Observers can add one more reason to be puzzled about what lies ahead for the country's economy in 2008. A report issued last week by Zurich-based Credit Suisse was not as decisive as many analysts and market watchers had been hoping for. The report, titled "G3 slowdown: Asia's least and most exposed economies" contained good and bad news for The Philippines. The good news is that the local economy…
The Philippines is embarking on a programme of ramped-up spending, with a new budget allotting a significant amount to infrastructure projects and the government calling on local banks to help provide capital for public works. This move is intended to help stave off any negative effects arising from a possible US recession. President Gloria Macapagal-Arroyo signed into law the P1.227trn ($29bn) national…
A series of plans announced over the past few weeks promise to reshape Mindanao's economy in important ways, with the aim of developing transport infrastructure and energy resources. Mindanao, which is the Philippines' second-largest island, occupies one-third of the Philippines' total land area and has a quarter of the country's population. While less developed economically, Mindanao accounts for…
The Philippine government announced last week that it would roll back a programme of tariffs and quotas protecting the nation's farmers. The move comes after weeks of rising political tension over soaring prices of the country's main staple - rice. The cereal makes up 20% of the consumer price index's food subcomponent and 9.4% of the total consumer price index weight. This means that a 10% increase…
Over the past several weeks a battle has been brewing in the Philippine press over who is to blame for the country's high-energy prices. The dispute, which began as an argument over energy-pricing policies, has evolved into a power struggle over the future ownership of the country's largest power distributor, Meralco. The government, led by the Government Service Insurance System (GSIS), argues that…
Remittances, a crucial part of the domestic economy, saw a year-on-year rise in May. The news was welcomed by real estate developers, retailers and other consumer-driven sectors recently battered by high inflation, slow growth and higher input costs. However, a different set of figures threatens to dampen the mood of optimism. The World Bank and some analysts, instead of focusing on the large increase…
Philippine President Gloria Macapagal-Arroyo announced last week that she would back a Senate resolution to radically redraw the country's constitution. While the president's primary aim may be to resolve the ongoing conflict in the southern state of Mindanao, changes to the country's founding document will have far-reaching social consequences. "We advocate federalism as a way to ensure long-lasting…
Although the Philippines brands itself as a destination of more than 7000 islands, tourism industry investors have until recently focused most of their energy on the tropical island paradise of Boracay. Discovered by backpackers in the 1980s, the small island in the Western Visayas that boasts long stretches of spectacular white sandy beaches has become the Philippines' most developed tourism location,…
The Philippines automotive industry is looking to buck the international trend of lower vehicle production and falling sales brought on by the global economic crisis. According to a mid-November report issued by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), overall vehicle sales remained strong for the first 10 months of the year, and appeared on track to reach the industry's…
Infrastructure development has been identified as a key driver for the Philippines' economy, as the country moves to minimise the effects of the global downturn. The government will spend 60-80% of its $29.9bn budget on infrastructure projects, Secretary of Finance Margarito Teves said in a statement to the local press, identifying job creation as one of the primary motives behind the decision. According…
