BusinessMirror April 07, 2022

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ADB: Inflation risks imperil PHL GDP outlook B C U. O @caiordinario

T THE WORLD »A6

ZELENSKYY AT THE UN ACCUSES RUSSIAN FORCES OF WAR CRIMES

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HE Asian Development Bank (ADB) may have maintained its growth forecast for the Philippines at 6 percent for this year, but warned that the impact of the Russia-Ukraine war could further push inflation upward in the coming months. Based on the ADB’s Asian Development Outlook (ADO) 2022, the country’s GDP growth is expected to average 6 percent this year and 6.3 percent next year. Inflation is projected to pick up to 4.2 percent in 2022 and slow to 3.5 percent in 2023.

In a briefing on the ADO, ADB Southeast Asia Department Senior Regional Cooperation Officer Dulce Zara said their inflation expectations could change given higher oil prices. “Our forecast right now is 4.2 percent but it may go up. We will adjust it depending on how big the impact is, but then, it is huge. It will affect inflation in the country simply because of the rising cost of oil,” Zara said. “It was at $70 per barrel in 2021, but now we’re looking at $100 per barrel.” In the same briefing, ADB Macroeconomic Research Division Director Abdul Abiad said, in terms of growth, the Philippines did not

have direct trade linkages with Eastern Europe enough to merit a downgrade in GDP growth. Abiad said the Russia-Ukraine war’s impact on the Philippine economy will mainly be through inflation. The country is a net oil importer and is a net food importer, especially for wheat which does not grow in tropical countries like the Philippines.

Offsetting factor

HOWEVER, any negative impact of the crisis in Eastern Europe will somehow be offset by the reopening of the Philippine economy. Abiad said this reopening is helping the economy recover.

“It turns out that Omicron is not as severe and as you can see, the Philippines is really starting to open up. There’s a lot more economic activity taking place and there’s an offsetting factor that opening up from Covid is taking place and that’s going to allow domestic demand to recover to both consumption and investment,” Abiad explained. The report said some domestic demand may also come from election-related spending ahead of the national elections in May, which, the report said, could provide some “modest lift to aggregate demand.” C  A

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Thursday, April 7, 2022 Vol. 17 No. 181

Villar still richest man in PHL, says Forbes

B B D. N

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@BNicolasBM

HE private sector urged the national government to further improve the ease of doing business in the country and allocate a bigger budget for the agriculture sector. These formed part of the final set of top recommendations by the private sector to the national government at the close of the last Sulong Pilipinas forum under the Duterte administration on Tuesday. Finance Secretary Carlos G. Dominguez III received the recommendations from the private sector, represented by George Barcelon, the president of Philippine Chamber of Commerce and Industry—the country’s largest business organization. To improve the ease of doing business in the country, the private sector said the government should compel national and local government agencies in centralized government portals, such as the TradeNet, and enforce penalties for non-compliance with the Anti-Red Tape Act. For the agriculture sector, they also pushed that the government provide financial aid and capacity development for farmers to speed up agricultural modernization. Apart from these, they also recommended continuing the “Build, Build, Build” program, completing projects as scheduled, and ensuring transparency in the bids and awards of contracts; beginning the rollout of the regional innovation centers and completing them by May 2023 to foster an innovative and research and developmentfocused Philippines; and imposing stricter rules and standards and implementing sustainable management guidelines by 2022 to maintain and deliver efficient and effective wastewater treatment. Moreover, the private sector also recommended reforming the Technical Education and Skills Development Authority (TESDA) and Commission on Higher Education (CHED), placing early childhood C  A

PESO EXCHANGE RATES

P.  |     | 7 DAYS A WEEK

B VG C @villygc

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EAL estate magnate Manuel B. Villar Jr. remains the country’s richest individual, followed by port and casino tycoon Enrique Razon Jr., but the Sy siblings, as a group, remained on top of the list, according to the new world billionaire rankings released by Forbes magazine. Villar, 72, has upped his fortunes to $8.3 billion, an increase from last year’s $7.2 billion. His standing at Forbes, which based such rankings on stock prices and exchange rates from March 11 to calculate net worth, has improved to 263rd in the world from the previous 352nd in 2021 and 286th in 2020. Razon, 62, is now the country’s second richest with $6.7 billion from last year’s $5 billion after his fortunes skyrocketed since the pandemic in 2020, with the control of East Zone concessionaire Manila Water Co. Inc. from the Ayala group. He is now the 369th richest in the world, a huge jump from 561st in 2021 and 565th in 2020. “The number of billionaires worldwide fell, but 40 percent of those who remained got richer,” S “V,” A

SUBSIDY FOR PUV DRIVERS RESUMES SOON, BUT NO RELIEF YET FOR AGRI B S P. M @sam_medenilla

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UBLIC utility vehicles (PUV) drivers struggling with high pump prices could expect the resumption soon of the suspended fuel subsidy program of the Land Transportation Franchising and Regulatory Board (LTFRB). However, farmers and fishermen, who are also facing similar fuel concerns, may have to wait until next week to get relief from the Department of Agriculture (DA), which has asked the Commission on Elections for reconsideration of

its appeal for exemption from the public spending ban. See related story in B3, Banking

Comelec on Wednesday approved the request of LTFRB to exempt its fuel subsidy project— granted by the government amid a clamor to suspend excise tax on petroleum as oil prices soared—from the ongoing election ban. “The grant of the petition of the LTFRB will be subject to strict implementation of the program by submission of information on how the project will be implemented, the parameters of the implementation, and specially the specific target beneficiaries and how they will

apply to avail of the grants from program,” Comelec Commissioner George M. Garcia said on Wednesday. Garcia said they will ask LTFRB to also submit the list of other government agencies which it will tap to implement the fuel subsidy program, including the Department of Social Welfare and Development (DSWD) and the DA. “They would have to specifically mention the beneficiaries, the how and when the project is to be implemented as well as the documentation,” Garcia said. S “S,” A

■ US 51.2620 ■ JAPAN 0.4148 ■ UK 67.0353 ■ HK 6.5436 ■ SINGAPORE 37.7259 ■ AUSTRALIA 38.8361 ■ SAUDI ARABIA 13.6655 ■ EU 55.9166 ■ CHINA 8.0575

Source: BSP (April 6, 2022)


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