Businessmirror january 24, 2016

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n Sunday, January 24, 2016 Vol. 11 No. 108

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Congestion worsens at Naia; 4 terminals at bursting point C

week ahead

ECONOMIC DATA PREVIEW Peso

n Previous week: The local currency hit a downslide during the week over worries on economic developments in other economies. The local currency started the week at 47.65 to a dollar to depreciate by two centavos on the following trading day at 47.67 to a dollar. The largest decline was seen on Wednesday, causing the peso to depreciate to 47.89 to a dollar. The lowest point of the peso was on Thursday at 47.94 to a dollar. The peso ended the week at 47.805 to a dollar. n Week ahead: While the Bangko Sentral said volatilities are likely to persist in the local financial markets due to turbulent developments in the international markets, BSP Governor Amando M. Tetangco Jr. said the country has the tools to ride out these headwinds. In addition, the BSP also said the peso weakness is seen to be “very temporary,” owing to other factors affecting the economy.

GDP

n Previous quarter: The country’s economic growth rebounded to 6 percent in the third quarter of the year. Among the three major economic sectors, services gave the highest contribution to the GDP growth in the third quarter with 4.2 percentage points. This was followed by industry, with 1.8 percentage points, while agriculture contributed a mere 0.03 percentage points. n Fourth quarter of 2015: Economists forecast a cooling of the country’s GDP in the last three months of the year— making the ambitious growth target significantly out of reach for the year. Earlier in the week, Moody’s Analytics said the country’s growth is set to hit 5.9 percent in the fourth quarter of the year. This is slightly lower than the 6-percent growth posted in the third quarter of the year. If fulfilled, the country’s full-year GDP growth will likely average at 5.7 percent in 2015, lower than the 6.1-percent average in 2014. Bianca Cuaresma

By Lorenz S. Marasigan

ONGESTION at the Ninoy Aquino International Airport (Naia) worsened in 2015— with its four terminals reaching past their maximum rated capacity for the first time—as more and more international and domestic flights were launched throughout the year, despite the lack of capacity-building projects for the air hub.

36.68M Number of passengers the Ninoy Aquino International Airport handled last year

Data collected by the Manila International Airport Authority (Miaa) showed that the airport handled 36.68 million passengers last year, 7 percent higher than the 34.09 million passengers the year before. Broken down, the airport handled 19.51 million domestic passengers last year—around 2 million more than the 17.17 million it served in 2014. International passenger count was almost flat. See “Congestion,” A2

Growth in near term seen by central bank

By Bianca Cuaresma

T

HE country’s local growth momentum remains positive in the near term, despite prospects of a slowdown in emerging markets in the region, as early indicators show sustained strong economic activity and optimism from the country’s companies, the Bangko Sentral said. In its most recent inflation report, the central bank said prospects for domestic demand remain intact, according to the early economic sectors the central bank is monitoring. This means that the country is set to stand out from the general weakness projected for the region. In particular, the BSP said

PESO exchange rates n US 47.8680

Son of Cambodian leader has ambition

trends in higher-frequency demand indicators point to a positive growth momentum in the near term, with vehicle sales sustaining their double-digit growth on account of continued marketing efforts and financing programs. The composite purchasing managers’ index, meanwhile, remained above the 50-point expansion threshold. The BSP added that business and consumer confidence sustained an optimistic outlook, supporting the view that underlying domestic demand remains firm due to sustained credit growth and notable improvements in employment conditions. The painted picture for the local economy is contrasting to the central bank’s global economic prospects—which were softened on See “Growth,” A2

W

A S H I N G T O N —T h e youngest son of Cambodia’s prime minister has an easy smile and conciliatory air. Hun Many’s genteel manner contrasts with the ruthlessness that has characterized his father’s 30

years in power, but that does not mean he is not ambitious. The 33-year-old lawmaker told The Associated Press that he also wants to become the Southeast Asian nation’s leader one day. But Continued on A2

Hun Many, son of Cambodian Prime Minister Hun Sen, speaks during an interview in Washington on Thursday. The 33-year-old lawmaker said he also wants to become the Southeast Asian nation’s leader one day. AP/Manuel Balce Ceneta

BSP sees peso weakness ‘very temporary’

T

HE Bangko Sentral is optimistic that the weakness of the peso will be “very temporary,” and will not affect inflation in the short run. At the sidelines of the briefing on the central bank’s fourth-quarter inflation report, Francisco G. Dakila Jr., BSP managing director for the Monetary Policy Subsector, said the weakness of the peso is not seen to last and spill over to the prices of consumer goods in the country. Data from the PDS Group showed that the peso neared 48 to a US dollar during the weak, owing largely to concerns on global developments, such as oil, and the lingering concerns over the general slowdown in most of the economies in the world. The local currency largely depreci-

ated during the week, hitting its weakest point on Thursday at 47.94 to a dollar. The peso, meanwhile, ended the week with a sigh of relief, as markets moved to appreciate the local currency, ending the week at 47.805 to a dollar. And even if the peso depreciates, Dakila said the economy is still seen to benefit from the weaker value of the local currency. “There are countervailing impacts on the economy, because weakness of the peso will also benefit the recipients of overseas workers’ remittances…will have a positive impact on the purchasing capacity or power of OFW [overseas Filipino workers] families so that’s also going to be supportive of consumption,” Dakila said. Remittances continue to be one of the

top pillars of the Philippine economy due to their ability to keep the country’s dollar stock afloat, despite external volatilities and ramped up consumer spending in the domestic side. As such, concerns were raised when remittances started to post volatile growth rates in 2015. Latest data from the central bank showed that the total growth rate of cash sent by Filipino migrant workers recovered in November 2015, but data show that the actual inflow of remittances in dollar value remained weak, even when OFWs are supposed to be sending more money during the time to fund family expenses for the holiday season. If the peso is set to weaken, the weakness in the volume of remittances expressed in dollars can be offset when exchanged to peso terms. Bianca Cuaresma

n japan 0.4064 n UK 68.1018 n HK 6.1250 n CHINA 7.2751 n singapore 33.4250 n australia 33.3250 n EU 52.0804 n SAUDI arabia 12.7546

Source: BSP (22 January 2016 )


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Businessmirror january 24, 2016 by BusinessMirror - Issuu