Category Archives: Economy

Government to Borrow P889.72-B in 2018

The government plans to borrow P889.72 billion next year, 22.3% more than the revised P727.64-billion program for 2017. It will retain an 80:20 borrowing mix in favor of domestic sources. The administration is looking at a wider deficit ceiling equivalent to 3% of GDP annually starting 2017, as it plans to drastically raise spending, particularly on infrastructure. The borrowing schedule, however, does not factor in yet the plan to issue panda bonds that Finance Secretary Carlos Dominguez want to issue within the… Continue reading

Government Defers Unsolicited Airport Project Proposals

The government plans to develop Sangley Point in Cavite (an old US Air Force base just south of Metro Manila) into an airport for smaller planes in order to decongest the main airport. Four multi-billion unsolicited proposals from the private sector will be deferred in the meantime, with the Department of Transportation claiming that the government has the funds to undertake the project… Continue reading

Balance of Payments Forecast for 2017 Revised Downwards

The Bangko Sentral ng Pilipinas (BSP, Philippine central bank) has revised the balance of payments assumption for 2017 to a deficit of $500 million from the original target of a surplus of $1 billion due to uneven global economic growth and volatile financial markets. Latest data show a deficit of $78 million in the first four months of the year. The country incurred a deficit of $420 million last year, missing the $500 million surplus target and a complete turn around from the surplus of $2.62 billion in 2015. The BSP… Continue reading

Philippine Foreign Debt Down 4.9% in First Quarter of 2017

External debt stood at $73.8 billion in the first quarter, lower by 4.9% when compared to the same quarter last year. The decline was due to net principal repayments by public and private sectors, audit adjustments from the previous period, and downward foreign exchange revaluation adjustments. Impact, however, was offset by an increase in non-residents’ investments in Philippine debt papers issued offshore amounting to $126… Continue reading

TradeNet Platform to Reduce Processing Time for Trade Permits

The government will pilot test next month the TradeNet platform, which seeks to modernize and hasten the processing of import and export permits. The online platform will connect 66 agencies and 10 economic zones involved in regulating trade. If successful, it will be fully implemented in September and connected to the ASEAN window by December. The eventual target is to reduce processing time to one hour from… Continue reading

Foreign Portfolio Investments Post $24.35-Million Net Outflow in May

Foreign portfolio investments posted a net outflow of $24.35 million in May, reversing April’s $51.39 million and the $72.81 million net inflows in the same period last year. This was attributed to investor reaction to weak first-quarter earnings of some corporations and lower-than-expected GDP. From January to May, the country already recorded a net outflow of $540.39 in hot money, a reversal of last year’s $129.07 million… Continue reading

First Quarter Foreign Direct Investments Up 16.6%; Pledges Fall 12.8%

Foreign direct investment (FDI) commitments registered with the country’s investment promotion agencies fell 12.8% to P22.883 billion in the first quarter from P26.243 billion approved in the same period last year.  Actual FDI that  came in, which is tracked separately by the central bank, climbed 16.6% to $1.56 billion from the $1.337 billion that entered in 2016’s comparable three months. The increase has been attributed to the… Continue reading