PH economy posts 7.8% GDP growth

Roxas Boulevard skyline view during evening (by Yen Baet).

The Philippine economy posted a 7.8% GDP growth for the first quarter of this year, from 6.5 percent the previous year, the highest so far under the Aquino Administration. 

In a press briefing on Thursday, Jose Ramon G. Albert, Secretary General, National Statistical Coordination Board NSCB said the robust growth was boosted by the strong performance of manufacturing and construction, backed up by financial intermediation and trade. 

He said that increased consumer and government spending shored up by increased investments in construction and durable equipment also contributed to the highest quarterly GDP growth since the second quarter of 2010. 

The continued inflow of remittances from overseas Filipino workers accelerated the Net Primary Income from the Rest of the World to grow by 3.2 percent boosting the Gross National Income (GNI) growth to 7.1 percent from 5.7 percent in 2012. 

On a seasonally adjusted basis, GDP is gaining momentum growing by 2.2 percent in the first quarter of 2013; GNI grew by 1.9 percent. 

He added that all major sectors posted positive growth in seasonally adjusted terms for the first quarter of 2013. 

In particular, the entire agriculture sector posted a growth of 0.8 percent in the first quarter of 2013 from 0.4 percent the previous quarter. 

However, he said industry slowed down to 2.5 percent growth in the first quarter of 2013 from 4.0 percent in the previous quarter. But the services sector accelerated to 2.2 percent in the first quarter of 2013 from 1.1 percent in the previous quarter as all its subsectors recorded positive growth. 

Positive growth in seasonally adjusted terms across major sectors has been resulting since the fourth quarter of 2010, he added. 

He said that with the country’s projected population reaching 96.8 million in the first quarter of 2013, per capita GDP grew by 6.1 percent while per capita GNI grew by 5.3 percent and per capita Household Final Consumption Expenditure (HFCE) grew by 3.4 percent. 

Meanwhile, National Economic Development Authority Secretary Arsenio Balisacan said that this growth rate of 7.8 percent exceeded market forecasts, including his own. 

He added that this is also the highest among the major East and Southeast Asian economies, particularly Indonesia, Thailand, Vietnam and China. (NSCB/NEDA) 

Source: Manila Bulletin

Published: May 30, 2013

Peso dips on news of Europe’s contraction, US production fall

The appreciation of the peso substantial

ly helped in the decline of outstanding guaranteed debt of the government in 2012.

MANILA, Philippines — The peso fell on Thursday following the release of reports that the euro zone contracted in the first quarter and that industrial production in the United States fell in April.

The local currency closed at 41.225 against the US dollar, down by 2.5 centavos from the previous day’s finish of 41.20:$1.

Intraday high hit 41.15:$1, while intraday low settled at 41.24:$1.

Volume of trade amounted to $895.6 million from $934.6 million previously.

The depreciation of the peso came following the release of unfavorable economic indicators for two of the world’s biggest economies.

The euro zone was reported to have contracted by 0.2 percent in the first quarter of 2013 from the fourth quarter of 2012.

Moreover, industrial production in the United States fell by 0.5 percent in April from a year ago.

Market players said the discouraging data dampened hopes that the global economy would post a more substantial recovery in 2013.

Economic challenges in the United States and the Euro zone likewise are seen to somehow adversely affect performance of emerging markets like the Philippines.

The United States and Euro zone are two of the biggest export markets for Asian-made goods.

Source: Inquirer Business as of May 16th 2013

Latest PH ‘report card’ seen to boost real estate

MAKATI is considered the traditional business district where ‘most businesses thrive and mature property developments are located.’ FILE PHOTO

How important to the local property industry are “report cards” from foreign investors? Apparently, they can spell the difference between progress and stagnation.

Inquirer Property previously reported that in 2011 the local property industry received sobering news that Manila had been ranked “below fair” to “abysmal” by foreign property investors (as reported in the “Emerging Trends in Real Estate Asia Pacific 2011” survey conducted by the Urban Land Institute). However, the following year the “ULI Emerging Trends 2012 Asia Pacific” upgraded Manila’s rank to 18th in investments (from 20th in 2011), prompting a noticeable uptrend in property investments, particularly in emerging urban districts (EUDs) and central business districts (CBDs).

Now, another report card from foreign investors could give the local office, manufacturing, residential and retail sectors a big boost.

CB Richard Ellis’ newly released special report showed the recent investment grade and its implications on the real estate industry.

Expected to gain

The second quarter 2013 report said the Philippines finally achieved its first investment grade rating from one of the world’s major rating agencies. It stressed that the real estate sector is expected to gain from this recent development.

It stated that with the Fitch Ratings announcement upgrading the country’s sovereign credit rating to BBB- from BB+, the country is now on the global radar for investments, and has legitimately become an investment “hotspot.” Also cited were two other major international credit rating firms—Standard and Poor’s (S&P) and Moody’s—which the report said “still rate the country one notch below investment grade but are expected by analysts to soon follow suit.”

The report listed the sectors standing to benefit from these ratings: the office, manufacturing, residential and retail sectors.

The CBRE report said: “Foreign investors will logically move or expand to regions that are being upgraded. This increased interest in the country will boost the demand for office and manufacturing spaces. Foreign Direct Investment (FDI) inflows, which grew by 15.5 percent in 2012, the third highest in Southeast Asia, are expected to continuously increase following the recent credit rating upgrade. The entry of more FDIs will continue to fuel the resurgent manufacturing sector.”

Growth in Clark, Subic

The Clark and Subic Freeport Zones, which the report listed under the manufacturing sector, have been “accommodating a number of Japanese and Taiwanese manufacturing firms and offer 13.4 million square meters of leasable industrial space.”

The office sector “looks to be in great shape in the coming years because the Information Technology and Business Process Outsourcing (BPO) industry boom won’t abate anytime soon,” the report said.

It continued: “The industry, which generated $13.4 billion in revenue and has 720,000 employees, surpassed its 2012 target according to the Business Process Association of the Philippines. Due to the current political turmoil in East Asia and the financial struggles in the Western world, US and European companies are more focused than ever on expanding or relocating to emerging economies.”

Joey Radovan, vice chair of CBRE global corporate services, projected that BPOs will occupy 80 to 90 percent of office space supply in 2013. More multinational corporations will set up BPOs in the country in order to fulfill cost reduction strategies, while current locators are preparing to expand local operations to further reduce costs.

Also discussed in the report were the residential and retail sectors. It said: “In the long run, a domino effect will carry the benefits of an investment influx toward the residential and retail sectors.

The report said: “As foreign businesses enter the country, expatriates will look for practical accommodations such as upscale and luxury residences near business centers. It would most likely raise the demand for residential condominiums in CBDs. Consequently, the jobs created by FDIs will elevate the spending power of the middle class, which in turn could lead to an increased ability to purchase houses or condominiums. Demand for affordable to mid-range residential segments will continue to pick up—and given the platform of low inflation and mortgage rates—a democratized housing industry will soon emerge.”

Source: By Tessa R. Salazar / Philippine Daily Inquirer

11:30 pm | Friday, April 19th, 2013