea- and land-based workers with work contracts of less than one year,” the BSP said.

Personal remittances cover cash sent through banks and informal channels and also remittances in kind.

Of the total personal remittances from OFWs, cash remittances coursed through banks reached $2.89 billion, for an increase of 3.2% compared to the $2.80 billion in August 2023. The higher cash remittances in August 2024 were due to the growth in receipts from land- and sea-based workers, according to the BSP.

PH SIGNS ASEAN INVESTING TRANSPARENCY AGREEMENT

The Philippines is one of the signatories of the 5th Protocol to Amend ASEAN Comprehensive Investment Agreement (ACIA), aimed at enhancing the certainty and transparency of investing in the region.

Department of Trade and Industry (DTI) Acting Secretary Ma. Cristina Roque said on Oct. 14 that the signing of AICA is one of the highlights of the recently concluded Association of Southeast Asian Nations (ASEAN) Summit in Vientiane, Lao.

“The ASEAN made significant progress in several areas of economic integration. Notably, we signed the 5th protocol to amend the ASEAN Comprehensive Investment Agreement,” Roque said, adding this agreement will make it easier for investors to identify sectors open for investments in the Philippines.

For his part, DTI Undersecretary for International Trade Group Allan Gepty said that the Protocol presents a more stable and predictable business environment necessary to attract more capital into the country.

(PHOTO FROM PNA)