Weekly Updates

The Maharlika Investment Fund (MIF) bill, a contentious financial legislation in the Philippines, recently gained approval from the Senate. The bill, which had been certified as urgent by President Ferdinand Marcos Jr., garnered 19 affirmative votes in the Senate, with one vote against and one abstention. After this, Congress can immediately transmit the bill to Marcos for his signature.

The Sugar Regulatory Administration (SRA) is considering importing 150,000 MT of sugar in August or September, which it assures won’t negatively impact domestic production. Meanwhile, local production is anticipated to reduce, hitting 1.8 mln MT, with the expected El Niño further decreasing production by 10-15%.

BSP Governor Medalla also expressed concerns about the Philippine economy’s capacity to revert to its pre-pandemic growth trajectory. While the economy is still expected to grow despite significant interest rate hikes to combat persistent inflation, recent economic disruptions have impeded its progress. In the future, the actions of the US Federal Reserve will play a critical role, with the BSP cautious about rate cuts that could depreciate the peso significantly.

Economist predict a slowdown in the Philippine gross domestic product (GDP) growth for the first quarter of the year, estimating it to be around 6.1%. This projection is based on the median estimate of 23 economists in a Businessworld poll. Factors such as increased inflation and higher interest rates could potentially impact consumer spending, leading to lower growth compared to the revised 7.1% in the fourth quarter of 2022 and the 8% in the first quarter of 2022.

Department of Health (DOH) officer-in-charge Maria Rosario Vergeire said that mandatory wearing of face masks should not be reinstated, and people should adapt to the virus without fluctuating policies. She emphasized that individuals should know how to protect themselves and their families by wearing face masks especially if they are more vulnerable to catching the virus. Vergeire cited the nationwide vaccination that helped prevent increased hospitalizations and critical cases despite the recent spread of the virus. As of April 30, there are 5,875 active COVID-19 cases based on DOH’s tracker.