Economic growth gathers steam

IF KEY indicators are any gauge, the economy has nowhere to go but up in the months ahead.

The country’s inflation rate slid to 4.7 percent in July, the slowest in 15 months or since the 4.9 percent recorded in April 2022, according to the Philippine Statistics Authority.

The continuing decline in the inflation rate, according to experts, is due mainly to slower increases in prices of electricity, home rentals, and liquefied petroleum gas; meat, fish and other seafood, and sugar, confectionery and desserts; as well as road transport and airfares.

This was the sixth straight month that inflation, or the rate of increase in the prices of goods and services that households commonly buy, decelerated.

The employment rate in June was estimated at 95.5 percent.

This was higher than the reported 94.0 percent registered in the same month last year, but slightly lower than 95.7 percent in May 2023.

In terms of magnitude, the number of employed persons was posted at 48.84 million in June 2023, compared to 46.59 million in June 2022.

The number of unemployed persons in June decreased to 2.33 million from 2.99 million in June 2022, posting a year-on-year decline of 663,000.

This is good news for those looking for jobs.

Marcos is pushing for an amendment to the partylist law to prevent a wholesale substitution of party list nominees, which she fears has raised suspicion the system has been subjected to horsetrading.

“The definition of the party list system has become difficult to understand. We have heard nasty observations that this party-list system is for sale and this has been a recurring problem, because it is somehow true,” she said.

“Senators appear as beggars when compared to some party-list lawmakers,” she added. Marcos said senators were now looking at limiting the entry of party list groups to only those that need representation as marginalized sectors, noting how the system has become a backdoor entry for millionaires and members of political dynasties. Among the proposals being considered, she said, was providing the Comelec with longer period within which to verify the existence and track record of party list groups that are up for accreditation, as well as prohibiting groups from making substitutions of their nominees after elections. Will these proposals prosper especially in the lower chamber?

We really don’t know at this point, considering that the party-list bloc wields clout because of their number.

But if democracy is to survive at all in this past of the Pacific, our Congress should have members who always think of the future of this nation, not of the next election.

“In passing on a motion for leave to further [cross-examine witnesses], the trial court must consider the probable probative force of the matter sought to be developed in the light of evidence receive[d], and consider whether the new evidence would probably produce a different result” (Evidence, Francisco citing 98 C.J.S. 123).

“The party recalling the witness should not be obliged to make the witness his own and thus be deprived of the right to impeach him” (Evidence, Francisco citing State v. Rodriguez, 23 N.M. 156).

“The recalling of a witness for the purpose of impeachment is a matter resting in the discretion of the trial court…; a party cannot claim the privilege of recalling a witness for… impeachment as a matter of right (Evidence, Francisco citing 98 C.J.S. 383).

“The court may limit the scope of the examination of a recalled witness, and the examination must be limited to the matters concerning which leave to re-examine the witness has been granted.

“The scope and limits of the examination on recall are within the discretion of the trial court” (Evidence, Francisco citing 98 C.J.S. 105).

In the case of People v. Judge Rivera, et al., the Government, to establish the culpability of Wilfredo Sembrano, presented Benjamin Lee, a room boy of the restaurant and bath.

Lee testified on direct examination that Sembrano had run out of the VIP room where the fire had started and refused to heed his call to stop …(G.R. 98376, August 16, 1991).

“Lee took the witness stand again on April 26, 1987 during which he was cross-examined by defense counsel, gave additional evidence on redirect examination, was again questioned on re-

By Victor Caballero

BEING four years into service, so far, as a distribution utility in Iloilo City, More Electric and Power Corporation (MORE Power) already has technology that can match big players in the power industry.

It’s certainly a newbie.

But MORE Power is bullish, aggressive, and unstoppable as it remains committed to its mission of modernizing the country’s energy industry—all for the benefit of the people, the economy, and the entire country.

Recently, MORE Power entered into a tripartite agreement between the Energy Regulatory Commission (ERC) and Iloilo City LGU.

The agreement aims to promote the use of renewable energy in the city by moving to the Net-Metering Program and Distributed Energy Resources (DER) to further reduce electricity costs and greenhouse gas emissions.

The increase in the use of renewable energy is one of the salient points mentioned by President Ferdinand Marcos Jr in his State of the Nation

Address on July 24.

Currently, there are only two distribution utilities that ERC has partnered with for Renewable Energy Adoption.

Aside from MORE Power, it also partnered with Manila Electric Company (Meralco).

In doing so it acted without basis, exercised power whimsically or capriciously, and gravely abused its discretion (G.R. 98376, August 16, 1991).c

In the same manner, the trial court “acted whimsically, capriciously, and oppressively, in other words, gravely abused its discretion, in ordering the striking out of the entire testimony of Benjamin Lee after it appeared that he could no longer be found and produced for further examination” (G.R. 98376, August 16, 1991).

“In the first place, the Court acted unilaterally, without any motion to this effect by the defense and thus without according the prosecution a prior opportunity to show why the striking out should not be decreed.

“More importantly, the striking out was directed without any showing [whatsoever] by the defense of the indispensability of further crossexamination…” (G.R. 98376, August 16, 1991).

“It should be stressed that Lee was subjected both to cross-examination and recrossexamination by former counsel of the accused Sembrano.

“Obviously, the latter was satisfied that there had been sufficient cross-examination of the witness [and] [a]bsence of cross-examination may not therefore be invoked as ground to strike out Lee’s testimony (as being hearsay)” (G.R.98376, August 16, 1991).

In the case of Castillo, et al. v. Sebullina and Torres, “the trial judge directed counsel for the plaintiffs to recall the witnesses whose testimony had already been taken at the former hearing; but this counsel declined to do [so], insisting on their right to rely upon the transcript of the notes of the testimony already taken” (G.R. 9181, September 29, 1915). Full text at www.manilastandard.net

The July figure is below the private-sector analysts’ median estimate of 4.9 percent but within the forecast range for the month of the Bangko Sentral ng Pilipinas (BSP), which was 4.1 percent to 4.9 percent.

According to Finance Secretary Benjamin Diokno, “we are over the hump.” global economic growth.

For the BSP, the July figure brings the average since January at 6.8 percent, which is still much higher than its target full-year average of within 2 percent to 4 percent.

But it expects the monthly readout to ease into the target band toward the end of the year, and likely even go below the lower-end range in early 2024.

Hence, while households and businesses seem to have passed the period of high inflation, they have yet to hurdle high interest rates.

BSP Governor Eli Remolona Jr. has been quoted in news reports as saying that the central bank is not ready to cut its benchmark policy rate, which is currently at 6.25 percent.

“We’re not out of the woods yet,” he said.

“Because of supply-side factors, we are continuing to watch the [inflation] data and we (must) be ready to raise the policy rate if necessary during the next meeting of the Monetary Board.

The BSP chief acknowledged that inflation rates have been going down, but also noted that inflation figures in the coming months could turn out higher than forecast because of the possible impact of El Niño on food production.

Apart from supply factors, the government faces risks from the possible impact of additional transport fare increases, higher-than-expected minimum wage adjustments in other regions, and higher toll rates on prices of key agricultural items. Another piece of good news is that the unemployment rate in the country declined to 4.5 percent in June 2023 from 6 percent a year ago, according to the Philippine Statistics Authority.

This means that, so far, MORE Power and Meralco are the only two companies that are capable of engaging new technology.

For Meralco, it is no longer surprising since it is already operating for decades.

But MORE Power is a different story since it is still considered a “newbie” in the industry.

But being a newbie did not limit MORE Power in its pursuit to live up to its name – to give people MORE quality service that they deserve.

ERC’s collaboration with MORE Power for renewable energy is also the first in the Visayas – meaning the company has surpassed other sustainable distribution utilities and electric cooperatives when it comes to modernization.

Before a distribution utility can offer Net Metering and DER to its customers, infrastructure – such as the installation of smart meters and advanced communication systems – has first to be put in place.

And MORE Power was able to quickly keep up with technology due to its big investment that has reached P2 billion.

Despite the pandemic, their modernization blueprint was still carried out, mainly targeting facility upgrades, purchasing new equipment, implementing digital technology in their operations, and laying out solutions and aggressive campaigns against electric pilferage and illegal connection.

MORE Power’s commitment and determination to provide quality power supply has resulted in an “improved power situation” in Iloilo City, an increase in business and investor confidence, and more importantly, a reduction in electricity cost.

MORE Power has one of the lowest electricity rates in the country. For seven consecutive months, from January to July this year, it implemented a reduction in power rates. According to MORE Power President and

Recent positive developments in the economic front indicate a good job by our economic managers

The National Economic and Development Authority reaffirmed the government’s commitment to labor upskilling to improve employability and maximize the benefits of the country’s demographic dividend.

Apart from the lower inflation rate in July, another indication that the economy is on an upward growth trajectory is the possible expansion of the gross domestic product (GDP) above six percent in the second quarter of this year.

Economist professor Alvin Ang of Ateneo de Manila University believes economic growth is likely to pick up slightly to 6.5 percent in the second quarter from 6.4 percent in the first quarter.

He sees second quarter GDP growth due to continued spillover consumption growth, particularly supporting travel, transportation and recreation.”

He also noted that better weather during the second quarter also increased construction and agricultural activities.

Chief Economist of Security Bank Robert Dan Roces said the economy likely expanded by 6.1 percent between April and June.

The growth would result from robust consumer spending, improved exports and increased private investments.

Steady private consumption, reduced inflation and relatively stable business sentiment would also boost GDP growth, but there are also risks: sticky inflation, elevated interest rates and weaker

Chief Economist of Rizal Commercial Banking Corp. Michael Ricafort thinks the economy likely grew by six percent in the second quarter from 6.4 percent in the first quarter. He predicted the country’s GDP growth may normalize at around six percent this year and in the next five to 10 years amid the country’s demographic sweet spot, with the majority of the population of more than 110 million at working age since 2015.

The Philippine economy, he said, is already back to pre-pandemic levels in peso terms at both current prices and constant 2018 prices after two years of the pandemic.

But challenges remain: inflation is expected to hover around four percent in the third quarter and three percent in the fourth quarter after easing for the sixth straight month to 4.7 percent in July from 5.4 percent in June. All told, recent positive developments in the economic front indicate a good job by our economic managers.

But we must emphasize that consistent growth should benefit the disadvantaged and vulnerable sectors and make a dent in reducing poverty levels in the years ahead.

(Email: ernhil@yahoo.com)

CEO Roel Castro, from the beginning of their operation, they have promoted the use of green energy. The use of renewable energy is one of the major factors behind the reduction of electricity rates.

Castro said: “Being the first in the Visayas to enter into this agreement showcases our strong support for the government.

“It is not a mere collaboration, it is a demonstration of the commitment of More Power towards a sustainable and resilient energy future. By embracing net metering and distributed energy resources, we can unlock the potential for cleaner, more cost-effective, and reliable energy supply.”

Net metering is a system where residential and commercial customers can generate their own electricity from renewable sources such as solar panels. The Department of Energy’s website explained how the net metering system works, where “[a]ny electricity generated that is not consumed by the customer is automatically exported to the DU’s distribution system.

“The DU then gives a peso credit for the excess electricity received equivalent to the DU’s blended generation cost, excluding other generation adjustments, and deducts the credits earned to the customer’s electric bill.”

When the number of people who use Net Metering increases, the use of renewable energy will increase and we will avoid becoming dependent on fossil fuel which destroys the environment.

This program is really timely, since the Philippines is one of the countries in the world most vulnerable to the effect of climate change.

Under the signed tripartite agreement, MORE Power will establish a one-stop shop that offers renewable energy.

The ERC will provide technical and regulatory expertise, including streamlining documentary submission, installation, payment, and permitting processes of Net-Metering and DER.

The ERC will also launch an information drive.

The Iloilo LGU, on the other hand, will ensure that green practices are implemented in the city through the use of solar panels.

At the initial launch of the program, 72 qualified users have already been issued the Certificate of Compliance by the ERC for the Net Metering Program in Iloilo City, and it is expected that this number will increase in the next few days.

As a resident of the power-starved Davao Region, I can only hope innovations like this come to my neck of the woods.

(The author is a civil engineer and a longtime resident of the Davao area, with his own small construction business).