Report on
Economic and Financial Developments
First Quarter 2016
B A N G KO S E N T R A L N G P I L I P I N A S
Report on
Economic and Financial Developments
Executive Summary
1
Introduction
4
Real Sector
Aggregate Supply and Demand
Labor and Employment
7
5
Fiscal Sector
National Government Cash Operations
Monetary Sector
Prices 9
Domestic Liquidity 10
Domestic Interest Rates 11
Monetary Policy Developments
12
Financial Sector
Banking System 12
Banking Policies 17
Capital Market Reforms 17
Stock Market 17
Bond Market 19
Credit Risk Assessment 21
Payments and Settlements System
External Sector
Balance of Payments 22
International Reserves 25
Exchange Rate 25
External Debt 27
Foreign Interest Rates 28
Global Economic Developments
8
22
29
Financial Condition of the BSP
Balance Sheet 31
Income Statement 31
Conclusion, Challenges and Future Policy Directions
Annexes
Statistical Tables
ii
32
Executive Summary
Philippine economic growth accelerates.
The Philippine economy exceeded growth
expectations as real GDP grew by 6.9 percent during
the first quarter of 2016. This was the highest
year-on-year growth for a quarter recorded since Q3
2013 and also placed the Philippines as the fastest
growing economy in the region, ahead of China
(6.7 percent), Indonesia (4.9 percent) and Malaysia
(4.2 percent).
Employment conditions improve. The preliminary
results of the January 2016 Labor Force Survey
showed a general improvement in the country’s
labor and employment indicators. The
unemployment rate declined to 5.8 percent in Q1
2016 from 6.6 percent in the previous year while the
number of employed persons increased by
8.7 percent to 39.2 million, supported by the strong
employment growth in the construction sub-sector
and services sector. In contrast, underemployment
rate climbed to 19.7 percent from 17.9 percent a
year ago.
National Government (NG) cash operations yield a
higher deficit. The cash operations of the NG yielded
a deficit of P112.5 billion in Q1 2016, more than
triple the year-ago level of P33.5 billion. As a
percent of GDP, the NG’s cash position accounted
for -3.4 percent in Q1 2016, larger than the year-ago
level of -1.1 percent. Total revenues increased to
P479.0 billion from P470.5 billion in the previous
year owing to improved collections by the Bureau of
Internal Revenue (BIR) and the Bureau of Customs
(BOC). Meanwhile, total expenditures during the
review period increased by 17.4 percent from the
previous year to reach P591.5 billion due to
increased allotment to local government units
(LGUs) as well as rise in maintenance and other
operating expenditures.
Inflation inches upward. Headline inflation inched
higher to 1.1 percent in Q1 2016 from the
quarter-ago rate of 1.0 percent but remained below
the Government’s inflation target range of
3.0 percent ± 1.0 percentage point (ppt) for 2016.
Inflation pressures were attributed mainly to higher
prices of selected food items namely, meat,
vegetables, sugar as well as oils and fats.
Domestic liquidity expands. Money supply or M3
grew by 11.7 percent as of end-March 2016 to reach
P8.5 trillion, faster than the 9.4-percent expansion
as of end-December 2015. The increase in M3 was
driven largely by the 15.4-percent growth in
domestic claims or credits to the economy. Likewise,
credits extended to the private sector grew by
12.8 percent, consistent with the sustained growth
in bank lending.
The BSP maintains key policy rates in Q1. During its
monetary policy meetings on 11 February and
23 March, the BSP decided to maintain its key policy
interest rates at 4.0 percent for the overnight
borrowing or RRP facility and 6.0 percent for the
overnight lending or RP facility. The interest rates on
term RRPs, RPs, and SDAs were also kept steady.
Similarly, the reserve requirement ratios were left
unchanged. These policy decisions were based on
the BSP’s assessment of a manageable inflation
outlook and robust growth conditions. The BSP
noted that the risks to the inflation outlook have
shifted to the downside arising from slower-thanexpected global economic activity and potential
second-round effects from lower international oil
prices.
Domestic interest rates show mixed trends.
Average Treasury bill rates in the primary market
declined in Q1 2016, reflecting market preference
for short-term papers amid economic slowdown in
First Quarter 2016 Report on Economic and Financial Developments | 1
China and expected delay in further US policy rate
increases. Similarly, secondary market yields of
government securities decreased as of end-March
2016 relative to yields as of end-2015 as global
growth prospects remain subdued. Savings and time
deposit rates were higher during the review quarter
while interbank call loan rates and bank lending
rates were lower.
The Philippine banking system remains sound and
resilient. The Philippine banking system continued to
support long-term economic growth. Banks’ balance
sheets were marked by sustained growth in assets
and deposits. Asset quality indicators showed mixed
trends, while capital adequacy ratios remained
above international standards, even with the
implementation of the tighter Basel III framework.
Resources of the banking system grew by
10.1 percent to P12.5 trillion as of end-March 2016
from the year-ago level of P11.4 trillion. As a
percent of GDP, total resources stood at
92.5 percent. Universal and commercial banks
(U/KBs) continued to account for 90 percent of the
total resources of the banking system.
The Philippine banking system’s gross
non-performing loan (GNPL) ratio stood at
2.2 percent as of end-March 2016, an improvement
relative to the 2.5 percent posted a year-ago, but
slightly higher than the quarter-ago level of
2.1 percent. Meanwhile, the net non-performing
loan ratio increased slightly to 0.8 percent relative to
the 0.7 percent posted a year- and 0.6 percent a
quarter-ago. Prudent lending regulations along with
banks’ initiatives to improve their asset quality kept
the GNPL ratio below its pre-Asian crisis level of
3.5 percent.
Under the Basel III framework, the capital adequacy
ratios (CAR) of U/KBs stood at 15.5 percent and
16.4 percent on solo and consolidated bases at the
end of the third quarter in 2015. The banks’ latest
CAR on solo basis rose quarter-on-quarter from the
15.5 percent posted at end-June last year. On the
other hand, U/KBs’ CAR on consolidated basis at
end-September last year slightly declined from the
16.4 posted a quarter earlier.
Domestic equity prices continue to trend
downward. The Philippine Stock Exchange index
(PSEi) declined by 3.4 percent to average
6,766.4 index points in Q1 2016 from the average of
7,002.8 index points posted in the preceding
quarter. Persistent anxiety over weak global growth,
exacerbated by China’s bumpy economic transition
to a more sustainable growth path, the threat of
plunging oil prices and deepening monetary policy
divergence in advance economies dampened
sentiments. From the peak of 8,127.5 index points
posted in April 2015, the PSEi hit bear territory with
the benchmark index posting its lowest in
23 months at 6,084.3 index points on 21 January
2016.
Debt spreads widen. The cost of insuring Philippine
sovereign debt averaged 119 basis points (bps) in Q1
2016, up from the Q4 2015 average of 107 bps.
Against those of neighboring economies, the
Philippine CDS traded lower than Indonesia’s average
of 231 bps, Malaysia’s 182 bps and Thailand’s
151 bps. Meanwhile, the risk premium from holding a
Philippine sovereign bond over a similarly tenored US
Treasury bond slightly climbed as indicated by the
wider EMBIG Philippine spreads which averaged
124 bps, slightly higher than the previous quarter’s
123 bps. The wider debt spreads for the quarter
imply a rise in the cost of the country’s external
financing.
The BOP position reverses to a deficit. The BOP
position registered a deficit of US$210 million in Q1
2016, a reversal of the US$877 million surplus posted
in the same quarter the prior year. This developed as
a result of higher net outflows in the financial
account, even as the current account recorded a
surplus. The current account registered a lower
surplus at US$447 million as the trade-in-goods deficit
widened significantly with declining exports and
increasing imports. Meanwhile, the financial account
recorded higher net outflows of US$959 million
stemming largely from the other investment account,
2 | First Quarter 2016 Report on Economic and Financial Developments
particularly residents’ net repayment of loans and
placement of deposits abroad.
GIR level remains adequate. The country’s GIR as of
end-March 2016 rose to US$83.0 billion,
2.9 percent higher than its end-2015 level. The GIR
remains ample to cover 10.4 months’ worth of
imports of goods and services. It is also equivalent to
5.4 times the country’s short-term external debt
based on original maturity and 4.0 times based on
residual maturity. The increase in reserves was due
mainly to the NG’s net foreign currency deposits as
well as the BSP’s income from investments abroad
and revaluation adjustments on the BSP’s foreign
currency-denominated reserves. These inflows were
offset partially by payments made by the NG on its
maturing foreign exchange obligations.
External debt remains manageable. The
outstanding external debt of the country stood at
US$77.6 billion as of end-March 2016, higher by
0.2 percent on a q-o-q basis and also higher by
3.1 percent on a y-o-y basis. The increase during the
quarter was attributed to the following: (a) foreign
exchange (FX) revaluation adjustments
(US$814 million) as the US Dollar weakened,
particularly against the Japanese Yen; (b) previous
periods’ adjustments due to late reporting
(US$609 million); and (c) increased investments in
Philippine debt papers by non-resident investors
(US$224 million). In terms of maturity profile,
81.6 percent of the country’s external debt as of
end-March 2016 was primarily medium- to longterm dated. This implies that FX requirements for
debt payments are well spread out and, thus, more
manageable. In addition, total outstanding debt
expressed as a percentage of gross national income
(GNI) remained at the end-2015 level of
21.9 percent.
The peso depreciates against the US dollar.
The peso depreciated against the US dollar in
Q1 2016 by 0.9 percent to average P47.30/US$1.
On a y-o-y basis, the peso depreciated by
6.1 percent relative to the P44.42/US$1 average in
Q1 2015. The weakening of the peso can be
attributed to the risk aversion towards emerging
market assets arising from concerns on the Chinese
economy and declining oil prices.
Global economic conditions remain uneven. Global
economic activity remained soft for both advanced
and developing economies. Meanwhile, global labor
market conditions generally showed signs of
improvement as inflation rates in advanced and
emerging economies were generally mixed.
The US economy grew by 2.0 y-o-y in Q1 2016 due to
positive contributions from consumer spending, and
residential fixed investment. Similarly, economic
activity in the Euro area grew by 1.5 percent in Q1
2016, albeit slightly lower than previous quarter’s
growth, as majority of Euro area economies
expanded except for Greece. In contrast, GDP
growth in Japan remained stagnant at zero percent
as private consumption and capital expenditure
remained soft.
Output growth among emerging economies in Asia
also remained weak. South Korea’s real GDP growth
decelerated to 2.7 percent in Q1 2016 as sluggish
exports continued to weigh on growth. The
Singaporean economy grew by only 1.8 percent due
to the weak performance of its manufacturing
sector. Meanwhile, the Chinese economy’s growth
moderated to 6.7 percent in Q1 2016 due to the
slowdown in the services sector while India
continued to expand at 7.3 percent.
Among , the ASEAN member states, Thailand’s GDP
expanded by 3.2 percent during the review quarter,
supported by the increase in net exports and
accelerated government spending. Indonesia slowed
down to 4.9 percent as household consumption
remained subdued. In Vietnam, GDP declined to
5.5 percent, driven mainly by the decline in
manufacturing and the prolonged drought that led
to the contraction in the agricultural sector. Malaysia
grew by 4.2 percent due to slower growth in the
manufacturing and services sectors.
First Quarter 2016 Report on Economic and Financial Developments | 3
Introduction
The Philippine economy accelerated in Q1 2016 as
the real gross domestic product (GDP) posted a
stronger-than-expected growth of 6.9 percent. This
provides a confidence boost for the Government in
the ability of the economy to reach the GDP growth
target of 6.8-7.8 percent for 2016. In Q4 2015, the
country’s GDP posted 6.3 percent during the
quarter, bringing the 2015 GDP to 5.8 percent.
The sustained economic growth during the quarter
under review was accompanied by a slight uptick in
headline inflation to 1.1 percent, but remained
below the low end of the Government’s 2016
inflation target range of 3.0 percent ± 1.0 percentage
point (ppt). In Q4 2015, the headline inflation was
1.0 percent, bringing the 2015 inflation rate to
1.4 percent.
Meanwhile, domestic liquidity grew by
11.7 percent y-o-y as of end-March 2016 to reach
P8.5 trillion. During the prior quarter, domestic
liquidity increased by 8.3 percent, supported by the
sustained expansion in credits extended to the
domestic economy.
Taking into account the benign inflation
environment, the BSP decided to maintain its policy
interest rate during the review quarter. Interest
rates on term RRPs, RPs, and SDAs were also kept
steady. Similarly, the reserve requirement ratios
were left unchanged. The decision to keep policy
settings unchanged was based on the BSP’s
assessment of a manageable inflation outlook and
robust growth conditions.
The National Government (NG) reported a fiscal
deficit of P112.5 billion in Q1 2016, more than triple
the year-ago level of P33.5 billion. A quarter ago, NG
posted a fiscal deficit of P96.1 billion. As a percent of
GDP, the NG’s cash
position accounted for -3.4 percent in Q1 2016,
larger than the year-ago level of -1.1 percent.
The Philippine banking system remained stable
during the quarter review. Banks’ balance sheets
were marked by sustained growth in assets and
deposits as well as improved asset quality
indicators. Capital adequacy ratios remained above
international standards, even with the
implementation of tighter regulations under the
Basel III framework.
On the external front, there has been some capital
flow volatility resulting mainly from the continued
risk aversion towards emerging market assets over
concerns on weak global growth, declining oil prices,
and worries on the Chinese economy. This
tempered the performance of domestic financial
markets and led to a widening in risk premiums.
These developments, in turn, led to depreciation
pressures on the peso.
The country’s balance of payments (BOP) position
yielded a deficit of US$210 million in Q1 2016, a
reversal of the US$877 million surplus posted in the
same quarter a year ago. The negative BOP balance
during the quarter was a result of the higher net
outflows in the financial account, even as the current
account recorded a surplus.
The country’s gross international reserves (GIR) as of
end-March 2016 rose to US$83.0 billion,
2.9 percent higher than its level as of end-December
2015 (US$80.7 billion). At this level, the GIR is
adequate to cover 10.4 months’ worth of imports
and 5.4 times the country’s short-term external
debt. The increase in reserves was due mainly to the
NG’s net foreign currency deposits as well as the
BSP’s income from investments abroad and
revaluation adjustments on the BSP’s foreign
currency-denominated reserves.
4 | First Quarter 2016 Report on Economic and Financial Developments
Real Sector
Chart 1. Gross Domestic Product and Gross National
Income
annual growth rate in percent; at constant 2000 prices
10
Aggregate Supply and Demand
Real GDP
9
Real GNI
8
7
The domestic economy accelerated in Q1 2016 as
the real gross domestic product (GDP) posted a
stronger-than-expected growth of 6.9 percent. This
was the highest year-on-year growth for a quarter
recorded since Q3 2013, boosting the confidence of
the government in the ability of the economy to
reach the official GDP growth target of 6.8-7.8
percent for the full year of 2016. At this rate, the
Philippine economy has outperformed other Asian
economies, including China (6.7 percent), Indonesia
(4.9 percent) and Malaysia (4.2 percent).
Domestic economy
accelerates
Lending solid support to the Q1 2016 growth on the
supply side is the services sector, which remained a
key growth driver during the quarter. The continued
strong performance of the services sector was on
the account of the expansion in all its sub-sectors,
specifically the trade and maintenance of motor
vehicles, motorcycles, personal and household
goods, real estate, renting and business activities,
and financial intermediation accounts. On the
demand side, growth was notably investmentdriven. In fact, the contribution of investments to
the overall Q1 2016 GDP growth outpaced that of
private consumption, which historically has been the
main growth driver of the Philippine economy.
Meanwhile, real Gross National Income (GNI) during
the quarter was likewise the highest since Q3 2013
as it grew by 7.6 percent, buttressed by the
10.7 percent growth in Net Primary Income (NPI).
6
5
4
3
2
2013
2014
2015
2016
GDP by industry
The Q1 2016 output remains services sector-led,
with the sector maintaining its role as the primary
growth engine of the Philippine economy from the
production side. The sector, which expanded by
7.9 percent, contributed 4.4 ppts to the Q1 2016
GDP growth. The sustained resilience of the services
sector was reinforced by the equally robust
expansion of the following sub-sectors: financial
intermediation (9.1 percent), real estate, renting and
business activities (9.0 percent), and trade and
maintenance of motor vehicles, motorcycles,
personal and household goods (8.0 percent).
Meanwhile, the industry sector also continued to
perform quite strongly as it grew by 8.7 percent in
Q1 2016, enabling it to contribute 2.9 ppts to the
overall output growth during the quarter. This has
been the highest growth posted by the sector since
Q1 2015. The robust growth of the sector was
underpinned mainly by the notable performance of
the manufacturing (which contributed 1.9 ppts to
the industry sector’s output) and construction
(0.6 ppts), as well as utilities (0.3 ppts) subsectors.
Among the top performing manufacturing products
include: radio, television and communication
equipment and apparatus (which contributed
3.0 ppts to the 8.1 percent growth of the
manufacturing sub-sector in Q1 2016), chemical and
chemical products (2.8 ppts), and food manufactures
(2.1 ppts).
First Quarter 2016 Report on Economic and Financial Developments | 5
On the contrary, the agriculture, hunting, forestry,
and fishing (AHFF) sector remains confronted with
weather-related challenges, resulting in a negative
performance in Q1 2016. The 4.4 percent
contraction registered by the sector in the quarter
was the highest rate of contraction in the past four
consecutive quarters. The intensification of the El
Niño weather phenomenon in the first three months
of 2016 took its toll on agricultural output. The
shrinkage of the agriculture sector shaved off
0.4 ppts from the overall Q1 2016 GDP growth. A
number of major crops posted double-digit declines
during the quarter including palay (10.0 percent),
corn (19.0 percent), and mango (21.4 percent). Amid
the dry spell, the fishing sub-sector also contracted
by 4.9 percent in Q1 2016. Nonetheless, with
appropriate stock management in place, the
reduction in agricultural output did not result in
drastic food price hikes.
the 25.6 percent expansion in fixed capital formation
during the quarter. This was, in turn, buttressed by
the 36.6 percent expansion of durable equipment
and 12.0 percent increase in construction activities.
The construction subsector largely benefited from
the reversal of public construction to a 39.9 percent
expansion in Q1 2016 from a 23.0 percent
contraction in Q1 2015. This developed as capital
outlays of major government agencies increased in
line with the government’s commitment to ramp up
public spending.
Chart 2. Gross Domestic Product, by Industry
GDP by expenditure
However, given the weak and uneven growth of the
global economy, net exports slashed 5.4 ppts from
the Q1 2016 real GDP growth. With mounting
uncertainties in the external environment led by the
slowdown and rebalancing in China, further decline
in global commodity prices particularly oil, and
declining capital flows to emerging market and
developing economies, trade sector performance in
the country remained subdued. Nonetheless,
prospects for greater regional integration could
partially provide a lift to the export sector by
providing more opportunities for client and product
diversification.
On the expenditure side, a structural transformation
has been gradually emerging as investments became
the primary growth engine during the quarter. The
strong 23.8 percent growth of capital formation in
Q1 2016 represented the highest of the series of
double-digit expansions of the sector for the past
five consecutive quarters. This development
underscores the commitment of the government to
promote investments to complement resilient
consumer spending. Capital formation accounted
for 5.6 ppts of the Q1 2016 output. Bulk of the
robust growth in investments was accounted for by
The performance of the domestic economy in Q1
2016 highlights the critical role of strong
macroeconomic fundamentals in dealing with both
global and domestic challenges. Meanwhile, the
structural transformation that has been emerging, as
exhibited by the notable contribution of investments
in the Q1 2016 real GDP growth, is an indication of
the continued favorable sentiment of both investors
and consumers on the prospects of the Philippine
economy. Election-related spending, which provided
a boost to the Q1 2016 output growth, is also
expected to contribute even more to the growth
annual growth rate in percent; at constant 2000 prices
14
12
10
8
6
4
2
0
-2
-4
2013
2014
Agriculture, Hunting, Forestry and Fishing
2015
Industry
2016
Services
Meanwhile, household consumption remains a
stable growth driver for the economy as it
accelerated by 7.0 percent, the highest since Q2
2012. The lingering low inflation environment, as
well as the sustained strong inflow of remittances
from overseas Filipinos (OFs) continued to provide
support to household spending.
6 | First Quarter 2016 Report on Economic and Financial Developments
outlook in the succeeding quarter. The peaceful
conduct of the national and local elections should
provide a positive feedback to investors and a sense
of continuity of macroeconomic performance,
supported by the domestic sources of resilience
including ample policy space.
declined by 8.2 percent as the El Niño phenomenon
affected several parts of the country. Of the
39.2 million employed persons, 56.3 percent are
employed in the services sector, 26.9 percent in the
agriculture sector, and 16.8 percent in the industry
sector.
Chart 3. Gross Domestic Product, by Expenditure
Employment increased across most classes of
workers. During the reference period, the number
of wage and salary workers rose by 12.1 percent or
2.7 million workers, of which 76.2 percent worked
for private establishments. Similarly, the number of
those who work for private households went up by
16.6 percent or around 318,000 workers. In terms of
employment status, those who worked on a full-time
basis increased by 11.6 percent or 2.7 million
workers; while those who worked on a part-time
basis decreased by 12.7 percent or 1.8 million
workers.
annual growth rate in percent; at constant 2000 prices
55
Household Final Consumption Expenditure
45
35
Government Final Consumption Expenditure
25
Capital Formation
15
5
-5
-15
-25
-35
2013
2014
2015
2016
Labor and Employment
The preliminary results of the January 2016 Labor
Force Survey (LFS)11 of the Philippine Statistics
Authority (PSA) showed an improvement in the
country’s labor and employment indicators. In
January 2016, the number of employed persons
increased by 2.0 percent to 39.2 million from
38.5 million in the previous year, attributed to the
robust growth in both the industry and services
sectors.
The number of jobless persons declined to
2.4 million in January 2016 from 2.7 million a year
ago, bringing the unemployment rate down to
5.8 percent in January 2016 from 6.6 percent during
the same period a year ago. Conversely, the
underemployment12 rate rose to 19.7 percent from
17.9 percent.
Chart 4. Unemployment and Underemployment Rates
in percent
8.0
Unemployment Rate (LHS)
Underemployment Rate (RHS)
7.5
Labor market buoys growth in
industry and services sector
7.0
6.5
6.0
Employed persons in the industry sector grew by
8.7 percent as the employment in construction subsector expanded by 18.2 percent, approximately
459,000 workers. Likewise, employment in the
services sector increased by 5.6 percent, with
208,000 workers employed in public administration
and defense/compulsory security sub-sector.
Meanwhile, employment in the agriculture sector
11
Preliminary estimates of the January 2016 LFS continues to exclude the
Province of Leyte because the large number of households were displaced
by typhoon Yolanda.
5.5
24.0
23.5
23.0
22.5
22.0
21.5
21.0
20.5
20.0
19.5
19.0
18.5
18.0
17.5
17.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012
2013
2014
2015
2016
12 Underemployment covers all employed persons who desire to have
additional hours of work or additional job, or have a new job with longer
working hours. During the reference period, the underemployed persons
are those who work for less than 40 hours.
First Quarter 2016 Report on Economic and Financial Developments | 7
Meanwhile, the labor force participation rate13
in January 2016 contracted to 63.4 percent from
63.7 percent in January 2015. This could be due to
the faster growth in population size (those who are
15 years old and above) compared to the growth in
the number of persons in the labor force.
Fiscal Sector
National Government Cash
Operations
The cash operations of the NG yielded a deficit of
P112.5 billion in Q1 2016, more than triple the
year-ago level of P33.5 billion. As a percent of GDP,
the NG’s cash position accounted for -3.4 percent in
Q1 2016, larger than the year-ago level of -1.1
percent.
Meanwhile, total expenditures in Q1 2016 reached
P591.5 billion, 17.4 percent higher than the
P504.0 billion expenditures in Q1 2015. Total
disbursements as a percent of GDP is recorded at
18.1 percent in Q1 2016. The y-o-y increase in
expenditures can be attributed mainly to increased
allotment to local government units (LGUs) as well
as for maintenance and other operating
expenditures (MOOE)14 during the quarter.
Netting out the interest payments from the
expenditures, the resulting primary balance
amounted to P60.3 billion, representing
3.3 percent of GDP in the review quarter.
The NG made net availments in Q1 2016 amounting
to P86.3 billion, a reversal from the net repayment
of P9.3 billion made in Q1 2015. The net availments
came mainly from domestic borrowings.
Chart 5. Cash Operations of the National Government
in billion pesos
700
Revenues
NG cash operations yield a
higher deficit
600
Expenditures
500
Surplus/Deficit (-)
400
300
200
100
Total revenues for Q1 2016 reached P479.0billion,
higher than the year-ago level of P470.5 billion. Total
revenues as a share of GDP is recorded at
14.7 percent in Q1 2016, slightly lower than the
previous year’s 15.5 percent. The y-o-y increase in
revenues was due mainly to improved collections by
the Bureau of Internal Revenue (BIR) and the Bureau
of Customs (BOC). Tax collections, which constituted
88.7 percent of total revenues, amounted to
P424.7 billion, 5.2 percent higher than the year-ago
level. Non-tax revenues, which consisted mainly of
collections made by the Bureau of the Treasury (BTr),
decreased by 19.0 percent y-o-y.
0
-100
-200
2013
2014
2015
2016
The NG will continue to pursue fiscal consolidation in
the medium term by supporting legislative initiatives
to raise revenues and widen the tax base. The NG
has more resources that can be allocated to
accelerate infrastructure spending. The need to
address infrastructure gaps is a top priority. There
are plans to increase spending on infrastructure to
5 percent of GDP in 2016.
13
Labor Force Participation Rate is computed by dividing the total number
of persons in the labor force by the total population 15 years old and
above.
14
Infrastructure and other capital outlays also significantly improved during
the review period.
8 | First Quarter 2016 Report on Economic and Financial Developments
Monetary Sector
The slightly higher food inflation can be traced mainly
to price increases in certain key food items namely,
meat, vegetables, sugar as well as oils and fats.
Prices
Meanwhile, rice prices continued to decline
compared to year-ago levels as the arrival of
additional rice importation and onset of the main
harvest season in the previous quarter ensured
sufficient supply during the start of the year.
Rice accounts for 8.9 percent of total CPI basket.
Headline inflation was higher in Q1 2016 due largely
to higher prices of selected food items. Inflation
went up to 1.1 percent from 1.0 percent in the
previous quarter but remained below the low end of
the government’s announced target of 3.0 percent ±
1.0 percentage point for 2016.
Supply-dynamics continue to
drive domestic inflation
On the other hand, indicators of underlying price
pressures like core inflation15 eased to 1.6 percent
from 1.8 percent in the previous quarter. Similarly,
two out of the three alternative measures of core
inflation computed by the BSP were lower in Q1 2016
while the weighted median measure was steady
relative to the previous quarter.
On the other hand, non-food inflation remained
steady in Q1 2016 at 0.5 percent. Inflation for
housing, water, electricity, gas, and other fuels
remained in the negative territory as utility rates
declined. Electricity rates decreased during the
quarter on lower generation charges while water
rates also declined during the quarter.
Chart 6. Food and Non-Food Inflation in the Philippines
(2006=100)
in percent
9
Headline Inflation
Food Inflation
Non-Food Inflation
8
7
6
5
Table 1. Alternative Core Inflation Measures
quarterly averages of year-on-year change
4
3
2
Quarter
Official
Headline
Inflation
Official Core
Inflation
Trimmed
2014
4.1
3.0
3.5
2.9
Net of
Volatile
Items 3
2.6
Q1
Q2
Q3
Q4
2015
Q1
Q2
Q3
Q4
2016
Q1
4.1
4.4
4.7
3.6
1.4
2.5
1.7
0.6
1.0
0.8
1.1
3.0
3.0
3.3
2.7
2.0
2.5
2.2
1.6
1.8
1.1
1.6
3.3
3.6
3.8
3.3
1.9
3.0
2.1
1.3
1.3
1.2
1.2
2.6
3.2
3.1
2.7
1.9
3.0
2.2
1.2
1.3
1.3
1.3
2.8
2.6
2.8
2.4
1.8
2.3
1.9
1.5
1.5
1.3
1.3
Mean
1
Weighted
Median
2
1
The trimmed mean repres ents the ave rage infla ti on rate of the (weighted) middle 70 percent
in a lowes t-to-hi ghes t ranki ng of year-on-year i nfl ati on rates for al l CPI components .
2
The weighted median repres ents the middl e i nfl ati on rate (corres ponding to a cumul ati ve CPI
we ight of 50 percent) i n a l owes t-to-highes t ra nking of year-on-year i nfl ati on rates .
1
0
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
2015
Q4
Q1
2016
Furthermore, despite increases in international crude
prices earlier this year, prices of domestic petroleum
products remained lower compared to year-ago
levels. This led to lower inflation for transport
services due largely to fare rollbacks (i.e., public
utility jeepney) during the quarter.
3
The net of volatil e i tems method excludes the fol lowing i tems : bread and cereals , meat, fis h,
fruit, vege tabl es , gas , s ol id fuel s , fuels and l ubri cants for pers onal trans port equipment, and
pas s enger trans port by road, which repres ents 39.0 percent of al l items . The s eri es has been
recomputed us ing a new methodol ogy that is al igned with PSA's method of computi ng the
official core inflation, which re-weights remai ning i tems to compris e 100 percent of the core
bas ket afte r excl uding non-core items . The previ ous methodol ogy retai ned the weights of
vol ati le items i n the CPI bas ket whil e keeping their i ndi ces cons tant at 100.0 from month to month.
Source: PSA, BSP es timate s
Food inflation accelerated to 1.6 percent in
Q1 2016 from 1.3 percent in the previous quarter.
15
Nonetheless, the continued decline in inflation for
utilities- and oil-related items were counterbalanced
by higher price increases in health, recreation and
culture as well as restaurants and miscellaneous
goods and services. Transport fares for air and sea
travel also increased due to seasonal demand for
provincial trips during the Easter holiday in March.
Excludes certain volatile food and energy items.
First Quarter 2016 Report on Economic and Financial Developments | 9
NCR inflation slows down on
lower prices of non-food
items…
Chart 7. Inflation Rate (2006=100)
in percent
6
Philippines
National Capital Region
Areas Outside the National Capital Region
5
In terms of price development by area, inflation in
the National Capital Region (NCR) dropped anew to
0.3 percent from 0.8 percent in the previous quarter
as non-food items continued to pull down inflation.
Prices of oil-related CPI items such as electricity, gas,
and other fuels as well as operation of personal
transport equipment16 remained negative for the
sixth consecutive quarter in Q1 2016.
4
3
2
1
0
2013
2014
2015
2016
Domestic Liquidity17
On the other hand, the following food items posted
higher inflation rates within NCR during the quarter:
corn, meat, milk, cheese, and eggs along with
vegetables. Rice inflation continued to decline
relative to year-ago levels due mainly to higher
supply arising from importations and onset of the
harvest season.
… while inflation in AONCR rises
For areas outside NCR (AONCR), inflation continued
to accelerate at 1.3 percent in Q1 2016 from
1.0 percent in the previous quarter, as both food and
non-food items increased.
Higher price increases in corn along with milk,
cheese, and eggs, both of which were previously
decreasing, boosted food inflation in AONCR in
Q1 2016. Likewise, year-on-year vegetable inflation
accelerated from the previous quarter, contributing
to higher food inflation.
In contrast to the national and NCR trend, non-food
inflation in AONCR increased in Q1 2016 as health
and catering services as well as medical products and
personal care and effects went up during the quarter.
It should be noted that inflation for electricity, gas,
and other fuels as well as transport remained in
negative territory.
Money supply or M3 grew by 11.7 percent y-o-y as
of end-March 2016 to reach P8.5 trillion. This
growth was faster than the 9.4-percent expansion as
of end-December 2015.
The increase in M3 was driven largely by the
15.4-percent y-o-y growth in domestic claims or
credits to the domestic economy in March 2016.
Credits extended to the private sector grew by
12.8 percent, consistent with the sustained growth
in bank lending. Meanwhile, net claims on the
central government rose by 33.6 percent.
Net foreign assets (NFA) in peso terms rose by
5.8 percent y-o-y in March 2016. The BSP’s NFA
position continued to expand on the back of robust
foreign exchange inflows coming mainly from
overseas Filipinos’ remittances, business process
outsourcing receipts, and portfolio investments.
Meanwhile, the NFA of banks also increased, driven
largely by the increase in banks’ foreign assets
resulting from investments in marketable debt
securities.
17
16
This includes gas oils for motor vehicles.
The indicators used for money supply are: M1 (or narrow money),
comprised of currency in circulation and demand deposits; M2, composed
of M1 plus savings and time deposits (quasi-money); M3, consisting of M2
plus deposit substitutes; and M4, consisting of M3 plus foreign currency
deposits.
10 | First Quarter 2016 Report on Economic and Financial Developments
Table 2. Domestic Liquidity (M3)
Chart 8. Yield Curve of Government Securities
in percent
Growth Rates
(in %)
Levels (in billion pesos)
Particulars
Mar
2016
Dec
2015
Mar
2015
Quarter
On
Quarter
Year
On
Year
Domestic
Liquidity (M3),
8,548.0
8,426.2
7,650.0
1.4
11.7
Q2 2015
Q3 2015
4
3
4,100.1
3,998.8
3,875.6
2.5
5.8
2
8,077.4
7,860.5
6,997.4
2.8
15.4
1
0
of which:
Net Claims
on Central
Government
Claims on
Other Sectors
Q1 2015
6
5
of which:
Net Foreign
Assets
Domestic
Claims
7
3 mo
1,465.8
1,263.0
1,096.9
16.1
33.6
6,611.5
6,597.4
5,900.4
0.2
12.1
Source: Department of Economic Statistics, Bangko Sentral ng Pilipinas
Domestic Interest Rates
The primary market rates of the 91-day, 182-day,
and 364-day treasury bills (T-bill) declined to
1.56 percent, 1.58 percent and 1.72 percent in Q1
2016 from the Q4 2015 rates of 1.71 percent,
1.70 percent and 1.90 percent, respectively. The
lower primary market rates reflected market
preference for short-term papers amid economic
slowdown in China and expected delay in further US
policy rate increases.
Primary market interest rates fall
across the board
Similarly, the secondary market yields of
government securities (GS) for most maturities
decreased as of end-March 2016 relative to yields as
of end-December 2015.
Yields of secondary market GS
mostly decline
The yields of most tenors dropped by at least
29.0 bps (20-year) to at most 102.3 bps (6-month)
amid subdued global growth prospects. Meanwhile,
the yields of 3-year and 10-year GS increased by
2.8 bps and 59.0 bps, respectively.
6 mo
1 yr
2 yr
3 yr
4 yr
5 yr
7 yr
10 yr
20 yr
25 yr
Domestic market interest rates showed mixed
trends, reflecting global uncertainty. The savings
deposit and time deposit rates were slightly higher in
Q1 2016 by 1.0 bp and 1.2 bps, respectively.
Meanwhile, the bank lending and interbank call
loans rates were lower by 10.8 bps and 0.02 bps,
respectively.
Other market interest rates
show mixed trends
The differentials (gross and net of tax) between the
domestic and US interest rates narrowed in Q1 2016
relative to Q4 2015. The 14.5 bps decrease in the
average RP 91-day T-bill rate led to the lower
differential against the average US 90 -day T-bill rate
and LIBOR which increased by 7.9 bps and 21.6 bps,
respectively. Higher foreign interest rates reflected
investor optimism following the release of strongerthan-expected US manufacturing activity during the
quarter.
Adjusted for risk premium,
interest rate differentials narrow
The positive differential between the BSP's policy
interest rate (overnight borrowing or RRP rate) and
the US Federal Funds target rate persisted at 350
bps as of end-March 2016, as the US Federal Funds
target rate and the RRP rate remained unchanged
during the quarter. Compared to its December 2015
value, the risk-adjusted spread between the two
policy rates widened by 17.8 bps in March 2016, due
First Quarter 2016 Report on Economic and Financial Developments | 11
to lower risk premium (measured as the difference
between the 10-year ROP and the 10-year US note).
The decline in the risk premium was traced to a
66.6-bp decrease in the yields of 10-year ROP note
amid a more modest 48.8-bp decrease in the yields
of the 10-year US Treasury note.
Monetary Policy Developments
liquidity. The BSP also recognized that uncertainty
over economic growth prospects across the globe
could continue to drive volatility in global financial
markets.
Given these considerations, the BSP affirmed the
need to keep a watchful eye over domestic and
external developments to ensure that the monetary
policy stance remains in line with the BSP’s price and
financial stability objectives.
During its monetary policy meetings on
11 February and 23 March, the BSP decided to
maintain its key policy interest rates at
4.0 percent for the overnight borrowing or RRP
facility and 6.0 percent for the overnight lending or
RP facility. The interest rates on term RRPs, RPs, and
SDAs were also kept steady. Similarly, the reserve
requirement ratios were left unchanged.
Financial Sector
BSP maintains monetary policy
settings
Financial Sector
The BSP’s assessment of a manageable inflation
outlook and robust growth conditions continue to
support steady monetary policy settings. Latest
forecasts indicate that average inflation is likely to
settle within the target range of 3.0 percent ± 1
percentage point for 2016-2017, while inflation
expectations continue to be firmly anchored within
the inflation target band over the policy horizon.
The BSP also noted that the risks surrounding the
inflation outlook have shifted slightly to the
downside. Downward price pressures could arise
from slower-than-expected global economic activity
and potential second-round effects from lower
international oil prices. Meanwhile, upside risks to
the inflation outlook persist, particularly those that
could emanate from the impact of El Niño dry
weather conditions on food prices and utility rates as
well as pending petitions for power rate
adjustments.
The BSP observed that domestic demand conditions
are likely to stay firm, supported by solid private
household and capital spending, buoyant business
sentiment, and adequate credit and domestic
Banking System
The Philippine banking system continues to be
resilient as it supports long-term economic growth.
Banks’ balance sheets were marked by a steady
growth in assets and deposits. Asset quality
indicators showed mix trends, while capital
adequacy ratios remained above international
standards, even with the implementation of the
tighter Basel III framework.
Philippine banking system posts
steady growth in assets and
deposits
Banks continued to dominate the financial sector,
with universal and commercial banks (U/KBs)
accounting for 90 percent of total banks’ assets. In
terms of the number of head offices and
branches/agencies, non-bank financial
intermediaries had a wider physical network than
banks, consisting mainly of pawnshops.
12 | First Quarter 2016 Report on Economic and Financial Developments
Performance of the Banking System
Market Size
The number of banking institutions (head offices) fell
to 632 as of end-December 2015 from the yearand quarter- ago levels of 648 and 635, respectively,
indicating continued consolidation of banks as well
as the exit of weaker players in the banking system.
By banking classification, banks (head offices)
consisted of 40 U/KBs, 68 thrift banks (TBs), and
524 rural banks (RBs). Meanwhile, the operating
network (head offices and branches/agencies) of the
banking system expanded to 10,756 offices in Q4
2015 from 10,361 offices during the same period in
the previous year and 10,561 offices in Q3 2015, due
mainly to the increase in the branches/agencies of
U/KBs, TBs and RBs.
total deposits18 as of end-March 2016 amounted to
P7.4 trillion, 11.3 percent or P0.8 trillion higher than
the year-ago level.
Demand and savings deposits
expand while time deposit
declines
On a quarterly basis, the 2.2 percent growth in
deposits was lower than the 6.4 percent growth
posted in the previous quarter. Demand and savings
deposits expanded by 3.7 percent and 3.0 percent,
respectively19, while time deposits declined by
0.7 percent. On the other hand, foreign currency
deposits owned by residents (FCD-Residents) grew
by 2.1 percent to P1.5 trillion.20
Chart 10. Deposit Liabilities of Banks
in billion pesos
Number of banks declines, but
operating network expands
The total resources of the banking system grew by
10.1 percent to P12.5 trillion as of end-March 2016
from the year-ago level of P11.4 trillion, and by
0.9 percent from the P12.4 trillion level posted a
quarter-ago. As a percent of GDP, total resources
stood at 92.5 percent.
Chart 9. Total Resources of the Banking System
Bank Lending Operations
Levels in trillion pesos; share in percent
Outstanding loans of UKBs as of end-March 2016,
net of banks' RRP placements with the BSP grew by
14.8 percent y-o-y and by 0.1 percent q-o-q.
Similarly, bank lending inclusive of RRPs increased
by 13.5 percent during the same period. Commercial
banks' loans have been increasing steadily at a
double-digit pace y-o-y since January 2011.
Savings Mobilization
18
Savings and demand deposits were the primary
sources of funds for the banking system. Banks’
This refers to the total peso-denominated deposits of the banking
system.
Along with the savings, time and demand deposits, M3 includes currency
in circulation and deposit substitutes.
20 M4 is the sum of M3 and FCD-Residents. Along with savings, time and
demand deposits, M3 includes currency in circulation and deposit
19
First Quarter 2016 Report on Economic and Financial Developments | 13
Bank lending sustains growth
y-o-y
Credit card receivables
continue to rise
Loans for production activities, which comprised
81.4 percent of banks’ aggregate loan portfolio,
expanded by 15.0 percent y-o-y in March. The
growth in production loans was driven primarily by
increased lending to the following sectors: real
estate activities (20.2 percent); electricity, gas,
steam and airconditioning supply (31.8 percent);
wholesale and retail trade, repair of motor vehicles
and motorcycles (13.6 percent); financial and
insurance activities (10.6 percent); and information
and communication (28.0 percent). Bank lending to
other sectors likewise expanded during the month
except for professional, scientific, and technical
activities which declined by 9.6 percent. Similarly,
loans for household consumption grew by
15.9 percent due to sustained growth in credit card
loans, motor vehicle loans, and salary-based general
purpose loans.
Meanwhile, the ratio of CCRs to the total loan
portfolio (TLP) was at 2.9 percent, lower than the
3.0 percent registered a year ago. In terms of loan
quality, despite the 0.7 percent increase in nonperforming CCRs, its ratio to total CCRs improved to
7.6 percent from the previous year’s 8.2 percent
mainly due to the increase in total CCRs.
Chart 11. Loans Outstanding of Commercial Banks (Gross
of RRPs)
in trillion pesos
Motor Vehicle Loans21
The combined motor vehicle loans (MVLs) of U/KBs
and TBs, inclusive of non-bank subsidiaries,
increased by 32.1 percent to P303.9 billion as of endDecember 2015 from P230.1 billion a year ago and
by 7.2 percent from P238.6 billion a quarter ago.
Motor vehicle loans maintain
strong growth
Consumers’ strong demand for passenger cars
(particularly, the sub-compact cars) and commercial
vehicles, introduction of new and refreshed models,
appropriate product mix, as well as flexible financing
schemes from banks and other car financing firms
helped sustain the rise in vehicle purchases. The
share of total MVLs to TLP, exclusive of interbank
loans, remained at 4.9 percent relative to previous
quarter. In terms of loan quality, the ratio of nonperforming MVLs to total MVLs declined to
4.6 percent from 4.8 percent posted in Q3 2015.
Credit Card Receivables
Salary-Based General-Purpose Consumption Loans22
The combined credit card receivables (CCRs) of
U/KBs and TBs as of end-December 2015, inclusive
of credit card subsidiaries, increased by 9.1 percent
to P179.3 billion relative to the previous year’s level
of P164.3 billion.
Salary Based General-Purpose Consumption Loans
(SBGPCL) extended by U/KBs and TBs, inclusive of
non-bank subsidiaries, increased significantly by
68.1 percent to P104.3 billion as of end-December
2015 from the year-ago level of P62.1 billion23 and
21
22
23
Renamed effective September 2015 (formerly Auto Loans)
Formerly Salary Loans
Data collection started with June 2014 data.
14 | First Quarter 2016 Report on Economic and Financial Developments
by 7.2 percent from the quarter-ago level of
P97.2 billion.
Salary loans register the highest
growth among other consumer
loan types
The share of total SBGPCLs to TLP, exclusive of
interbank loans, of 1.7 percent was similar to that
posted in Q3 2015. In terms of loan quality, the ratio
of non-performing SBGPCLs to total SBGPCLs
declined to 3.9 percent from 4.2 percent posted in
Q3 2015.
Residential Real Estate Loans
As of end-December 2015, the combined residential
real estate loans (RRELs) grew by 11.5 percent to
P444.0 billion from P398.2 billion a year-ago, and by
5.5 percent relative to the previous quarter’s level of
P420.9 billion.
Residential real estate loans
continue to grow
Sustained household investments in residential
properties, the slow rise in the cost of construction
materials, the increase in the number of projects
unveiled by real estate developers as well as banks’
intensified promotional campaigns supported the
growth in real estate purchases during the review
period. Total RRELs to TLP slightly decreased to
7.2 percent, relative to the previous quarter’s ratio
of 7.3 percent. By industry, U/KBs held a bigger slice
of the total residential real estate exposure at
58.1 percent (P258.0 billion), while TBs accounted
for the remaining 41.9 percent (P186.1 billion). In
terms of loan quality, with respect to the previous
quarter’s ratio, the non-performing RRELs still
remained at 3.1 percent of total RRELs of U/KBs and
TBs.
Asset Quality and Capital Adequacy
The Philippine banking system’s gross
non-performing loan (GNPL) ratio of 2.2 percent as
of end-March 2016 was an improvement from the
previous year’s level of 2.5 percent, but slightly
higher than the quarter-ago level of 2.1 percent.24
Banks’ initiatives to improve their asset quality along
with prudent lending regulations helped maintain
the GNPL ratio below its pre-Asian crisis level of
3.5 percent.25 The increase reflected the combined
effect of the GNPL increase of P8.7 billion, from
P136.5 billion in Q4 2015 to P145.2 billion in Q1
2016, and the contraction in the banking system’s
TLP by P20.7 billion. Similarly, the net nonperforming loan (NNPL) ratio increased, though
mildly, to 0.8 percent relative to the 0.7 percent
posted a year ago, and 0.6 percent a quarter ago. In
computing for the NNPLs, specific allowances for
credit losses26 on TLP are deducted from the GNPLs.
The said allowances decreased to P94.3 billion in
end-March 2016 from P94.6 billion posted a quarter
ago.
Chart 12. Ratio of Gross NPLs and Net NPLs to Total
Loans of the Banking System
in percent
The Philippine banking system’s GNPL ratio of
2.2 percent was higher relative to South Korea
(1.7 percent) and Malaysia (1.2 percent), but lower
24
For comparative purposes, computations for periods prior to January
2013 are aligned with Circular No. 772. Certain ratios were rounded-off to
the nearest hundredths to show marginal movements.
25 The 3.5 percent NPL ratio was based on the pre-2013 definition.
26 This type of provisioning applies to loan accounts classified under loans
especially mentioned (LEM), substandard-secured loans, substandardunsecured loans, doubtful accounts and loans considered as loss accounts.
First Quarter 2016 Report on Economic and Financial Developments | 15
when compared with Thailand (2.6 percent) and
Indonesia (2.4 percent).27
The loan exposures of banks remained adequately
covered as the banking system registered an NPL
coverage ratio of 112.7 percent. The Q1 2016
coverage ratio was lower than the 116.4 percent
registered a year ago and the 118.4 percent posted
in end-December 2015. The ratio is indicative of
banks’ continued compliance with the loan-loss
provisioning requirements of the BSP to ensure
adequate buffers against potential credit losses.
Banks maintain high levels of
CAR amid tighter capital
requirements
Compliance with the BSP capital framework for
U/KBs under the Basel III framework28 took effect on
1 January 2014. The new Basel III regime
incorporates adjustments to the treatment of bank
capital in ways that enhance the use of the capital
adequacy ratio (CAR) as a prudential measure.
The CAR of U/KBs stood at 15.55 percent on solo
basis and 16.40 percent on consolidated basis at the
end of the third quarter in 2015. These figures are
well-above the BSP regulatory threshold of
10.0 percent and international minimum of
8.0 percent. The banks’ latest CAR on solo basis rose
quarter-on-quarter from the 15.48 percent posted at
end-June last year. On the other hand, U/KBs’ CAR
on consolidated basis at end-September last year
slightly declined from the 16.42 percent posted a
quarter earlier.
The industry’s capitalization remains predominantly
composed of Common Equity Tier 1 (CET 1), the
highest quality among instruments eligible as bank
capital. The CET 1 of U/KBs increased quarter-onquarter to 12.99 percent and 13.92 percent of risk
weighted assets (RWA) from 12.87 percent and
13.89 percent last quarter on both solo and
consolidated bases, respectively. Their Tier 1 ratio
also grew to 13.18 percent and 14.08 percent from
13.06 percent and 14.05 percent last quarter on
both solo and consolidated bases, respectively. Tier
1 is composed of common equity and qualified
capital instruments. Both CET 1 and Tier 1 ratios of
U/KBs were also above the BSP thresholds of
6.0 percent and 7.5 percent, respectively.
Said capital ratios increased amid the U/KBs’
profitable operations and issuance of new shares as
well as the infusion of foreign bank capital.
Chart 13. Capital Adequacy Ratio of Universal and
Commercial Banks
in percent
The CAR of U/KBs on a consolidated basis at
16.4 percent was higher than South Korea
(14.0 percent), but lower compared to those of
Indonesia (21.3 percent), Thailand (17.5 percent),
and Malaysia (16.5 percent).29
27 Sources:
IMF and financial stability reports, Indonesia (Banks’
Nonperforming Loans to Gross Loans Ratio, Q4 2015); Malaysia (Banking
System’s Net Impaired Loans, Q1 2016); Thailand (Total Financial
Institutions’ Gross NPLs, Q1 2016); and South Korea (Domestic Banks’
Substandard or Below Loans [SBLs], Q1 2016).
28 Basel III no longer counts towards “bank capital” those Basel II-compliant
capital instruments that do not have the feature of loss absorbency. Loss
absorbency refers to the ability of bank-eligible capital instruments other
than common equity to behave and act in the same way as common equity
shares at the point where the bank takes losses and becomes non-viable.
In addition, Basel III now deducts from capital the investments of banks in
non-allied undertakings, defined benefit pension fund assets, goodwill and
other intangible assets.
29
Sources: IMF and financial stability reports, Indonesia (Commercial Banks,
Regulatory Capital to Risk-Weighted Assets Ratio Q4 2015); Thailand
(Commercial Banks’ Capital Funds Percentage of Risk Assets, Q1 2016);
Malaysia (Banking System’s Total Capital Ratio, Q1 2016); and South Korea
(Domestic Banks’ Capital Ratio, Q1 2016).
16 | First Quarter 2016 Report on Economic and Financial Developments
Banking Policies
Banking policies implemented during the quarter
were aimed at enhancing/providing guidelines on
the following: (1) public and/or publicly-guaranteed
foreign loan agreement and other agreements which
give rise to a foreign/foreign currency obligation of
the public sector; (2) agricultural value chain
financing framework; (3) Unit Investment Trust Fund
(UITF); (4) Basel III framework on liquidity standards
- liquidity coverage ratio and disclosure standards;
(5) phased lifting of the moratorium on the grant of
new banking license or establishment of new
domestic banks; (6) activities and services allowable
for micro-banking offices; and (7) operational risk
management and outsourcing; and (8) cooling-off
provisions of the BSP regulations on financial
consumer protection.
Capital Market Reforms
Capital market policy reforms continued to gain
ground during the first quarter of 2016 as the BSP
and other government agencies, as well as the
private sector adopted measures to develop further
the Philippine capital market. During the period, the
reforms focused on providing flexibility in raising
foreign capital and encouraging more foreign
investors to invest in the country (see Annex B).
Stock Market
In the first three months of 2016, the Philippine
Stock Exchange index (PSEi) averaged
6,766.4 index points, lower by 3.4 percent from the
average of 7,002.8 index points posted in the
preceding quarter. Persistent anxiety over weak
global growth, exacerbated by China’s bumpy
economic transition to a more sustainable growth,
the threat of plunging oil prices and deepening
monetary policy divergence in advance economies
dampened sentiments.
External headwinds dampen
stock trading
However, despite the q-o-q decline, the index
generally trended upwards during the period. In
January 2016, the local bourse hit bear territory with
the benchmark index posting its lowest in
23 months at 6,084.3 index points on 21 January,
which was about 25.1 percent below the peak
posted in April 2015 of 8,127.5 index points.30 The
drop mirrored the global sell-off triggered by
developments in China, the rising geopolitical
tensions in the Middle East, falling oil prices and
concerns on the continued normalization of US
interest rates.
After, bottoming out in January, the PSEi began to
rally in February and eventually closed the quarter
higher. The US Fed’s decision to defer further
interest rates hikes, the People’s Bank of China’s
continued liquidity injection and monetary easing,
the Bank of Japan’s negative interest rates, the
European Central Bank’s aggressive stimulus
program and the recovery of global crude oil prices
from US$30 per barrel to the US$40 per barrel level
saw investors’ risk appetite improve. Moreover,
reports of generally positive earnings by domestic
firms in the last quarter of 2015 also encouraged the
return of foreign investors in the local bourse.
From the low posted in January, the main index
lifted to reach a seven-month peak of
7,376.4 index points posted on 21 March, about
21.2 percent higher than the low registered in
January.
30 The PSEi actually entered bear territory on 11 January 2016, as it closed
at 6,288.26 index points, about 22.6 percent below the peak in April 2015.
First Quarter 2016 Report on Economic and Financial Developments | 17
Chart 14. Average PSEi
in index points
improved slightly from an average of 20.07x in Q4
2015 to 20.11x during the quarter-in-review. At this
level, Philippine shares remain the second most
expensive in the ASEAN5 region, after Indonesia‘s
27.35x.
Chart 15. PSEi Foreign Transactions
in billion pesos, as of 31 March 2016
This technically placed local equities in bull territory
for most of the remaining days of March. However,
gains were tempered by investors’ cautious stance
ahead of the presidential elections and the release
of listed companies’ first-quarter earnings results in
May. In end-March, the PSEi closed at
7,262.3 index points, 4.5 percent higher year-todate.
The general improvement in investor appetite was
reflected in foreign investors’ return to the local
bourse in March. From being net sellers of
P2.2 billion and P4.0 billion in January and February,
respectively, foreign investors reverted back to being
net purchasers of P9.6 billion worth of local stocks in
March. Year-to-date, this brings foreign investor
transactions in the local bourse, which accounted for
about 50.1 percent of the total investors’
transactions in the first three months of 2016, to an
aggregate net purchase of P3.5 billion worth of
shares.
Foreign investors return to local
bourse
Other stock market indicators similarly mirrored
improved sentiments in the latter half of the quarter
in review. After posting a decline to P12.6 trillion in
January 2016 from P13.5 trillion in end-2015, total
stock market capitalization rose to P13.9 trillion in
end-March. But thus far the Philippine stock market
has yet to see an initial public offering (IPO) during
the period. On the other hand, data from Bloomberg
indicated that the Philippine price-earnings ratio
Meanwhile, the average indices of seven of the
nine Asia-Pacific stock indices monitored declined in
Q1 2016 relative to the preceding quarter. The
decline was led by China, which fell by
16.1 percent q-o-q, followed by Hong Kong
(-11.4 percent), Singapore (-7.6 percent), Australia
(-3.2 percent), Thailand (-3.1 percent) and Malaysia
(-0.3 percent). The Philippines was in the middle of
the pack, declining by 3.4 percent q-o-q. In contrast,
the remaining two markets, New Zealand and
Indonesia, outperformed the rest of the region
posting positive growths q-o-q. Indonesian stocks
rose 4.0 percent largely due to Indonesia’s
rebounding economy, accelerating infrastructure
spending and the three policy rate cuts made by
Bank Indonesia during the quarter. New Zealand
stocks, on the other hand, increased by 5.0 percent,
benefiting from the steady appreciation of investors’
risk appetite on expectations that the US Fed will
proceed slowly on any further increases in US policy
interest rates and following the RBNZ’s surprise rate
cut in March.
18 | First Quarter 2016 Report on Economic and Financial Developments
Chart 16. PSE Market Capitalization by Sector
end-March 2016, Percent share (%)
LCY bond issuances of public
sector increase
The NG issued Treasury bills (T-bills) and Fixed-rate
Treasury bonds (T-bonds) amounting to a total of
P132.2 billion which increased by 104.5 percent
from Q4 2015. Meanwhile, the private sector
issuance of LCY bonds amounted to P9.0 billion,
64.3 percent lower than the Q4 level and
25.3 percent lower than Q1 last year. The low
activity by the corporates reflects the risk of higher
interest payments as the Fed starts to normalize.
Chart 17. Quarter-on-Quarter Performance on AsiaPacific Stock Markets (%)
Chart 18. LCY Bond Issuances
in billion pesos
Source: Bureau of the Treasury, Bloomberg, Staff calculation
Bond Market
Local Currency Bond Market
Size and Composition31
Local currency (LCY) bonds issued by both the public
and private sectors amounted to P141.2 billion in Q1
2016, 57.1 percent higher than the P89.9 billion
registered in the previous quarter and 38.4 percent
higher than the P102.0 billion recorded in the same
period last year.
31 This refers to the peso-denominated bond issuances by both public and
private sectors. Public sector issuances of LCY bonds include issuances in
the primary market and rollovers of maturing series which were issued by
the BTr and GOCCs. This excludes issuances by the central bank. Source:
Bureau of the Treasury, Bloomberg, Staff calculation
In terms of market share, issuances from the NG
continued to dominate the domestic securities
market, comprising 93.6 percent of the total bond
issuances while the private sector comprised the
remaining 6.4 percent. Bonds issued by the BTr
accounted for the entire public sector issuance while
issuers from the private sector came from nonfinancial corporations and real estate.
Chart 19. LCY Bond Issuances
As % of market share
Source: Bureau of the Treasury, Bloomberg, Staff calculation
First Quarter 2016 Report on Economic and Financial Developments | 19
Primary Market 32
In the primary auctions conducted for both T-bills
and T-bonds, the NG offered a total of P135.0 billion
of both short- and long-term debt securities in Q1
2016. Demand was robust as tenders were
oversubscribed by 2.1 times. Tenders for T-bills
reached P135.3 billion as against the NG’s offering of
P60.0 billion while for T-bond, tenders reached
P160.9 billion against the P75.0 billion offering.
corporate bonds with 1 percent. The lukewarm
trading at the secondary market reflected investors
trading cautiously over concerns of a weakening
Chinese economy and the anticipated hikes in the
Fed funds rate.
Chart 20. Secondary Market Volume
in billion pesos
The NG partially awards bids for
T-bonds due to higher yields
demanded
The NG partially awarded P132.2 billion in GS,
P60.0 billion in T-bills and P72.2 billion in T-bonds.
The higher rates demanded by investors led the NG
to accept partially bids for T-bills and T-bonds in
some of the auctions conducted during the first
quarter. Demand for shorter-term debt instrument
was higher as the market traded on a wait-and-see
stance for longer debt papers due to concerns over a
weakening Chinese economy and the pace and
timing of the US Fed’s monetary policy
normalization.
Secondary Market
Trading of both government and private corporate
bonds in the secondary market increased by
124.9 percent to P895.7 billion from P398.2 billion
registered in the previous quarter. On a y-o-y basis,
trading in the secondary market declined by
40.8 percent.
Trading increases at the
secondary market
Source: Philippine Dealing and Exchange Corp.
Foreign Currency Bond Market
The government raised funds in the offshore market
that issued US$2 billion worth of new 25-year US
dollar bonds in the first quarter of 2016. The bonds
were priced at par with a coupon of 3.7 percent, the
lowest coupon ever issued on a global basis. This is
also the first sovereign USD bond issuance and the
longest-dated USD bond issuance from Asia during
the quarter.
The NG taps the international
bond market in raising funds
The proceeds of the issuance will be used to fund
the country’s switch and tender offer33, and related
expenses while the remaining amounts will be used
for general purposes including budgetary support.
Trading at the Fixed Income Exchange (FIE) was
dominated mostly by Fixed Income Treasury Notes
(FITNs), which accounted for about 93 percent of the
total trading followed by T-bills with 3.5 percent
share, retail T-bonds (RTBs) with 2.5 percent, and
32
The discussion includes primary market for government issuances only.
33 The tender offer exercise targeted existing bondholders to switch into
the new Global Bonds. Bonds with a total notional value of USD 5.6 billion
were submitted for the switch tender offer and the NG accepted a market
value of USD 1.5 billion from the submissions.
20 | First Quarter 2016 Report on Economic and Financial Developments
Credit Risk Assessment
Philippine sovereign credit rating remained
unchanged in Q1 2016. The latest credit assessment
was Moody’s credit rating of Philippine banks in
November 2015. Moody’s Investor Service gave
Philippine banks a “stable” outlook after it upgraded
the credit ratings of various banks in the country.
The stable outlook means that the new and higher
credit ratings of banks are likely to be maintained
over the short term.
Philippine sovereign credit
rating is unchanged
Among the banks whose credit ratings were revised
recently include Banco de Oro, Metropolitan Bank
and Trust Co., Bank of the Philippine Islands, Land
Bank of the Philippines, Philippine National Bank,
and Rizal Commercial Banking Corp. Moody’s said
the Philippine banks’ resilience to stress is positive
compared to other banking systems around the
world.
climbed as indicated by the wider EMBIG Philippine
spreads which averaged 124 bps, higher than the
previous quarter’s 123 bps.
Debt spreads widen due to
uncertainty on the external
front
In January 2016, debt spreads took a negative
turnaround, widening to levels last seen during the
taper tantrum in 2013. Investors traded on a safehaven mode that pushed yields of US Treasury bonds
lower while raising yields of the relatively risky
emerging market bonds higher (including the
Philippines) which resulted in wider debt spreads.
The rout in China’s financial market sapped
investors’ risk appetite away from higher yielding
emerging market assets, which wiped out gains from
most of Asia’s equities market and weakened their
currencies against the US dollar. Investors were also
surprised as the Bank of Japan adopted a negative
interest rate strategy.
Table 3. Latest Philippine Sovereign Credit Ratings
Chart 21. 5-Year CDS Spreads of Selected ASEAN
Countries
as of March 2016
in basis points
Latest Philippine Sovereign Credit Ratings
as of March 2016
a Spreads
Bond
Rating
Local Currency
Agency
Bond
Spreads
(LT/ST)
S&P
BBB/A2
350
300
Foreign Currency
Outlook
( LT/ST)
250
PEAK
(20132015)
LOWEST
(20132015)
Dec 16 '15
(US Fed hike)
IND: 237 bps
MLY: 190 bps
THA:138
PHL: 111 bps
200
BBB/A2
Stable
Bond spreads
Jan 4 '16
(China
stockmarket
selloff)
IND: 245 bps
MLY: 193 bps
THA: 145 bps
PHL: 117 bps
As of 31
Mar
IDN: 197
MLY: 153
THA: 130
150
100
Moody's
Baa2/.n.a.
Baa2/n.a.
Stable
Fitch
BBB-/F3
BBB/n.a.
Positive
50
Bond spreads
The cost of insuring Philippine sovereign debt
increased in the first quarter of 2016. The country’s
5-year sovereign credit default swap (CDS) spreads
averaged 119 bps in Q1 2016, up from the Q4 2015
average of 107 bps. Against those of neighboring
economies, the Philippine CDS traded lower than
Indonesia’s average of 231 bps, Malaysia’s 182 bps
and Thailand’s 151 bps. Meanwhile, the risk
premium from holding a Philippine sovereign bond
over a similarly tenored US Treasury bond slightly
Indonesia
Jan-…
Feb-…
Mar…
Apr-…
May…
Jun-…
Jul-14
Aug-…
Sep-…
Oct-…
Nov…
Dec-…
Jan-…
Feb-…
Mar…
Apr-…
May…
Jun-…
Jul-15
Aug-…
Sep-…
Oct-…
Nov…
Dec-…
Jan-…
Feb-…
Mar…
Philippines
0
In February 2016, debt spreads further widened as
concerns over China and the continued drop in oil
prices spurred market jitters. China’s foreignexchange reserves shrank by US$99.5 billion in
January to US$3.23 trillion, the lowest level since
2012. Meanwhile, talks between Venezuela and
Saudi Arabia failed to mitigate oil supply issues.
In March, debt spreads narrowed as the global
economic and financial environment remained calm.
First Quarter 2016 Report on Economic and Financial Developments | 21
Yields continued to decrease as investors stay
cautious and away from high risk assets.
By 31 March, the Philippines 5-year sovereign CDS
stood at 104 bps, lower than the 109 bps in end2015 and has remained lower than Indonesia’s
197 bps, Malaysia’s 153 bps and Thailand’s 130 bps.
The EMBIG Philippines also ended the quarter
narrower at 107 bps compared to the previous
quarter’s closing of 124 bps.
Chart 22. EMBIG Spreads of Selected ASEAN Countries
in basis points
450
400
EMBIG Philippines
350
EMBIG Malaysia
300
EMBIG Indonesia
Dec 16 '15
(US Fed hike)
Indonesia: 340 bps
Malaysia: 232 bps
Philippines:125
bps
Jan 4 '16
(China stockmarket
selloff)
Indonesia: 330 bps
Malaysia: 228 bps
Philippines: 127
bps
As of 31 Mar
Indonesia: 299 bps
Malaysia: 208 bps
Philippines: 107 bps
to the increase in the following: RRP eTrading
(75.8 percent), SDA placements with the BSP
Treasury Department (TD) (14.4 percent), and
interbank transactions (14.1 percent).
On a y-o-y basis, the volume and value of
transactions increased by 9.5 percent and
9.0 percent, respectively.
The total revenue derived from PhilPaSS operations
reached P35.2 million, 10.2 percent higher than the
previous quarter, but 1.1 percent lower relative to
previous year’s level. The q-o-q increase was mainly
due to higher volume of transactions, particularly
interbank and third party systems.
250
Table 4. PhilPaSS Transactions
200
150
Growth rates
(%)
100
2016
50
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
0
Payments and Settlements System34
In Q1 2016, the total number of transactions settled
and processed in the Philippine Payments and
Settlements System (PhilPaSS) increased by
3.7 percent to 372,734 from the previous quarter’s
level of 359,562. The uptick in volume was due to
the increase in trading of government securities via
expanded delivery-versus-payment (eDvp)
(127.5 percent), and interbank transactions
(2.7 percent) partially negated by the decline in
transactions on Overseas Filipino (OF) remittances
coursed through the REMIT system (3.0 percent).
Both volume and value of
PhilPaSS transactions increase
Similarly, the total value of transactions increased by
15.4 percent to P76.4 trillion from the previous
quarter’s level of P66.2 trillion. The upswing was due
34 Starting 1 April 2014, the volume and value of transactions exclude
payment transfers to BSP Payments Unit.
Q1
2015
Q4
Q1
Q-o-Q
Volume
372,734
359,562
340,533
Value (in Trillion
PhP)
76.4
66.2
70.1
Transaction Fees
(in Mln PhP)
35.2
32.0
35.6
Source: Payments and Settlements Office, Bangko Sentral ng
Pilipinas
9.5
15.4
9.0
10.2
-1.1
External Sector
Balance of Payments
The country’s balance of payments position yielded a
deficit of US$210 million in Q1 2016, a reversal of
the US$877 million surplus registered in Q1 2015.
BOP position reverses to a
deficit
The negative overall BOP position was a result of
higher net outflows (or net lending by residents to
the rest of the world) in the financial account, even
as the current account recorded a surplus. The
financial account recorded higher net outflows at
US$959 million stemming largely from the other
22 | First Quarter 2016 Report on Economic and Financial Developments
Y-o-Y
3.7
investment account, particularly residents’ net
repayment of loans and placement of deposits
abroad. Meanwhile, the current account registered
a lower surplus at US$447 million as the trade-ingoods deficit widened significantly with declining
exports and increasing imports. Global economic
activity softens in early 2016 even as growth in the
US, euro area and Japan continued to regain
momentum. In contrast, downturns were noted in
major emerging markets such as India and China.
The subdued economic outlook for emerging
markets dampened global growth prospects to
which several central banks responded by easing
monetary policy settings in order to stave off
deflationary pressures.
Table 5. Balance of Payments
in million US$
Balance of Payments ( in million US$)
Q1
2015
Current Account
Capi tal Account
Financi al Account*
Net Uncl assi fi ed Items
Overall BOP
2016
2165
17
152
-1153
447
25
959
277
877
-210
*Positive bala nce in the financial account indicates net outflows
while a nega tive balance indicates net inflows. The overa ll BOP
position, therefore, is equal to the current account plus the capital
account minus the financial account plus net unclas sified items.
The current account registered a surplus of US$447
million (equivalent to 0.6 percent of GDP) in Q1
2016, lower than the US$2.2 billion surplus
(3.2 percent of GDP) posted in Q1 2015.
The trade-in-goods deficit widened to US$8 billion in
Q1 2016 from US$4.8 billion in Q1 2015 due to the
combined effects of the decline in exports of goods
by 11.9 percent and the expansion in imports of
goods by 12.8 percent.
Trade-in-goods deficit widens
Exports of goods declined to US$9.2 billion in Q1
2016 from US$10.5 billion in Q1 2015, as exports to
major trading partners notably the U.S., China and
Japan exhibited declines during the quarter. Weaker
exports were attributed mainly to manufactures,
which fell by 9.2 percent, particularly lower
shipments of chemicals, garments, machinery and
transport equipment, processed food and
beverages, and other manufactures. Lower exports
of coconut oil and mineral products such as copper
metal, gold and other mineral products also
contributed to the fall in total exports.
Exports of goods fall
Meanwhile, exports of non-consigned electronic
products and wood manufactures mitigated the
drop in manufactures, increasing by 7.4 percent and
52.3 percent, respectively. In addition, shipments of
refined sugar and fruits and vegetables such as
bananas and canned pineapples also helped mitigate
the fall in total exports.
Chart 23. Exports by Major Commodity Group
in percent share
Current account surplus falls
sharply
The sharp decline in the current account surplus was
attributed to the significant widening of the
trade-in-goods deficit as merchandise exports fell
while merchandise imports increased. Higher net
receipts in the services, primary and secondary
income accounts kept the current account in surplus
territory, offsetting the widened trade-in-goods
deficit.35
35
Primary Income account (formerly the Income account) shows the flows
for the use of labor and financial resources between resident and non-
resident institutional units. Secondary Income account (formerly the
Current Transfers account) shows current transfers, in cash or in kind,
for nothing in return, between residents and non-residents.
First Quarter 2016 Report on Economic and Financial Developments | 23
Imports of goods amounted to US$17.3 billion in Q1
2016 higher than the US$15.3 billion posted in Q1
2015, due mainly to increased imports of capital
goods, raw materials and intermediate goods, and
consumer goods.
Imports of goods increase
Imports of capital goods increased by
49.2 percent, driven largely by higher imports of
power generating and specialized machines and
telecommunication equipment and electrical
machines. Imports of raw materials and
intermediate goods rose by 22.4 percent as imports
of semi-processed raw materials grew by
30.7 percent, particularly raw materials used to
manufacture non-consigned electronics. Likewise,
imports of consumer goods went up by 39.2 percent,
buoyed by higher imports of durables particularly
passenger cars and motorized cycles.
Meanwhile, imports of petroleum crude oil declined
by 24.7 percent as the price of crude oil in the
international market remained low. In terms of
volume, however, demand for imported oil
increased as importation of petroleum crude rose to
28 million barrels in Q1 2016 from 19 million barrels
in Q1 2015.36
Chart 24. Imports by Major Commodity Group
in percent share
Net receipts in trade-in-services rose to
US$1.5 billion in Q1 2016, compared to the
US$957 million net receipts in Q1 2015.
Net receipts in trade-in-services
rise
The 56.4 percent growth was due largely to the
decrease in net payments in travel services
combined with higher net receipts in technical,
trade-related and other business services
(5.7 percent),37 and computer services
(27.4 percent).38 Export revenues in business process
outsourcing services totaled US$4.7 billion in Q1
2016, or a growth of 15.0 percent from the
US$4.1 billion receipts in Q1 2015.
The primary income account recorded net receipts
of US$579 million in
Q1 2016, more than twice the US$265 million
netreceipts in Q1 2015. This was due largely to the
decline in payments of investment income
(by 10.8 percent) as residents paid lower dividends
to non-resident investors. The 1.5 percent increase
in compensation inflows from resident overseas
Filipino (OF) workers (US$1.9 billion) also
contributed to the increase in net receipts in primary
income.
Net receipts in primary income
expand
Net receipts in the secondary income account
reached US$6.4 billion in Q1 2016, 11.1 percent
higher than the US$5.7 billion net receipts in Q1
2015. The large net receipts were attributed mainly
to the US$5.6 billion personal transfers (which grew
by 3.0 percent). The bulk of these personal
transfers came from non-resident OF workers'
remittances (about 98 percent), which increased by
3.2 percent to US$5.5 billion. The steady demand for
skilled Filipino manpower overseas and the
37
36
Based on World Bank Commodities Price data, the average price of
Dubai crude oil in Jan-Mar 2016 declined to US$30.6/barrel from
US$52.2/barrel in Jan-Mar 2015.
38
Include manufacturing services on physical inputs owned by others,
mostly electronic products, and business process outsourcing (BPOs)
pertaining mostly to contact centers, animation, and medical
transcriptions.
Include BPOs pertaining to software publishing and development.
24 | First Quarter 2016 Report on Economic and Financial Developments
initiatives of banks and non-bank remittance service
providers to expand their international and domestic
market coverage through tie-ups abroad as well as
the introduction of innovations in their remittance
products continued to provide support to the
sustained inflow of remittances.
Net receipts in secondary
income increase
Net receipts in the capital account increased to
US$25 million in Q1 2016 from US$17 million in Q1
2015. Inflows arising from the NG’s receipts in other
capital transfers were higher during the quarter.
Capital account registers
higher net receipts
The financial account yielded net outflows (or net
lending by residents to the rest of the world) of
US$959 billion in Q1 2016, more than sixfold the
US$152 million net outflows in Q1 2015. This was
due mainly to the significant increase in net outflows
of other investments (by more than five times)
coupled with the reversal of portfolio investments to
net outflows from net inflows. These higher net
outflows, however, were partly offset by the reversal
of the direct investment account to net inflows from
net outflows during the quarter.
Gross international reserves
remain highly adequate
The increase in reserves was due mainly to the NG’s
net foreign currency deposits as well as the BSP’s
income from investments abroad as well as
revaluation adjustments on the BSP’s foreign
currency-denominated reserves. These were
partially offset by payments made by the NG for its
maturing foreign exchange obligations.
Of the total reserves as of end-March 2016,
86.0 percent were held in foreign investments;
9.4 percent in gold; and 4.6 percent in holdings of
Special Drawing Rights (SDRs), the BSP’s reserve
position in the IMF, and foreign exchange.
Net international reserves (NIR), which refer to the
difference between the BSP’s GIR and total shortterm liabilities, amounted to US$83.0 billion as of
end-March 2016, an increase of US$2.3 billion from
end-2015.
Chart 25. Gross International Reserves
in billion US dollars
Net outflows in the financial
account rise markedly
International Reserves
Exchange Rate
The country’s gross international reserves (GIR) as of
end-March 2016 rose to US$83.0 billion, 2.9 percent
higher than its level as of end-December 2015. This
can cover 10.4 months’ worth of imports of goods
and payments of services and income. It is also
equivalent to 5.4 times the country’s short-term
external debt based on original maturity and
4.0 times based on residual maturity.
The peso depreciated against the US dollar in the
first quarter of 2016. On a q-o-q basis, the peso
weakened by 0.9 percent to average P47.30/US$1
from the previous quarter’s average of P46.87/US$1.
On a y-o-y basis, the peso depreciated by 6.1 percent
relative to the P44.42/US$1 average in the first
First Quarter 2016 Report on Economic and Financial Developments | 25
quarter of 2015.39 The weakness of the peso during
the review quarter was due to the risk aversion
towards emerging market assets arising from
concerns on the Chinese economy and declining oil
prices.
Chart 26. Year-to-date Appreciation/Depreciation of
Asian Currencies against US dollar
in percent, as of 31 March 2016
The peso depreciates against
the US dollar
In January 2016, the peso weakened to average
P47.51/US$1 relative to the P47.23/US$1 average in
December 2015 on continued risk aversion towards
emerging market assets. The peso depreciated
further in February to average P47.64/US$1 on safehaven buying following the contraction in China’s
manufacturing sector.40 Meanwhile, the Bank of
Japan’s move to introduce a negative interest rate
policy rendered support for Asian currencies,
tempering the depreciation of the peso. In March,
the trend reversed as the peso appreciated to
average P46.72/US$1 on improved risk appetite
towards emerging market assets following
aggressive stimulus measures from the European
Central Bank and dovish statement on the outlook
for interest rates by the US Federal Reserve. Overall,
the sustained inflows of foreign exchange from
overseas Filipino remittances, foreign direct
investments, BPO and tourism receipts, as well as
the healthy level of gross international reserves and
the country’s robust economic growth provided
stability to the peso.41
On a year-to-date basis, the peso appreciated
against the US dollar by 2.2 percent on
31 March 2016 as it closed at P46.07/US$1, moving
in tandem with most Asian currencies, except the
Indian rupee which depreciated vis-à-vis the US.42
39
Dollar rates or the reciprocal of the peso-dollar rates were used to
compute for the percentage change.
Official manufacturing purchasing managers’ index fell to 49.4 in January
from 49.7 in December, marking the lowest level since August 2012 and the
sixth straight month of contraction. A reading below 50 indicates a
contraction. (Source: National Bureau of Statistics of China)
41 GIR stood at US$83.0 billion as of end-March 2016 (revised).
42 Based on the last done deal transaction in the afternoon.
40
Meanwhile, volatility, as measured by the coefficient
of variation (COV) of the peso’s daily closing rates
stood at 1.15 percent during the first quarter of
2016, slightly higher compared with the 0.93 percent
in the previous quarter.43
On a real trade-weighted basis, the peso lost
external price competitiveness in the first quarter of
2016, against the basket of currencies of all trading
partners (TPI), trading partners in advanced (TPI-A)
and developing countries (TPI-D) as the real effective
exchange rate (REER) index of the peso increased by
1.8 percent, 2.0 percent, and 1.7 percent,
respectively, relative to the fourth quarter of 2015.
These developed mainly on account of widening
inflation differential which more than offset the
nominal depreciation of the peso against these
currency baskets.44,45
43
The coefficient of variation is computed as the standard deviation of the
daily closing exchange rate divided by the average exchange rates for the
period.
44 The Trading Partners Index (TPI) measures the nominal and real effective
exchange rates of the peso across the currencies of 14 major trading
partners of the Philippines, which includes US, Euro Area, Japan, Australia,
China, Singapore, South Korea, Hong Kong, Malaysia, Taiwan, Indonesia,
Saudi Arabia, United Arab Emirates, and Thailand. The TPI-Advanced
measures the effective exchange rates of the peso across currencies of
trading partners in advanced countries comprising of the US, Japan, Euro
Area, and Australia. The TPI-Developing measures the effective exchange
rates of the peso across 10 currencies of partner developing countries
which includes China, Singapore, South Korea, Hong Kong, Malaysia,
Taiwan, Indonesia, Saudi Arabia, United Arab Emirates, and Thailand.
45 The REER index represents the Nominal Effective Exchange Rate (NEER)
index of the peso, adjusted for inflation rate differentials with the countries
whose currencies comprise the NEER index basket. A decrease in the REER
index indicates some gain in the external price competitiveness of the peso,
while a significant increase indicates the opposite. The NEER index,
meanwhile, represents the weighted average exchange rate of the peso visà-vis a basket of foreign currencies.
26 | First Quarter 2016 Report on Economic and Financial Developments
Relative to the first quarter of 2015, the peso gained
external price competitiveness against the TPI, TPI-A,
and TPI-D baskets during the first quarter of 2016.
Against the TPI and TPI-D baskets, the combined
effects of the peso’s nominal depreciation and
narrowing inflation differential resulted in the real
depreciation of the peso by 3.3 percent and 1.6
percent, respectively. Meanwhile, the nominal
depreciation of the peso which more than offset the
widening inflation differential against the TPI-A
basket led to the real depreciation of the peso by
5.8 percent.
External Debt
Outstanding Philippine external debt stood at
US$77.6 billion as of end-March 2016, up by US$166
million (or 0.2 percent) from the end-December
2015 level of US$77.5 billion. Y-o-y, the debt stock
rose by US$2.3 billion (or 3.1 percent) from
US$75.3 billion in March 2015.
External debt stays
manageable
The increase in the debt levels during the first
quarter of 2016 was attributed to:
(a) foreign exchange (FX) revaluation adjustments
(US$814 million) as the US Dollar weakened,
particularly against the Japanese Yen; (b) previous
periods’ adjustments due to late reporting (US$609
million); and (c) increased investments in Philippine
debt papers by non-resident investors
(US$224 million). The upward impact of these
developments on debt stock was partially offset by
US$1.5 billion net repayments, mainly by banks.
Similarly, the y-o-y increase was due to the
following: (a) net availments (US$2.1 billion);
(b) previous periods’ adjustments (US$1.1 billion);
and (c) FX revaluation adjustments (US$577 million),
which were partially offset by the US$1.4 billion
decline in non-resident investments in Philippine
debt papers.
By Maturity
As of end-March 2016, the maturity profile of the
country’s external debt continued to be largely
medium- to long-term (MLT) [i.e., those with original
maturities longer than one (1) year] in tenor with
share to total external debt at 81.6 percent
(US$63.3 billion).
Short-term (ST) loans [or those with original
maturities of up to one (1) year] stood at
US$14.3 billion by the close of the first quarter of
2016 and accounted for the 18.4 percent balance of
debt stock.
By Borrower
Public sector external debt stood at US$38.9 billion
(or 50.1 percent of total debt stock), slightly higher
than the US$38.3 billion (49.4 percent of total debt
stock) as of end-2015 due to FX revaluation
adjustments (US$765 million) arising from a weaker
US Dollar.
Private sector debt, on the other hand, aggregated
US$38.7 billion (49.9 percent of total debt stock),
down by US$489 million q-o-q due to net
repayments of US$1.3 billion, mainly by banks.
The debt service ratio (DSR), which relates principal
and interest payments (debt service burden or DSB)
to exports of goods and receipts from services and
primary income, is a measure of the adequacy of the
country’s FX earnings to meet maturing obligations.
The ratio increased to 9.5 percent during the quarter
under review from 4.3 percent in end-2015.
The external debt ratio (a solvency indicator), or
total outstanding debt expressed as a percentage of
annual aggregate output (GNI) remained at the end2015 level of 21.9 percent. Using GDP as
denominator, the ratio was likewise unchanged at
26.5 percent.
First Quarter 2016 Report on Economic and Financial Developments | 27
Chart 27. Philippine External Debt
in percent, as of end-March 2016
Mediumand LongTerm
US$63.3
billion
81.6%
Short-Term
US$14.3
billion
18.4%
TOTAL = US$77.6
billion
Foreign Interest Rates
The timing of exit from accommodative monetary
policy in advance economies (AEs) will differ across
countries depending on the strength of their
economic growth. Accommodative monetary policy
is expected to continue in countries where the
recovery remains fragile due to weakness in labor
market conditions, slowdown in spending, and
anemic bank lending growth.
Monetary policy in some AEs
remains accommodative as
recovery remains fragile
In Q1 2016, the US Fed maintained the target range
for the federal funds rate at 0.25-0.50 percent. At
the same time, the Fed maintained its existing policy
of reinvesting principal payments from its holdings
of agency debt and agency mortgage-backed
securities and of rolling over maturing Treasury
securities at auction.46 Both the average US prime
rate and discount rate increased to 3.500 percent
and 1.000 percent from the quarter-ago average of
3.284 percent and 0.794 percent, respectively. In
addition, the US Fed funds rate increased to
0.369 percent from the 0.157 percent average
reported in the previous quarter.
Meanwhile, the Monetary Policy Committee (MPC)
of the Bank of England (BOE) maintained its
monetary policy settings, keeping the official bank
rate paid on commercial banks’ reserves at
0.5 percent in Q4 2015. The MPC also decided to
maintain the stock of asset purchases financed by
the issuance of central bank reserves at
£375 billion.47
The Bank of Japan (BOJ), after shifting to
quantitative and qualitative monetary easing policy,
adopted monetary base control, which involved the
change in the main operating target for its money
market operations (MMO) from the uncollateralized
overnight call rate. Thus, for the review quarter, the
BOJ continued to conduct MMO to increase the
monetary base at about 80 trillion yen from 60-70
trillion yen yearly. In addition, the BOJ continued to
buy Japanese government bonds (JGBs) annually at
80 trillion yen from 50 trillion yen, exchange-traded
funds (ETFs) at 3 trillion yen from 1 trillion yen, and
Japan REITs at 90 billion yen from 30 billion yen. The
BOJ likewise maintained its purchases of commercial
papers and corporate bonds until their outstanding
amounts reach 2.2 trillion yen and 3.2 trillion yen,
respectively. Moreover, the BOJ decided to
introduce "Quantitative and Qualitative Monetary
Easing (QQE) with a Negative Interest Rate" in order
to achieve the inflation target of 2 percent. The BOJ
will apply a negative interest rate of -0.1 percent to
current accounts that financial institutions hold at
the Bank.48
Meanwhile, the Governing Council of the European
Central Bank decided to decrease the interest rates
on deposit facility, main refinancing operation, and
marginal lending facility by 10 bps, 5 bps, and 5 bps
to -0.40 percent, 0.0 percent, and 0.25 percent,
respectively. Moreover, the monthly purchases
47
Press Release. (n.d.). Retrieved from
http://www.bankofengland.co.uk/publications/Pages/news/2016/003.aspx
BOJ will adopt a three-tier system in which the outstanding balance of
each financial institution's current account at the Bank will be divided into
three tiers, to each of which a positive interest rate, a zero interest rate or a
negative interest rate will be applied, respectively.
48The
46 Press Release. (n.d.). Retrieved from
https://www.federalreserve.gov/newsevents/press/monetary/20160316a.
htm
28 | First Quarter 2016 Report on Economic and Financial Developments
under the asset purchase programme were also
expanded to €80 billion from €60 billion.49
Lastly, the 90-day LIBOR and 90-day Singapore
Interbank Offered Rate (SIBOR) increased in Q1 2016
to 0.625 percent and 1.237 percent from 0.409
percent and 1.092 percent in Q4 2015, respectively,
even as global financial markets remained generally
liquid.
Chart 28. Selected Foreign Interest Rates
in percent
Global Economic Developments
Global Economic Developments
Global Economic Developments
In Q1 2016, global economic activity remained soft
for both advanced and developing economies.
Meanwhile, global labor market conditions generally
showed signs of improvement while inflation rates in
advanced and emerging economies were generally
mixed.
US real GDP expanded by 2.0 percent y-o-y in Q1
2016, unchanged from previous quarter’s growth.
The growth in real GDP was due to positive
contributions from consumer spending, and
residential fixed investment that were partly offset
by negative contributions from non-residential fixed
investment, private inventory investment, and
exports.50 Economic growth in Japan remained
stagnant at zero percent as private consumption and
capital expenditure remained soft.51
Economic activity in the Euro area grew by
1.5 percent in Q1 2016 slightly lower than the
1.6 percent growth registered in the previous
quarter as majority of Euro area economies
expanded except for Greece.52
Meanwhile, most emerging economies in Asia
recorded weaker output growth. South Korea’s
economy slowed down to 2.7 percent from the
previous quarter’s 3.1 percent as sluggish exports
continued to weigh on growth. The Singaporean
economy grew by only 1.8 percent in Q1 2016,
unchanged from the revised growth recorded a
quarter-ago, due to the weak performance of its
manufacturing sector.53 Economic activity in Hong
Kong likewise decelerated to 0.8 percent from
1.9 percent in the previous quarter as retail sales
and services weakened amid the deceleration in
tourist arrivals. The Chinese economy moderated to
6.7 percent in Q1 2016, slightly down from the
6.8 percent growth recorded in the previous quarter
due to the slowdown in the services sector.54 The
Indian economy expanded by 7.3 percent during the
review quarter, unchanged from the previous
quarter.55
In the ASEAN region, Philippines and Thailand posted
higher GDP growth rates during the review quarter.
The Philippine economy grew by 6.9 percent from
6.5 percent in the previous quarter due to robust
private consumption and investments.56 In Thailand,
GDP expanded by 3.2 percent during the review
quarter, as compared to the 2.8 percent expansion
in the previous quarter due to an increase in net
exports and accelerated government spending.57
Meanwhile other ASEAN economies registered a
sluggish growth in GDP. The Indonesian economy
slowed down to 4.9 percent in Q1 2016 from the
5.0 percent expansion reported in the previous
quarter as household consumption remained
subdued.58 In Vietnam, GDP decelerated to
52Eurostat
53
The Ministry of Trade and Industry, Singapore
National Bureau of Statistics of China
Indian Ministry of Statistics and Programme Implementation
56 Philippine Statistics Authority
57 National Economic and Social Development Board, Thailand
58 Statistics Indonesia
54
49
Press Release. (n.d.). Retrieved from
https://www.ecb.europa.eu/press/pr/date/2016/html/pr160310.en.html
50 US Bureau of Economic Analysis
51 Statistics Bureau of Japan
55
First Quarter 2016 Report on Economic and Financial Developments | 29
5.5 percent during the review quarter from
6.7 percent a quarter ago, driven mainly by the
decline in manufacturing and the prolonged drought
that led to the contraction in the agricultural sector.
The Malaysian economy expanded by 4.2 percent
during the review quarter, moderating from a
4.5-percent growth in the previous quarter due to
slower growth in the manufacturing and services
sectors.59
quarter, while inflation rates in the Philippines,
Thailand, and Vietnam picked up slightly.
Chart 30. Inflation
quarterly average, in percent
Chart 29. Real GDP
y-o-y growth, in percent
In terms of domestic prices of goods, average
inflation rates were mixed among major advanced
economies in Q1 2016. In the US, inflation rates
increased to 1.1 percent from 0.5 percent. In
contrast, inflation in Japan and Euro area decreased
to 0.1 percent and 0.0 percent from 0.3 percent and
0.1 percent, respectively.
Inflation rates in emerging Asian economies were
likewise mixed. Average inflation rates in Hong Kong
and China inched up to 2.8 percent, and 2.1 percent,
respectively, during the review quarter from 2.3
percent, and 1.5 percent in the previous quarter.
South Korea registered a slightly lower inflation rate
at 1.0 percent during the review quarter compared
to previous quarter’s 1.1 percent. In India, inflation
decelerated to 5.3 percent during the review
quarter from 5.5 percent in the previous quarter.
Meanwhile, inflation rate in Singapore was recorded
at -0.8 percent from -0.7 percent a quarter ago. In
ASEAN economies, average inflation rates in
Indonesia and Malaysia declined during the review
59
Global labor market conditions generally improved.
The unemployment rate in the US, Japan, and the
Euro area eased to 4.9 percent, 3.2 percent, and
10.3 percent during the review quarter from
5.0 percent, 3.3 percent, and 10.5 percent,
respectively, a quarter ago. In Asia, unemployment
rate in South Korea and Hong Kong increased to
3.8 percent and 3.4 percent from 3.5 percent and
3.3 percent, respectively, from quarter-ago levels.
Singapore’s unemployment rate inched up to
2.5 percent. China’s unemployment rate declined to
4.0 percent in Q1 2016 from 4.1 percent in the
previous quarter. Unemployment rates in ASEAN
countries also showed mixed trends increasing in the
Philippines (5.8 percent), Thailand (0.9 percent), and
Malaysia (3.4 percent), but decreased in Vietnam
(2.3 percent) during the review quarter.
Table 6. Macroeconomic Indicators in Selected
Economies
in percent
Macroeconomic Indicators in Selected Economies, Q1 2016
(in percent)
Country
Real GDP (y-o-y growth rate)
Q1
Q2
Q3
Q4
Q1
2015 2015 2015 2015 2016
Inflation (quarterly average)
Q1
Q2
Q3
Q4
Q1
2015 2015 2015 2015 2016
1/
Q1
2015
Unemployment rate
Q2
Q3
Q4
2015 2015 2015
Q1
2016
G3
US
2.9
2.7
2.1
2.0
2.0
-0.1
0.2
0.1
0.5
1.1
5.6
5.4
5.2
5.0
4.9
Japan
-0.9
0.7
1.8
0.9
0.0
2.3
0.5
0.1
0.3
0.1
3.5
3.4
3.4
3.3
3.2
Euro Area
1.3
1.6
1.6
1.6
1.5
-0.3
0.2
0.1
0.1
0.0
11.2
11.0 10.7
10.5
10.3
Emerging Asia
Hong Kong
2.4
2.9
2.2
1.9
0.8
4.4
3.0
2.3
2.3
2.8
3.3
3.2
3.3
3.3
3.4
South Korea
2.4
2.2
2.8
3.1
2.7
0.6
0.5
0.7
1.1
1.0
3.6
3.8
3.6
3.5
3.8
Singapore
2.7
1.7
1.8
1.8
1.8
-0.3
-0.4
-0.6
-0.7
-0.8
2.4
3.8
2.5
2.4
2.5
China
7.0
7.0
6.9
6.8
6.7
1.2
1.4
1.7
1.5
2.1
4.1
4.0
4.1
4.1
4.0
India
7.5
7.6
7.7
7.3
7.3
6.6
5.9
4.6
5.5
5.3
n.a.
n.a.
n.a.
n.a.
n.a.
ASEAN
Indonesia
4.7
4.7
4.7
5.0
4.9
6.5
7.1
7.1
4.8
4.3
n.a.
n.a.
n.a.
n.a.
n.a.
Malaysia
5.7
4.9
4.7
4.5
4.2
0.7
2.1
3.0
2.6
2.1
3.4
3.1
3.2
3.2
3.4
Philippines
5.0
5.9
6.2
6.5
6.9
2.4
1.7
0.6
1.0
1.1
6.6
6.4
6.5
5.6
5.8
Thailand
3.0
2.7
2.9
2.8
3.2
-0.5
-1.1
-1.1
-0.9
-0.5
1.0
0.9
0.9
0.8
0.9
Vietnam
6.0
6.3
6.5
6.7
5.5
0.7
1.0
0.5
0.3
1.3
2.2
2.4
2.4
2.4
2.3
Sources: Bloomberg, Country Websites
1/ Unemployment rate is the proportion (in percent) of the total number of unemployed as a percentage of the labor force
2/ Average inflation rate was around -0.03 percent for the second quarter of 2015
Bank Negara Malaysia
30 | First Quarter 2016 Report on Economic and Financial Developments
Financial
Condition of the
BSP
the BSP’s Special Deposit Accounts and Foreign
Financial Institutions Account. In the same way,
revaluation adjustment of international reserves
drove liabilities to increase by P22.3 billion from its
quarter-ago level.
Table 7. Balance Sheet of the BSP
in billion pesos
2016t
Balance Sheet
Based on the preliminary and unaudited statement
of financial condition of the BSP as of end-March
2016, total assets reached P4,403.7 billion,
2.2 percent or P94.1 billion higher than the
quarter-ago level. Likewise, the aggregate level
surged by 6.5 percent or by P269.3 billion relative to
the end-March 2015 level. The BSP’s liabilities
increased by 2.2 percent or by P92.1 billion, q-o-q,
to P4,361.0 billion, and by 6.6 percent or
P268.5 billion relative to the end-March 2015 level.
As a result, the BSP’s net worth improved to
P42.6 billion compared to the quarter-ago level of
P40.8 billion. This amount was higher by 1.7 percent
or P0.7 billion than the P41.9 billion posted at
end-March 2015.
Assets
Liabilities
Net Worth
2015
Mar
Decp.u
Mar
4,403.7
4,309.6
4,134.4
4,361.0
4,268.9
4,092.5
42.6
40.8
41.9
p.u
Preliminary and unaudited based on core Financial Accounting
System (cFAS) Production Environment.
t Tentative and subject to change based on cFAS Development
Environment.
Note: Details may not add up to total due to rounding off
Income Statement
Based on preliminary and unaudited data, the BSP
registered a net income of P0.16 billion for Q1 2016
due mainly to gains in foreign exchange revaluation,
a turnaround from the P1.3 billion loss in Q4 2015.
BSP’s net worth improves
BSP registers net income
The increase in the BSP’s assets was due largely to
the higher level of loans and advances to the NG,
which amounted to P163.5 billion in Q1 2016, an
increase of 91.2 percent or P78.0 billion from the
previous quarter’s P85.5 billion. The increase in
assets was also brought about by the higher level of
domestic securities, the expansion in international
reserves due to the rise in net foreign currency
deposit by the NG60 as well as income from
investments abroad, and revaluation adjustment on
the BSP’s foreign currency-denominated reserves.
Total revenues for Q1 2016 amounted to
P13.2 billion, lower than the P13.6 billion posted in
the previous quarter, as interest income from
domestic securities decreased by 15.2 percent from
the previous quarter’s level. Miscellaneous income,
likewise, fell by 49.5 percent or P1.2 billion, q-o-q.
Similarly, the BSP’s liabilities increased during the
review period due to higher placement of deposits in
Total expenditures amounted to P16.7 billion,
P2.3 billion lower than the level posted last quarter.
The q-o-q decrease in expenditures was due mainly
to reduced cost of minting/printing of currency,
interest expense on NG deposits and other deposits,
and other expenses.
60 Includes proceeds from NG issuance of ROP Global Bonds amounting to
US$495 million and from program loans extended by the Asian
Development Bank.
First Quarter 2016 Report on Economic and Financial Developments | 31
Table 8. Income Position of the BSP
for periods indicated
in billion pesos
2016
2015
Q1 t
Q1
Q4 p,u
Revenues
13.167
15.299
13.559
Less: Expenses
16.684
17.308
18.942
Net Income/(Loss) Before
Gain/(Loss) on FXR
Fluctuations and
Income Tax
-3.517
-2.009
-5.383
3.673
-1.176
3.897
0.000
0.000
-0.183
0.156
-3.185
-1.303
Expense/(Benefit)
Gain/(Loss) on Foreign
Exchange Rate Fluctuations
1
Income Tax
Expense/(Benefit)
Net Income/(Loss) After Tax
Note:
Details may not add up to total due to rounding off.
p,u Preliminary and unaudited based on core Financial Accounting
System (cFAS) Production Environment.
t Tentative and subject to change based on cFAS Development
Environment.
Conclusion,
Challenges and
Future Policy
Directions
The Philippine economy continues to stand on solid
footing, supported by broadening growth drivers
and sustained benign inflation environment. Despite
the ongoing fragility in the global economy and
extreme weather conditions, robust domestic
demand buoyed economic expansion of 6.9 percent
in the first quarter of the year, exceeding market
expectations and moving within the government
target of 6.8-7.8 percent for 2016. While the
country’s progress toward a high growth trajectory
appears to be on track, several key developments
have emerged, posing potential risks and challenges
to the economic outlook.
Chief among these concerns is the subdued outlook
for the world economy. At the moment, the
consensus seems to be that global economic
conditions are likely to remain modest and uneven.
In its latest World Economic Outlook (WEO) in April
2016, the International Monetary Fund (IMF)
downgraded its growth projections anew for 2016 by
0.2 percentage point to 3.2 percent from 3.4 percent
in the January 2016 WEO update. The downward
revision largely reflects major macroeconomic
realignments including the slowdown and
rebalancing in China, lower commodity prices,
resulting slowdown in investment and trade, and
declining capital flows to emerging market and
developing economies. As a result, the pickup in
global activity is expected to be more gradual than
earlier projected in advanced economies as well as
emerging market and developing economies.61
In addition, further decline in the prices of oil and
other commodities will continue to feed into a
generally weak global economy. While oil-importing
emerging market economies are benefiting from
terms-of-trade gains, in some instances, they could
face tighter financing conditions and weakness in
external demand, which counter the positive termsof-trade impact on domestic demand and growth. In
its April 2016 issue of the Commodity Markets
Outlook (CMO), the World Bank expects all main
commodity indexes to decline in 2016 due to
persistently elevated supplies, and weak growth
prospects in emerging market and developing
economies, thereby affecting demand for industrial
commodities (e.g., energy, metals, and agricultural
raw materials).
Continued weakness in the global economic
environment, along with low oil prices, are seen to
impact on the country’s trade and remittance
channels. Nonetheless, exports are seen to register
positive growth this year, on account of steady albeit
moderate global demand, improvement in domestic
agricultural production as extreme weather
conditions are seen to normalize beginning the
second quarter of 2016, and expected gains from
61
IMF April 2016 WEO.
32 | First Quarter 2016 Report on Economic and Financial Developments
forging strategic multilateral and bilateral trade
agreements as well as further economic integration
within the ASEAN region. In addition, growth of
overseas Filipinos’ (OFs) remittances in 2016 is
projected to be at 4.0 percent, on the back of steady
deployment of OF workers and greater
diversification in terms of country-destinations.
The shift in the global growth dynamics is also
reflected in the risk sentiment of investors toward
emerging market economies (EMEs). Global market
sentiment remains fickle, resulting in volatility of
capital flows which in turn presents challenges to
macroeconomic management. Heightened risk
aversion and deteriorating market confidence could
cause investors to pull back from EM assets in favor
of safe haven assets.
On the inflation outlook, baseline forecasts suggest
that the current inflation environment is expected to
begin to move back to target range of 2.0 to
4.0 percent during the second half of 2016, with
inflation expectations remaining well anchored to
the target. Lending support to this are the impact of
election spending, assumed increase in
non-agriculture minimum wage in July 2016, positive
base effects, as well as oil price futures showing an
uptrend, albeit on a gradual path. However, the
overall risks surrounding the inflation outlook are
slightly to the downside. This could come from
slower global economic activity and further decline
in oil prices. Meanwhile, pending petitions for
adjustments in electricity rates and the impact on
food and utility prices of stronger-than-expected El
Niño conditions pose upside risks to inflation.
Nonetheless, the US Fed is seen to be taking a less
aggressive stance in the pace of its tightening
compared to the more aggressive tone in December
2015, with the median forecast falling from four
expected rate hikes this year to two. This could
lessen the pressure of more stringent external
financing conditions as retrenchments of emerging
market portfolio inflows could ease off. Likewise, the
continued accommodative monetary policy stance
and low interest rate environment in the euro area
and Japan could drive some capital to flow to EMEs,
particularly those who exhibit solid macroeconomic
fundamentals such as the Philippines.
Amid the tough headwinds, the government is wellequipped to sustain the economic growth
momentum over the medium term. Enthused by the
country’s sustained strong economic performance,
the government remains committed to pursue its
macroeconomic targets and growth objectives over
the medium-term. Even with the change in political
leadership, the Philippine economy is poised to
continue its promising growth story and ride out the
external and domestic challenges on the back of
domestic sources of growth, structural and policy
reforms in place, and ample fiscal and monetary
policy space.
The Philippines also has its own idiosyncratic
challenges to domestic demand. Among others, the
impact of El Niño and other weather disturbances
present upside risk to inflation and downside risks to
growth in the near term. Moreover, one of the
urgent areas crucial to increasing national
productivity and overall potential growth is to
address infrastructure bottlenecks, while improving
the quality of existing road and transportation
networks. This will enhance connectivity and
mobility of goods and services and maximize the
potential of growth areas outside Metro Manila.
The synchronization of fiscal and monetary policies
to ensure a macroeconomic environment that will
support consumer confidence and investment
spending would be necessary to mitigate the impact
of weak external demand. The NG’s fiscal
consolidation efforts have been on track and have
created fiscal space to accelerate infrastructure
spending and to provide much-needed public
investments to stimulate economic growth.
Meanwhile, there remains sufficient monetary policy
space to guard against potential risks.
Going forward, the BSP will continue to keep a
watchful eye over how domestic and external
First Quarter 2016 Report on Economic and Financial Developments | 33
developments will evolve to ensure that an enabling
monetary and financial environment is maintained
to achieve the country’s growth objectives, while
safeguarding price and financial stability.
By June 2016, the BSP will transition to an Interest
Rate Corridor (IRC) system to enhance its ability to
better influence short-term market interest rates to
move closely with the BSP policy rate. The
operational shift is aimed at strengthening the
transmission of changes in the monetary policy
stance to the rest of the economy, and enabling the
BSP to better manage inflation and promote longterm sustainable growth. Over time, the IRC system
is also expected to further develop the domestic
capital market by increasing money market
transactions, and bolstering active liquidity
management and monitoring programs by banks.
In response to uncertainties in the global financial
market, the BSP will be able to help mitigate the
adverse impact of capital outflows on the domestic
economy by ensuring adequate level of liquidity in
the economy and the financial markets during
periods of heightened uncertainty and increased risk
aversion. While guarding against speculative flows
that could contribute to the peso’s volatility and
undermine the inflation target, the BSP will continue
to maintain a market-determined exchange rate and
a comfortable level of international reserves as
safeguard against external shocks.
The sound and stable condition of the Philippine
banking system has been one of the anchors of the
sustained robust performance of the domestic
economy. The state of the country’s financial
system, at present, is grounded on the structural and
regulatory reforms pursued by the BSP over the
years. This reform momentum will be further
sustained with a view to toughen its resilience
against shocks as well as to boost its role as a
catalyst for durable long-term economic growth. To
this end, the BSP will continue to ensure that a
sound regulatory framework, that would allow
Philippine banks to cope with challenges related to
global financial volatilities, is in place.
The BSP will also continue to pursue reforms
promoting effective risk management, a stronger
capital base and improved corporate governance
standards, which are essential ingredients to
ensuring stability in the financial system. The BSP
will continue to craft banking regulations that are
responsive, consistent with best practices and in line
with the international financial architecture reform
agenda.
In addition, the BSP will continue to actively pursue
initiatives to promote a deeper domestic capital
market that will complement the presence of a
resilient banking system. The policy thrust is to focus
on enhancing further the infrastructure and the
regulatory framework for capital market
transactions to promote efficiency in trading,
settlement and delivery of securities. At the same
time, the BSP will continue to adopt policies and
programs that would help develop a sound,
responsive, and inclusive financial system that will
broaden the access of the underserved and the
unbanked segments of our population to the
financial sector. Among the key strategies in the
BSP’s financial inclusion agenda are putting in place
banking regulations that leverage on technology to
increase access to financial products; strengthening
financial consumer protection; and raising financial
education and awareness to new financial products
and modes of delivery. The BSP will likewise remain
proactive in ensuring the credibility and promoting a
safe, sound and efficient payments and settlements
system with the continued enhancement of its
processes and provision of necessary infrastructure
through the operation of the Philippines’ real time
gross settlement system or the PhilPaSS.
Finally, amid the increasing interconnectedness of
global financial markets, the BSP will remain an
active participant in regional and international
cooperation programs and fora, in order to reap the
benefits of collaborative engagement.
34 | First Quarter 2016 Report on Economic and Financial Developments
Annexes
A
Circular on Public and/or Publicly-Guaranteed Foreign Loan Agreement and Other Agreements
which Give Rise to a Foreign/Foreign Currency Obligation of the Public Sector
B
Providing flexibility in raising foreign capital and encouraging more foreign investors to invest in
the country
Annex A
Circular on Public and/or Publicly-Guaranteed Foreign Loan Agreement and Other Agreements which Give
Rise to a Foreign/Foreign Currency Obligation of the Public Sector
The BSP issued the amendment or revision to Circular No. 381 dated 14 July 1978 as follows:
Effective immediately, no public and/or publicly guaranteed foreign loan, deferred payment or any other
agreements which give rise to a foreign/foreign currency obligation or liability of the public sector (whether
primarily or subsidiarily), including promissory notes or guarantees issued in connection therewith submitted
to the BSP for approval and/or registration under the provisions of pertinent laws, circulars, rules and
regulations shall be approved and/or registered if the covering agreements/documents are notarized or
otherwise evidenced by a public instrument. (BSP Circular No. 909 dated 30 March 2016)
Circular on Public and/or Publicly-Guaranteed Foreign Loan Agreement and Other Agreements which Give
Rise to a Foreign/Foreign Currency Obligation of the Public Sector
The BSP issued the amendment or revision to Circular No. 381 dated 14 July 1978 as follows:
Effective immediately, no public and/or publicly guaranteed foreign loan, deferred payment or any other
agreements which give rise to a foreign/foreign currency obligation or liability of the public sector (whether
primarily or subsidiarily), including promissory notes or guarantees issued in connection therewith submitted
to the BSP for approval and/or registration under the provisions of pertinent laws, circulars, rules and
regulations shall be approved and/or registered if the covering agreements/documents are notarized or
otherwise evidenced by a public instrument. (BSP Circular No. 909 dated 30 March 2016)
Agricultural Value Chain Financing Framework
The agriculture and fisheries sectors have traditionally been significant contributors in the Philippine economy,
accounting for 10 percent of the country’s Gross Domestic Product and employing 11.2 million Filipinos in
2014. Despite the important impact of these sectors, obtaining credit remains a challenge. Lack of access to
finance by smallholder farmers put them in a bigger disadvantage making them unable to integrate to higher
value markets. In general, the sector is considered a high risk market due to its inherent susceptibility to
weather conditions, flooding, pest infestations, and man-made calamities, among others.
The new issuance by the BSP on agricultural value chain financing addresses the associated credit risks with
the agriculture and fisheries sector by shifting the focus of lending from individual farmers and fisher folks to
the whole value chain. A value chain is defined as a set of actors, suppliers, processors, and aggregators who
conduct linked sequence of value-adding activities involved in bringing a product from its raw material stage to
the consumers.
The framework provides minimum prudential expectations including the need for adequate policies and
procedures on the analysis of the value chain, availability of appropriate products, utilization of innovative
disbursement schemes, and adoption of anchor-firm triggered loan release. The issuance also allows financial
institutions to put in place a disaster contingency mechanism requiring the adoption of risk mitigants to
minimize losses and provide relief to a borrower to facilitate recovery.
To encourage engagement in the lending scheme, incentives are also provided to financial institutions that
comply with the regulatory expectations. The incentives include compliance with agri-agra requirement and
an additional 25 percent increase in the single borrower’s limit for loans granted to participants in the
agricultural value chains for a period of three years.
Annex A
The BSP hopes that the issuance will provide the necessary guidance for banks to be able to serve the needs of
the agriculture and fisheries sector, specifically the smallholders, in a manner that is viable and sustainable.
(BSP Circular No. 908 dated 14 March 2016)
Amendment to Unit Investment Trust Fund (UITF) Regulations
The BSP under BSP Circular No. 907 issued a revision to subsections X410.8/4410Q.8 of MORB and MORNBFI
to amend the section pertaining to feeder fund/fund-of-funds as follows:
In the case of feeder fund/fund-of-funds, the exposure limit shall be applied on the target fund’s underlying
investments. Notwithstanding said limit, if the target fund is allowed by its respective regulatory authority to
invest in units/shares of other open-ended CIS, the exposure limit prescribed by said regulatory authority shall
instead apply. Furthermore, the investments in any one target fund shall not exceed ten percent (10%) of the
total net asset value of the target fund.
(BSP Circular No. 907 dated 10 March 2016)
Implementation of Basel III Framework on Liquidity Standards - Liquidity Coverage Ratio and Disclosure
Standards
The BSP issued the Liquidity Coverage Ratio (LCR) framework aimed at strengthening the liquidity position of
universal and commercial banks (U/KBs). This is part of the Basel 3 reform package issued by the Basel
Committee on Banking Supervision (BCBS).
Under the new rule, U/KBs, including foreign bank branches, shall hold sufficient High Quality Liquid Assets
(HQLAs) that can be easily converted into cash to service liquidity requirements over a 30-day stress
period. This provides banks with a minimum liquidity buffer to be able to take corrective action to address a
liquidity stress event.
The LCR is one of the components of the new liquidity standard under Basel 3. The other is the Net Stable
Funding Ratio (NSFR) which looks at the liquidity requirements of banks over a longer period of one year. This
is being finalized and the BSP said that the exposure draft may be issued within the year.
The LCR should be seen as complementing the minimum Capital Adequacy rules. While the latter safeguards
the industry over solvency risks, the LCR imposes a minimum standard to protect banks against liquidity risks
which may happen even if a bank is still solvent.
The approval of the Monetary Board provides for an observation period from 01 July this year to end-2017,
during which banks will start reporting their LCR to the BSP. The observation period provides the banks with
adequate transition to the new prudential standard.
Beginning 01 January 2018, the LCR threshold that banks will be required to meet will be 90 percent which will
then be increased to 100 percent beginning 01 January 2019. (BSP Circular No. 905 dated 10 March 2016)
Phased Lifting of the Moratorium on the Grant of New Banking License or Establishment of New Domestic
Banks
The BSP approved the phased lifting of the moratorium on the grant of new banking license or establishment
of new domestic banks to promote competitive banking environment while preserving its basic thrust of
encouraging mergers and consolidations
Thus, the suspension of the grant of new banking licenses or the establishment of new banks under Subsection
x102.2 of the MORB has been lifted under a two-phased approach. Under phase 1of the liberalization. The
grant of new universal/commercial banking license shall be allowed in connection with the upgrading of an
existing domestic thrift bank. Under Phase 2, the moratorium on the establishment of new domestic banks
shall be fully lifted and locational restriction shall be fully liberalized starting 1 January 2018.
Annex A
The establishment of banks in the cities or municipalities where there are no banking offices as well as the
establishment of microfinance-oriented thrift and rural banks shall continue to be allowed as governed by
existing regulations.
A new banking organization must have suitable/fit shareholders, adequate financial strength, a legal structure
in line with its operational structure, a management with sufficient expertise and integrity to operate the bank
in a sound and prudent manner. (BSP Circular No. 902 dated 15 February 2016)
Amendment to Sec. X151 of the MORB on the Activities and Services Allowable for Micro-Banking Offices
The BSP recently approved a measure that further promotes financial inclusion by expanding the scope of
allowable activities in micro-banking offices (MBOs).
MBOs are scaled-down offices which provide a specified range of banking activities and services such as
acceptance of micro-deposits, disbursement of micro-loans, selling of microinsurance, purchase of foreign
currency, bills payments, government pay-outs, and e-money conversion. Prior to the recently approved
measure, MBOs could perform the customer identification process and facilitate account activation but the
approval and actual opening of the deposit account shall be done only at the head office or branch. Clients
who want to transact in MBOs would therefore still need to go to a head office or branch to open a deposit
account. This practice did not fully capture the potential of MBOs as a banking presence in remote and rural
areas where travelling to a bank branch may be prohibitive in terms of cost.
The new issuance by the BSP enables MBOs to complete the process of account opening from application up
to the acceptance of initial deposit provided that the necessary controls are in place.
The MBO policy is one of the initiatives of the BSP to extend the physical reach of financial services. As of June
2015, there were 531 MBOs present in 337 municipalities, of which 64 municipalities are being served by
MBOs alone. Increasingly, areas that were unbanked before now enjoy banking presence due to MBOs. In
2014, for example, 11 out of 19 previously unbanked municipalities gained banking presence as a result of
MBO establishment, while the remaining 8 municipalities became banked because of regular OBOs.
Banks have also taken advantage of the opportunities presented by the MBO policy. The number of banks with
MBOs increased to 35 banks in 2014 from just 5 banks in 2011, a year after the release of the MBO regulation.
Because of MBOs, these banks are able to expand outreach at lower costs. Some estimates indicate that
monthly operating expenses are 7 to 8 times lower in MBOs as compared to a bank branch.
The recent policy issuance is also expected to further promote savings mobilization through micro-deposits
collected in MBOs. Micro-deposits, which are basic savings accounts especially designed for low income
earners, have maintaining balance less than P100 and have no dormancy charges. As of June 2015, there are
2.3 million micro-deposit accounts amounting to P4.6 billion. (BSP Circular No. 901 dated 29 January 2016)
Guidelines on Operational Risk Management and Amendments to the Outsourcing Framework
The BSP Monetary Board (MB) recently approved the guidelines on operational risk management (ORM) as
part of the continuing initiatives of the BSP to strengthen the risk management systems of its supervised
financial institutions (BSFIs) and promote their sustained safe and sound operations.
Operational risk is among the top risk exposures of BSFIs, which cuts across all activities, products, and
services, and may even come in tandem with the other types of risks, e.g., credit, liquidity, and market. It may
result from weak controls, inadequate policies on acceptable behavior and practices, poor working
environment, weak sales and marketing practices, system failures, or natural or man-induced disasters, among
others. Although operational risk is inherent in all areas of operations, it is more often managed on a
fragmented basis, which tends to discount its overall impact on BSFIs’ operations. In this regard, the risk of
loss arising from operational risk events may also be potentially underestimated.
Annex A
The BSP expects BSFIs to be sensitive to sources of operational risk and to adopt a holistic framework that
would facilitate identification, assessment, monitoring, and management of said type of risk as part of the
enterprise-wide risk management system. The MB-approved ORM guidelines highlight that each personnel
has a responsibility in the effective implementation of the ORM framework. It is therefore critical to have
personnel who are competent to carry-out their respective duties and responsibilities, and possess a high
degree of integrity.
In this view, the board of directors should adopt policies in the areas of recruitment and selection,
performance management, training and development, remuneration and compensation, and succession
planning to promote a culture of high standards of ethical behavior and consistency of performance in the
organization. Said policies should require continuing assessment of the fitness and propriety of personnel,
with the results of said assessment considered in the development of individual training and development
program.
The ORM guidelines also emphasize the three lines of defense principle in managing operational risk. Business
line management and personnel, as the first line of defense, are expected to ensure that policies and
processes in their respective areas of responsibilities are consistent with the organization’s overall ORM
framework. The operational risk management function (ORMF), as part of the second line of defense, is
expected to recommend to the board of directors appropriate policies and procedures relating to operational
risk management and controls, as well as design and implement the operational risk assessment methodology,
tools, and risk reporting systems. The compliance function, on the other hand, is expected, among others, to
determine inappropriate conduct/behavior of personnel, officers, and the board, that may lead to fraud or any
form of business disruption. The internal audit function, as the third line of defense, should conduct an
independent assessment of the ORM framework including the implementation of the operational risk
management policies and procedures.
Guidance in managing operational risk related to prudential reporting is likewise covered in the guidelines. In
particular, BSFIs are expected to adopt a framework that ensures the integrity of information submitted to the
BSP and compliance with the standards prescribed on acceptable reporting quality. The ORM guidelines warn
that persistent concerns on the integrity and accuracy of prudential reports, including failure to comply with
the directives of the BSP, may be considered as unsafe or unsound practice.
In line with the approval of ORM guidelines, the BSP MB, also approved the amendments to the outsourcing
framework to set-out an overarching governance framework, and align expectations on outsourcing activities
with the ORM principles. (BSP Circular No. 899 dated 18 January 2016 and BSP Circular No. 900 dated
18 January 2016)
Amendments to the cooling-off provisions of the BSP Regulations on Financial Consumer Protection
The BSP issued an advisory to public on their right to “cooling-off” as part of the fair treatment standards of
the BSP Financial Consumer Protection (FCP) Regulations.
“Cooling-off” is the right of the BSP-supervised financial institution (BSFI) client to cancel his contract without
penalty. BSFIs should give their clients at least two (2) banking days from the signing of the contract to
cancel.
This right to cooling-off is one of the key requirements of the new BSP Financial Consumer Protection
Regulation that seeks to empower clients by giving them the opportunity to reconsider long-term investment
decisions.
Cooling-off is applicable only to individuals and not corporations, partnerships and associations. This right shall
cover investment in long-term financial instruments with a remaining term of at least one year. Examples are
government securities, corporate bonds and Long Term Negotiable Certificate of Deposit (LTNCD).
Annex A
To avail, the client should notify the BSFI in writing about his intention to terminate the agreement within the
cooling-off period. The client shall shoulder only reasonable amount of processing or administrative fees plus
any mark to market costs from the signing of the contract up to its cancellation. BSFIs should disclose these
costs, including the benchmark from which market value of the financial instrument will be determined, prior
to the signing of the agreement or in the agreement. (BSP Circular No. 898 dated 14 January 2016)
Annex B
Providing flexibility in raising foreign capital and encouraging more foreign investors to invest in the country
•
In February, the BSP further liberalized rules governing foreign exchange (FX) transactions in the
Philippines. The policy amendments are as follows:
Prior BSP approval is no longer required for the borrowings from offshore sources/FCDUs of
banks of the following resident entities.
Purely private sector loans (without a guarantee from the public sector or banks) for
the financing of energy and power infrastructure projects.
Private nonbank financial institutions engaged in microfinance activities where
proceeds from the loans are to be used for microfinance lending.
Conversion to FX of pesos arising from disapproved subscriptions of non-resident investors
to stock rights offering of companies listed at the Philippine Stock Exchange is now allowed.
•
1
In March, the Philippine Stock Exchange (PSE) asked comments and suggestions from stakeholders on
its draft Rules on Dollar Denominated Securities (DDS). The new securities product is intended for
companies interested in listing dollar denominated shares in addition to their peso common shares.
The proposed rules cover the listing and disclosure, trading, clearing and settlement, and fees of DDS.
Under the proposed rules, companies who are already listed at the Exchange can issue a new set of
securities, either common or preferred shares, which are quoted, traded, and settled in US dollars.
This will provide more products and services for the market and will allow companies flexibility in
raising capital in dollars.1
Source: Philippine Stock Exchange, Press Release, March 2016.
Statistical Tables
List of Tables
1
1a
2
3
4
4a
4b
5
6
7
8
9
10
11
12
13
13a
13b
14
15
16
17
18
Gross National Income and Gross Domestic Product by Industrial Origin
Gross National Income and Gross Domestic Product by Expenditure Shares
Selected Labor, Employment and Wage Indicators
Cash Operations of the National Government
Consumer Price Index in the Philippines
Consumer Price Index in Metro Manila
Consumer Price Index in Areas Outside Metro Manila
Monetary Indicators
Selected Domestic Interest Rates
Number of Financial Institutions
Total Resources of the Philippine Financial System
Non-Performing Loans (NPL), Total Loans and Loan Loss Provisions of the Banking
System
Ratio of Non-Performing Loans (NPL) and Loan Loss Provisions to Total loans of the
Banking System
Stock Market Transactions
Philippines Balance of Payments
International Reserves
Exchange Rates of the Peso (pesos per unit of foreign currency)
Exchange Rates of the Peso (units of foreign currency per peso)
Effective Exchange Rate Indices of the Peso
Total External Debt
Selected Foreign Debt Service Indicators
Selected Foreign Interest Rates
Balance Sheet of the Bangko Sentral ng Pilipinas
Income Position of the of the Bangko Sentral ng Pilipinas
1 GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN
for periods indicated
in million pesos, at constant 2000 prices
Levels
Annual Change (%)
2014
Q1
Q2
2015
Q3
Q4
Q1
Q2
2016
Q3
Q4
Q1
2014
Q1
Q2
2015
Q3
Q4
Q1
Q2
2016
Q3
Q4
Q1
2014
Q1
Q2
Contribution to GDP Growth (percentage points)
2015
Q3
Q4
Q1
Q2
Q3
2016
Q4
Q1
Agriculture, Hunting, Forestry and Fishing
179,664
166,993
155,801
216,321
181,414
166,891
155,657
215,786
173,493
0.9
3.3
-2.3
4.1
1.0
-0.1
-0.1
-0.2
-4.4
0.1
0.3
-0.2
0.5
0.1
0.0
0.0
0.0
-0.4
Industry
Mining and Quarrying
Manufacturing
Construction
Electricity, Gas and Water Supply
561,261
21,674
400,802
87,323
51,462
614,518
30,307
414,742
108,954
60,515
558,090
16,368
378,608
98,541
64,573
657,319
13,346
472,363
114,460
57,150
590,832
21,135
424,988
90,695
54,013
652,185
27,706
434,160
127,003
63,316
592,408
16,449
400,662
106,211
69,086
700,372
15,209
501,178
123,851
60,133
642,512
23,531
459,226
100,498
59,257
4.8
17.4
7.0
-4.2
0.5
9.0
10.8
11.1
3.9
4.2
7.8
12.7
7.5
12.0
2.4
9.2
6.3
7.7
17.1
7.4
5.3
-2.5
6.0
3.9
5.0
6.1
-8.6
4.7
16.6
4.6
6.1
0.5
5.8
7.8
7.0
6.5
14.0
6.1
8.2
5.2
8.7
11.3
8.1
10.8
9.7
1.6
0.2
1.6
-0.2
0.0
3.0
0.2
2.4
0.2
0.1
2.5
0.1
1.6
0.6
0.1
3.0
0.0
1.9
0.9
0.2
1.8
0.0
1.4
0.2
0.2
2.1
-0.1
1.1
1.0
0.2
2.0
0.0
1.3
0.4
0.3
2.2
0.1
1.5
0.5
0.2
2.9
0.1
1.9
0.6
0.3
Services
Transportation, Storage and
Communication
Trade and Repair of Motor Vehicles,
Motorcycles, Personal & Household Goods
Financial Intermediation
R. Estate, Renting and Business Activities
Public Administration & Defense;
Compulsory Social Security
Other Services
942,065 1,053,313 1,002,988 1,062,081
994,112 1,124,152 1,075,033 1,144,929
1,072,535
7.1
6.1
5.8
5.7
5.5
6.7
7.2
7.8
7.9
3.9
3.5
3.4
3.1
3.1
3.9
4.2
4.3
4.4
130,050
144,019
119,066
144,909
140,956
153,595
128,651
158,088
148,612
8.2
6.8
5.3
5.5
8.4
6.6
8.0
9.1
5.4
0.6
0.5
0.4
0.4
0.6
0.5
0.6
0.7
0.4
255,154
125,519
182,283
288,374
136,690
209,789
312,034
124,033
206,129
330,248
129,243
205,104
270,314
130,949
193,992
307,620
144,619
224,220
338,276
130,698
222,210
354,316
140,448
221,070
291,890
142,870
211,503
6.3
5.7
10.1
6.7
6.1
8.5
7.0
8.4
6.7
3.4
8.9
9.7
5.9
4.3
6.4
6.7
5.8
6.9
8.4
5.4
7.8
7.3
8.7
7.8
8.0
9.1
9.0
0.9
0.4
1.1
1.1
0.5
1.0
1.3
0.6
0.8
0.6
0.6
1.0
0.9
0.3
0.7
1.0
0.4
0.8
1.5
0.4
0.9
1.2
0.6
0.8
1.2
0.7
1.0
68,920
180,140
83,358
191,084
71,171
170,554
70,212
182,366
66,134
191,768
82,685
211,414
72,967
182,231
75,297
195,709
70,600
207,060
6.9
5.5
1.8
4.3
-2.4
5.0
11.5
1.5
-4.0
6.5
-0.8
10.6
2.5
6.8
7.2
7.3
6.8
8.0
0.3
0.6
0.1
0.5
-0.1
0.5
0.4
0.1
-0.2
0.7
0.0
1.1
0.1
0.7
0.3
0.7
0.3
0.9
1,766,358 1,943,228 1,823,097 2,061,086
5.6
6.8
5.7
6.7
5.0
5.9
6.2
6.5
6.9
Gross Domestic Product
Net Primary Income
Gross National Income
1,682,990 1,834,824 1,716,879 1,935,722
370,692
362,940
355,845
373,270
2,053,682 2,197,764 2,072,724 2,308,992
1,888,540
5.6
6.8
5.7
6.7
5.0
5.9
6.2
6.5
6.9
416,155
412,326
11.0
9.0
-2.6
1.1
0.5
2.5
6.8
11.5
10.7
2,138,900 2,315,359 2,203,179 2,477,241
2,300,866
6.6
7.2
4.1
5.7
4.1
5.4
6.3
7.3
7.6
372,543
372,131
380,082
Note: Data on Real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System
of National Accounts (PSNA) in accordance with the 1993/1998 System of National Accounts prescribed by the United Nations.Total may not add up due to rounding.
Source : Philippine Statistics Authority (PSA)
1a GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES
for periods indicated
in million pesos, at constant 2000 prices
Levels
Annual Change (%)
2014
Q1
Household Final Consumption Expenditure
Q2
2015
Q3
Q4
Q2
Q3
Q4
2014
Q1
Q2
2015
Q3
Q4
Q1
Q2
Q3
2016
Q1
Q4
2014
Q1
Q2
Contribution to GDP Growth (percentage points)
2015
Q3
Q4
Q1
Q2
Q3
2016
Q1
Q4
1,318,346
6.3
5.7
4.9
5.3
6.1
6.4
6.1
6.5
7.0
4.3
3.8
3.3
3.9
4.2
4.3
4.1
4.8
4.9
185,112
219,474
168,867
155,300
185,519
224,704
195,352
179,771
203,954
3.4
1.5
-1.1
11.0
0.2
2.4
15.7
15.8
9.9
0.4
0.2
-0.1
0.9
0.0
0.3
1.5
1.3
1.0
Capital Formation
Fixed Capital
Construction
Durable Equipment
Breeding Stock & Orchard Dev't
Intellectual Property Products
Changes in Inventories
370,434
372,973
135,039
202,002
26,106
9,827
-2,539
330,962
358,500
163,895
162,741
22,467
9,398
-27,538
383,065
376,298
152,551
191,782
18,336
13,629
6,767
483,902
417,835
180,735
193,178
30,386
13,536
66,067
416,596
405,710
141,104
227,095
26,126
11,385
10,887
401,895
404,105
187,392
185,158
22,987
8,568
-2,209
438,731
428,624
165,467
226,602
18,997
17,557
10,106
548,058
518,857
194,530
274,349
31,176
18,802
29,201
515,703
509,481
158,024
310,106
27,199
14,151
6,222
8.6
0.2
-5.5
4.5
-4.4
14.6
91.9
7.7
5.5
7.2
3.6
-2.0
37.5
14.7
-0.2
11.2
12.8
9.9
-1.6
37.1
-85.2
5.7
8.0
19.0
0.1
2.3
8.5
-6.8
12.5
8.8
4.5
12.4
0.1
15.9
528.8
21.4
12.7
14.3
13.8
2.3
-8.8
92.0
14.5
13.9
8.5
18.2
3.6
28.8
49.3
13.3
24.2
7.6
42.0
2.6
38.9
-55.8
23.8
25.6
12.0
36.6
4.1
24.3
-42.8
1.9
0.0
-0.5
0.5
-0.1
0.1
1.8
1.4
1.1
0.6
0.3
0.0
0.1
0.3
-0.1
2.3
1.1
1.1
0.0
0.2
-2.4
1.4
1.7
1.6
0.0
0.0
0.1
-0.3
2.7
1.9
0.4
1.5
0.0
0.1
0.8
3.9
2.5
1.3
1.2
0.0
0.0
1.4
3.2
3.0
0.8
2.0
0.0
0.2
0.2
3.3
5.2
0.7
4.2
0.0
0.3
-1.9
5.6
5.9
1.0
4.7
0.1
0.2
-0.3
Exports
812,350
896,065
941,728
727,843
898,070
941,672 1,034,252
807,172
957,356
13.4
9.0
11.9
13.0
10.6
5.1
9.8
10.9
6.6
6.0
4.3
6.1
4.6
5.1
2.5
5.4
4.1
3.4
Less: Imports
858,943
807,366
938,428
852,141
963,339
909,069 1,090,388
979,368
1,119,583
17.9
5.6
4.8
10.1
12.2
12.6
16.2
14.9
16.2
8.2
2.5
2.7
4.3
6.2
5.5
8.9
6.6
8.8
12,867
-17,450
-9,287
13,869
6,442
12,764
280.6
-65.5
-240.0
25.7
-118.8
58.2
135.2
-53.6
628.0
1.3
-0.4
-1.0
0.2
-0.9
0.6
0.7
-0.4
0.9
1,766,358 1,943,228 1,823,097 2,061,086
1,888,540
5.6
6.8
5.7
6.7
5.0
5.9
6.2
6.5
6.9
5.6
6.8
5.7
6.7
5.0
5.9
6.2
6.5
6.9
416,155
412,326
11.0
9.0
-2.6
1.1
0.5
2.5
6.8
11.5
10.7
2,138,900 2,315,359 2,203,179 2,477,241
2,300,866
6.6
7.2
4.1
5.7
4.1
5.4
6.3
7.3
7.6
Gross Domestic Product
Net Primary Income
Gross National Income
1,682,990 1,834,824 1,716,879 1,935,722
370,692
362,940
355,845
373,270
2,053,682 2,197,764 2,072,724 2,308,992
1,231,928 1,291,318 1,241,881 1,499,010
2016
Q1
Government Final Consumption Expenditure
Statistical Discrepancy
1,161,170 1,213,139 1,170,933 1,406,949
Q1
-2,417
372,543
-7,293
372,131
3,269
380,082
Note: Data on Real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System of National Accounts (PSNA) in accordance with the
1993/1998 System of National Accounts prescribed by the United Nations. Total may not add up due to rounding.
Source : Philippine Statistics Authority (PSA)
2 SELECTED LABOR, EMPLOYMENT AND WAGE INDICATORS
2014
Ave/Total
w/ Region VIII w/o Region VIII
Employment Status 1
Labor Force (in thousands)
Employed
Employment Created
Unemployed
Underemployed
Labor Force Participation Rate (%)
Employment Rate (%)
Unemployment Rate (%)
Underemployment Rate (%)
Labor Turnover Rate (%)
Overseas Employment (Deployed, in thousands)
Land-based
Sea-based
40,050
37,310
1,024
2,740
6,870
64.4
93.2
6.8
18.4
2015
Ave/Total
4
w/o Leyte
w/ Leyte
2015p
2014
Q1
w/o Leyte
41,379
38,651
41,343
38,741
2,728
7,118
64.6
93.4
6.6
18.4
2,602
7,180
63.7
93.7
6.3
18.5
Q2
w/ Region VIII w/o Region VIII
w/ Leyte
39,387
36,418
281
2,969
7,103
63.8
92.5
7.5
19.5
Q3
w/o Leyte
w/ Leyte
41,588
38,664
1,653
2,924
7,027
65.2
93.0
7.0
18.2
Q4
w/o Leyte
w/ Leyte
41,231
38,453
1,063
2,778
7,049
64.4
93.3
6.7
18.3
Q1
w/o Leyte
w/ Region VIII w/o Region VIII
41,319
38,837
1,044
2,482
7,278
64.3
94.0
6.0
18.7
1.2
0.6
0.9
2.4
1.0
1,645
1,292
354
513
413
99
468
377
91
439
349
90
225
152
73
40,090
37,455
1,037
2,635
6,548
63.8
93.4
6.6
17.5
2016p
Q2
w/o Leyte
w/ Leyte
41,164
38,461
Q3
w/o Leyte
w/ Leyte
41,840
39,158
494
2,681
6,983
64.6
93.6
6.4
17.8
2,703
6,883
63.7
93.4
6.6
17.9
41,898
39,174
Q4
w/o Leyte
41,024
38,344
(109)
2,680
7,989
63.0
93.5
6.5
20.8
w/ Leyte
42,151
39,779
2,372
7,021
63.3
94.4
5.6
17.7
Q1
w/o Leyte
41,345
39,000
163
2,345
6,866
63.4
94.3
5.7
17.6
w/ Leyte
42,515
40,047
0.5
1.2
2,724
8,219
62.9
93.5
6.5
21.0
3.2
2,469
7,879
63.3
94.2
5.8
19.7
1
200
1
80
481.0
362.5
481.0
362.5
481.0
362.5
444.0
444.0
444.0
444.0
444.0
444.0
337.5
322.0
337.5
335.0
337.5
335.0
365.8
260.6
363.8
257.8
364.7
259.1
337.6
337.6
335.9
335.9
336.6
336.6
242.6
223.0
240.0
229.5
241.2
228.5
Strikes
Number of New Strikes
Number of Workers Involved
2
51
5
730
0
0
0
0
0
0
2
51
0
0
3
450
466.0
362.5
481.0
362.5
466.0
349.5
466.0
362.5
466.0
362.5
466.0
362.5
466.0
362.5
481.0
362.5
4
429.0
429.0
444.0
444.0
429.0
429.0
429.0
429.0
429.0
429.0
429.0
429.0
429.0
429.0
444.0
444.0
4
337.5
322.0
337.5
335.0
324.5
322.0
337.5
322.0
337.5
322.0
337.5
322.0
337.5
322.0
337.5
322.0
4
356.5
260.2
363.8
257.8
361.0
255.9
356.5
261.7
354.6
259.3
356.5
260.2
354.1
259.3
365.8
260.0
4
328.2
328.2
335.9
335.9
332.3
332.3
328.2
328.2
326.5
326.5
328.2
328.2
326.0
326.0
337.6
337.6
4
242.3
224.7
240.0
229.5
237.6
230.3
243.7
226.9
241.4
225.0
242.3
224.7
241.4
224.4
242.1
223.3
4
Nominal Daily Wage Rates (in pesos)2
Non-Agricultural
NCR
Regions Outside NCR
4
Agricultural
NCR
Plantation
Non-Plantation
4
Regions Outside NCR
Plantation
Non-Plantation
4
Real Daily Wage Rates (in pesos), 2006=100 3
Non-Agricultural
NCR
Regions Outside NCR
4
Agricultural
NCR
Plantation
Non-Plantation
4
Regions Outside NCR
Plantation
Non-Plantation
Notes:
1
Starting with January 2007 LFS round, the population projection based on the 2000 Census of Population was adopted to generate the labor force statistics per NSCB Resolution No. 1 Series of 2005.
2
Source of data for both nominal and real wage rates is the National Wages and Productivity Commission. Includes basic minimum wage and cost of living allowance (COLA). Starting 2006, annual average/total is as of December.
3
Starting 10 November 1990, adjustments in the minimum legislated wage rates are being determined by the Regional Tripartite Wages Productiviity Board. Starting 2010, real terms is computed using 2006 as base year.
Annual 2014 data refer to the average estimates for April, July and October survey rounds only excluding data of the province of Leyte.
4
P
Preliminary
Sources: Philippine Overseas Employment Administration (POEA), National Wages and Productivity Commission (NWPC), and National Conciliation and Mediation Board (NCMB) and Philippine Statistics Authority (PSA)
4
w/o Leyte
41,637
39,213
752
2,424
7,716
63.4
94.2
5.8
19.7
3 CASH OPERATIONS OF THE NATIONAL GOVERNMENT
for periods indicated
in billion pesos
2014
Q1
Q2
Jan
Jul
Q1
Oct
Jan
Q2
Q3
Apr
2016
Q1
Q4
Jul
Oct
Jan
398.4
13.8
355.4
43.0
535.3
17.0
469.1
66.3
491.3
16.1
449.9
41.4
483.5
13.5
444.7
38.9
470.5
15.5
403.7
66.9
615.2
18.5
489.4
125.8
519.2
16.3
462.7
56.6
504.0
13.4
459.8
44.2
479.0
14.7
424.7
54.2
Expenditures
Ratio to GDP
Interest Payments
Equity
Net Lending
Subsidy
Allotment to LGUs
Tax Expenditures
Others
482.5
16.7
103.1
0.1
4.9
1.2
85.1
0.1
288.0
505.2
16.1
56.6
0.3
1.5
48.3
89.0
12.3
297.1
468.4
15.4
97.7
0.8
2.0
12.7
85.8
0.7
268.7
525.5
14.7
63.8
0.5
5.0
18.2
84.4
12.9
340.8
504.0
16.6
100.6
0.1
2.2
3.7
97.1
5.6
294.7
567.9
17.1
55.5
0.2
0.4
40.3
96.8
1.9
372.8
558.5
17.5
99.6
—
1.8
11.8
96.8
0.5
347.9
600.1
15.9
53.6
0.4
5.2
22.2
96.8
5.6
416.2
591.5
18.1
102.6
8.2
3.5
8.2
107.1
0.1
361.8
Surplus/Deficit (-)
Ratio to GDP
Primary Balance
Ratio to GDP
-84.1
-2.9
19.0
0.7
30.1
1.0
86.8
2.8
22.9
0.8
120.6
4.0
-42.0
-1.2
21.8
0.6
-33.5
-1.1
67.1
2.2
47.3
1.4
102.8
3.1
-39.3
-1.2
60.3
1.9
-96.1
-2.6
-42.5
-1.1
-112.5
-3.4
-9.9
-0.3
7.0
84.1
-4.2
11.2
31.3
-30.1
-5.3
36.6
69.9
-22.9
26.6
43.3
67.0
42.0
-4.6
71.6
-9.3
33.5
22.6
-31.9
24.8
-47.3
28.2
-3.5
60.7
39.3
-0.6
61.3
16.7
96.1
14.5
2.2
86.3
112.5
14.6
71.6
-170.8
88.5
85.5
34.6
30.7
29.8
23.4
-85.5
-116.3
-77.1
-93.7
61.5
27.0
92.8
-7.4
25.0
9.6
-42.8
73.6
72.0
-42.2
21.4
2.0
-79.4
-6.1
-26.2
-90.1
External Borrowings
Domestic Borrowings
Total Change in Cash: Deposit/Withdrawal (-)
Budgetary
Non-Budgetary Accounts 2
2
Apr
Q4
Revenues
Ratio to GDP
Tax
Non-tax
Financing 1
1
2015
Q3
Availment less repayment
Refers to accounts not included in the NG budget, e.g., sale, purchase or redemption of government securities, but included in the cash operations report to
show the complete relations in the movements of the cash accounts.
— zero or nil
n.a. not available
Note: Details may not add up to total due to rounding off
Source: Bureau of the Treasury
4 CONSUMER PRICE INDEX IN THE PHILIPPINES
for periods indicated
(2006=100)
Quarterly Average
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
2013
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
128.2
138.0
139.2
125.8
121.9
120.9
123.4
137.4
129.7
138.9
140.1
128.4
123.7
123.7
125.9
140.1
131.2
141.0
142.3
129.7
124.8
125.3
127.2
141.6
131.4
141.5
142.7
130.8
124.8
125.9
126.5
139.2
132.3
141.7
142.9
158.4
125.3
126.8
126.9
138.7
133.2
142.2
143.3
168.5
126.0
128.2
127.7
139.2
134.4
144.1
145.4
170.1
126.7
129.1
127.8
138.7
135.9
147.1
148.6
171.1
127.4
129.7
129.1
142.6
137.7
149.7
151.3
173.6
128.6
131.3
130.9
146.8
139.0
151.8
153.5
175.2
129.3
132.5
131.5
146.9
140.7
155.6
157.5
176.1
129.7
133.5
130.9
143.6
140.8
156.4
158.4
177.8
129.2
134.1
129.6
138.7
141.1
156.9
158.8
180.5
129.4
135.4
129.4
134.0
141.3
156.4
158.2
181.8
130.0
136.0
130.1
134.9
141.5
157.3
159.2
182.6
129.8
136.6
128.7
129.5
142.2
158.5
160.5
184.8
129.9
137.2
128.1
126.5
142.7
159.4
161.4
189.3
130.1
138.0
128.1
124.7
118.2
126.2
125.2
128.4
92.2
108.3
132.9
121.5
120.6
128.0
126.3
128.6
92.5
109.3
134.8
123.0
122.4
129.3
125.5
126.3
92.6
110.1
138.7
123.8
123.2
129.8
125.9
127.9
92.6
110.2
138.7
124.2
124.0
130.7
126.3
128.4
92.7
110.7
138.7
125.0
125.0
131.8
126.1
127.2
92.6
111.6
140.8
125.9
125.5
132.7
126.8
130.5
92.7
112.8
145.2
126.5
126.0
133.2
126.9
130.8
92.6
112.9
145.2
126.9
127.4
135.0
127.7
133.8
92.7
113.5
145.2
127.6
128.1
135.8
127.8
134.3
92.7
113.8
147.5
128.3
128.9
137.2
128.2
133.4
92.7
114.3
152.6
128.7
129.4
137.7
126.9
127.9
92.7
114.6
152.6
129.2
130.2
138.6
126.8
119.8
92.6
114.8
152.6
129.6
130.8
138.9
127.8
122.7
92.6
115.1
154.4
129.9
131.1
139.5
127.6
120.5
92.7
115.5
158.1
130.3
131.5
140.2
128.1
119.5
92.7
115.8
158.1
130.9
132.2
141.2
127.2
116.7
92.7
116.1
158.1
131.7
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
0.5
-0.1
-0.1
1.0
1.0
0.8
1.4
2.2
1.2
0.7
0.6
2.1
1.5
2.3
2.0
2.0
1.2
1.5
1.6
1.0
0.9
1.3
1.0
1.1
0.2
0.4
0.3
0.8
0.0
0.5
-0.6
-1.7
0.7
0.1
0.1
21.1
0.4
0.7
0.3
-0.4
0.7
0.4
0.3
6.4
0.6
1.1
0.6
0.4
0.9
1.3
1.5
0.9
0.6
0.7
0.1
-0.4
1.1
2.1
2.2
0.6
0.6
0.5
1.0
2.8
1.3
1.8
1.8
1.5
0.9
1.2
1.4
2.9
0.9
1.4
1.5
0.9
0.5
0.9
0.5
0.1
1.2
2.5
2.6
0.5
0.3
0.8
-0.5
-2.2
0.1
0.5
0.6
1.0
-0.4
0.4
-1.0
-3.4
0.2
0.3
0.3
1.5
0.2
1.0
-0.2
-3.4
0.1
-0.3
-0.4
0.7
0.5
0.4
0.5
0.7
0.1
0.6
0.6
0.4
-0.2
0.4
-1.1
-4.0
0.5
0.8
0.8
1.2
0.1
0.4
-0.5
-2.3
0.4
0.6
0.6
2.4
0.2
0.6
0.0
-1.4
0.5
0.6
0.9
2.3
0.0
0.8
0.1
0.9
2.0
1.4
0.9
0.2
0.3
0.9
1.4
1.2
1.5
1.0
-0.6
-1.8
0.1
0.7
2.9
0.7
0.7
0.4
0.3
1.3
0.0
0.1
0.0
0.3
0.6
0.7
0.3
0.4
0.1
0.5
0.0
0.6
0.8
0.8
-0.2
-0.9
-0.1
0.8
1.5
0.7
0.4
0.7
0.6
2.6
0.1
1.1
3.1
0.5
0.4
0.4
0.1
0.2
-0.1
0.1
0.0
0.3
1.1
1.4
0.6
2.3
0.1
0.5
0.0
0.6
0.5
0.6
0.1
0.4
0.0
0.3
1.6
0.5
0.6
1.0
0.3
-0.7
0.0
0.4
3.5
0.3
0.4
0.4
-1.0
-4.1
0.0
0.3
0.0
0.4
0.6
0.7
-0.1
-6.3
-0.1
0.2
0.0
0.3
0.5
0.2
0.8
2.4
0.0
0.3
1.2
0.2
0.2
0.4
-0.2
-1.8
0.1
0.3
2.4
0.3
0.3
0.5
0.4
-0.8
0.0
0.3
0.0
0.5
0.5
0.7
-0.7
-2.3
0.0
0.3
0.0
0.6
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Year-on-Year Change (in percent)
2014
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
3.1
2.1
2.0
4.8
3.9
3.8
4.8
9.2
2.9
2.0
2.0
5.0
3.7
5.0
4.4
6.1
3.6
3.1
3.2
4.9
3.7
5.0
5.0
6.7
3.0
2.5
2.4
5.0
3.4
5.0
3.9
3.6
3.2
2.7
2.7
25.9
2.8
4.9
2.8
0.9
2.7
2.4
2.3
31.2
1.9
3.6
1.4
-0.6
2.4
2.2
2.2
31.1
1.5
3.0
0.5
-2.0
3.4
4.0
4.1
30.8
2.1
3.0
2.1
2.4
4.1
5.6
5.9
9.6
2.6
3.5
3.2
5.8
4.4
6.8
7.1
4.0
2.6
3.4
3.0
5.5
4.7
8.0
8.3
3.5
2.4
3.4
2.4
3.5
3.6
6.3
6.6
3.9
1.4
3.4
0.4
-2.7
2.5
4.8
5.0
4.0
0.6
3.1
-1.1
-8.7
1.7
3.0
3.1
3.8
0.5
2.6
-1.1
-8.2
0.6
1.1
1.1
3.7
0.1
2.3
-1.7
-9.8
1.0
1.3
1.3
3.9
0.5
2.3
-1.2
-8.8
1.1
1.6
1.6
4.9
0.5
1.9
-1.0
-6.9
2.2
2.8
4.3
5.3
-0.3
2.4
4.8
3.1
3.4
3.4
2.3
1.3
0.1
2.6
4.7
3.4
4.3
3.4
1.2
0.3
0.2
2.7
4.5
3.3
4.8
3.4
1.5
1.9
0.4
2.6
4.4
3.2
4.9
3.6
0.9
0.0
0.5
2.2
4.4
2.9
3.6
3.0
-0.2
-1.1
0.1
2.1
4.5
2.4
2.5
2.6
1.0
3.3
0.1
2.5
4.7
2.2
2.3
2.6
0.8
2.3
0.0
2.5
4.7
2.2
2.7
3.3
1.1
4.2
0.0
2.5
4.7
2.1
2.5
3.0
1.3
5.6
0.1
2.0
4.8
1.9
2.7
3.4
1.1
2.2
0.0
1.3
5.1
1.7
2.7
3.4
0.0
-2.2
0.1
1.5
5.1
1.8
2.2
2.7
-0.7
-10.5
-0.1
1.1
5.1
1.6
2.1
2.3
0.0
-8.6
-0.1
1.1
4.7
1.2
1.7
1.7
-0.5
-9.7
0.0
1.0
3.6
1.2
1.6
1.8
0.9
-6.6
0.0
1.0
3.6
1.3
1.5
1.9
0.3
-2.6
0.1
1.1
3.6
1.6
2013
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
Source: Philippine Statistics Authority (PSA)
2015
Q2
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
2014
Q1
2013
Quarter-on-Quarter Change (in percent)
2014
Q4
Q1
Q2
Q3
2015
2015
4a
CONSUMER PRICE INDEX IN METRO MANILA
for periods indicated
(2006=100)
Quarterly Average
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
Q1
Q2
Q3
Q4
Q1
Q2
2013
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
122.9
131.6
132.7
120.4
119.4
123.1
121.8
128.7
123.7
132.0
133.0
122.5
120.3
126.6
122.9
130.4
125.6
135.3
136.5
124.2
121.7
129.8
124.5
134.3
125.4
135.2
136.3
126.5
121.4
130.4
123.4
129.3
125.7
134.9
135.9
140.3
121.7
131.1
123.5
127.7
125.8
134.7
135.7
144.7
121.8
132.3
123.5
127.2
126.5
136.5
137.6
145.8
122.0
132.6
123.0
125.1
127.8
139.6
141.0
146.5
122.6
132.8
124.2
129.4
129.2
141.3
142.8
151.2
123.8
135.5
125.5
133.1
130.3
143.3
144.9
152.6
124.6
136.8
126.3
133.7
131.4
147.1
149.0
153.2
124.6
138.2
125.0
127.9
131.0
147.6
149.5
153.9
123.8
139.1
123.3
121.2
131.6
147.6
149.4
155.1
124.7
140.6
124.1
117.6
131.6
146.4
148.0
155.9
125.1
141.1
124.4
116.2
131.9
148.4
150.2
156.4
124.7
142.2
122.5
105.8
132.1
150.2
152.1
156.5
124.2
142.3
121.3
101.1
132.0
150.3
152.3
158.7
124.0
142.9
120.8
99.8
112.7
130.0
114.9
118.5
93.1
110.2
135.5
119.5
114.1
130.8
114.4
117.4
93.7
111.1
137.0
119.9
117.7
132.4
113.8
117.0
93.9
112.5
140.0
120.7
119.2
132.6
114.3
119.0
93.9
112.5
140.0
120.7
120.5
134.5
114.2
117.8
93.9
113.1
140.0
120.9
120.8
134.7
113.5
115.2
93.9
114.1
142.1
121.1
120.8
136.5
114.2
118.2
93.9
114.8
146.2
121.2
121.1
136.6
114.6
119.6
93.9
114.8
146.2
121.3
123.7
139.7
115.6
122.9
94.1
115.9
146.2
121.8
124.7
140.4
115.6
122.8
94.1
116.7
149.0
122.7
125.6
143.4
115.6
121.6
94.1
117.6
154.5
123.1
126.2
143.6
113.7
115.8
94.1
117.9
154.5
123.1
126.3
145.3
116.5
109.0
94.1
118.5
154.5
123.3
126.4
145.4
117.2
111.2
94.2
119.1
157.3
123.3
126.5
147.0
116.7
108.7
94.3
119.9
163.0
123.6
126.5
147.0
116.9
107.7
94.3
120.3
163.0
123.6
126.8
147.3
116.0
104.6
94.3
120.6
163.0
124.0
Q4
Q1
Q2
Q3
Q4
2016
Q1
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
2013
Source: Philippine Statistics Authority (PSA)
2015
Quarter-on-Quarter Change (in percent)
2014
Q4
Q1
Q2
Q3
2015
Q1
Q2
Q3
Q4
Q1
Q2
Q3
0.7
-1.0
-1.1
0.8
1.4
1.5
1.5
1.5
0.7
0.3
0.2
1.7
0.8
2.8
0.9
1.3
1.5
2.5
2.6
1.4
1.2
2.5
1.3
3.0
-0.2
-0.1
-0.1
1.9
-0.2
0.5
-0.9
-3.7
0.2
-0.2
-0.3
10.9
0.2
0.5
0.1
-1.2
0.1
-0.1
-0.1
3.1
0.1
0.9
0.0
-0.4
0.6
1.3
1.4
0.8
0.2
0.2
-0.4
-1.7
1.0
2.3
2.5
0.5
0.5
0.2
1.0
3.4
1.1
1.2
1.3
3.2
1.0
2.0
1.0
2.9
0.9
1.4
1.5
0.9
0.6
1.0
0.6
0.5
0.8
2.7
2.8
0.4
0.0
1.0
-1.0
-4.3
-0.3
0.3
0.3
0.5
-0.6
0.7
-1.4
-5.2
0.5
0.0
-0.1
0.8
0.7
1.1
0.6
-3.0
0.0
-0.8
-0.9
0.5
0.3
0.4
0.2
-1.2
0.2
1.4
1.5
0.3
-0.3
0.8
-1.5
-9.0
0.2
1.2
1.3
0.1
-0.4
0.1
-1.0
-4.4
-0.1
0.1
0.1
1.4
-0.2
0.4
-0.4
-1.3
0.3
0.8
1.1
2.1
-0.1
2.7
0.0
2.6
1.2
0.6
-0.4
-0.9
0.6
0.8
1.1
0.3
3.2
1.2
-0.5
-0.3
0.2
1.3
2.2
0.7
1.3
0.2
0.4
1.7
0.0
0.0
0.0
0.0
1.1
1.4
-0.1
-1.0
0.0
0.5
0.0
0.2
0.2
0.1
-0.6
-2.2
0.0
0.9
1.5
0.2
0.0
1.3
0.6
2.6
0.0
0.6
2.9
0.1
0.2
0.1
0.4
1.2
0.0
0.0
0.0
0.1
2.1
2.3
0.9
2.8
0.2
1.0
0.0
0.4
0.8
0.5
0.0
-0.1
0.0
0.7
1.9
0.7
0.7
2.1
0.0
-1.0
0.0
0.8
3.7
0.3
0.5
0.1
-1.6
-4.8
0.0
0.3
0.0
0.0
0.1
1.2
2.5
-5.9
0.0
0.5
0.0
0.2
0.1
0.1
0.6
2.0
0.1
0.5
1.8
0.0
0.1
1.1
-0.4
-2.2
0.1
0.7
3.6
0.2
0.0
0.0
0.2
-0.9
0.0
0.3
0.0
0.0
0.2
0.2
-0.8
-2.9
0.0
0.2
0.0
0.3
Q4
Q1
Q2
Q3
Q4
2016
Q1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Year-on-Year Change (in percent)
2014
Q4
Q1
Q2
Q3
2.8
1.0
0.9
2.4
3.6
3.7
4.5
8.1
2.3
1.1
1.0
3.0
2.8
6.5
3.1
4.9
3.6
3.7
3.7
4.3
3.7
7.1
4.4
8.0
2.7
1.7
1.6
5.9
3.1
7.5
2.8
2.0
2.3
2.5
2.4
16.5
1.9
6.5
1.4
-0.8
1.7
2.0
2.0
18.1
1.2
4.5
0.5
-2.5
0.7
0.9
0.8
17.4
0.2
2.2
-1.2
-6.9
1.9
3.3
3.4
15.8
1.0
1.8
0.6
0.1
2.8
4.7
5.1
7.8
1.7
3.4
1.6
4.2
3.6
6.4
6.8
5.5
2.3
3.4
2.3
5.1
3.9
7.8
8.3
5.1
2.1
4.2
1.6
2.2
2.5
5.7
6.0
5.1
1.0
4.7
-0.7
-6.3
1.9
4.5
4.6
2.6
0.7
3.8
-1.1
-11.6
1.0
2.2
2.1
2.2
0.4
3.1
-1.5
-13.1
0.4
0.9
0.8
2.1
0.1
2.9
-2.0
-17.3
0.8
1.8
1.7
1.7
0.3
2.3
-1.6
-16.6
0.3
1.8
1.9
2.3
-0.6
1.6
-2.7
-15.1
0.5
2.6
3.7
4.1
-0.5
2.5
3.8
4.1
1.7
3.0
0.1
-0.5
0.3
3.4
3.6
3.5
4.8
2.8
-0.2
0.2
0.6
4.8
3.3
3.8
6.0
2.8
0.5
2.5
0.8
4.8
3.3
3.6
6.9
3.5
-0.6
-0.6
0.9
2.6
3.3
1.2
5.9
3.0
-0.8
-1.9
0.2
2.7
3.7
1.0
2.6
3.1
0.4
1.0
0.0
2.0
4.4
0.4
1.6
3.0
0.3
0.5
0.0
2.0
4.4
0.5
2.7
3.9
1.2
4.3
0.2
2.5
4.4
0.7
3.2
4.2
1.9
6.6
0.2
2.3
4.9
1.3
4.0
5.1
1.2
2.9
0.2
2.4
5.7
1.6
4.2
5.1
-0.8
-3.2
0.2
2.7
5.7
1.5
2.1
4.0
0.8
-11.3
0.0
2.2
5.7
1.2
1.4
3.6
1.4
-9.4
0.1
2.1
5.6
0.5
0.7
2.5
1.0
-10.6
0.2
2.0
5.5
0.4
0.2
2.4
2.8
-7.0
0.2
2.0
5.5
0.4
0.4
1.4
-0.4
-4.0
0.2
1.8
5.5
0.6
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
2014
2013
2015
4b
CONSUMER PRICE INDEX IN AREAS OUTSIDE METRO MANILA
for periods indicated
(2006=100)
Quarterly Average
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
Q1
Q2
Q3
Q4
Q1
Q2
2013
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
129.8
139.3
140.5
126.8
122.8
120.2
124.1
140.6
131.6
140.4
141.5
129.6
125.1
122.7
127.3
143.4
133.0
142.2
143.5
130.8
126.0
123.9
128.4
144.1
133.3
142.8
144.0
131.6
126.1
124.4
128.0
142.6
134.4
143.2
144.4
162.1
126.7
125.4
128.4
142.4
135.5
143.7
144.8
173.3
127.7
126.8
129.5
143.4
136.8
145.7
147.0
175.0
128.6
127.9
130.0
143.4
138.5
148.7
150.1
176.0
129.3
128.6
131.4
146.9
140.4
151.4
153.0
178.1
130.6
130.0
133.4
151.7
141.7
153.5
155.2
179.7
131.2
131.0
133.9
151.5
143.6
157.4
159.3
180.7
131.7
131.9
133.6
148.9
143.8
158.3
160.2
182.6
131.3
132.5
132.4
144.7
144.1
158.8
160.7
185.6
131.2
133.7
131.8
139.6
144.3
158.5
160.3
187.0
131.9
134.3
132.7
141.3
144.6
159.1
161.0
187.8
131.8
134.7
131.5
137.6
145.3
160.3
162.3
190.5
132.1
135.5
131.1
135.2
146.0
161.3
163.2
195.4
132.4
136.4
131.4
133.2
120.2
125.1
128.4
131.4
91.8
107.7
132.1
122.5
122.9
127.2
130.0
132.7
91.9
108.7
134.2
124.3
124.0
128.5
129.1
130.0
92.0
109.2
138.3
125.2
124.7
129.0
129.5
131.5
92.0
109.4
138.3
125.8
125.3
129.7
130.1
132.8
92.1
109.8
138.3
126.8
126.5
131.0
130.0
132.2
92.0
110.8
140.4
128.0
127.2
131.7
130.7
135.5
92.1
112.1
144.9
128.7
127.8
132.3
130.7
135.3
92.0
112.3
144.9
129.4
128.7
133.7
131.4
138.3
92.1
112.6
144.9
130.2
129.3
134.6
131.7
139.0
92.1
112.8
147.1
130.8
130.0
135.5
132.1
138.2
92.0
113.2
152.0
131.2
130.5
136.1
131.0
132.8
92.0
113.4
152.0
131.9
131.6
136.7
130.0
124.2
91.9
113.6
152.0
132.4
132.3
137.1
131.2
127.3
91.9
113.7
153.5
132.7
132.7
137.5
130.9
125.3
91.9
114.0
156.6
133.2
133.3
138.3
131.6
124.3
91.9
114.2
156.7
134.2
134.1
139.5
130.7
121.6
91.9
114.5
156.7
135.0
Q4
Q1
Q2
Q3
Q4
2016
Q1
Q1
Q2
Q3
Q4
Q1
Q2
0.4
0.1
0.0
1.0
0.7
0.6
1.3
2.6
1.4
0.8
0.7
2.2
1.9
2.1
2.6
2.0
1.1
1.3
1.4
0.9
0.7
1.0
0.9
0.5
0.2
0.4
0.3
0.6
0.1
0.4
-0.3
-1.0
0.8
0.3
0.3
23.2
0.5
0.8
0.3
-0.1
0.8
0.3
0.3
6.9
0.8
1.1
0.9
0.7
1.0
1.4
1.5
1.0
0.7
0.9
0.4
0.0
1.2
2.1
2.1
0.6
0.5
0.5
1.1
2.4
1.4
1.8
1.9
1.2
1.0
1.1
1.5
3.3
0.9
1.4
1.4
0.9
0.5
0.8
0.4
-0.1
1.3
2.5
2.6
0.6
0.4
0.7
-0.2
-1.7
0.1
0.6
0.6
1.1
-0.3
0.5
-0.9
-2.8
0.2
0.3
0.3
1.6
-0.1
0.9
-0.5
-3.5
0.1
-0.2
-0.2
0.8
0.5
0.4
0.7
1.2
0.2
0.4
0.4
0.4
-0.1
0.3
-0.9
-2.6
0.5
0.8
0.8
1.4
0.2
0.6
-0.3
-1.7
0.5
0.6
0.6
2.6
0.2
0.7
0.2
-1.5
0.6
0.4
0.8
1.9
0.0
0.3
0.1
0.3
2.2
1.7
1.2
1.0
0.1
0.9
1.6
1.5
0.9
1.0
-0.7
-2.0
0.1
0.5
3.1
0.7
0.6
0.4
0.3
1.2
0.0
0.2
0.0
0.5
0.5
0.5
0.5
1.0
0.1
0.4
0.0
0.8
1.0
1.0
-0.1
-0.5
-0.1
0.9
1.5
0.9
0.6
0.5
0.5
2.5
0.1
1.2
3.2
0.5
0.5
0.5
0.0
-0.1
-0.1
0.2
0.0
0.5
0.7
1.1
0.5
2.2
0.1
0.3
0.0
0.6
0.5
0.7
0.2
0.5
0.0
0.2
1.5
0.5
0.5
0.7
0.3
-0.6
-0.1
0.4
3.3
0.3
0.4
0.4
-0.8
-3.9
0.0
0.2
0.0
0.5
0.8
0.4
-0.8
-6.5
-0.1
0.2
0.0
0.4
0.5
0.3
0.9
2.5
0.0
0.1
1.0
0.2
0.3
0.3
-0.2
-1.6
0.0
0.3
2.0
0.4
0.5
0.6
0.5
-0.8
0.0
0.2
0.1
0.8
0.6
0.9
-0.7
-2.2
0.0
0.3
0.0
0.6
Year-on-Year Change (in percent)
2014
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
2013
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
Source: Philippine Statistics Authority (PSA)
2015
Quarter-on-Quarter Change (in percent)
2014
Q3
Q4
Q1
Q2
Q3
2012
ALL ITEMS
FOOD AND NON-ALCHOLIC BEVERAGES
of which: FOOD ITEMS
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS
NON-FOOD
CLOTHING AND FOOTWEAR
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS
of which: ELECTRICITY, GAS AND OTHER FUELS
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE
HEALTH
TRANSPORT
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT
COMMUNICATION
RECREATION AND CULTURE
EDUCATION
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES
2014
2013
2015
2015
Q1
Q2
Q3
Q4
Q1
Q2
Q3
3.2
2.2
2.2
5.3
4.0
3.8
5.0
9.7
3.1
2.2
2.1
5.4
4.0
4.5
5.0
6.3
3.6
3.0
3.1
4.9
3.7
4.5
5.3
6.3
3.1
2.6
2.5
4.8
3.4
4.1
4.5
4.1
3.5
2.8
2.8
27.8
3.2
4.3
3.5
1.3
3.0
2.4
2.3
33.7
2.1
3.3
1.7
0.0
2.9
2.5
2.4
33.8
2.1
3.2
1.2
-0.5
3.9
4.1
4.2
33.7
2.5
3.4
2.7
3.0
4.5
5.7
6.0
9.9
3.1
3.7
3.9
6.5
4.6
6.8
7.2
3.7
2.7
3.3
3.4
5.6
5.0
8.0
8.4
3.3
2.4
3.1
2.8
3.8
3.8
6.5
6.7
3.7
1.5
3.0
0.8
-1.5
2.6
4.9
5.0
4.2
0.5
2.8
-1.2
-8.0
1.8
3.3
3.3
4.1
0.5
2.5
-0.9
-6.7
0.7
1.1
1.1
3.9
0.1
2.1
-1.6
-7.6
1.0
1.3
1.3
4.3
0.6
2.3
-1.0
-6.6
1.3
1.6
1.6
5.3
0.9
2.0
-0.3
-4.6
2.8
2.8
4.5
5.4
-0.2
2.4
5.1
2.8
4.0
3.5
2.8
2.0
-0.1
2.4
5.1
3.3
4.2
3.6
1.6
0.7
0.0
2.0
4.9
3.1
4.4
3.5
1.6
1.9
0.2
1.9
4.8
3.0
4.2
3.7
1.3
1.1
0.3
1.9
4.7
3.5
2.9
3.0
0.0
-0.4
0.1
1.9
4.6
3.0
2.6
2.5
1.2
4.2
0.1
2.7
4.8
2.8
2.5
2.6
0.9
2.9
0.0
2.7
4.8
2.9
2.7
3.1
1.0
4.1
0.0
2.6
4.8
2.7
2.2
2.7
1.3
5.1
0.1
1.8
4.8
2.2
2.2
2.9
1.1
2.0
-0.1
1.0
4.9
1.9
2.1
2.9
0.2
-1.8
0.0
1.0
4.9
1.9
2.3
2.2
-1.1
-10.2
-0.2
0.9
4.9
1.7
2.3
1.9
-0.4
-8.4
-0.2
0.8
4.4
1.5
2.1
1.5
-0.9
-9.3
-0.1
0.7
3.0
1.5
2.1
1.6
0.5
-6.4
-0.1
0.7
3.1
1.7
1.9
2.0
0.5
-2.1
0.0
0.8
3.1
2.0
5 MONETARY INDICATORS (DCS CONCEPT: SRF-Based) 1
as of periods indicated
levels in billion pesos
2014
2015
2016
p
Q1 r
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
1. M4 (2+7)
8,215.0
8,351.9
8,523.1
9,050.8
9,016.9
9,126.2
9,334.3
9,885.0
10,037.8
2. M3 : Broad Money Liabilities (3+6)
% to GDP
7,029.4
59.6
7,100.1
58.8
7,219.2
58.6
7,703.9
60.9
7,650.0
59.8
7,755.4
59.8
7,851.4
59.9
8,426.2
63.3
8,548.0
63.1
3. M2 (4+5)
% to GDP
6,795.8
57.7
6,864.3
56.9
6,949.3
56.4
7,396.3
58.5
7,344.3
57.4
7,434.5
57.3
7,510.8
57.3
8,068.8
60.6
8,209.9
60.6
4. M1: Currency Outside Depository Corporations and Transferable Deposits (Narrow Money )
% to GDP
2,051.6
17.4
2,107.2
17.5
2,134.1
17.3
2,316.4
18.3
2,312.1
18.1
2,379.2
18.3
2,453.3
18.7
2,667.4
20.0
2,712.1
20.0
586.2
1,465.4
580.3
1,526.9
588.0
1,546.1
713.7
1,602.6
658.9
1,653.2
653.8
1,725.4
670.0
1,783.3
791.5
1,875.9
766.3
1,945.9
4,744.3
3,084.4
1,659.8
4,757.1
3,007.0
1,750.1
4,815.2
3,077.0
1,738.1
5,080.0
3,191.8
1,888.2
5,032.2
3,209.8
1,822.4
5,055.3
3,269.9
1,785.4
5,057.5
3,357.5
1,700.0
5,401.5
3,586.1
1,815.4
5,497.8
3,694.4
1,803.4
A. Liquidity
Currency Outside Depository Corporations (Currency in Circulation)
Transferable Deposits (Demand Deposits)
5. Other deposits included in broad money
Savings Deposits
Time Deposits
6. Securities Other Than Shares Included in Broad Money (Deposit Substitutes)
233.5
235.8
269.9
307.6
305.6
320.9
340.7
357.3
338.1
7. Transferable & Other Deposits in Foreign Currency (FCDU Deposits-Residents)
1,185.6
1,251.7
1,303.9
1,346.8
1,366.9
1,370.8
1,482.8
1,458.8
1,489.8
8. Liabilities Excluded from Broad-Money (Other Liabilities)
1,693.2
1,708.6
1,791.6
1,754.4
1,856.1
1,860.1
2,015.3
1,974.3
2,139.6
6,332.0
1,188.5
1,735.0
546.5
6,473.9
1,110.2
1,733.2
623.1
6,605.5
1,033.6
1,738.6
705.0
7,053.0
1,119.1
1,862.7
743.7
6,997.4
1,096.9
1,862.6
765.7
7,114.6
1,124.5
1,926.4
801.9
7,387.2
1,209.0
2,019.0
810.0
7,860.5
1,263.0
1,993.9
730.8
8,077.4
1,465.8
2,085.2
619.4
5,143.4
559.5
73.3
265.1
4,245.5
5,363.7
574.6
71.9
271.2
4,446.0
5,571.9
613.6
70.5
268.0
4,619.8
5,933.9
630.3
71.5
269.3
4,962.9
5,900.4
628.2
70.5
271.9
4,929.9
5,990.1
628.8
70.6
274.2
5,016.5
6,178.2
667.9
74.0
281.4
5,154.9
6,597.4
680.6
76.6
278.0
5,562.2
6,611.5
689.5
77.9
282.1
5,562.0
C. Net Foreign Assets
1. Bangko Sentral ng Pilipinas
Claims on Non-residents
Less: Liabilities to Non-residents
3,576.3
3,520.0
3,597.3
77.3
3,586.6
3,476.6
3,551.7
75.2
3,709.1
3,524.1
3,599.6
75.4
3,752.1
3,514.4
3,587.4
73.0
3,875.6
3,556.8
3,627.5
70.8
3,871.7
3,598.5
3,671.8
73.2
3,962.4
3,731.8
3,806.9
75.0
3,998.8
3,762.8
3,837.3
74.4
4,100.1
3,778.5
3,852.5
74.0
2. Other Depository Corporations
Claims on Non-residents
Less: Liabilities to Non-residents
56.3
810.2
753.9
110.0
828.5
718.5
185.0
864.0
679.0
237.7
1,028.7
790.9
318.9
964.1
645.3
273.2
951.0
677.7
230.5
985.1
754.5
235.9
1,023.9
787.9
321.6
1,070.7
749.1
B. Domestic Claims
1. Net Claims on Central Government
Claims on Central Government
Less: Liabilities to Central Government
2. Claims on Other Sectors
Claims on Other Financial Corporations
Claims on State and Local Government
Claims on Public Nonfinancial Corporations
Claims on Private Sector
1
Based on the Standardized Report Forms (SRFs), a unified framework for reporting monetary and financial statistics to the International Monetary Fund.
Preliminary
Revised
Note : Details may not add up to totals due to rounding.
Source : Bangko Sentral ng Pilipinas
p
r
6 SELECTED DOMESTIC INTEREST RATES
for periods indicated; in percent per annum
Q1
REAL INTEREST RATES 1
2014
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2.5289
0.7370
1.6410
N.T.
4.1
-2.0853
-3.5630
-3.1260
-2.8500
4.4
-2.3382
-3.7730
-3.4130
-3.0875
4.7
-2.3644
-4.0540
-3.6520
-3.3250
3.6
-1.0616
-2.8970
-2.2530
N.T.
2.4
0.1266
-1.6830
-1.0240
N.T.
1.7
0.8225
-1.0280
-0.1780
N.T.
0.6
1.9241
0.12100
0.8720
N.T.
1
1.5291
-0.2730
0.6290
N.T.
1.2
1.3289
-0.4630
0.4410
N.T.
6.7607
4.3579
5.7390
6.8407
4.4055
5.6310
2.6287
0.2688
1.4000
2.4083
-0.0583
1.0780
2.1860
-0.3139
0.8350
3.1818
0.8397
1.9820
4.4698
2.1031
3.0280
5.2390
2.8183
3.8150
6.3376
3.9025
5.0250
5.7607
3.3579
4.7390
5.6407
3.2055
4.4310
N.T.
N.T.
4.0000
4.0000
4.0352
N.T.
N.T.
4.0000
4.0000
4.1087
N.T.
N.T.
4.0000
4.0000
5.1642
N.T.
N.T.
-0.6000
-0.6000
-0.5392
N.T.
N.T.
-0.9000
-0.9000
-0.8540
N.T.
N.T.
-0.9500
-0.9500
-0.9610
N.T.
N.T.
0.4000
0.4000
0.4515
N.T.
N.T.
1.6000
1.6000
1.6810
N.T.
N.T.
2.3000
2.3000
2.3926
N.T.
N.T.
3.4000
3.4000
3.4352
N.T.
N.T.
3.0000
3.0000
3.1087
N.T.
N.T.
2.8000
2.8000
3.9642
2.0780
1.9400
2.2070
2.2630
1.9980
1.8610
2.0140
2.2000
1.7440
1.7100
1.6970
1.8970
1.6130
1.5550
1.5800
1.7230
-2.8120
-3.0350
-2.7000
-2.5600
-2.9000
-3.1260
-2.8110
-2.5370
-3.2000
-3.4420
-3.1180
-2.8910
-2.0280
-2.3140
-1.9000
-1.7750
-0.7090
-0.9310
-0.6710
-0.4520
0.3780
0.2400
0.5070
0.5630
1.3980
1.2610
1.4140
1.6000
0.7440
0.7100
0.6970
0.8970
0.4130
0.3550
0.3800
0.5230
2.0765
2.1980
2.4297
2.6999
3.0281
3.7717
3.8900
3.7189
4.3550
4.6511
N.T
1.6817
1.7967
2.5467
2.6143
3.1016
3.7263
3.4923
4.1617
3.7995
5.1350
4.7280
2.6667
2.9183
2.3710
3.9847
3.6625
3.8750
3.9250
4.5853
4.1000
5.5217
4.8916
1.7650
1.8950
1.7313
3.4700
3.6900
3.2332
3.4583
4.2283
4.6900
5.2317
3.9
-2.2083
-1.8633
-1.5875
-1.1437
-0.7350
-0.5083
-0.1521
-0.0385
0.5562
1.4938
1.7354
4.4
-3.0771
-2.9062
-2.5083
-1.5458
-1.5083
-1.2250
-0.4188
-0.3708
-0.2333
0.9750
1.0329
4.4
-2.6896
-2.4521
-2.2271
-1.4187
-1.0167
-0.8917
-0.1854
-0.2771
-0.0525
0.9125
0.9750
2.7
-0.1591
-0.0568
-0.0045
0.3568
0.7500
0.8705
0.9795
1.4475
1.6705
2.4727
2.2500
2.4
-0.1286
0.1795
0.2886
0.7959
1.0136
1.1864
1.4273
1.4932
1.6614
2.5850
2.3659
1.2
0.8765
0.9980
1.2297
1.4999
1.8281
2.5717
2.6900
2.5189
3.1550
3.4511
N.T.
0.4
1.2817
1.3967
2.1467
2.2143
2.7016
3.3263
3.0923
3.7617
3.3995
4.7350
4.3280
1.5
1.1667
1.4183
0.8710
2.4847
2.1625
2.3750
2.4250
3.0853
2.6000
4.0217
3.3916
1.1
0.6650
0.7950
0.6313
2.3700
2.5900
2.1332
2.3583
3.1283
3.5900
4.1317
N.T.
Q1
NOMINAL INTEREST RATES
2014
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2.0147
0.5370
0.9740
1.2500
2.0618
0.6270
0.9870
1.3125
2.3356
0.6460
1.0480
1.3750
2.5384
0.7030
1.3470
N.T.
2.5266
0.7170
1.3760
N.T.
2.5225
0.6720
1.5220
N.T.
2.5241
0.7210
1.4720
N.T.
2.5291
0.7270
1.6290
N.T.
6.7287
4.3688
5.5000
6.8083
4.3417
5.4780
6.8860
4.3861
5.5350
6.7818
4.4397
5.5820
6.8698
4.5031
5.4280
6.9390
4.5183
5.5150
6.9376
4.5025
5.6250
N.T.
N.T.
3.5000
3.5000
3.5608
N.T.
N.T.
3.5000
3.5000
3.5460
N.T.
N.T.
3.7500
3.7500
3.7390
N.T.
N.T.
4.0000
4.0000
4.0515
N.T.
N.T.
4.0000
4.0000
4.0810
N.T.
N.T.
4.0000
4.0000
4.0926
Treasury Bills, All Maturities
91-Days
182-Days
364-Days
1.2880
1.0650
1.4000
1.5400
1.5000
1.2740
1.5890
1.8630
1.5000
1.2580
1.5820
1.8090
1.5720
1.2860
1.7000
1.8250
1.6910
1.4690
1.7290
1.9480
Government Securities in the Secondary Market 5
3 Months
6 Months
1-Year
2-Years
3-Years
4-Years
5-Years
7-Years
10-Years
20-Years
25-Years
1.6917
2.0367
2.3125
2.7563
3.1650
3.3917
3.7479
3.8615
4.4562
5.3938
5.6354
1.3229
1.4938
1.8917
2.8542
2.8917
3.1750
3.9812
4.0292
4.1667
5.3750
5.4329
1.7104
1.9479
2.1729
2.9813
3.3833
3.5083
4.2146
4.1229
4.3475
5.3125
5.3750
2.5409
2.6432
2.6955
3.0568
3.4500
3.5705
3.6795
4.1475
4.3705
5.1727
4.9500
2.2714
2.5795
2.6886
3.1959
3.4136
3.5864
3.8273
3.8932
4.0614
4.9850
4.7659
Interbank Call Loans
Savings Deposits
Time Deposits (All Maturities)
Manila Reference Rates (All Maturities) 2
2015
2016
Q1
2015
2016
Q1
Lending Rates
High
Low
All Maturities 3
Bangko Sentral Rates
R/P (Overnight) 4
R/P (Term) 4
RR/P (Overnight) 4
RR/P (Term) 4
Rediscounting
Rate on Government Securities
N.T
1
Nominal interest rate less inflation rate
2
Refers to the New Manila Reference Rates based on combined transactions on time deposits and promissory notes of reporting commercial banks. Per BSP Circular No. 846, the generation and publication of MRR rates will be discontinued effective 17 September 2014. September data covers bank reports prior to the said date.
3
Refers to the weighted average interest rate of reporting commercial banks' interest incomes on their outstanding peso-denominated loans
4
Weighted average of transacted rates
5
End of Period; (For Q1 2013 to Q1 2015, data refers to PDST-F while for Q2 2015 to present, it refers to PDST-R2)
p
Preliminary
r
Revised
N.T. - No transactions
Source: Bangko Sentral ng Pilipinas
7
NUMBER OF FINANCIAL INSTITUTIONS 1
as of periods indicated
2014
Q1
Total
Head Offices
Branches/Agencies
Banks
Head Offices
Branches/Agencies
Universal and Commercial Banks
Head Offices
Branches/Agencies
Thrift Banks
Head Offices
Branches/Agencies
Savings and Mortgage Banks
Head Offices
Branches/Agencies
Private Development Banks
Head Offices
Branches/Agencies
Stock Savings and Loan Assns.
Head Offices
Branches/Agencies
Microfinance Banks
Head Offices
Branches/Agencies
Rural Banks
Head Offices
Branches/Agencies
Non-Banks
Head Offices
Branches/Agencies
Investment Houses
Head Offices
Branches/Agencies
Finance Companies
Head Offices
Branches/Agencies
ABB Forex Corporations
Head Offices
Branches/Agencies
Investment Companies
Head Offices
Branches/Agencies
Securities Dealers/Brokers
Head Offices
Branches/Agencies
Pawnshops
Head Offices
Branches/Agencies
Lending Investors
Head Offices
Branches/Agencies
Non-Stock Savings and Loan Assns.
Head Offices
Branches/Agencies
Private Insurance Companies 2
Head Offices
Branches/Agencies
Government Non-Banks
Head Offices
Branches/Agencies
Venture Capital Corporations
Head Offices
Branches/Agencies
Credit Card Companies
Head Offices
Branches/Agencies
Other Non-Bank with QBF
Head Offices
Branches/Agencies
Electronic Money Issuer
Head Offices
Branches/Agencies
Remittance Agent
Head Offices
Branches/Agencies
Credit Granting Entities
Head Offices
Branches/Agencies
1
Q2
2015
Q3
Q4
Q1
Q2
Q3
Q4
28,065
6,943
21,122
28,094
6,888
21,206
28,128
6,840
21,288
28,243
6,747
21,496
28,342
6,733
21,609
28,330
6,697
21,633
28,327
6,638
21,689
28,482
6,588
21,894
10,020
667
9,353
10,120
664
9,456
10,207
652
9,555
10,361
648
9,713
10,456
646
9,810
10,528
638
9,890
10,561
635
9,926
10,756
632
10,124
5,514
36
5,478
1,856
70
1,786
1,219
28
1,191
437
19
418
171
19
152
29
4
25
2,650
561
2,089
5,583
36
5,547
1,878
70
1,808
1,242
28
1,214
432
19
413
175
19
156
29
4
25
2,659
558
2,101
5,738
36
5,702
1,873
69
1,804
1,248
28
1,220
440
19
421
154
18
136
31
4
27
2,596
547
2,049
5,833
36
5,797
1,920
69
1,851
1,280
28
1,252
444
19
425
165
18
147
31
4
27
2,608
543
2,065
5,901
36
5,865
1,927
69
1,858
1,317
28
1,289
408
19
389
171
18
153
31
4
27
2,628
541
2,087
5,946
36
5,910
2,013
70
1,943
1,386
29
1,357
416
19
397
180
18
162
31
4
27
2,569
532
2,037
5,969
37
5,932
1,999
69
1,930
1,356
28
1,328
417
19
398
195
18
177
31
4
27
2,593
529
2,064
6,060
40
6,020
2,086
68
2,018
1,517
28
1,489
338
18
320
200
18
182
31
4
27
2,610
524
2,086
18,045
6,276
11,769
26
16
10
88
20
68
3
3
13
13
17,584
6,022
11,562
1
1
198
71
127
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,974
6,224
11,750
25
15
10
88
20
68
3
3
13
13
17,513
5,971
11,542
1
1
199
71
128
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,921
6,188
11,733
25
15
10
88
20
68
2
2
13
13
17,461
5,936
11,525
1
1
199
71
128
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,882
6,099
11,783
25
15
10
88
20
68
2
2
13
13
17,422
5,847
11,575
1
1
199
71
128
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,886
6,087
11,799
25
15
10
88
20
68
2
2
13
13
17,426
5,835
11,591
1
1
199
71
128
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,802
6,059
11,743
25
15
10
88
20
68
2
2
13
13
17,340
5,807
11,533
1
1
201
71
130
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,766
6,003
11,763
25
15
10
110
22
88
5
5
2
2
13
13
17,278
5,745
11,533
1
1
200
70
130
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
17,726
5,956
11,770
25
15
10
110
22
88
5
5
2
2
13
13
17,238
5,698
11,540
1
1
200
70
130
110
108
2
4
4
3
3
1
1
4
4
1
1
9
9
-
Refers to the number of financial establishments which includes the head offices and branches; excludes the Bangko Sentral ng Pilipinas
Starting Q4 2009, data include other banking offices per Circular 505 and 624 dated 22 December 2005 and 13 October 2008, respectively.
(Other banking offices refer to any office or place of business in the Philippines other than the head office, branch or extension offfice, which primarily
engages in banking activities other than the acceptance of deposits and/or servicing of withdrawals thru tellers or other authorized personnel.)
2
Covers only the head offices and their foreign branches.
_
zero or nil
Source: Bangko Sentral ng Pilipinas
8 TOTAL RESOURCES OF THE PHILIPPINE FINANCIAL SYSTEM 1
as of periods indicated
in billion pesos
2012
Institutions
Total
Banks
Universal and Commercial Banks
Thrift Banks
Rural Banks
Non-Banks 2
1
2
2013
Q1
Q2
Q3
9,522.0
9,797.5
9,981.4
Q4
10,633.4
Q1
10,772.5
Q2
11,285.1
Source: Bangko Sentral ng Pilipinas
Q1
Q2
2015
Q3
11,820.7
12,814.6
13,032.3
13,342.1
13,488.3
Q4
Q1
Q2
Q3
Q4 r
14,446.6
14,322.0
14,453.5
14,784.1
15,356.0
2016
Q1 p
15,472.7
7,456.0
7,663.3
7,877.5
8,369.0
8,434.7
8,925.1
9,454.8
10,292.8
10,465.2
10,614.6
10,751.0
11,546.2
11,374.2
11,502.7
11,863.2
12,406.3
12,522.9
6,877.6
606.2
7,054.3
622.4
7,486.6
681.5
7,547.6
679.3
7,995.5
739.8
8,505.4
764.6
9,300.4
809.1
9,412.5
825.0
9,545.6
851.1
9,658.0
866.6
10,398.4
916.2
10,238.9
899.3
10,327.9
964.7
10,670.8
979.6
11,159.2
1,034.1
11,254.8
1,055.1
179.4
179.4
200.8
200.8
207.9
189.8
184.8
183.3
227.7
217.9
226.4
231.6
236.0
210.1
212.8
213.0
2,065.9
2,134.3
2,103.9
2,264.4
2,337.8
2,359.9
2,365.9
2,521.8
2,567.1
2,727.5
2,737.3
2,900.3
2,947.8
2,950.7
2,920.9
2,949.8
As of end-December 2015
Preliminary
Notes: (1) Data on Non-Banks are based on Consolidated Statement of Condition (CSOC).
(2) Data on Rural Banks were based on CSOC up to March 2010. Data from April 2010 onwards are based on FRP.
(3) Details may not add up to total due to rounding off.
p
Q4
6,668.0
608.6
Excludes the Bangko Sentral ng Pilipinas; amount includes allowance for probable losses.
Includes Investment Houses, Finance Companies, Investment Companies, Securities Dealers/Brokers, Pawnshops, Lending Investors, Non Stocks Savings
and Loan Associations, Credit Card Companies (which are under BSP supervision), and Private and Government Insurance Companies (i.e., SSS and GSIS).
a
2014
Q3
213.0
a
2,949.8 a
9 NON-PERFORMING LOANS (NPL), TOTAL LOANS AND LOAN LOSS PROVISIONS OF THE BANKING SYSTEM 1
end-of-period
in billion pesos
Non-Performing Loans 2
UB&KBs
TBs
RBs
Gross Non-Performing Loans 3
Total
UB&KBs
TBs
RBs
Net Non-Performing Loans 3
Total
UB&KBs
TBs
RBs
Total Loans
Total
UB&KBs
TBs
Loan Loss Provisions
RBs
Total
UB&KBs
TBs
RBs
Total
2006
2007
2008
2009
117.410
97.634
88.191
80.912
20.550
20.231
20.107
23.396
9.045
9.841
9.563
10.157
147.005
127.706
117.861
114.465
2073.698
2195.110
2502.662
2725.200
249.993
295.499
303.632
321.742
83.234
100.215
95.892
97.534
2406.925
2590.824
2902.186
3144.476
97.031
91.123
88.201
90.898
10.138
9.560
10.774
12.097
3.820
3.587
3.636
3.952
110.989
104.270
102.611
106.947
2010
Mar
Jun
Sep
Dec
81.382
87.668
83.141
80.215
25.189
25.868
28.177
26.323
9.363
9.491
9.417
10.249
115.934
123.027
120.735
116.787
2531.003
2682.230
2670.645
2802.041
320.902
326.275
343.058
359.484
99.346
100.778
97.794
103.695
2951.251
3109.283
3111.497
3265.220
91.982
95.394
97.379
95.040
12.702
13.723
14.500
14.123
4.380
4.603
4.533
5.102
109.064
113.720
116.412
114.265
2011
Mar
Jun
Sep
Dec
82.410
74.143
74.326
71.938
25.911
22.746
22.699
21.953
11.838
12.198
12.127
12.263
120.159
109.087
109.152
106.154
2759.938
3030.631
3021.051
3222.105
354.660
367.867
364.469
383.731
117.155
119.701
121.659
120.963
3231.753
3518.199
3507.179
3726.799
99.197
93.548
91.944
90.903
16.645
13.420
13.618
12.946
5.970
6.113
6.296
6.176
121.812
113.081
111.858
110.025
2012
Mar
Jun
Sep
Dec
106.354
102.098
103.420
100.610
26.090
24.360
25.830
26.530
13.940
14.370
14.800
15.850
146.384
140.828
144.050
142.990
18.918
11.393
13.224
11.310
11.550
9.530
11.340
12.220
7.470
7.350
7.060
6.910
37.938
28.273
31.624
30.440
3192.496
3388.091
3444.161
3650.760
402.540
432.990
410.520
449.260
123.740
124.870
128.780
128.580
3718.776
3945.951
3983.461
4228.600
124.968
127.269
128.598
128.460
18.170
18.270
18.560
18.090
7.690
8.230
9.000
10.220
150.828
153.769
156.158
156.770
2013
Mar
Jun
Sep
Dec
99.357
100.912
100.638
90.509
26.930
27.840
28.895
27.729
17.250
15.910
16.400
17.306
143.537
144.662
145.933
135.544
16.245
14.569
16.497
8.050
12.240
12.320
13.088
12.291
8.073
7.420
7.870
8.250
36.558
34.309
37.455
28.591
3625.043
3760.891
3922.085
4256.963
439.240
468.830
490.705
508.199
129.473
128.740
126.790
131.788
4193.756
4358.461
4539.580
4896.950
127.487
131.291
131.338
130.440
18.960
20.130
20.199
20.107
10.420
9.750
9.740
10.327
156.867
161.171
161.277
160.874
2014
Mar
Jun
Sep
Dec
93.323
94.798
96.181
93.055
27.057
27.165
26.049
25.373
18.114
17.867
16.476
16.402
138.494
139.830
138.706
134.830
9.939
12.437
14.129
15.289
13.146
12.931
11.572
11.346
8.800
8.895
8.257
8.104
31.885
34.263
33.958
34.739
4329.734
4513.288
4704.656
5117.884
547.791
562.850
575.778
576.057
137.889
132.888
134.611
138.436
5015.414
5209.026
5415.045
5832.377
131.790
133.317
133.708
132.542
18.771
19.088
19.375
19.468
10.612
10.240
9.486
9.563
161.173
162.645
162.569
161.573
2015 p
Mar
Jun
Sep
Dec
97.365
94.122
95.241
91.598
27.293
29.954
30.503
31.199
16.758
14.254
13.997
13.706
141.416
138.330
139.741
136.503
18.093
15.356
18.006
21.672
12.116
14.141
14.300
14.692
8.407
6.501
5.998
5.513
38.616
35.998
38.304
41.877
4991.914
5110.488
5244.589
5719.665
600.981
638.154
668.457
689.019
139.144
119.780
121.416
118.711
5732.039
5868.422
6034.462
6527.395
134.544
134.924
133.090
129.220
20.460
21.456
22.036
23.045
9.646
8.910
9.196
9.381
164.650
165.290
164.322
161.646
2016 p
Mar
97.112
34.346
13.706
145.164
29.065
16.288
5.513
50.866
5659.766
728.258
118.711
6506.735
129.193
25.001
9.381
1
a
a
a
Data include banks under liquidation, foreign office transactions and interbank loans
Starting Sept. 2002, for supervisory purposes, computation of NPL was based on BSP Circular No. 351 which defines total loans as gross of allowance for probable losses and interbank loans less loans classified as loss. This has been discontinued in 2013.
For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772).
3
Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing gross NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio,
Under Circular No. 772, there are no available data for Gross NPLs and Net NPLs earlier than 2012.
a
As of December 2015
p
Preliminary
r
Revised
Details may not add up due to rounding off.
Source: Bangko Sentral ng Pilipinas
2
a
163.575
9 RATIO OF NON-PERFORMING LOANS (NPL) AND LOAN LOSS PROVISIONS 1
TO TOTAL LOANS OF THE BANKING SYSTEM
end-of-period, in percent
NPL/Total Loans 2
UBs &KBs
1
TBs
Gross NPL/Total Loans 3
RBs
Total
UBs &KBs
TBs
Net NPL/Total Loans 3
RBs
Total
UBs &KBs
TBs
Loan Loss Provisions/Total Loans
RBs
Total
UBs &KBs
TBs
RBs
Total
2006
2007
2008
2009
5.662
4.448
3.524
2.969
8.220
6.846
6.622
7.272
10.867
9.820
9.973
10.414
6.108
4.929
4.061
3.640
4.679
4.151
3.524
3.335
4.055
3.235
3.548
3.760
4.589
3.579
3.792
4.052
4.611
4.025
3.536
3.401
2010
Mar
Jun
Sep
Dec
3.215
3.268
3.113
2.863
7.849
7.928
8.213
7.322
9.425
9.418
9.629
9.884
3.928
3.957
3.880
3.577
3.634
3.557
3.646
3.392
3.958
4.206
4.227
3.929
4.409
4.567
4.635
4.920
3.696
3.657
3.741
3.499
2011
Mar
Jun
Sep
Dec
2.986
2.446
2.460
2.233
7.306
6.183
6.228
5.721
10.105
10.190
9.968
10.138
3.718
3.101
3.112
2.848
3.594
3.087
3.043
2.821
4.693
3.648
3.736
3.374
5.096
5.107
5.175
5.106
3.769
3.214
3.189
2.952
2012
Mar
Jun
Sep
Dec
3.331
3.013
3.003
2.756
6.481
5.626
6.292
5.905
11.266
11.508
11.492
12.327
3.936
3.569
3.616
3.381
0.593
0.336
0.384
0.310
2.869
2.201
2.762
2.720
6.037
5.886
5.482
5.374
1.020
0.717
0.794
0.720
3.914
3.756
3.734
3.519
4.514
4.219
4.521
4.027
6.215
6.591
6.989
7.948
4.056
3.897
3.920
3.707
2013
Mar
Jun
Sep
Dec
2.741
2.683
2.566
2.126
6.131
5.938
5.888
5.456
13.323
12.358
12.935
13.132
3.423
3.319
3.215
2.768
0.448
0.387
0.421
0.189
2.787
2.628
2.667
2.419
6.235
5.764
6.207
6.260
0.872
0.787
0.825
0.584
3.517
3.491
3.349
3.064
4.317
4.294
4.116
3.957
8.048
7.573
7.682
7.836
3.740
3.698
3.553
3.285
2014
Mar
Jun
Sep
Dec
2.155
2.100
2.044
1.818
4.939
4.826
4.524
4.405
13.137
13.445
12.240
11.848
2.761
2.684
2.561
2.312
0.230
0.276
0.300
0.299
2.400
2.297
2.010
1.970
6.382
6.694
6.134
5.854
0.636
0.658
0.627
0.596
3.044
2.954
2.842
2.590
3.427
3.391
3.365
3.380
7.696
7.706
7.047
6.908
3.214
3.122
3.002
2.770
2015 p
Mar
Jun
Oct
Dec
1.950
1.842
1.816
1.601
4.541
4.694
4.563
4.528
12.044
11.900
11.528
11.546
2.467
2.357
2.316
2.091
0.362
0.300
0.343
0.379
2.016
2.216
2.139
2.132
6.042
5.427
4.940
4.644
0.674
0.613
0.635
0.642
2.695
2.640
2.538
2.259
3.404
3.362
3.297
3.345
6.932
7.439
7.574
7.902
2.872
2.817
2.723
2.476
2016 p
Mar
1.716
4.716
11.546
2.231
0.514
2.237
4.644
0.782
2.283
3.433
7.902
a
a
a
2.514
Data include banks under liquidation, foreign office transactions and interbank loans
Starting Sept. 2002, for supervisory purposes, computation of NPL was based on BSP Circular No. 351 which defines total loans as gross of allowance for probable losses and interbank loans less loans classified as loss. This has been discontinued in 2013.
For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772).
3
Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing gross NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio,
Under Circular No. 772, there are no available data for Gross NPLs and Net NPLs earlier than 2012.
a
As of December 2015
p
Preliminary
r
Revised
Details may not add up due to rounding off.
Source: Bangko Sentral ng Pilipinas
2
10 STOCK MARKET TRANSACTIONS
volume in million shares, value in million pesos
2013
Q1
Q2
Q3
Q4
Q1
2014
Q2
2015
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
Volume
Financials
Industrial
Holding Firms
Property
Services
Mining & Oil
SME (in thousand shares)
ETF1/ (in thousand shares)
165,036
1,816
18,622
33,659
22,018
23,394
65,527
322
170,243
1,374
35,931
36,290
16,991
21,728
57,929
232
106,453
986
15,350
5,254
19,350
10,167
55,346
285
73,403
3,439
10,863
5,250
10,129
13,676
30,043
302
1,196
113,135
992
12,328
5,728
12,053
7,058
74,975
317
426
122,113
1,341
13,115
6,984
22,136
12,923
64,492
1,120,339
668
155,537
1,558
13,644
12,527
20,366
17,377
89,992
71,577
791
424,409
1,090
25,346
12,142
15,629
32,885
336,889
421,612
4,748
150,587
978
10,913
10,844
12,138
21,263
94,056
393,244
1,893
68,804
1,238
6,133
6,076
8,586
9,370
37,160
239,362
2,235
191,792
1,154
11,872
25,300
7,757
8,628
136,929
149,843
1,715
82,078
725
5,550
13,115
16,680
10,202
35,490
315,570
1,220
97,625
741
6,153
8,600
10,446
17,038
54,421
222,462
2,964
Value
Financials
Industrial
Holding Firms
Property
Services
Mining & Oil
SME (in thousand pesos)
ETF1/ (in thousand pesos)
623,382
101,570
125,879
167,320
108,596
91,228
28,786
2,677
781,005
98,628
228,624
187,192
100,356
150,765
15,438
1,354
587,512
77,285
144,382
135,005
139,774
81,066
9,997
3,633
554,284
64,828
185,203
116,194
60,423
119,723
7,791
3,452
118,184
457,085
65,888
104,206
121,554
67,867
83,835
13,688
5,312
42,130
535,924
73,681
110,557
120,483
105,044
96,404
22,756
6,927,918
72,183
548,203
69,826
94,254
131,683
79,090
143,589
29,113
557,346
90,521
588,908
68,898
119,148
126,267
108,390
137,725
24,360
3,581,718
539,579
641,594
74,595
145,948
174,325
103,447
111,491
27,328
4,226,414
234,748
553,577
88,404
143,103
136,336
75,621
85,432
21,899
2,498,500
282,800
517,832
66,529
150,323
108,947
77,548
94,494
17,914
1,876,456
200,392
438,408
43,993
91,553
119,313
104,550
67,320
8,583
2,957,202
139,155
407,066
51,044
90,691
98,158
74,676
74,501
15,738
1,927,800
331,093
6847.47
6465.28
6191.80
5889.83
6428.71
6844.31
7283.07
7230.57
7940.49
7564.50
6893.98
Composite Index (end of period)
Sum of details may not add up to totals due to rounding.
1/ Starting 2 December 2013, trading of an Exchange Traded Fund commenced. ETF is an open-end investment company that trades its shares in the stock exchange
Source : Philippine Stock Exchange
6952.08
7262.30
11 PHILIPPINES: BALANCE OF PAYMENTS
in million U.S. dollars
2015
Q1
Q2
Q3
2016 p
Q1
Q4
Growth (%)
Q1 2016 p
Current Account
(Totals as percent of GNI)
(Totals as percent of GDP)
Export
Import
2165
2.6
3.2
25495
23330
2308
2.6
3.1
26057
23749
104
0.1
0.1
26546
26442
3819
4.0
4.8
27189
23370
447
0.5
0.6
25646
25199
-79.4
...
...
0.6
8.0
Goods, Services, and Primary Income
Export
Import
-3577
19567
23144
-3643
19867
23511
-5811
20463
26273
-2093
21043
23136
-5934
19085
25019
-65.9
-2.5
8.1
Goods and Services
(Totals as percent of GNI)
(Totals as percent of GDP)
Export
Import
-3842
-4.6
-5.6
17284
21126
-4251
-4.7
-5.7
17555
21806
-5963
-7.1
-8.6
18042
24005
-3399
-3.6
-4.2
18563
21962
-6513
-7.7
-9.4
16702
23215
-69.5
...
...
-3.4
9.9
-4799
-5.8
-7.0
10494
15293
-4429
-4.9
-6.0
10657
15087
-7069
-8.4
-10.2
10993
18062
-5401
-5.6
-6.7
11132
16532
-8010
-9.5
-11.6
9241
17250
-66.9
...
...
-11.9
12.8
Services
Credit: Exports
Debit: Imports
957
6790
5833
178
6898
6719
1106
7048
5942
2002
7431
5429
1496
7461
5965
56.4
9.9
2.3
Primary Income
Credit: Receipts
Debit: Payments
265
2283
2018
608
2312
1705
152
2421
2269
1306
2480
1174
579
2383
1804
118.6
4.4
-10.6
Secondary Income
Credit: Receipts
Debit: Payments
5743
5928
186
5952
6190
238
5914
6083
169
5912
6146
235
6381
6561
180
11.1
10.7
-3.0
Capital Account
Credit: Receipts
Debit: Payments
17
24
7
21
25
4
21
24
2
23
25
2
25
28
3
50.2
19.9
-53.7
152
-37
-188
1258
1470
212
-291
2268
2559
1404
2974
1570
959
2728
1769
530.8
7570.1
1038.3
Direct Investment
Net Acquisition of Financial Assets
Net Incurrence of Liabilities
358
1209
850
-476
712
1188
-11
2486
2498
7
1195
1188
-923
370
1293
-357.7
-69.4
52.1
Portfolio Investment
Net Acquisition of Financial Assets
Net Incurrence of Liabilities
-459
873
1332
3375
1127
-2248
2202
723
-1479
-361
-107
254
522
1084
563
213.7
24.2
-57.8
Financial Derivatives
Net Acquisition of Financial Assets
Net Incurrence of Liabilities
2
-133
-135
-31
-155
-124
19
-103
-122
-22
-74
-52
9
-73
-82
427.9
44.9
38.8
Other Investment
Net Acquisition of Financial Assets
Net Incurrence of Liabilities
251
-1985
-2236
-1609
-213
1396
-2500
-838
1663
1780
1960
180
1351
1347
-5
438.4
167.8
99.8
-1153
-264
-292
-1628
277
124.0
877
1.1
1.3
888
11
807
0.9
1.1
796
-11
124
0.1
0.2
135
11
809
0.8
1.0
798
-11
-210
-0.2
-0.3
-199
11
-123.9
...
...
-122.4
0.1
Goods
(Totals as percent of GNI)
(Totals as percent of GDP)
Credit: Exports
Debit: Imports
Financial Account
Net Acquisition of Financial Assets
Net Incurrence of Liabilities
NET UNCLASSIFIED ITEMS
OVERALL BOP POSITION
(Totals as percent of GNI)
(Totals as percent of GDP)
Debit: Change in Reserve Assets
Credit: Change in Reserve Liabilities
Details may not add up to total due to rounding.
p Preliminary
... Blank
Technical Notes:
1. Balance of Payments Statistics are based on the IMF's Balance of Payments and International Investment Position Manual, 6th Edition.
2. Financial Account, including Reserve Assets, is calculated as sum of net acquisitions of financial assets less net incurrence of liabilities.
3. Balances in the current and capital accounts are derived by deducting debit entries from credit entries.
4. Balances in the financial account are derived by deducting net incurrence of liabilities from net acquisition of financial assets.
5. Negative values of Net Acquisition of Financial Assets indicate withdrawal/disposal of financial assets; negative values of Net
Incurrence of Liabilities indicate repayment of liabilities.
6. Overall BOP position is calculated as the change in the country's net international reserves (NIR), less non-economic transactions (revaluation
and gold monetization/demonetization). Alternatively, it can be derived by adding the current and capital account balances
less financial account plus net unclassified items.
7. Net unclassified items is an offsetting account to the overstatement or understatement in either receipts or payments of the recorded BOP
components vis-à-vis the overall BOP position.
8. Data on Deposit-taking corporations, except the central bank consist of transactions of commercial and thrift banks and offshore banking
units (OBUs).
Source: Bangko Sentral ng Pilipinas
12 INTERNATIONAL RESERVES
as of periods indicated
in million US dollars
2015
Mar
Gross International Reserves
Gold
SDRs
Foreign Investments
Foreign Exchange
Reserve Position in the Fund
Net International Reserves
Details may not add up to total due to rounding
Source: Bangko Sentral ng Pilipinas
Jun
2016
Sep
Dec
Mar
80,459
80,644
80,551
80,667
82,977
7,437
1,168
70,565
850
439
7,378
1,190
70,647
985
445
7,015
1,188
70,800
1,103
445
6,703
1,173
71,739
613
439
7,765
1,193
71,379
2,217
424
80,446
80,642
80,538
80,665
82,964
13
EXCHANGE RATES OF THE PESO
pesos per unit of foreign currency
period averages
US Dollar
2013
Japanese
Yen
Euro
Pound
Sterling
Australian
Dollar
Singapore
Dollar
Hongkong
Dollar
Malaysian
Ringgit
Thai Baht
Indonesian New Taiwan
South
Rupiah
Dollar
Korean Won
Chinese
Yuan
Saudi Rial
Emirati
Dirham
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
42.4462
40.7295
40.6723
40.7127
41.1422
41.2976
42.9069
43.3559
43.8639
43.8318
43.1825
43.5546
44.1043
0.4356
0.4580
0.4372
0.4293
0.4221
0.4092
0.4406
0.4350
0.4484
0.4420
0.4415
0.4357
0.4276
56.3942
54.1270
54.3618
52.8776
53.5266
53.5926
56.6122
56.7089
58.4174
58.5044
58.8668
58.7584
60.3768
66.4139
65.0893
63.0701
61.3734
62.9378
63.1389
66.4568
65.8438
67.8155
69.4375
69.5227
70.1141
72.1669
41.0195
42.7556
41.9596
41.9971
42.7442
40.9360
40.5481
39.7304
39.5530
40.6011
41.0612
40.6381
39.7100
33.9347
33.1823
32.8469
32.6803
33.2313
33.0769
34.0634
34.2142
34.4837
34.6960
34.7164
34.9239
35.1010
5.4725
5.2537
5.2446
5.2477
5.2999
5.3210
5.5291
5.5896
5.6559
5.6527
5.5693
5.6184
5.6885
13.4839
13.4143
13.1338
13.0966
13.4866
13.6880
13.6649
13.6030
13.3993
13.4795
13.5813
13.6441
13.6152
1.3832
1.3549
1.3647
1.3788
1.4164
1.3898
1.3959
1.3950
1.3899
1.3821
1.3850
1.3786
1.3677
0.0041
0.0042
0.0042
0.0042
0.0042
0.0042
0.0044
0.0043
0.0042
0.0039
0.0038
0.0038
0.0037
1.4305
1.4011
1.3727
1.3700
1.3793
1.3870
1.4334
1.4482
1.4640
1.4785
1.4696
1.4758
1.4864
0.0388
0.0382
0.0374
0.0370
0.0367
0.0372
0.0378
0.0385
0.0393
0.0404
0.0405
0.0410
0.0418
6.9048
6.5456
6.5255
6.5492
6.6485
6.7247
6.9941
7.0675
7.1644
7.1617
7.0723
7.1480
7.2565
11.3184
10.8608
10.8455
10.8564
10.9711
11.0124
11.4413
11.5609
11.6961
11.6874
11.5148
11.6137
11.7602
11.5567
11.0893
11.0736
11.0848
11.2020
11.2440
11.6823
11.8044
11.9425
11.9338
11.7573
11.8586
12.0081
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
44.3952
44.9266
44.8950
44.7916
44.6416
43.9236
43.8175
43.4665
43.7673
44.0751
44.7979
44.9514
44.6878
0.4208
0.4321
0.4397
0.4381
0.4351
0.4314
0.4293
0.4276
0.4258
0.4119
0.4156
0.3875
0.3755
59.0432
61.2469
61.3016
61.9409
61.6350
60.3484
59.5975
58.9257
58.3659
56.9349
56.8661
56.1001
55.2554
73.1731
74.0269
74.3135
74.4520
74.6995
73.9965
74.0822
74.2780
73.2141
71.9350
72.0912
70.9959
69.9919
40.0974
39.8717
40.2635
40.6363
41.6028
40.8495
41.0022
40.8363
40.7390
40.0406
39.3383
38.9172
37.0710
35.0648
35.3263
35.4679
35.3400
35.5664
35.1096
35.0303
34.9877
35.0739
34.9299
35.1776
34.7182
34.0494
5.7252
5.7920
5.7867
5.7711
5.7572
5.6660
5.6528
5.6085
5.6473
5.6860
5.7746
5.7970
5.7632
13.5828
13.6219
13.5655
13.6530
13.7098
13.6035
13.6158
13.6594
13.7637
13.7383
13.7129
13.4555
12.8943
1.3672
1.3657
1.3756
1.3832
1.3815
1.3513
1.3474
1.3531
1.3663
1.3708
1.3812
1.3717
1.3589
0.0037
0.0037
0.0038
0.0039
0.0039
0.0038
0.0037
0.0037
0.0038
0.0037
0.0037
0.0037
0.0036
1.4659
1.4918
1.4817
1.4738
1.4773
1.4582
1.4609
1.4523
1.4599
1.4653
1.4743
1.4646
1.4306
0.0422
0.0422
0.0419
0.0419
0.0428
0.0429
0.0430
0.0426
0.0427
0.0427
0.0423
0.0411
0.0405
7.2076
7.4251
7.3893
7.2601
7.1717
7.0410
7.0296
7.0096
7.1085
7.1795
7.3101
7.3394
7.2276
11.8363
11.9795
11.9711
11.9437
11.9035
11.7116
11.6829
11.5901
11.6701
11.7517
11.9421
11.9815
11.9074
12.0872
12.2323
12.2238
12.1953
12.1542
11.9588
11.9300
11.8342
11.9160
12.0001
12.1967
12.2384
12.1666
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
45.5028
44.6044
44.2214
44.4457
44.4136
44.6106
44.9831
45.2649
46.1420
46.7504
46.3609
47.0067
47.2303
0.3760
0.3764
0.3728
0.3695
0.3717
0.3697
0.3635
0.3674
0.3746
0.3891
0.3860
0.3844
0.3874
50.5291
51.8185
50.2159
48.2323
47.9446
49.8209
50.4958
49.8437
51.3555
52.5457
52.0504
50.6537
51.3725
69.5888
67.5228
67.7105
66.6675
66.4142
68.9978
70.0355
70.4481
71.9861
71.7659
71.0269
71.5190
70.9713
34.2412
36.1260
34.4404
34.4120
34.3952
35.2446
34.6977
33.6277
33.7471
33.0060
33.4019
33.5722
34.2240
33.1266
33.3326
32.6549
32.3068
32.9291
33.4497
33.4578
33.2927
33.0760
33.0510
33.0814
33.3169
33.5709
5.8697
5.7531
5.7028
5.7290
5.7303
5.7545
5.8023
5.8396
5.9513
6.0323
5.9821
6.0650
6.0936
11.7236
12.4698
12.2812
12.1122
12.2206
12.4089
12.0537
11.9158
11.4516
10.8822
10.8995
10.9313
11.0560
1.3308
1.3627
1.3575
1.3638
1.3660
1.3334
1.3345
1.3212
1.3053
1.2991
1.2978
1.3159
1.3129
0.0034
0.0035
0.0035
0.0034
0.0034
0.0034
0.0034
0.0034
0.0034
0.0033
0.0034
0.0034
0.0034
1.4340
1.4109
1.4017
1.4139
1.4340
1.4578
1.4560
1.4535
1.4373
1.4330
1.4287
1.4422
1.4392
0.0403
0.0410
0.0402
0.0400
0.0409
0.0409
0.0404
0.0396
0.0393
0.0395
0.0405
0.0409
0.0403
7.2423
7.1705
7.0756
7.1198
7.1605
7.1904
7.2488
7.2911
7.2960
7.3395
7.2971
7.3878
7.3302
12.1317
11.8776
11.7850
11.8512
11.8431
11.8964
11.9957
12.0702
12.3033
12.4684
12.3660
12.5325
12.5910
12.3892
12.1439
12.0397
12.1011
12.0921
12.1456
12.2476
12.3242
12.5633
12.7301
12.6235
12.7995
12.8606
Jan
Feb
Mar
47.2904
47.5111
47.6361
46.7240
0.4099
0.4021
0.4141
0.4135
52.1602
51.6548
52.9010
51.9247
67.7775
68.4806
68.3006
66.5513
34.0756
33.3269
33.9669
34.9329
33.6929
33.1651
33.9074
34.0062
6.0823
6.1066
6.1201
6.0204
11.2646
10.9323
11.4192
11.4424
1.3255
1.3139
1.3378
1.3248
0.0035
0.0034
0.0035
0.0036
1.4296
1.4228
1.4337
1.4323
0.0394
0.0395
0.0393
0.0394
7.2283
7.2323
7.2749
7.1776
12.6109
12.6654
12.7053
12.4619
12.8766
12.9370
12.9705
12.7224
2014
2015
2016
Source: Bangko Sentral ng Pilipinas
13a EXCHANGE RATES OF THE PESO
units of foreign currency per peso
period averages
US Dollar
2013
Japanese
Yen
Euro
Pound
Sterling
Australian
Dollar
Singapore
Dollar
Hongkong
Dollar
Malaysian
Ringgit
Thailand
Baht
Indonesian New Taiwan
South
Rupiah
Dollar
Korean Won
Chinese
Yuan
Saudi Rial
Emirati
Dirham
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
0.0236
0.0246
0.0246
0.0246
0.0243
0.0242
0.0233
0.0231
0.0228
0.0228
0.0232
0.0230
0.0227
2.2977
2.1833
2.2870
2.3291
2.3692
2.4438
2.2697
2.2990
2.2300
2.2622
2.2651
2.2954
2.3387
0.0178
0.0185
0.0184
0.0189
0.0187
0.0187
0.0177
0.0176
0.0171
0.0171
0.0170
0.0170
0.0166
0.0151
0.0154
0.0159
0.0163
0.0159
0.0158
0.0150
0.0152
0.0147
0.0144
0.0144
0.0143
0.0139
0.0244
0.0234
0.0238
0.0238
0.0234
0.0244
0.0247
0.0252
0.0253
0.0246
0.0244
0.0246
0.0252
0.0295
0.0301
0.0304
0.0306
0.0301
0.0302
0.0294
0.0292
0.0290
0.0288
0.0288
0.0286
0.0285
0.1829
0.1903
0.1907
0.1906
0.1887
0.1879
0.1809
0.1789
0.1768
0.1769
0.1796
0.1780
0.1758
0.0742
0.0745
0.0761
0.0764
0.0741
0.0731
0.0732
0.0735
0.0746
0.0742
0.0736
0.0733
0.0734
0.7230
0.7381
0.7327
0.7253
0.7060
0.7195
0.7164
0.7168
0.7195
0.7235
0.7220
0.7254
0.7311
245.5338
237.3247
238.0952
238.0952
236.4865
237.2881
229.7461
232.0888
240.1130
256.7237
262.1723
265.9574
272.3147
0.6997
0.7137
0.7285
0.7299
0.7250
0.7210
0.6976
0.6905
0.6830
0.6764
0.6805
0.6776
0.6728
25.8055
26.1531
26.7344
27.0040
27.2303
26.9162
26.4293
25.9770
25.4567
24.7496
24.6943
24.3813
23.9394
0.1451
0.1528
0.1532
0.1527
0.1504
0.1487
0.1430
0.1415
0.1396
0.1396
0.1414
0.1399
0.1378
0.0884
0.0921
0.0922
0.0921
0.0911
0.0908
0.0874
0.0865
0.0855
0.0856
0.0868
0.0861
0.0850
0.0866
0.0902
0.0903
0.0902
0.0893
0.0889
0.0856
0.0847
0.0837
0.0838
0.0851
0.0843
0.0833
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
0.0225
0.0223
0.0223
0.0223
0.0224
0.0228
0.0228
0.0230
0.0228
0.0227
0.0223
0.0222
0.0224
2.3819
2.3140
2.2745
2.2828
2.2981
2.3180
2.3295
2.3389
2.3485
2.4279
2.4064
2.5810
2.6630
0.0170
0.0163
0.0163
0.0161
0.0162
0.0166
0.0168
0.0170
0.0171
0.0176
0.0176
0.0178
0.0181
0.0137
0.0135
0.0135
0.0134
0.0134
0.0135
0.0135
0.0135
0.0137
0.0139
0.0139
0.0141
0.0143
0.0250
0.0251
0.0248
0.0246
0.0240
0.0245
0.0244
0.0245
0.0245
0.0250
0.0254
0.0257
0.0270
0.0285
0.0283
0.0282
0.0283
0.0281
0.0285
0.0285
0.0286
0.0285
0.0286
0.0284
0.0288
0.0294
0.1747
0.1727
0.1728
0.1733
0.1737
0.1765
0.1769
0.1783
0.1771
0.1759
0.1732
0.1725
0.1735
0.0736
0.0734
0.0737
0.0732
0.0729
0.0735
0.0734
0.0732
0.0727
0.0728
0.0729
0.0743
0.0776
0.7315
0.7322
0.7269
0.7229
0.7239
0.7400
0.7422
0.7390
0.7319
0.7295
0.7240
0.7290
0.7359
267.1980
270.9677
266.3116
255.4745
255.7201
261.5193
271.7391
269.9229
266.4797
269.9229
270.2703
270.2703
277.7778
0.6823
0.6703
0.6749
0.6785
0.6769
0.6858
0.6845
0.6886
0.6850
0.6824
0.6783
0.6828
0.6990
23.7037
23.7101
23.8692
23.8908
23.3846
23.3281
23.2612
23.4480
23.4308
23.4244
23.6559
24.3576
24.6842
0.1388
0.1347
0.1353
0.1377
0.1394
0.1420
0.1423
0.1427
0.1407
0.1393
0.1368
0.1363
0.1384
0.0845
0.0835
0.0835
0.0837
0.0840
0.0854
0.0856
0.0863
0.0857
0.0851
0.0837
0.0835
0.0840
0.0827
0.0818
0.0818
0.0820
0.0823
0.0836
0.0838
0.0845
0.0839
0.0833
0.0820
0.0817
0.0822
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
0.0220
0.0224
0.0226
0.0225
0.0225
0.0224
0.0222
0.0221
0.0217
0.0214
0.0216
0.0213
0.0212
2.6606
2.6570
2.6821
2.7067
2.6904
2.7048
2.7511
2.7217
2.6698
2.5698
2.5906
2.6014
2.5814
0.0198
0.0193
0.0199
0.0207
0.0209
0.0201
0.0198
0.0201
0.0195
0.0190
0.0192
0.0197
0.0195
0.0144
0.0148
0.0148
0.0150
0.0151
0.0145
0.0143
0.0142
0.0139
0.0139
0.0141
0.0140
0.0141
0.0292
0.0277
0.0290
0.0291
0.0291
0.0284
0.0288
0.0297
0.0296
0.0303
0.0299
0.0298
0.0292
0.0302
0.0300
0.0306
0.0310
0.0304
0.0299
0.0299
0.0300
0.0302
0.0303
0.0302
0.0300
0.0298
0.1705
0.1738
0.1754
0.1745
0.1745
0.1738
0.1723
0.1712
0.1680
0.1658
0.1672
0.1649
0.1641
0.0855
0.0802
0.0814
0.0826
0.0818
0.0806
0.0830
0.0839
0.0873
0.0919
0.0917
0.0915
0.0904
0.7517
0.7338
0.7366
0.7332
0.7320
0.7499
0.7493
0.7569
0.7661
0.7698
0.7705
0.7600
0.7617
293.6672
282.8619
287.0091
292.9427
292.3077
294.1176
294.1176
294.1176
297.3396
307.0175
298.5075
290.9091
292.7581
0.6974
0.7088
0.7134
0.7072
0.6974
0.6860
0.6868
0.6880
0.6958
0.6979
0.7000
0.6934
0.6948
24.8330
24.3937
24.9017
25.0114
24.4310
24.4738
24.7350
25.2583
25.4726
25.3287
24.6997
24.4574
24.8334
0.1381
0.1395
0.1413
0.1405
0.1397
0.1391
0.1380
0.1372
0.1371
0.1362
0.1370
0.1354
0.1364
0.0825
0.0842
0.0849
0.0844
0.0844
0.0841
0.0834
0.0828
0.0813
0.0802
0.0809
0.0798
0.0794
0.0808
0.0823
0.0831
0.0826
0.0827
0.0823
0.0816
0.0811
0.0796
0.0786
0.0792
0.0781
0.0778
Jan
Feb
Mar
0.0211
0.0210
0.0210
0.0214
2.4399
2.4867
2.4147
2.4183
0.0192
0.0194
0.0189
0.0193
0.0148
0.0146
0.0146
0.0150
0.0294
0.0300
0.0294
0.0286
0.0297
0.0302
0.0295
0.0294
0.1644
0.1638
0.1634
0.1661
0.0888
0.0915
0.0876
0.0874
0.7545
0.7611
0.7475
0.7548
286.2564
293.6858
283.5821
281.5013
0.6995
0.7029
0.6975
0.6982
25.3918
25.2972
25.4760
25.4022
0.1384
0.1383
0.1375
0.1393
0.0793
0.0790
0.0787
0.0802
0.0777
0.0773
0.0771
0.0786
2014
2015
2016
Source: Bangko Sentral ng Pilipinas
13b EFFECTIVE EXCHANGE RATE INDICES OF THE PESO
1980 = 100
period averages
NOMINAL
R E A L
Trading Partners Index
Trading Partners Index
Overall 1
2013
Advanced 2
Developing 3
Overall
Advanced
Developing
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
15.26
15.53
15.72
15.82
15.71
15.75
15.14
15.08
14.88
14.89
14.97
14.94
14.85
12.38
12.43
12.65
12.82
12.81
12.96
12.27
12.29
12.02
12.07
12.11
12.15
12.10
24.45
25.14
25.35
25.37
25.07
24.97
24.27
24.09
23.92
23.89
24.04
23.90
23.72
87.44
91.17
90.71
90.76
90.41
90.39
87.15
85.75
84.33
84.35
85.06
85.09
84.84
81.57
84.88
84.77
84.87
84.80
85.15
80.87
80.37
78.11
78.23
78.90
79.45
79.26
115.85
120.98
120.01
120.03
119.30
118.89
115.93
113.22
112.32
112.25
113.18
112.66
112.29
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
14.92
14.67
14.63
14.65
14.68
14.89
14.96
15.03
14.97
15.06
14.94
15.18
15.46
12.24
11.95
11.86
11.85
11.90
12.07
12.15
12.24
12.26
12.49
12.40
12.79
13.04
23.72
23.44
23.46
23.54
23.54
23.88
23.95
24.02
23.83
23.75
23.55
23.69
24.09
87.20
87.94
86.39
85.66
85.92
87.16
87.81
87.64
87.20
87.29
86.88
88.19
89.30
82.50
83.88
81.79
80.46
80.23
81.07
81.73
82.21
82.03
82.95
82.77
85.48
86.67
114.36
114.67
113.25
112.93
113.76
115.72
116.53
115.66
114.84
114.13
113.38
113.67
114.98
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
15.70
15.66
15.88
15.97
15.89
15.78
15.78
15.79
15.68
15.53
15.57
15.50
15.46
13.33
13.28
13.51
13.69
13.68
13.53
13.55
13.53
13.24
12.92
13.02
13.08
12.97
24.36
24.29
24.61
24.61
24.39
24.29
24.28
24.33
24.42
24.45
24.42
24.14
24.19
92.24
95.10
95.00
94.48
94.24
93.01
92.88
91.96
91.01
89.66
90.13
90.18
89.79
90.76
94.73
94.65
94.29
94.02
91.99
91.95
91.37
88.86
86.07
87.00
88.07
87.09
117.60
120.19
120.05
119.24
118.97
118.15
117.89
116.44
116.69
116.37
116.51
115.60
115.68
Jan
Feb
Mar
15.32
15.43
15.20
15.33
12.63
12.75
12.50
12.63
24.27
24.40
24.13
24.28
91.69
93.88
90.56
90.63
89.11
91.57
88.02
87.74
117.95
120.45
116.48
116.92
2014
2015
2016
1
Australia, Euro Area, U.S., Japan, Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.
2
U.S., Japan, Euro Area, and Australia
3
r
Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.
Revised using actual inflation rates
Source: Bangko Sentral ng Pilipinas
1/
14 TOTAL EXTERNAL DEBT
as of periods indicated
in million US dollars
31 December2015
Short-term
Medium &
Long- Term
Trade
Non-Trade
Grand Total
2,203
12,896
62,375
0
899
37,374
Banks
Bangko Sentral ng Pilipinas
Others
0
0
0
899
0
899
3,206
1,337
1,870
Non-Banks
CB-BOL
NG and Others
0
0
0
0
0
0
2,203
Public Sector
Private Sector
Banks
Foreign Bank Branches
Domestic Banks
Non-Banks
1
Total
77,474
a
11,844
63,326
38,273
0
485
38,442
4,105
1,337
2,768
0
0
0
485
0
485
3,290
1,351
1,939
34,168
0
34,168
34,168
0
34,168
0
0
0
0
0
0
35,152
0
35,152
35,152
0
35,152
11,998
25,001
39,201
2,469
11,359
24,885
38,713
0
10,756
3,211
13,967
0
0
5,276
5,480
206
3,006
5,482
8,486
2,469
602
21,674
b
c
0
11,392
3,365
14,756
0
0
4,542
6,850
270
3,095
4,812
9,944
2,203
606
21,636
e
24,445
d
Covers debt owed to non-residents, with classification by borrower based on primary obligor per covering loan/rescheduling agreement/document.
Residents' holdings of Philippine debt papers issued offshore;
Non-residents' holdings of peso-denominated debt securities
31 December2015
31 March 2016
17,376
5,213
17,152
4,870
-52
1,165
-31
1,179
3,550
4,211
14,306
1,390
14,522
1,310
Inclusions
b
c
d
e
Cumulative foreign exchange revaluation on US$-denominated
multi-currency loans from Asian Development Bank and World Bank
Accumulated SDR allocations from the IMF
"Due to Head Office/Branches Abroad" (DTHOBA) accounts of branches
and offshore banking units of foreign banks operating in the Philippines
which are considered by BSP as "quasi-equity"
Loans without BSP approval/registration which cannot be serviced
using foreign exchange from the banking system;
Obligations under capital lease arrangements
Source: Bangko Sentral ng Pilipinas
Total
2,469
Exclusions
a
31 March 2016
Short-term
Medium &
Long- Term
Trade
Non-Trade
77,640
b
c
e
a
38,927
3,776
1,351
2,425
24,745
d
15 SELECTED FOREIGN DEBT SERVICE INDICATORS
for periods indicated
in million US dollars
Q1
Q2
2015 p
Q3
Q4
2016 p
Q1
1734
989
745
1246
698
549
1184
493
691
1105
561
544
2235
1538
697
Export Shipments (XS) 2
10494
10657
10993
11132
9241
Exports of Goods and Receipts
from Services and Income (XGSI) 2, 3
23954
24433
24934
25577
23619
Current Account Receipts (CAR) 2
25495
26057
26546
27189
25646
External Debt
75319
74998
75607
77474
77640
Gross Domestic Product (GDP)
68367
74271
69147
80402
69103
Gross National Income (GNI)
83304
89518
84312
96333
84483
16.52
11.69
10.77
9.93
24.18
DSB to XGSI
7.24
5.10
4.75
4.32
9.46
DSB to CAR
6.80
4.78
4.46
4.07
8.71
DSB to GNI
2.08
1.39
1.40
1.15
2.65
External Debt to GDP
26.06
25.68
25.94
26.49
26.51
External Debt to GNI
21.58
21.28
21.48
21.90
21.89
Debt Service Burden (DSB)
Principal
Interest
1
Ratios (%) :
DSB to XS
1
Debt service burden represents principal and interest payments after rescheduling. In accordance with the internationally-accepted
concept, debt service burden consists of (a) Principal and interest payments on fixed MLT credits including IMF credits, loans covered by
the Paris Club and Commercial Banks rescheduling, and New Money Facilities; and (b) Interest payments on fixed and revolving short-term
liabilities of banks and non-banks but excludes (i) Prepayments of future years' maturities of foreign loans and (ii) Principal payments on
fixed and revolving ST liabilities of banks and non-banks.
2
Based on the accounting principle under the Balance of Payments and International Investment Position Manual, Sixth edition (BPM6)
3
Includes cash remittances of overseas Filipino workers that were coursed through and reported by commercial banks which are reflected
under Compensation of Employees in the Primary Income account and workers' remittances in the Secondary Income account.
p/
Preliminary
Source: BSP
16 SELECTED FOREIGN INTEREST RATES
period averages; in percent
2012
2013
2014
2015
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
Q1
US Prime Rate
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2500
3.2841
3.5000
US Discount Rate
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7500
0.7935
1.0000
US Federal Funds Rate
0.1142
0.1649
0.1570
0.1722
0.1546
0.1140
0.0848
0.0802
0.0767
0.0780
0.0784
0.0930
0.0974
0.1151
0.1323
0.1574
0.3694
LIBOR (90 days)
0.5141
0.4663
0.4239
0.3170
0.2917
0.2750
0.2614
0.2413
0.2358
0.2282
0.2343
0.2363
0.2603
0.2794
0.3142
0.4085
0.6248
0.4375
0.4375
0.4120
0.4063
0.4063
0.4063
0.4063
0.4062
0.4033
0.4038
0.4055
0.4254
0.7503
0.8791
0.9613
1.0921
1.2369
SIBOR (90 days)
1
1
SIBOR data refers to SIBOR rates (in Singapore $)
Source: Bloomberg, Asian Wall Street Journal, Reuters
17 BALANCE SHEET OF THE BANGKO SENTRAL NG PILIPINAS
as of periods indicated
in billion pesos
2014
2015
p,u
2016
Mar
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
4,040.9
4,040.9
3,545.2
219.0
85.6
0.0
17.7
0.0
173.3
4,028.2
4,028.2
3,500.3
222.0
85.2
26.1
17.8
-0.1
177.0
4,062.2
4,062.2
3,547.2
222.0
85.0
7.5
18.1
0.7
181.8
4,087.5
4,087.5
3,535.8
222.4
85.3
41.7
18.1
0.1
184.1
4,134.4
4,134.4
3,581.1
223.0
85.1
35.9
18.0
1.3
190.0
4,180.5
4,180.5
3,622.1
223.1
85.3
36.7
17.9
0.4
194.9
4,296.4
4,296.4
3,753.7
223.4
85.7
0.0
18.0
0.2
215.6
4,309.6
4,309.6
3,782.4
222.6
85.5
0.0
18.3
-0.1
200.9
4,403.7
3,985.3
3,973.5
4,013.3
4,043.2
4,092.5
4,137.3
4,253.9
4,268.9
4,361.0
708.0
2,855.2
705.0
2,883.2
714.5
2,909.4
929.5
2,724.6
809.7
2,893.1
798.6
2,945.9
817.3
2,952.6
1,005.2
2,788.9
930.5
2,935.7
1,116.4
1,251.3
1,285.5
1,386.7
1,277.7
1,324.4
1,373.3
1,456.2
1,427.0
0.5
3.2
4.1
7.7
7.6
7.1
6.8
5.7
4.0
1,332.4
1,163.0
1,066.3
845.0
1,052.2
1,008.1
953.7
828.3
1,027.5
333.6
390.1
476.7
415.2
478.6
528.0
544.1
426.8
336.3
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
35.5
39.7
39.5
39.5
43.7
44.4
39.3
39.3
108.7
36.9
35.8
37.4
30.4
33.4
33.9
35.3
32.5
31.7
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
22.9
21.8
22.9
22.4
22.8
22.6
23.9
23.6
23.5
Derivative Instruments in a Loss Position
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Derivatives Liability
0.0
0.1
0.0
0.0
0.1
0.0
0.0
0.0
0.0
Allocation of SDRs
58.0
56.5
55.8
54.3
51.7
53.2
55.1
54.7
54.3
Assets
International Reserves
Domestic Securities
Loans and Advances
Revaluation of International Reserves
Bank Premises and Other Fixed Assets
Derivative Instruments in a Gain/Loss (-) Position
Other Assets
Liabilities
Currency Issue
Deposits
Reserve Deposits of Other Depository Corporations (ODCs) 1
Reserve Deposits of Other Financial Corporations (OFCs) 2
Special Deposit Accounts 3
Treasurer of the Philippines 4
Other Foreign Currency Deposits
Foreign Financial Institutions
Other Deposits 5
Foreign Loans Payable
Net Bonds Payable
Revaluation of International Reserves
Reverse Repurchase Agreements 3
3,798.6
224.0
163.5
0.0
18.1
-1.8
201.3
33.6
0.0
0.0
0.0
0.0
0.0
86.2
73.9
96.2
296.5
296.3
299.1
302.3
304.8
306.3
308.5
311.7
309.8
10.9
10.5
11.5
10.0
10.2
10.8
10.1
10.8
10.9
Net Worth
55.6
54.7
48.9
44.4
41.9
43.2
42.5
40.8
42.6
Capital
50.0
50.0
50.0
50.0
50.0
50.0
50.0
50.0
50.0
5.6
4.7
-1.1
-5.6
-8.1
-6.8
-7.5
-9.2
-7.4
Other Liabilities
Surplus/Reserves
Note: Details may not add up to total due to rounding off.
1
ODCs are deposit generating institutions other than the BSP such as universal and commercial banks (UB/KBs), specialized government banks (SGBs), thrift banks (TBs), rural banks (RBs)
and non-banks with quasi-banking functions (NBQBs).
2
OFCs are trust units of banks.
3
Includes accrued interest payables.
4
Includes foreign currency deposits.
5
Mostly GOCC deposits.
p,u
Preliminary and unaudited based on core Financial Accounting System (cFAS) Production Environment.
t
Tentative and subject to change based on cFAS Development Environment.
Source: Bangko Sentral ng Pilipinas
t
18 INCOME POSITION OF THE BANGKO SENTRAL NG PILIPINAS
for periods indicated
in billion pesos
1
2
FY
Q1
Q2 1
2015
Q3 1
13.604
49.779
15.299
16.083
11.806
13.559
56.747
13.167
8.266
6.121
0.792
0.426
0.927
4.159
0.265
9.173
6.900
0.856
0.440
0.977
4.312
0.119
33.003
25.032
2.446
1.817
3.708
15.962
0.814
8.454
6.111
0.941
0.424
0.978
6.672
0.173
9.735
7.333
1.021
0.417
0.964
5.584
0.764
10.226
7.639
1.147
0.438
1.002
1.184
0.396
10.798
8.058
1.240
0.424
1.076
2.503
0.258
39.213
29.141
4.349
1.703
4.020
15.943
1.591
11.495
8.824
1.052
0.438
1.181
1.263
0.409
16.010
19.433
18.327
68.867
17.308
18.538
17.993
18.942
72.781
16.684
11.131
0.006
1.180
2.605
6.932
10.646
0.006
1.383
2.619
6.149
11.982
0.002
2.076
2.761
6.637
12.398
0.000
2.199
3.073
6.528
46.157
0.014
6.838
11.058
26.246
12.022
0.000
2.205
3.033
6.291
12.240
0.000
2.651
3.083
6.003
12.325
0.000
2.614
3.140
6.233
12.015
0.000
2.544
3.133
5.803
48.602
0.000
10.014
12.389
24.330
11.550
0.000
1.828
3.148
6.064
0.505
-0.097
0.924
0.241
2.801
0.474
0.015
1.467
0.170
3.727
0.494
0.012
1.484
1.959
4.008
0.482
0.116
2.888
-1.359
4.400
1.955
0.046
6.763
1.011
14.936
0.487
0.006
1.940
0.355
2.991
0.494
0.009
1.711
0.225
4.362
0.326
0.012
1.585
0.252
3.831
0.519
0.016
2.949
0.282
3.696
1.826
0.043
8.185
1.114
14.880
0.500
0.010
1.284
0.364
3.486
-4.573
-3.049
-6.743
-4.723
-19.088
-2.009
-2.455
-6.187
-5.383
-16.034
-3.517
Gain/(Loss) on Foreign Exchange Rate Fluctuations 1
8.978
-0.741
0.852
-0.153
8.936
-1.176
3.496
5.333
3.897
11.550
3.673
Income Tax Expense/(Benefit)
0.000
0.000
0.000
-0.037
-0.037
0.000
0.000
0.002
-0.183
-0.181
0.000
4.405
-3.790
-5.891
-4.839
-10.115
-3.185
1.041
-0.856
-1.303
-4.303
0.156
Revenues
Interest Income
International Reserves
Domestic Securities
Loans and Advances
Others
Miscellaneous Income
Net Income from Branches
Expenses
Interest Expenses
Legal Reserve Deposits of Banks
National Government Deposits
BSP Debt Instruments
Special Deposit Accounts
Loans Payable and Other
Foreign Currency Deposits
Other Liabilities
Cost of Minting/Printing of Currency
Taxes and Licenses
Others
Net Income/(Loss) Before Gain/(Loss) on FXR Fluctuations and
Income Tax Expense/(Benefit)
Net Income/(Loss) After Tax
Q1
Q2 1
2014
Q3 1
10.524
12.961
12.690
7.656
5.966
0.297
0.513
0.880
2.724
0.144
7.908
6.045
0.501
0.438
0.924
4.767
0.286
15.097
Q4
Note: Details may not add up to total due to rounding off.
1
This represents realized gains or losses from fluctuations in FX rates arising from foreign currency-denominated transactions of the BSP, including: 1) rollover/re-investments of matured FX investments
with foreign financial institutions and FX-denominated government securities; 2) servicing of matured FX obligations of the BSP; and 3) maturity of derivatives instruments.
p,u
Preliminary and unaudited based on core Financial Accounting System (cFAS) Production Environment.
t
Tentative and subject to change based on cFAS Development Environment.
Source: Bangko Sentral ng Pilipinas
Q4 p,u
FY p,u
2016
Q1 t