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Philippine output to hit 7% in Q1 — FMIC, UA&P
The economy may grow up to 7 percent this quarter on manageable inflation, election spending, booming construction and possible uptick in exports, according to a study made by First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P).
“On the back of manageable inflation, strong government and private election spending, booming construction, and a modest rebound of exports, we expect GDP (gross domestic product) to expand at close to 7.0 in Q1 (first quarter),” read FMIC and UA&P's “Market Call,” released Wednesday.
Last year Philippine output in the fourth quarter hit 6.8 percent, pushing the full-year GDP to 6.6 percent.
FMIC and UA&P's higher projection came despite the National Statistical Coordination Board's leading economic index (LEI) showing that growth likely eased in the first quarter of 2013.
Sought for comment, UA&P School of Economics dean Peter Lee U said the 7 percent projection is “maybe at the high end.”
“But we're just quibbling with numbers. A 6-percent growth rate is already good news, although that would be at the conservative side. We can easily hit around mid-6 percent,” he added.
According to the study, inflation may inch up to 3.3 percent in March after consumer prices inched up in January following a rise in alcoholic beverage and tobacco costs with the implementation of the so-called Sin Tax Reform Law.
Last Thursday, the Bangko Sentral ng Pilipinas hiked its inflation forecast for this year to 3.3 percent from 3 percent on higher than expected rise in consumer prices in January, which hit 3 percent.
The new projection is within the central bank's 3 to 5 percent forecast.
Inflation not a concern
FMIC and UA&P, however maintained that inflation will “remain sanguine” this year on a projected decline in crude oil prices and an increase in rice stocks.
“I don't see inflation being a concern, yet,” said Lee U.
Exports are also seen recovering with overseas demand getting a boost from stronger trade relations with other markets as well as the Japanese yen's depreciation buoying the electronics sector.
“A turnaround may possibly happen in 2013,” the report read.
“The country may begin reaping the fruits of Aquino’s effort in strengthening trade relations... [and] continuous depreciation of Japanese yen can provide room for expansion of its exports, mainly on final electronic products, which can boost demand for Philippine raw electronic products,” it added.
But FMIC and UA&P warned of downside risks, like the stuttering US and euro zone economies “putting the export industry at risk.”
Merchandise exports in January fell 2.7 percent, reversing double-digit growth the month previous on sharp decline in electronics shipments.
The National Economic and Development Authority has said indicators point to a recovery in exports in following months.
UA&P's Lee U said, “January exports is just a dip, at best a flat growth. We see exports picking up as things get better overseas, despite possible downside risks.”
Despite the robust expectations, Lee U noted that more could be done to sustain growth like rolling out more big-ticket infrastructure projects and attracting more direct investments.
“Expectations are there, but we need to deliver, really deliver,” he said. — BM/VS, GMA News
Philippine output to hit 7% in Q1 — FMIC, UA&P | Economy | GMA News Online
Singaporean business mission eyes additional investments in Philippines
By: Ben Arnold O. De Vera, InterAksyon.com
March 21, 2013
MANILA - Singaporean businessmen are looking at additional investments in the Philippines, the Department of Trade and Industry (DTI) said on Thursday.
A 14-member Singaporean business delegation visited Manila and the Clark Freeport Zone last week to explore business opportunities.
"Now is the time to consider business opportunities in the Philippines considering its economic growth, particularly its 6.6-percent gross domestic product (GDP) growth rate," Singapore Indian Chamber of Commerce and Industry (SICCI) chairman Rangarajan Narayanamohan was quoted by the DTI as saying.
The Singaporean business mission was led Narayanamohan and Singapore Malay Chamber of Commerce and Industry (SMCCI) president Abdul Rohm Sarip.
"This recent visit of Singaporean businessmen is consistent with the aim of the two countries to regularly exchange business visits and strengthen their bilateral relations. It also builds on the Philippine business mission organized by the Philippines-Singapore Business Council of the Makati Business Club in Singapore last November 2012. This mission signified the strong interest of the Philippines in Singapore as a strategic business partner in Association of Southeast Asian Nations (Asean)," said Glenn G. Peñaranda, commercial counselor at the Philippine Trade and Investment Center (PTIC) in Singapore.
Singapore was the Philippines' fourth-largest trading partner, fourth-biggest export destination and sixth source of imports last year.
Singaporean business mission eyes additional investments in Philippines - InterAksyon.com
The economy may grow up to 7 percent this quarter on manageable inflation, election spending, booming construction and possible uptick in exports, according to a study made by First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P).
“On the back of manageable inflation, strong government and private election spending, booming construction, and a modest rebound of exports, we expect GDP (gross domestic product) to expand at close to 7.0 in Q1 (first quarter),” read FMIC and UA&P's “Market Call,” released Wednesday.
Last year Philippine output in the fourth quarter hit 6.8 percent, pushing the full-year GDP to 6.6 percent.
FMIC and UA&P's higher projection came despite the National Statistical Coordination Board's leading economic index (LEI) showing that growth likely eased in the first quarter of 2013.
Sought for comment, UA&P School of Economics dean Peter Lee U said the 7 percent projection is “maybe at the high end.”
“But we're just quibbling with numbers. A 6-percent growth rate is already good news, although that would be at the conservative side. We can easily hit around mid-6 percent,” he added.
According to the study, inflation may inch up to 3.3 percent in March after consumer prices inched up in January following a rise in alcoholic beverage and tobacco costs with the implementation of the so-called Sin Tax Reform Law.
Last Thursday, the Bangko Sentral ng Pilipinas hiked its inflation forecast for this year to 3.3 percent from 3 percent on higher than expected rise in consumer prices in January, which hit 3 percent.
The new projection is within the central bank's 3 to 5 percent forecast.
Inflation not a concern
FMIC and UA&P, however maintained that inflation will “remain sanguine” this year on a projected decline in crude oil prices and an increase in rice stocks.
“I don't see inflation being a concern, yet,” said Lee U.
Exports are also seen recovering with overseas demand getting a boost from stronger trade relations with other markets as well as the Japanese yen's depreciation buoying the electronics sector.
“A turnaround may possibly happen in 2013,” the report read.
“The country may begin reaping the fruits of Aquino’s effort in strengthening trade relations... [and] continuous depreciation of Japanese yen can provide room for expansion of its exports, mainly on final electronic products, which can boost demand for Philippine raw electronic products,” it added.
But FMIC and UA&P warned of downside risks, like the stuttering US and euro zone economies “putting the export industry at risk.”
Merchandise exports in January fell 2.7 percent, reversing double-digit growth the month previous on sharp decline in electronics shipments.
The National Economic and Development Authority has said indicators point to a recovery in exports in following months.
UA&P's Lee U said, “January exports is just a dip, at best a flat growth. We see exports picking up as things get better overseas, despite possible downside risks.”
Despite the robust expectations, Lee U noted that more could be done to sustain growth like rolling out more big-ticket infrastructure projects and attracting more direct investments.
“Expectations are there, but we need to deliver, really deliver,” he said. — BM/VS, GMA News
Philippine output to hit 7% in Q1 — FMIC, UA&P | Economy | GMA News Online
Singaporean business mission eyes additional investments in Philippines
By: Ben Arnold O. De Vera, InterAksyon.com
March 21, 2013
MANILA - Singaporean businessmen are looking at additional investments in the Philippines, the Department of Trade and Industry (DTI) said on Thursday.
A 14-member Singaporean business delegation visited Manila and the Clark Freeport Zone last week to explore business opportunities.
"Now is the time to consider business opportunities in the Philippines considering its economic growth, particularly its 6.6-percent gross domestic product (GDP) growth rate," Singapore Indian Chamber of Commerce and Industry (SICCI) chairman Rangarajan Narayanamohan was quoted by the DTI as saying.
The Singaporean business mission was led Narayanamohan and Singapore Malay Chamber of Commerce and Industry (SMCCI) president Abdul Rohm Sarip.
"This recent visit of Singaporean businessmen is consistent with the aim of the two countries to regularly exchange business visits and strengthen their bilateral relations. It also builds on the Philippine business mission organized by the Philippines-Singapore Business Council of the Makati Business Club in Singapore last November 2012. This mission signified the strong interest of the Philippines in Singapore as a strategic business partner in Association of Southeast Asian Nations (Asean)," said Glenn G. Peñaranda, commercial counselor at the Philippine Trade and Investment Center (PTIC) in Singapore.
Singapore was the Philippines' fourth-largest trading partner, fourth-biggest export destination and sixth source of imports last year.
Singaporean business mission eyes additional investments in Philippines - InterAksyon.com
