Philippine Remittances reach highest level
A new record high for remittances was seen this Oct, reaching $1.53 bln.
This was up by 6.7% Yoy and was better than the previous high of $1.49 bln established in the month of  June.
Remittances year to date totaled $14.3 bln, up 4.5% YOY

ADB raises growth forecast for developing Asia

The Asian Development Bank raised growth forecasts for Asia’s developing economies
Regional economies should grow +4.5% in 2009 and +6.6% in 2010.
Three months ago the ADB’s forecast was a +3.9% in 2009 and +6.4% in 2010
This signifies expectations of a V-shaped recovery for EMA
Essentially, the higher forecast was due to better than expecetd growth in the third quarter of 2009.
However they also warned against any “hasty withdrawal of stimulus packages”.
“If done too soon, recovery may be at risk; if too late, fiscal deficits and monetary expansion could become unsustainable and inflationary.”
Inflation is expected to be muted in short term but expected to pick up in medium term.
Emerging markets expected to attract capital flows given higher growth relative to developed economies.
Risk to EMA growth is a short-lived recovery of more developed global economies.

Just thought of posting some highlights — sorry, a bit ‘nose-bleed’ but this information is quite important to us Pinoys. The information can’t really say we are headed for economic recovery, but it means there are some economic activity that can give us hope. Hope, after all, is eternal right?

A concern is the slower pace of excports especially if you compare it from last year. However, May numbers showed a good improvement from April numbers and let’s hope we can sustain the moderate increase. A global softening of the electronics market has continued to affect our electronincs exports industry especially if you compare it from last year… but it is better in May as compared to April still. I’ll take any form of good news anytime of the day!

Foreign Direct Investments is a good indication of economic activity and reversal of the outflow trend is a much welcome break we all need. Because of the gloabl financial crisis, capital moved out of emerging markets like the Philippines to seek safer havens. A reversal in FDI flow is a good indication that things might be looking a little brighter for us Pinoys.

Fiscal issues continue to besiege us and it will be very difficult to balance the budget because government is trying to spice up the economy; it times when consumer spending is low, government tries to spend more to ‘pump-prime’ the economy. It looks like RP wants to take advantage of the low interest environment to float bonds which we all desperately need. While we can’t avoid borrowing, at least our cost of borrowin is much lower. Just to note that consumer debt (like credit cards) are still something we should avoid, ok? We are not the Republic of the Philippines, haha.

Things are really ambivalent but I am still one who clings to hope… hope that things will look brighter for all of us soon.

Hope is easy when we are connected to the real source of hope — “We have this hope as an anchor for the soul, firm and secure. It enters the inner sanctuary behind the curtain…” — Hebrews 6:19

1. Export falls at slower pace in May

Philippine exports continued to fall in May albeit at a slower pace
NSO disclosed that May exports totaled $3.08 bn, down 27% Yoy
However this is up 10% Mom as exports reached $3 bn per month mark in May versus $2.8 bn in April
YTD exports still down 34.5% to $13.8 bn
Electronics declined 27% yoy to $1.8 bn in May; Compared to last month, elctronics exports were up by 8%

2. Foreign Direct Investments inflows reach $601 mn in April

FDI surged to positive flow of $601 mn in April, reversing the outflow trend in Jan to March of $27 mn
April inflow considered considered an aberation as it featured Kirin Holdings’ investment in San Miguel Brewery
Exclusive of the $1.1 bn inflow from Kirin, FDI wouldve posted a decline of $500 mn for the month
FDI inflow in the first four  months of the year reached $648 million, up 29.1% from a year  earlier.

3. Philippines approved $1 bn bond issue

Philippine central bank approved plans to raise as much as $1 billion through an  international bond issue
Will either be through a global bond or a eurobond proceeds to finance the widening deficit.
Budget deficit target for 2009 raised to P250 bn and can even reach P320 bn or 4% of GDP

“Hope is the companion of power, and mother of success; for who so hopes strongly has within him the gift of miracles.”

— Samuel Smiles

“Expect to have hope rekindled. Expect your prayers to be answered in wondrous ways. The dry seasons in life do not last. The spring rains will come again.” — Sarah Ban Breathnach