A partial list of possible Cabinet appointees to the Marcos administration, particularly on the economic group, would at least quell the jitters of foreign investors, who have adopted a wait and see attitude.

Marcos camp bares possible Cabinet 

Commitments of foreign investments for the first quarter of 2022 plunged to its 13-year low because of the virus surge in January. The Philippine Statistics Authority based its investment report on six export processing zones.

Investment commitments plunge to 13-year low in Q1

The government might find it hard to attract foreign investors into the PPP program because, for one, the promised automatic fare adjustments for LRT 1 had not been met yet. For another, NLEX and Cavitex, toll road subsidiaries of MPIC have filed for arbitration because it also failed to get rate hikes for its tolls.

Investors may shy away from Philippines’ PPP

Investments in the first quarter of 2022 suffered a 68 percent drop because of the current Ukraine war, lingering pandemic and the uncertainty of the May 9 elections.

Investments plunged by 68% in Q1

As the Monetary Board meets to set policy rates—which it kept at 2 percent since November last year—it is expected that MB would raise interest rates by 25 basis points owing to the combined effects if rising inflation and wage hikes.

BSP begins tightening cycle

When the Bangko Sentral’s Monetary Board meets on May 19, it is expected that it would raise interest rates—since the economy grew beyond expectations in the first quarter, exceeding the pre-pandemic levels.

BSP to tackle rate hike on May 19

 The incoming administration of presumptive president Ferdinand Marcos Jr. must increase taxes, intensify tax collection and avoid populist programs if it wants to reduce the debt to GDP ratio, now at 63.5 percent, way above the international threshold of 60 percent.

As debts overshoots threshold, economists push for new taxes

Credit rater, Moody’s Analytics lowered its growth projection for the Philippines for 2022 to 6.1 percent (instead of 6.4 percent before) because of global slowdown, particularly in China, and high food prices and supply chain disruptions due to the ongoing war in Ukraine and rate hikes, particularly by the US Federal Reserve.

Moody’s Analytics pared 2022 Phl. growth outlook

Inflation has hit a 3-year high. The 19th Congress must urgently take up measures to tame inflation, or there is no possibility for it to subside soon.

Inflation hits 3-year high

The Bangko Sentral raised yesterday the interest rates by 25 basis points, effectively bringing overnight deposit and lending facilities to 1.75 percent and 2.75 percent, respectively. The policy rate hikes would help arrest further second-round effects and temper the buildup in inflation expectations,” BSP Governor Benjamin E. Diokno said.


Interest rates raised after 4 years

BSP to tackle rate hike on May 19 photo BusinessWorld

BSP begins tightening cycle photo The Manila Times

Marcos camp bares possible Cabinet photo Council on Foreign Relations

Investment commitments plunge to 13-year low in Q1 ASEAn Briefing

Investors may shy away from Philippines’ PPP photo BusinessWorld

As debts overshoots threshold economists push for new taxes

Moody’s Analytics pared 2022 Phl. growth outlook phoot Vista.Today

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