More enonomic news that matters

According to the Institute for Development and Econometric Analysis, Inc. (IDEA), the Bangko Sentral ng Pilipinas (BSP) profits grew by 10.68% to Php4.08 billion until the third quarter of 2009 due to higher miscellaneous income. BSP’s miscellaneous earnings surged by over three-fifths to Php23.39 billion, offsetting the drop in interest income after the bank held policy rates low to stimulate the economy. Moreover, starting with a review of the rate of lending short-term money to banks under a rediscounting facility, the BSP signaled that it would soon start unwinding its monetary policy– joining the likes of other countries in withdrawing some emergency measures put in place during the financial crisis.

Likewise, the Philippines, being the first Asian country to offer debt this year, has raised a total of $1.5 billion from the sale of dollar-denominated bonds. According to the Finance department, the issuance was composed of $850 million worth of debt maturing in 2034 and $650 million due 2020. Furthermore, it was reported that the country’s gross international reserves (GIR) hit a new high of $45.03 billion in 2009, mostly due to gains from central bank investments and proceeds from the government’s foreign borrowings. It was an increase from November’s $44.16 billion and greater than the central bank’s initial end-2009 estimate of $42-43 billion.

Furthermore, it was reported that increase in consumer prices was recorded at 4.4% in December, the fastest since May 2009, bringing the latest estimate of inflation rate for the whole year to 3.2%. The growth in prices was within the Bangko Sentral ng Pilipinas’ (BSP) official target of 2.5-4.5%, and lower than the 9.3% posted in 2008.

Then, the pre-need industry, which has suffered a string of controversies since 2005, is banking on the recently signed Pre-need Code of the Philippines to revive the waning demand for its financial products.

Overseas, China is expected to further increase its share of world exports. In America alone, it commanded a share of about 19%, thus accounting about almost half of America's total trade deficit. In fact, Over the ten years to 2008, China’s exports grew by an annual average of 23% in dollar terms, more than twice as fast as world trade. At this rate, the country will be taking over 25% of world exports within ten years. Furthermore, in 2009 as a whole, China's exports dipped by 17% but other countries experienced steeper declines.

Here in Cebu, two Cebuano companies, Obra Cebuana and Bon-Ace Fashion Tools bagged awards at the 50th Manila FAME International show, boosting the Cebu exporters’ confidence and chances of attracting international buyers, according to IDEA.

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