NG’s 11-month debt hits ₧10.13 trillion By Bernadette D. Nicolas
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MECHANIZATION MOVES AGRI SECTOR SLOW, BUT SURE, TO MODERN FARMING
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HE national government’s outstanding debt has reached P10.13 trillion as of end-November last year, just P30 billion short of the government’s expected level for the year. Latest data from the Bureau of the Treasury showed the country’s debt stock rose by 1.1 percent or P106.37 billion from P10.028 trillion as of end-October last year owing to higher domestic borrowing. The amount of outstanding debt as of end-November is nearing the P10.16-trillion outstanding debt level that the economic managers had projected for the year.
Since the start of 2020, the national government’s debt stock has already surged by 31.1 percent from P7.73 trillion as of end-2019. Broken down, the Treasury said domestic debt cornered 71 percent of the total outstanding debt, while the remaining 29 percent was external debt. As of end-November last year, domestic debt amounted to P7.19 trillion, up by 1.6 percent compared to the P7.077 trillion recorded as of end-October due to the net issuance of domestic government securities. To date, domestic debt has increased by 40.3 percent from P5.128 trillion as of end-2019.
Government securities accounted for the bulk or P6.65 trillion of domestic debt as of endNovember, while loans reached P540.95 billion. On the other hand, external debt as of end-November stood at P2.94 trillion, a 0.3-percent dip compared to P2.95 trillion as of end-October because of the net effect of currency adjustments amounting to P10.74 billion. In particular, peso appreciation offset net foreign loan availments amounting to P2.55 billion. From the start of the year, external debt has risen by 13 percent from P2.6 trillion as of end-2019. See “Debt,” A2
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Thursday, January 7, 2021 Vol. 16 No. 88
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TO RECOVER IN REGION Growth rests on Covid-19 handling globally–WB
DEVOTEES attend Wednesday Mass outside the Minor Basilica of the Black Nazarene, also known as the Quiapo Church, in Manila. Traditionally held on January 9, the annual Traslacion featuring a grand procession of the Black Nazarene in the streets of Manila, attended by millions of devotees, has been cancelled because of the continuing threat of the coronavirus disease. ROY DOMINGO
By Cai U. Ordinario
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FFORTS to roll out the vaccine and successfully handle the pandemic will define the pace of economic growth globally, according to the World Bank. In a statement, the World Bank said global GDP growth would likely reach 4 percent in 2021. However, there are a lot of risks associated with the forecast. The World Bank said GDP growth could only grow 1.6 percent if the rollout of the vaccine is delayed. But growth could reach 5 percent if the pandemic is successfully controlled and the vaccines are rolled out faster.
Continued on A2
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By Bianca Cuaresma
OST countries in the Asia-Pacific region are expected to regain their lost output by 2021, but the Philippines is an exception as the country still grapples to craft a concrete plan on vaccine procurement and fiscal stimulus remains relatively minute, an international think tank said.
PHL, INDIA RANK LOW IN MOBILITY INDEX IN PANDEMIC By Cai U. Ordinario
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HE Philippines was deemed among the worst performing economies in the region as the country struggled with its Covid-19 and lockdown woes, according to the 2021 first-quarter edition of the Global Mobility Report. A report released by Londonbased consultancy firm Henley & Partners showed that the Philippine passport ranked 77th out of 199 passports in Henley’s Passport Index since it had visa-free access to 66 countries. The Philippines had the same ranking and visa-free access as Cape Verde Islands and the Dominican Republic. Curtis S. Chin, a former US Ambassador to the Asian Develop-
ment Bank (ADB), said the Philippines and India’s ranking suffered because these countries struggled in balancing health and economics. “India and the Philippines were among those economies that fared considerably worse, echoing the disparity that underscores the unequal challenges faced by governments across the region and the discrepancy in resources available to them as they struggle to balance health and economic concerns,” Chin said. Chin said this is why vigilance is still essential in Asia, even if the Asia and the Pacific region is leading the charge out of the pandemic. He said vigilance is needed, especially in guarding against a so-called lockdown fatigue that, he Continued on A2
CHIN: “Creativity and competitiveness paired with a willingness to embrace innovation and adapt new technologies could well lead to large parts of Asia Pacific being both first in and first out of these difficult times.” TWITTER.COM/CURTISSCHIN
In its most recent assessment of the region’s economic dynamics, Moody’s Analytics said the Philippines will be the last country in the Asia Pacific to regain its GDP growth level to pre-Covid levels. The think tank’s growth projection of the country’s economy is a 9.9-percent contraction in 2020, 4.5-percent growth for this year and a 6.2-percent growth in 2022. This is in contrast to the govern-
ment’s expectation that local economic growth is expected to reach 6.5 percent to 7.5 percent this year. According to Moody’s Analytics’ forecasts, the Philippines is expected to regain its momentum by the fourth quarter of 2022. This is in contrast to most of the countries in the region regaining strength this year. In particular, Moody’s Analytics data show that China, Taiwan Continued on A2
MALPASS: “To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility, and strengthen transparency and governance.” WORLDBANK.ORG
“While the global economy appears to have entered a subdued recovery, policy-makers face formidable challenges—in public health, debt management, budget policies, central banking and structural reforms—as they try to ensure that this still fragile global recovery gains traction and sets a foundation for robust growth,” World Bank Group President David Malpass said. “To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility, and strengthen transparency and governance,” Malpass added. The World Bank said emerging market and developing economies, including China, are expected to grow 5 percent in 2021, after a contraction of 2.6 percent in 2020. Excluding China, emerging markets and developing economies are forecast to expand 3.4 percent in 2021 after a contraction of 5 percent in 2020. Continued on A2
PESO EXCHANGE RATES n US 48.0440
n JAPAN 0.4677 n UK 65.4744 n HK 6.1968 n CHINA 7.4429 n SINGAPORE 36.4633 n AUSTRALIA 37.2773 n EU 59.0845 n SAUDI ARABIA 12.8080
Source: BSP (January 6, 2021)