PHL May factory output growth slows
By Andrea E. San Juan @andreasanjuan
THE country’s factory output posted an annual growth of 3.2 percent in May 2024, slower than the 6.1-percent increase in May 2023, according to the Philippine Statistics Authority (PSA).
Based on the latest Production Index and Net Sales Index or Monthly Integrated Survey of Selected Industries data, the country’s Volume of Production Index (VoPI) expanded 3.2 percent in May 2024, which is also slower than its annual increase of 6.3
percent in April 2024.
This brings the average growth rate of VoPI in the January to May 2024 period to 0.9 percent.
“The downward trend in the year-on-year growth rate of VoPI for manufacturing in May 2024 was primarily driven by the same top three industry divisions that contributed to the slower annual increase of VaPI for manufacturing during the period,” PSA said.
PSA said these are the manufacture of fabricated metal products; chemical and chemical products, and computer, electronic and optical products.
The manufacture of fabricated
metal products posted a 13.4-percent annual decline from a doubledigit annual increase of 29.9 percent in April 2024.
The manufacture of chemical and chemical products, PSA said, posted an 11.7-percent annual decline from an annual increase of 16.6-percent in the previous month; while the production of computer, electronic and optical products posted a 0.3-percent annual decline from an annual increase of 5.2 percent in April 2024.
“Of the remaining 19 industry divisions, 12 exhibited annual declines during the period. Meanwhile, seven industry divisions
posted annual increases in May 2024. The manufacture of coke and refined petroleum products posted the highest annual increment of 53.6 percent during the period,” PSA said.
Capacity utilization rate
MEANWHILE, based on responding establishments, the PSA said the average capacity utilization rate for the manufacturing section in May 2024 was reported at 75.5 percent, from 75.3 percent capacity utilization in the previous month.
‘BIGGER BUDGET WON’T GUARANTEE GROWTH’
By Reine Juvierre S. Alberto @reine_alberto
THE national government must utilize its budget wisely and secure manageable funding sources to support the fiscal deficit and economic growth, according to GlobalSource Partners.
In a commentary, former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the higher proposed national budget for 2025 does not guarantee that the economy will grow and develop further as some analysts equated it to.
“The bottom line is the ability of the Philippine Government to make wise use of the budget,” Guinigundo pointed out.
The budget must be used for the establishment of more critical infrastructure such as energy, address issues in health and education, strengthen the country’s connectivity and digitalization and make headway in promoting the rule of law and reducing poverty, Guinigundo said.
The P6.352-trillion national budget for 2025 was originally pegged at P9.2 trillion, including the proposals from various government agencies.
However, Budget Undersecretary Joselito R. Basilio said earlier that the budget was trimmed due to some agencies’ limited fiscal space, program readiness, absorption capacity, and funding issues.
The budget is still 10.1 percent higher than the current national budget, which stands at P5.768 trillion, despite the reduction.
To reduce high commodity prices and sustain a lower inflation path in the medium term, Guinigundo said higher production of goods and services could be a big contributor.
Aside from utilizing the budget wisely, the increasing fiscal deficit must be financed sustainably to achieve higher economic growth, Guinigundo said.
However, the Department of Finance (DOF) is firm in not imposing any new taxes until 2025.
See “Budget,” A
By Samuel P. Medenilla @sam_medenilla
LACK of funds has forced the government to scale down its national housing initiative from its initial 6 million target units, according to the National Economic and Development Authority (Neda). However, the reduction will not affect the Marcos administration’s goal of generating 3 million “quality” jobs by 2028 under its proposed Trabaho Para sa Bayan (TPB) plan.
In a press briefing in Malacañang last Tuesday, Neda Secretary Arsenio M. Balisacan said the Cabinet decided to forgo the goal of the Department of Human Settlements and Urban Development (DHSUD) to construct a million housing units per year until 2028 under its Pambansang Pabahay Para sa Pilipino Program (4PH) due to budgetary constraints.
“When we look at the implications of that in the economy particularly on the See “Neda,” A
By Malou Talosig-Bartolome & Lenie Lectura @llectura
THE Philippine-US nuclear energy deal entered into force on July 2, the US State Department announced on Tuesday.
The PHL-US Agreement for Cooperation in Peaceful Uses of Nuclear Energy (123 Agreement) allows the US to export nuclear material, equipment including reactors and components to the Philippines. It will also allow the transfer of information for nuclear research and civil nuclear energy production.
In January 2023, the Philippines decided to include nuclear power in its energy mix to reduce the country’s dependency on coal for power by developing small modular reactors. Manila has also committed to reduce greenhouse emissions to 70 percent by 2050. The 123 agreement is meant to enhance both countries’ cooperation on clean energy and energy security and strengthen long-term bilateral diplomatic and economic relationships, according to a statement released Tuesday by the US State Department.
See “Nuke,” A PHILHEALTH DIGITAL The Philippine Health Insurance Corporation on Tuesday unveiled the PhilHealth Digital Transformation Systems, meant to improve clients’ experience in accessing its services. Gracing the launch at the City State Center in Pasig City are: L-R, Eli Dino D. Santos, PhilHealth Executive Vice President and Chief Operating Officer; Jovita V. Aragona of the Office of the Senior Vice President for Chief Information Officer, Information Management Sector; PhilHealth President and Chief Executive Officer Emmanuel R. Ledesma Jr.; Secretary Ivan John E. Uy of the Department of Information and Communications Technology; and DICT Undersecretary David L. Almirol Jr. See story in B3 Banking, “ePhilhealth seen secure, helping members.” NONOY LACZA
