BusinessMirror July 15, 2021

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VILLAR CONDUCTS FINAL INSPECTION AHEAD OF CLLEX PARTIAL OPENING

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RAVEL in Central Luzon, a key economic hub, gets a boon this week with the opening of a crucial highway between two of the region’s most progressive provinces, Tarlac and Nueva Ecija. The Central Luzon Link Expressway (CLLEx) will be opened to the motoring public this week, Public Works Secretary Mark A. Villar announced on Wednesday (July 14), as he made a final inspection of the 4-lane express-

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way project connecting Tarlac and Nueva Ecija. “As declared a month ago, we will inaugurate on Thursday, July 15, 2021, the first 18-kilometer section of CLLEx from Subic-Clark-Tarlac Expressway [SCTEx]/Tarlac-Pangasinan-La Union Expressway [TPLEx] connection in Tarlac City up to the intersection of Aliaga-Guimba Road in Aliaga, Nueva Ecija,” said Villar. C  A

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Thursday, July 15, 2021 Vol. 16 No. 274

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

METROPOLITAN Manila Development Authority Chairman Benhur Abalos inspects one of the mobile materials recovery facilities, dubbed as “Recyclable Mo, Palit Grocery Ko,” at the San Isidro Barangay Hall in Makati City. The facility allows residents to trade waste for household commodities and grocery items, such as canned goods, noodles and rice. ROY DOMINGO

B C U. O

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@caiordinario

HE gradual recovery of domestic demand has led local economists to believe that the Philippine economy is already on the mend from the ravages of the Covid-19 pandemic.

‘Fitch outlook downgrade is a useful heads up’

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HE recent outlook downgrade on the Philippines’s sovereign rating from international credit watcher Fitch Ratings is a “useful heads up” for the economy, private analysts said in a virtual briefing on Wednesday. In its virtual presser on its latest analysis on the Philippine economy, economists at First Metro Investments Corporation (FMIC) and University of Asia and the Pacific (UA&P) said Fitch’s reversion of its “stable” outlook on the Philippines down to “negative” earlier this week could be a reminder of the pitfalls to recovery along the way. First Metro President Jose Patricio Dumlao said the coun-

try should use the next 18 to 24 months to beef up the recovery path of the country to ultimately avoid an actual downgrade. Outlooks of credit watchers are indicators of where the country’s sovereign rating is usually headed if no intervention and development is put in place. The outlooks are usually indicative of an economy’s situation in the next 18 to 24 months. “We look at the recent rating outlook downgrade by Fitch Ratings constructively. It is more of a reminder that economic recovery requires hard work rather than

PESO EXCHANGE RATES ■ US 50.1380

In a briefing on Wednesday, First Metro Investment Corporation-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research said the economy will likely post a full-year growth of 5 to 6 percent this year. This forecast was lower than the 5.5 to 6.5 percent estimate the think tank gave previously, but UA&P economist Victor A. Abola

said this was mainly affected by the first quarter performance of the economy. The country’s GDP in the January-to-March period contracted 4.2 percent. “This half percent is fairly minor which is more aligned to what the government is projecting. They also lowered their growth projection,” Abola said. “We more or less aligned [our expectations] with

how the government views the situation right now.” In his presentation, Abola said the strengths of the Philippine economy right now include ample fiscal and monetary space, robust overseas Filipino worker (OFW) remittances, and spreading optimism. These are boosting domestic demand. “I think there is cause to be

more optimistic but not exactly very, very optimistic. We can see things looking up. The Philippines is an economy bouncing back,” Abola said.

Caveats

AS for the caveats, Abola said, these include the ongoing pandemC  A

DOF EXEC SEES FOOD PRICES PEAKING IN JULY B B D. N @BNicolasBM

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OOD prices are expected to peak this July, the Department of Finance said. “Food price inflation is expected to peak this month as imports rise to boost domestic supply. Bolstering food productivity is necessary for long-term food price stability,” Finance Undersecretary and Chief Economist Gil Beltran said in his economic bulletin on Wednesday. Food price inflation maintained its pace in June at 4.88

percent, unchanged from May’s 4.87 percent. Beltran also said average prices of rice, fruits, and vegetables declined by 1.10 percent, 0.64 percent, and 2.71 percent, respectively, muting the higherthan-average inflation in the prices of meat (19.24 percent) and fish (8.66 percent). To recall, Socioeconomic Planning Secretary Karl Kendrick T. Chua last week said Executive Orders (EO) 133 and 134 allowing the increase in Minimum Access Volume for S “DOF,” A

S “F,” A

■ JAPAN 0.4533 ■ UK 69.2857 ■ HK 6.4561 ■ CHINA 7.7511 ■ SINGAPORE 36.9995 ■ AUSTRALIA 37.3277 ■ EU 59.0576 ■ SAUDI ARABIA 13.3680

Source: BSP (July 14, 2021)


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