RECENT NEWS
Philippines: BSP Rate Hike
BSP open to 25-bp hike in November
The Bangko Sentral ng Pilipinas (BSP) is considering a 25 basis point increase in its key policy rate at its upcoming meeting on November 16. This decision comes in response to the second consecutive month of accelerating inflation from August (5.3%) to September (6.1%). BSP Governor Eli M. Remolona, Jr. mentioned that higher borrowing costs haven't hampered Philippine economic growth, suggesting room for further monetary tightening.
Source: BusinessWorld Online. (2023, October 12). BSP open to 25-bp hike in November.
BSP open to 25-bp hike in November
The Bangko Sentral ng Pilipinas (BSP) is considering a 25 basis point increase in its key policy rate at its upcoming meeting on November 16. This decision comes in response to the second consecutive month of accelerating inflation from August (5.3%) to September (6.1%). BSP Governor Eli M. Remolona, Jr. mentioned that higher borrowing costs haven't hampered Philippine economic growth, suggesting room for further monetary tightening.
Source: BusinessWorld Online. (2023, October 12). BSP open to 25-bp hike in November.
Philippines: Infrastructure
NEDA Board OKs ‘high-impact’ projects worth P269.7 billion
The National Economic and Development Authority (NEDA) Board has given approval to four "high-impact" projects and revisions to two existing projects with a total value of around P269.7 billion. Two of these projects will be financed through public-private partnerships, focusing on boosting tourism and addressing healthcare system gaps. Key among these approvals is the P4.5-billion upgrade and expansion of the Bohol-Panglao International Airport, which aims to serve 3.9 million passengers per year. The board also greenlit the P392-million Dialysis Center Project for the Baguio General Hospital and Medical Center, significantly increasing the number of hemodialysis machines available. Additionally, the NEDA Board approved projects related to green economy initiatives, infrastructure preparation, and environmental sustainability.
Source: BusinessWorld Online. (2023, October 13). NEDA Board OKs ‘high-impact’ projects worth P269.7 billion.
NEDA Board OKs ‘high-impact’ projects worth P269.7 billion
The National Economic and Development Authority (NEDA) Board has given approval to four "high-impact" projects and revisions to two existing projects with a total value of around P269.7 billion. Two of these projects will be financed through public-private partnerships, focusing on boosting tourism and addressing healthcare system gaps. Key among these approvals is the P4.5-billion upgrade and expansion of the Bohol-Panglao International Airport, which aims to serve 3.9 million passengers per year. The board also greenlit the P392-million Dialysis Center Project for the Baguio General Hospital and Medical Center, significantly increasing the number of hemodialysis machines available. Additionally, the NEDA Board approved projects related to green economy initiatives, infrastructure preparation, and environmental sustainability.
Source: BusinessWorld Online. (2023, October 13). NEDA Board OKs ‘high-impact’ projects worth P269.7 billion.
Philippines: Unemployment
Jobless rate dips to 3-month low in August
The Philippine Statistics Authority (PSA) reported that the unemployment rate in the Philippines dropped to 4.4% in August, the lowest in three months, signaling an improvement in job quality. This figure was down from 4.8% in July and 5.3% in August the previous year. The underemployment rate also improved, falling to 11.7% from 15.9% in the previous month and 14.7% in August 2022. The National Economic and Development Authority (NEDA) attributed these positive trends to government efforts to create high-quality jobs, as outlined in the Philippine Development Plan (PDP).
Source: BusinessWorld Online. (2023, October 6). Jobless rate dips to 3-month low in August.
Jobless rate dips to 3-month low in August
The Philippine Statistics Authority (PSA) reported that the unemployment rate in the Philippines dropped to 4.4% in August, the lowest in three months, signaling an improvement in job quality. This figure was down from 4.8% in July and 5.3% in August the previous year. The underemployment rate also improved, falling to 11.7% from 15.9% in the previous month and 14.7% in August 2022. The National Economic and Development Authority (NEDA) attributed these positive trends to government efforts to create high-quality jobs, as outlined in the Philippine Development Plan (PDP).
Source: BusinessWorld Online. (2023, October 6). Jobless rate dips to 3-month low in August.
Philippines: 2024 Economic Forecast
WB cuts ’24 growth forecast on PHL
The World Bank has revised its economic forecast for the Philippines in 2024, expecting slower growth of 5.8% compared to the initial estimate of 5.9% in April. The GDP growth estimate for 2023 was maintained at 5.6%. The slowdown is attributed to the consumption decline in China, which is expected to have a negative impact on the Philippine economy. The report also cites other risks such as domestic challenges in China, intensifying geopolitical tensions, and the possibility of natural disasters, including extreme weather events. The broader East Asia and Pacific region is also projected to experience slower growth, influenced by global trade restrictions and challenging external economic conditions.
Source: BusinessMirror. (2023, October 3). WB cuts ’24 growth forecast on PHL.
WB cuts ’24 growth forecast on PHL
The World Bank has revised its economic forecast for the Philippines in 2024, expecting slower growth of 5.8% compared to the initial estimate of 5.9% in April. The GDP growth estimate for 2023 was maintained at 5.6%. The slowdown is attributed to the consumption decline in China, which is expected to have a negative impact on the Philippine economy. The report also cites other risks such as domestic challenges in China, intensifying geopolitical tensions, and the possibility of natural disasters, including extreme weather events. The broader East Asia and Pacific region is also projected to experience slower growth, influenced by global trade restrictions and challenging external economic conditions.
Source: BusinessMirror. (2023, October 3). WB cuts ’24 growth forecast on PHL.
China: Exports
China’s Export Slump Eases as Beijing Tries to Boost Outlook
China's exports in September fell by 6.2% YoY, which is a slower decline than expected, indicating improved global demand for Chinese goods, even if the country is facing economic uncertainties back at home such as a property crisis and weak consumer spending. While the data suggests short-term stabilization, experts believe China is still undergoing structural economic slowdown, and policymakers are considering further stimulus measures to meet the official growth target of around 5%.
Source: Bloomberg. (2023, October 3). China’s Export Slump Eases as Beijing Tries to Boost Outlook
China’s Export Slump Eases as Beijing Tries to Boost Outlook
China's exports in September fell by 6.2% YoY, which is a slower decline than expected, indicating improved global demand for Chinese goods, even if the country is facing economic uncertainties back at home such as a property crisis and weak consumer spending. While the data suggests short-term stabilization, experts believe China is still undergoing structural economic slowdown, and policymakers are considering further stimulus measures to meet the official growth target of around 5%.
Source: Bloomberg. (2023, October 3). China’s Export Slump Eases as Beijing Tries to Boost Outlook
USA: Foreign Policy
Biden Can’t Squeeze Iran and Russian Oil at Same Time
The US is having a difficult time imposing sanctions on both Russia and Iran, a suspected backer of Hamas because such sanctions simultaneously could carry significant political risks for President Joe Biden as he approaches the 2024 election. Imposing such sanctions could lead to another increase in oil prices and demand for Russian oil. However, reports note that imposing sanctions on Iran won’t do any harm considering that much of their exports go to China. Balancing energy security and managing national security is one of the key issues that he is currently facing.
Source: Bloomberg. (2023, October 13). Biden Can’t Squeeze Iran and Russian Oil at Same Time
Biden Can’t Squeeze Iran and Russian Oil at Same Time
The US is having a difficult time imposing sanctions on both Russia and Iran, a suspected backer of Hamas because such sanctions simultaneously could carry significant political risks for President Joe Biden as he approaches the 2024 election. Imposing such sanctions could lead to another increase in oil prices and demand for Russian oil. However, reports note that imposing sanctions on Iran won’t do any harm considering that much of their exports go to China. Balancing energy security and managing national security is one of the key issues that he is currently facing.
Source: Bloomberg. (2023, October 13). Biden Can’t Squeeze Iran and Russian Oil at Same Time
Global Markets
Wider War in Middle East Could Tip the World Economy Into Recession
The US needs to contain the war in Israel-Palestine. There is a strong chance that Important actors such as Iran, Saudi Arabia, Arab nations, and militia groups (e.g. Hezbollah) are likely to participate in the war and worsen the conflict within the region. Failure for the US to do so could lead to a global recession, raise global oil prices and inflation, and disrupt markets negatively.
Source: Bloomberg. (2023, October 13). Wider War in Middle East Could Tip the World Economy Into Recession
Wider War in Middle East Could Tip the World Economy Into Recession
The US needs to contain the war in Israel-Palestine. There is a strong chance that Important actors such as Iran, Saudi Arabia, Arab nations, and militia groups (e.g. Hezbollah) are likely to participate in the war and worsen the conflict within the region. Failure for the US to do so could lead to a global recession, raise global oil prices and inflation, and disrupt markets negatively.
Source: Bloomberg. (2023, October 13). Wider War in Middle East Could Tip the World Economy Into Recession
Argentina: Inflation
Argentina Central Bank Hikes Rate to 133% on Inflation Data
After government mismanagement of the economy, hyperinflation, and debt restructuring talks with the IMF, Argentina's central bank has raised its key interest rate for the sixth time this year, increasing it by 15 percentage points to 133%. However, some say that this won't effectively combat inflation, and it still falls below inflation levels in real terms.
Source: Bloomberg. (2023, October 13). Argentina Central Bank Hikes Rate to 133% on Inflation Data
Argentina Central Bank Hikes Rate to 133% on Inflation Data
After government mismanagement of the economy, hyperinflation, and debt restructuring talks with the IMF, Argentina's central bank has raised its key interest rate for the sixth time this year, increasing it by 15 percentage points to 133%. However, some say that this won't effectively combat inflation, and it still falls below inflation levels in real terms.
Source: Bloomberg. (2023, October 13). Argentina Central Bank Hikes Rate to 133% on Inflation Data
EU and China
EU plans anti-subsidy probe into Chinese steelmakers
The European Union (EU) has announced an anti-subsidy investigation against Chinese steel manufacturers. This joint effort is dedicated to stop cheap competition from China and to protect steel worker jobs back home. The US has requested this move to stop the reimposition of tariffs on EU steel by the US, which were initially imposed in 2018 by former President Donald Trump.
Source: The Financial Times. (2023, October 10). EU plans anti-subsidy probe into Chinese steelmakers
EU plans anti-subsidy probe into Chinese steelmakers
The European Union (EU) has announced an anti-subsidy investigation against Chinese steel manufacturers. This joint effort is dedicated to stop cheap competition from China and to protect steel worker jobs back home. The US has requested this move to stop the reimposition of tariffs on EU steel by the US, which were initially imposed in 2018 by former President Donald Trump.
Source: The Financial Times. (2023, October 10). EU plans anti-subsidy probe into Chinese steelmakers
German Economy
German economy stagnates
Europe’s largest economy remained stagnant in the second quarter, underlining its position as one of the world's weakest major economies. This backdrop comes after a 0.1% decline in the first quarter and 0.4% in the fourth quarter. Such improvements can be attributed to stronger household consumption.
Source: The Financial Times. (2023, October 10). German economy stagnates
Contributors:
Natasha Amber Cabiltes
Edgar Desher Empeño
Jose Lorenzo Mercado
Brendan Emmanuel Miranda
Jacobe Joaquin Sevilla
German economy stagnates
Europe’s largest economy remained stagnant in the second quarter, underlining its position as one of the world's weakest major economies. This backdrop comes after a 0.1% decline in the first quarter and 0.4% in the fourth quarter. Such improvements can be attributed to stronger household consumption.
Source: The Financial Times. (2023, October 10). German economy stagnates
Contributors:
Natasha Amber Cabiltes
Edgar Desher Empeño
Jose Lorenzo Mercado
Brendan Emmanuel Miranda
Jacobe Joaquin Sevilla