Economists see strong

7.1% GDP growth in Q1

By Julito G. Rada

THE economy likely expanded by 7.1 percent in the first quarter of 2023 despite the risks of elevated inflation and a slowdown in global growth, economists from First Metro Investment Corp. and University of Asia & the Pacific said in the April issue of the Market Call.

“We project robust GDP growth in Q1 at 7.1 percent year-on-year, albeit with downside risks. Big overall employment gains powered by the services sector should support consumer spending, besides the income tax cut and resilient OFW remittances,” they said in the report released Sunday.

“The most recent economic data caught our eye to justify optimism regarding Q1 economic expansion, albeit with a caution engendered by the world economy’s weakness and still elevated domestic inflation,” the economists said, referring to the improvement in the labor market, manufacturing and government spending.

“The 8.6-percent year-on-year jump in employment in February led by faster recovery of the services sector becomes more instructive when we consider that huge tem-

Alliance Global hikes 2023 capital spending to P70b

By Jenniffer B. Austria

ALLIANCE Global Group Inc., the listed holding company of tycoon Andrew Tan, earmarked P70 billion in capital expenditures for 2023 to support the expansion of its property, liquor and gaming businesses.

This year’s programmed capital expenditures represent an increase of 22.8 percent from P57 billion the group invested in 2022.

“For 2023, we raised our capex to P70 billion as we remain optimistic of our growth prospects across all our business segments and as we continue our evolution as a truly premium lifestyle conglomerate,” AGI said in an investor presentation.

It said the bulk of this year’s programmed spending was allocated for property unit Megaworld Corp. which plans to spend P55 billion, higher than P46 billion in 2022.

Megaworld aims to launch P60 billion worth of projects and raise P130 billion in reservation sales this year. It also intends to unveil three new township projects.

Megaworld plans to add 207,200 square meters of office leasable area and 159,000 sq. m. of mall space between 2023 and 2026. It also seeks to increase hotel rooms keys by 3,159 until 2028.

Liquor unit Emperador Inc. programmed P7 billion in capital expenditures this year as it aims to generate 50 percent of business from international operations by 2025.

porary employment for the May 2022 elections bloated year ago figures. The huge vault in business expectations should provide further backing to this,” they said.

Government spending on operating and capital outlays should accelerate starting March, according to the report.

The report said that apart from government and official development assistance-funded infrastructure projects like the Metro Manila Subway and North-South Commuter Line gaining traction, major PPP projects such as the NLEX-SLEX second connector elevated tollway, MRT-7 and Cavite-Laguna Expressway extension of LRT-1 to Cavite hurdled key obstacles.

The manufacturing sector also continued to show expansion both in terms of purchasing managers’ index and volume of production index in the first two months of the year. “The faster opening up of hotels and restaurants will help drive the sector,” they said.

Inflation should decline further to 6.2 percent year-onyear by June despite a renewed climb in prices of petroleum products. Easing food prices will likely offset the fuel price gains, according to the report.

Inflation surpassed the target range last year and reached a 14-year high of 8.7 percent in January 2023 before easing to 8.6 percent in February and 7.6 percent in March.

The economy grew by a 46-year high of 7.6 percent in 2022, faster than the 5.7-percent expansion in 2021. The economy gained mainly from the strength of the industry and services sectors.

CLARK HUB.

Cebu Pacific reopens its hub at Clark International Airport in Pampanga. Attending the ribbon-cutting ceremony are (from left) CEB chief marketing and customer experience officer Candice Iyog, Bases Conversion and Development Authority president and chief executive Aileen Zosa, BCDA chairman Delfin Lorenzana, CEB president and chief executive Xander Lao, Tourism Undersecretary Cocoy Jumapao and LIPAD president and chief executive Noel Manankil.