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Fourth Quarter 2016
B A N G K O S E N T R A L N G P I L I P I N A S
Report on Economic and Financial Developments
ii
Report on Economic and Financial Developments Fourth Quarter 2016
Table of Contents
Executive Summary 1
Introduction 4 Real Sector
Aggregate Supply and Demand 5 Labor and Employment 7
Fiscal Sector
National Government Cash Operations 8
Monetary Sector
Prices 9
Domestic Liquidity 10
Monetary Policy Developments 11
Domestic Interest Rates 12
Financial Sector
Banking System 13
Banking Policies 17
Capital Market Reforms 17
Stock Market 17
Bond Market 19
Credit Risk Assessment 20
Payments and Settlements System 22
External Sector
Balance of Payments 23
International Reserves 26
Exchange Rate 27
External Debt 28
Foreign Interest Rates 30
Global Economic Developments 31
Financial Condition of the BSP
Balance Sheet 33
Income Statement 34
Conclusion, Challenges and Future Policy Directions 35
Annexes
Statistical Tables
Fourth Quarter 2016 Report on Economic and Financial Developments | 1
Executive Summary
The Philippine economy finishes strong in Q4 2016.
The Philippines maintained its strong economic
performance in Q4 2016 with a 6.6 percent Gross
Domestic Product (GDP) growth. This was a
percentage point (ppt) higher than the 6.5 percent
growth recorded in Q4 2015, although this was lower
than the past three quarters’ expansion. On the
expenditure side, household consumption and capital
formation remained as the primary contributors to
output growth. On the production side, the services
and industry sectors continued to bolster domestic
output. The full -year 2016 GDP growth averaged
6.8 percent, which was at the upper end of the
National Government’s (NG) target range of
6.0-7.0 percent for the year. The Philippines
remained one of the fastest-growing economies in
the region, outpacing Malaysia (4.5 percent),
Indonesia (4.9 percent), and Vietnam (6.2 percent).
Employment conditions improve. Preliminary results
of the October 2016 Labor Force Survey showed an
improvement in the country’s labor and employment
conditions. The number of jobless persons declined
by 14.0 percent to 2.0 mill ion from 2.4 mill ion a year
ago, bringing the unemployment rate down to
4.7 percent from 5.6 percent in the previous year.
Additional employment created in October totaled
1.9 mill ion, due largely to the strong growth in the
services and industry sectors. Underemployment
increased slightly to 18.0 percent from 17.6 percent
recorded in the same period in 2015.
National Government spending increases. Cash
operations of the NG yielded a deficit of
P139.7 bil l ion in Q4 2016, higher than the year-ago
shortfall of P96.1 bil l ion. The higher revenue
collections during the period, due mainly to
improved tax collections, were more than offset by
an increase in spending on infrastructure, subsidies
to government-owned and-controlled corporations,
transfers to local government units, as well as
increased maintenance expenditures and higher
outlays for personnel services.
Inflation continues to trend upward. Headline
inflation for Q4 2016 rose to 2.5 percent, faster than
the quarter- and year-ago rates of 2.0 percent and
1.0 percent, respectively. This brought average
inflation for 2016 to 1.8 percent, higher than the
1.4 percent inflation in 2015 but stil l below the NG’s
announced target range of 3.0 percent ± 1.0
percentage point for 2016-2018. The higher inflation
during the review quarter was attributed to the
increase of food and non-food prices. Core inflation,
which excludes certain volatile food and energy
items, also accelerated to 2.5 percent from
2.0 percent in the previous quarter.
Domestic liquidity remains ample. Money supply
expanded by 12.7 percent year-on-year as of
end-December 2016 to P9.5 tril l ion, slightly slower
than the 12.9-percent expansion as of
end-September 2016. The increase in l iquidity during
the review period was driven mainly by the
17.0-percent year-on-year growth in domestic claims
to the economy. Credit extended to the private
sector grew by 16.4 percent, supported by the
sustained growth in bank lending.
The BSP maintains monetary policy settings in
Q4 2016. The Monetary Board decided to maintain
key policy interest rate at 3.0 percent for the
overnight reverse repurchase or RRP facil ity during
its November and December monetary policy
meetings. The reserve requirement ratios were
l ikewise left unchanged. The BSP’s decision to
maintain the key policy rate was based on its
assessment of the dynamics and risks in the inflation
environment over the policy horizon.
2 | Fourth Quarter 2016 Report on Economic and Financial Developments
Domestic interest rates are generally higher.
Primary market interest rates in Q4 2016 rose across
all tenors as investors remained cautious amid
heightened expectation of a US Fed rate hike.
Similarly, secondary market yields of government
securities for all maturities increased as of
end-December 2016 relative to yields as of
end-September 2016. Meanwhile, other market
interest rates showed mixed trends as interbank call
loans, savings deposit, and bank lending rates
declined during the review quarter while time
deposit rates increased.
Philippine banks remain sound and resilient. Total
resources of the banking system reached
P13.9 tril l ion as of end-December 2016, higher by
11.8 percent from the P12.4 tril l ion recorded a year
ago. Bank lending by universal and commercial
banks, net of RRP placements with the BSP, grew by
17.3 percent year-on-year as of end-December 2016,
of which 80.3 percent went to production activities.
Furthermore, gross non-performing loan ratio as of
end-December 2016 improved slightly to 2.0 percent
relative to the previous year’s ratio of 2.2 percent.
Loan exposure remained adequately covered, with
non-performing loan coverage ratio of 119.4 percent
during the review period. Similarly, capital adequacy
slightly improved as of end-September 2016 (latest
available), which stood at 15.4 percent and
16.2 percent on solo and consolidated bases,
respectively, and remained well above the
10.0-percent regulatory threshold of the BSP and
8.0-percent minimum by international standards.
Local stocks trend downward. The Philippine Stock
Exchange index (PSEi) closed 9.3 percent lower
quarter-on-quarter (q-o-q) to average 7,123.3 index
points in Q4 2016 as concerns over global and
domestic developments saw investors remaining on
the sidelines. Philippine equities continued to be
under pressure amid risk-off sentiment ahead of the
US presidential elections and the market’s
knee-jerk reaction to Donald Trump’s election
victory. As of end-December 2016, the PSEi closed at
6,840.64 index points, lower by 10.3 percent,
q-o-q and by 1.6 percent, year-to-date.
Debt spreads reflect shifts in market sentiment. The
country’s 5-year sovereign credit default swap
spread stood at 111 basis points in end-December
2016, lower than the 116 basis points recorded in
end-September 2016. Debt spreads widened in
October and November due to the increased
probability of a Fed rate hike, unpredictability of the
outcome of the US presidential election and after
Donald Trump won over Hillary Clinton in the US
presidential election. However, debt spreads took a
positive turnaround and narrowed in December as
investors appeared upbeat following the Fed rate
hike, which reflected higher growth expectations for
the US economy. Philippines’ credit default swap
traded lower than Indonesia’s (158 basis points) and
Malaysia’s (138 basis points).
The BOP position reverses to deficit. The country’s
balance of payments position registered a deficit of
US$2.1 bil l ion in Q4 2016, a reversal of the US$809
mill ion surplus recorded in Q4 2015. This developed
as the current account reversed to a deficit during
the quarter even as the financial account registered
lower net outflows (or net lending by residents to the
rest of the world). The deficit in the current account
was due mainly to the higher deficit in trade-in-
goods, combined with lower net receipts of services
and primary income.11
Meanwhile, the reduced net
outflows in the financial account was a result of the
substantial increase in net inflows of direct
investments as well as the reversal of portfolio
investments to net inflows from net outflows, which
more than compensated for the higher net outflows
in the other investment account.
Gross international reserves remain ample. The
country’s gross international reserves (GIR) stood at
US$80.7 bil l ion as of end-December 2016, easing
from the record high of US$86.1 bil l ion in
end-September 2016. The end-December GIR level
remains sufficient to cover 9.2 months’ worth of
imports of goods and payments of services and
income. It was also equivalent to 5.8 times the
country’s short-term external debt based on original
maturity and 4.1 times based on residual maturity.
11
Primary Income account (formerly th e Income account) shows the flows for the use of labor and fin ancial resourc es between resid ent and non-resident institut ional units. Secondary Inco me account (formerly the
Current Transfers account) shows current transfers, in c ash or in kind, for nothing in return, between residents and non-residents.
Fourth Quarter 2016 Report on Economic and Financial Developments | 3
The decline in reserves was due to outflows arising
from payments made by the NG for its maturing
foreign exchange obligations, foreign exchange
operations of the BSP, and revaluation adjustments
on the BSP’s gold holdings and foreign
currency-denominated reserves. These were partially
offset by the NG’s net foreign currency deposits.
External debt remains manageable. The country’s
outstanding external debt as of end- 2016 stood at
US$74.8 bil l ion, lower by US$1.9 bil l ion
(or 2.4 percent) from the end-September 2016 level
of US$76.6 bil l ion. Meanwhile, on a year-on-year
basis, debt stock l ikewise dropped by US$2.7 bil l ion
(or 3.5 percent) from US$77.5 bil l ion a year ago due
net principal repayments by both the public and
private sectors; previous periods’ negative audit
adjustments due to late reporting; and negative FX
revaluation adjustments. However, the full
downward impact of these factors on the debt stock
was partly offset by an increase in non-residents
investments in Philippine debt papers issued
offshore. As of year-end, the maturity profile of the
country’s external debt was comprised mostly of
medium- and long-term obligations implying that FX
requirements for debt servicing remain manageable.
The peso depreciates further in Q4 2016. On a
quarter-on-quarter basis, the peso depreciated by
4.19 percent to average P49.11/US$1 from the
previous quarter’s average of P47.05/US$1. Similarly,
y-on-y, the peso weakened by 4.6 percent relative to
the P46.83/US$1 average in Q4 2015. The weakness
of the peso during the review quarter was due mainly
to a confluence of factors such as the US Fed rate
hike and expectation of more rate increases in 2017,
and investor sentiment related to various changes in
political dynamics around the world.
Global growth modest but remains positive. While
there has been a stronger-than-expected momentum
in growth in advanced economies, an expected
slowdown in some emerging market economies
contributed to the modest growth for the global
economy. Real GDP in the US grew by 1.9 percent
driven primarily by personal expenditure
consumption, private inventory investments,
residential and non-residential fixed investment, and
government spending. Economic activity in the Euro
area likewise expanded by 1.7 percent while Japan
managed to grow by the same rate of 1.7 percent
amid stagnating private demand and weakening yen.
Meanwhile, most emerging market economies in Asia
recorded stronger output growth. China expanded by
6.8 percent, driven by exports and the real estate
sector, as well as supply-side structural reform. The
ASEAN region continued to perform well, most
notably the Philippines, Vietnam, and Indonesia.
4 | Fourth Quarter 2016 Report on Economic and Financial Developments
Introduction
The Philippine economy remained solid in Q4 2016,
expanding by 6.6 percent. This brought the year-to-
date real GDP growth to 6.8 percent, at the high end
of the National Government’s (NG) growth target of
6.0-7.0 percent in 2016. Expansion in the domestic
economy had been generally broad-based during the
review quarter. On the demand side, household
consumption continued to be upbeat, government
spending increased, and investments remained
strong. On the supply side, services and industry
continued to show strong positive performance.
The sustained strength of the economy was
accompanied by an increase in inflation to
2.5 percent during the review quarter. However,
average headline inflation for the four quarters of
2016 at 1.8 percent remained below the low end of
the NG’s announced target of 3.0 percent ± 1.0
percentage point for 2016-2018.
The Philippine banking system remained solid and
resil ient in Q4 2016. Bank lending continued to
expand, increasing by 17.3 percent during the review
quarter. This was accompanied by improvements in
bank capitalization and loan exposure coverage.
In terms of external payments position, the country’s
external buffers continued to grow, with reserves
amounting to US$80.7 bil l ion as of end-December.
Remittances and receipts from business process
outsourcing continued to support the country’s
external position. At the same time, external debt
remains manageable, with a debt profile composed
largely of medium- to long-term (MLT) maturities.
Given a benign inflation outlook, monetary policy
settings were kept steady in Q4 2016. The BSP’s
decision to maintain key policy interest rates was
based on its assessment that the inflation
environment remained manageable. Moreover, the
continued expansion in domestic l iquidity, which
grew by 12.7 percent as of end-December 2016,
point to monetary conditions being supportive of
economic activity.
Going forward, the Philippine economy stil l faces
uncertainty and challenges coming mainly from the
external environment. However, the country’s solid
macroeconomic fundamentals as well as adequate
policy levers to pursue appropriate and timely
response to shocks are expected to provide impetus
for a sustained economic growth.
Fourth Quarter 2016 Report on Economic and Financial Developments | 5
Real Sector
Aggregate Supply and Demand
The performance of the Philippine economy in
Q4 2016 remained solid as real Gross Domestic
Product (GDP) grew by 6.6 percent. Albeit lower
than the past three quarters’ growth, the Q4 2016
growth was a percentage point (ppt) higher
compared to the 6.5 percent growth in the same
period in 2015. The slight moderation in Q4 2016
was attributed mainly to the transition of
government, which has prompted investors to take
on a “wait-and-see” attitude in pursuing investments
and expansion plans. The Q4 2016 GDP growth was
also moderated by the negative performance of the
agriculture sector. The full year 2016 growth
averaged 6.8 percent, which was at the upper end of
the target range set by the NG of 6.0 – 7.0 percent
for the year.
Real GDP within the target
The growth drivers on the supply side were the
simultaneous expansion of both the services and
industry sectors backed by the continued strong
performance of real estate, renting and business
activities and the construction and manufacturing
subsectors. On the demand side, growth impetus
emanated from sustained firm household
consumption and consecutive quarters of
double-digit increase in investments.
Chart 1. Gross Domestic Product and Gross National
Income
Annual growth rate in percent; at constant 2000 prices
GDP by industry
The services sector stil l held on to its position as the
primary driver of growth for Q4 2016, as it expanded
by 7.4 percent and contributed 4.1 ppts to the
6.6 percent growth during the review quarter. The
expansion of the services sector was fuelled by the
broadbased positive contribution of its subsectors, in
particular: trade and repair of motor vehicles,
motorcycels, personal and household goods
(1.2 ppts), real estate, renting and business activities
(1.0 ppt), transportation, storage and communication
(0.5 ppts). The services sector benefited largely from
the benign inflation environment, sound financial
system, robust retail trade activities, sustained
remittance inflows from overseas Fil ipinos (OFs) and
continued expansion of the business process
outsourcing (BPO) industry. The latter two have been
largely l inked to the booming performance of the real
estate sector and related activities.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 4 201 5 201 6
Real GDP Real GNI
Source: Philippine Statistics Authority (PSA)
6 | Fourth Quarter 2016 Report on Economic and Financial Developments
Chart 2. Gross Domestic Product, by Industry
Annual growth rate in percent; at constant 2000 prices
The industry sector posted the fastest growth among
the three major sectors of the economy in Q4 2016
at 7.6 percent, enabling it to contribute 2.6 ppts to
the GDP outturn during the review quarter. The two
pillars of the industry’s solid performance in Q4 2016
were the manufacturing and construction subsectors
which accounted for 1.7 ppts and 0.7 ppts of the
total 2.6 ppts contribution of the industry sector,
respectively. Among the fastest growing
manufacturing industries in Q4 2016 include the
following: petroleum and other fuel products
(53.8 percent), transport equipment (33.3 percent),
office, accounting and computing machinery
(20.2 percent), machinery and equipment except
electrical (19.1 percent), and rubber and plastic
products (15.8 percent). The construction subsector
was buoyed by the solid numbers from both public
and private construction. The double digit growth in
public construction for the past seven consecutive
quarters was on account of the aggressive stance of
the government in approving and implementing
critical infrastructure projects.
The agriculture, hunting, forestry, and fishing (AHFF)
sector returned to the negative territory as it
contracted by 1.1 percent in Q4 2016, shaving off
0.1 ppt from the 6.6 percent GDP growth during the
review quarter. Contributing to the weak
performance of the sector was the adverse impact on
crops and fisheries output of Typhoons Karen and
Lawin. These typhoons caused the reduction in
yields of major crops, particularly palay (-3.6 percent)
and corn (-0.1 percent) in Q4 2016, which reversed
the recovery posted by both crops in Q3 2016. The
fisheries subsector has l ikewise been stuck in the
negative territory, at an average of -4.0 percent for
the past five successive quarters. Aside from
inclement wheather conditions, other challenges
which confronted the agriculture sector in Q4 2016
included reports of unrealized plantings of various
crops in several provinces in Mindanao due to
inadequate irrigation water.
GDP by expenditure
On the expenditure side, the Q4 2016 GDP outturn
was propelled by the sustained expansion of both
household consumption and capital formation.
Household spending continued to be a significant
driver of domestic demand as it grew by 6.3 percent
during the review quarter, albeit a moderation from
the average growth of 7.2 percent in the past three
consecutive quarters. This was attributed to the
deceleration in purchases of major consumption
items such as food and non-alcoholic beverages
(from 6.5 percent in Q4 2015 to 5.7 percent in
Q4 2016) , clothing and footwear (from 5.2 percent
to -2.4 percent) , and furnishings, household
maintenance (from 4.3 percent to 1.3 percent).
Nonetheless, household consumption contributed
4.6 ppts to the 6.6 percent GDP growth in Q4 2016,
buttressed by the favorable inflation and interest
rate environment, sustained inflow of OF
remittances, as well as improving labor market
conditions. A notable development in Q4 2016 was
the eight quarters of uninterrupted double digit
growth of capital formation at an average of
18.4 percent. Investments contributed 4.0 ppts to the
Q4 2016 output growth, supported mainly by the
robust investments in durable equipment at
26.2 percent. Fixed capital formation continued to
accelerate, boosted by the 23.0 percent expansion in
public construction. Overall, domestic demand
continued to exhibit resil ience but was dragged by
the 3.1 ppts contraction of net exports amid lingering
weak external demand.
-10.0
-5.0
0.0
5.0
10.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 4 201 5 201 6
Agriculture, Hunting, Forestry and Fish ing
Indu stry
Services
Source: PSA
Fourth Quarter 2016 Report on Economic and Financial Developments | 7
Chart 3. Gross Domestic Product, by Expenditure
Annual growth rate in percent; at constant 2000 prices
Labor and Employment Labor and employment conditions in the country
have improved based on the preliminary estimates of
the Philippine Statistics Authority’s (PSA’s) Labor
Force Survey in October 2016.12
Employment created
as of the October 2016 survey round reached
1.9 mill ion, bringing the total number of employed
persons to 41.7 mill ion (Table 2). The increase is
attributed mainly to the robust growth of both the
industry and services sectors.
Growth in industry and serv ices
sectors boosts labor market
Employment in the industry sector rose by
13.0 percent, driven by the expansion in the
construction and manufacturing sub-sectors with
additional 630,000 and 185,000 workers,
respectively. Similarly, employment in the services
sector grew by 5.5 percent owing to the additional
490,000 workers in the wholesale and retail trade
and repair of motor vehicles and motorcycles
sub-sector. Meanwhile, employment in the
agriculture sector declined by 1.0 percent with the
number of workers in the Fishing and Aquaculture
subsector decreasing by 123,000. Of the total
employed persons, 54.9 percent were in the services
sector, 27.9 percent in the agriculture sector, and
17.2 percent in the industry sector.
12
October 2016 LFS released on 13 December 2016 includes Leyte.
By class of workers, the number of wage and salary
workers increased by 7.4 percent, boosted by the
additional 1.7 million employed in private
establishments. On the contrary, the number of
workers employed in government/government
corporations decreased by 1.4 percent. In terms of
employment, those who worked on a full-time basis
rose by 6.0 percent or 1.6 mill ion workers while
those who worked part-time grew by 2.0 percent or
269,000 workers.
The number of jobless persons dropped by
14.0 percent to 2.0 mill ion from 2.4 mill ion in the
previous year, bringing the unemployment rate down
to 4.7 percent from 5.6 percent during the same
period a year ago. A large number of unemployed
persons were men (1.3 mill ion), 15-24 years of age
(971,000), and with high school education (887,000).
During the reference period, the underemployment13
rate rose to 18.0 percent from 17.6 percent.
Chart 4. Unemployment and Underemployment
Rates In percent
The labor force participation rate14
in October 2016
was at 63.6 percent, higher than previous year’s
63.3 percent, due possibly to the faster growth in the
number of persons in the labor force compared to
the growth of household population 15 years old and
above.
13
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. 14
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.
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 4 201 5 201 6
Hou sehold Final Consumption Expenditure
Government Final Consumption Expenditure
Capital Formation
Source: PSA
15
16
17
18
19
20
21
22
23
24
4.0
5.0
6.0
7.0
8.0
JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT
2014 2015 2016
Unemployment Rate (LHS)
Underemployment Rate (RHS)
Source: Labor Force Survey (LFS) - PSA
8 | Fourth Quarter 2016 Report on Economic and Financial Developments
The PSA also conducted the quarterly Labor Turnover
Survey (LTS)15
that aims to capture “job creations”
and “job displacements” in business enterprises in
Metro Manila.
LTS results in the National Capital Region (NCR)
showed that employment grew in Q3 2016 with the
labor turnover rate16
at 3.7 percent, higher than the
2.3 percent recorded a quarter ago. The accession
rate of 14.1 percent exceeded the total separation
rate of 10.4 percent, i .e., additional 141 workers per
1,000 were newly hired to the enterprise workforce
due to expansion or replacement; while 104 workers
per 1,000 were terminated or quit their jobs.
Employment gains were noted in the industry and
service sectors, while employment losses were
registered in the agriculture sector.
Fiscal Sector
National Government Cash
Operations
The cash operations of the NG yielded a deficit of
P139.7 bil l ion in Q4 2016, higher than the year-ago
level of P96.1 bil l ion. As a percent of GDP, the NG’s
cash position accounted for -3.4 percent in Q4 2016,
an increase from the year-ago level of -2.6 percent,
primarily due to the increase in government
expenditures.
NG cash operations yield a
higher deficit
Total revenues for the period reached P549.2 bil l ion,
higher than the year-ago level of P504.0 bil l ion. The
y-o-y increase in revenues was due mainly to
improved collections by the Bureau of Internal
Revenue (BIR) and Bureau of Customs (BOC).
However, total revenues as a percentage of GDP is
15
Released in 31 January 2017 16
Labor turnover rate is the percent difference between accession rate and
separation rate.
recorded at 13.4 percent in Q4 2016, similar to the
comparable ratio in 2015. Tax collections, which
constituted 92.4 percent of total revenues,
amounted to P507.7 bil l ion, 10.4 percent higher than
the year-ago level. Meanwhile, non-tax revenues,
which consisted mainly of collections made by the
Bureau of the Treasury (BTr), decreased by
6.3 percent y-o-y.
Meanwhile, total expenditures in Q4 2016 reached
P688.9 bil l ion, 14.8 percent higher than the
P600.1 bil l ion expenditures in the same period in
Q4 2015. Total disbursements as a percent of GDP is
recorded at 16.8 percent in Q4 2016. The upbeat
spending performance was on account mainly of the
large double-digit growth rates in infrastructure
spending, subsidies to government-owned and –
controlled corporations (GOCCs) and transfers to
local government units (LGUs), as well as increased
maintenance expenditures and higher outlays for
personnel services.
Netting out the interest payments from the expenditures, the resulting primary balance amounted to a deficit of P85.0 bill ion, representing -
2.1 percent of GDP in the review quarter.
The NG made net availments in Q4 2016 amounting
to P0.5 bil l ion, 97.0 percent lower than the availment
of P16.7 bil l ion in Q4 2015. The net availments came
mainly from domestic borrowings, which covered
75.5 percent of the total financing requirement of
the NG.
Fiscal discipline has generated sufficient fiscal space
which can be allocated to accelerate infrastructure
development. The need to address infrastructure
gaps is a top priority for the country to increase
productive capacity and competitiveness. The
government plans to pursue massive buildup in
infrastructure and increase infrastructure spending
to 5.3 percent of GDP in 2017.
Fourth Quarter 2016 Report on Economic and Financial Developments | 9
Chart 5. Cash Operations of the National
Government In bi llion pesos
Monetary Sector
Prices
Headline Inflation. Inflation had been on a generally
upward path throughout 2016, with inflation in
Q4 2016 rising to 2.5 percent from 2.0 percent in the
previous quarter (Table 4) as both food and
non-food inflation in the Philippines accelerated in
Q4 2016. This brought the average headline inflation
for the full year 2016 to 1.8 percent, higher than the
1.4 percent in 2015 but remained below the NG’s
target range of 3.0 percent ± 1.0 ppt.
Supply-related inflationary
pressures continue to drive
headline inflation higher in Q4
2016
Core Inflation. Core inflation, which excludes certain
volatile food and energy items, also increased to
2.5 percent from 2.0 percent in the previous quarter.
On the other hand, the three alternative measures of
core inflation computed by the BSP showed mixed
trends. In particular, the net of volatile items
increased to 2.0 percent in Q4 2016 from 1.7 percent
while the trimmed mean was steady during the
quarter at 1.8 percent. By contrast, weighted median
dropped slightly to 2.0 percent in Q4 2016 from
2.1 percent in the previous quarter.
Table A. Alternative Core Inflation Measures Quarterly average of year-on-year changes
Food inflation rose to 3.6 percent in Q4 2016 from
2.8 percent in the previous quarter as prices of most
food items went up with the onset of the holiday
season and tighter supply triggered by recent
weather-related production disruptions. Specific
food items that posted higher inflation in Q4 2016
include fish, fruits, vegetables as well as oils and fats.
Meanwhile, rice prices also increased during the
quarter due mainly to l imited supply from major rice-
producing regions with the end of harvest season.
Non-food inflation increased to 1.5 percent in
Q4 2016 from 1.2 percent in the previous quarter
owing to price increases of energy-related CPI
commodities. In particular, higher international crude
oil prices led to upward adjustments in prices of
domestic petroleum products, contributing to the
increase in non-food inflation for the month.
Likewise, transport services increased due to higher
travel fares with the onset of the holiday season.
-200 .0
-100 .0
0.0
100.0
200 .0
300 .0
400.0
500 .0
600 .0
700 .0
800 .0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 4 201 5 201 6
Revenues Expenditures Surplu s/Deficit (-)
Source: Bureau of the Treasury
Quarter
Official
Headline
Inflation
Official Core
Inflation
Trimmed
Mean 1
Weighted
Median 2
Net of
Volatile
Items 3
2014 4.1 3.0 3.5 2.9 2.6
Q1 4.1 3.0 3.3 2.6 2.8
Q2 4.4 3.0 3.6 3.2 2.6
Q3 4.7 3.3 3.8 3.1 2.8
Q4 3.6 2.7 3.3 2.7 2.4
2015 1.4 2.1 1.9 1.9 1.8
Q1 2.5 2.5 3.0 3.0 2.3
Q2 1.7 2.2 2.1 2.2 1.9
Q3 0.6 1.6 1.3 1.2 1.5
Q4 1.0 1.8 1.3 1.3 1.5
2016 1.8 1.9 1.6 1.8 1.6
Q1 1.1 1.6 1.2 1.3 1.3
Q2 1.5 1.7 1.5 1.7 1.3
Q3 2.0 2.0 1.8 2.1 1.7
Q4 2.5 2.5 1.8 2.0 2.01
The trimmed mean represents the average inflation rate of the (weighted) middle 70 percentin a lowest-to-highest ranking of year-on-year inflation rates for a l l CPI components .2 The weighted median represents the middle inflation rate (corresponding to a cumulative CPIweight of 50 percent) in a lowest-to-highest ranking of year-on-year inflation rates .3 The net of volati le i tems method excludes the fol lowing i tems: bread and cereals , meat, fi sh,frui t, vegetables , gas , sol id fuels , fuels and lubricants for personal transport equipment, and
passenger transport by road, which represents 39.0 percent of a l l i tems. The series has been
recomputed us ing a new methodology that i s a l igned with PSA's method of computing the
officia l core inflation, which re-weights remaining i tems to comprise 100 percent of the core
basket after excluding non-core i tems. The previous methodology reta ined the weights of
volati le i tems in the CPI basket whi le keeping their indices constant at 100.0 from month to month.
Source: PSA, BSP estimates
10 | Fourth Quarter 2016 Report on Economic and Financial Developments
Chart 6. Food and Non-Food Inflation in the Philippines (2006=100) In percent
Meanwhile, inflation for health as well as restaurants
and miscellaneous goods and services also posted
lower inflation rates in Q4 2016 but not enough to
offset the increase in inflation for housing, water,
electricity, gas and other fuels, as well as transport.
In terms of geographical location, inflation in the
NCR rose to 2.3 percent in Q4 2016 from 1.4 percent
in the previous quarter (Table 4A). Higher food
inflation in NCR can be traced mainly to rising
inflation of heavily weighted food items such as rice,
fruits, and vegetables. At the same time, inflation for
milk, cheese, and eggs as well as oils and fats were
also higher.
Likewise, non-food inflation increased to 0.7 percent
in Q4 2016 from 0.2 percent in the previous quarter
as transport inflation accelerated due to the
adjustments in domestic petroleum prices, largely
influenced by the higher international price of crude
oil. Meanwhile, inflation for electricity, gas, and
other fuels remained negative albeit less so
compared to the previous quarter.
Inflation in areas outside NCR (AONCR) increased to
2.5 percent (from 2.1 percent) as prices of both food
and non-food items went up (Table 4B). Food
inflation increased to 3.1 percent from 2.6 percent in
the previous quarter on higher prices of most food
items namely, rice, fish, fruits, vegetables, sugar, as
well as milk, fish, and eggs.
Non-food inflation in AONCR continued to increase
in Q4 2016 at 1.9 percent (from 1.6 percent) as
inflation for electricity, gas, and other fuels turned
positive during the quarter at 0.5 percent after
declining for eight consecutive quarters since
Q4 2014. Meanwhile, higher prices of domestic
pump prices as well as services relating to transport
and maintenance of dwelling l ikewise contributed to
the increase in non-food inflation.
Chart 7. Inflation Rate (2006=100) in percent
Domestic Liquidity17
Money supply or M3 grew by 12.7 percent y-o-y as of
end-December 2016 to P9.5 tril l ion, slightly slower
than the 12.9-percent expansion as of
end-September 2016 (Table 5). The increase in
M3 was driven largely by the 17.0-percent y-o-y
growth in domestic claims or credits to the economy
in December 2016. Credits extended to the private
sector grew by 16.4 percent, supported by the
sustained increase in bank lending. Meanwhile, net
claims on the central government rose by
27.6 percent as a result of the continued withdrawal
by the NG of its deposits with the BSP as part of NG
cash operations.
17
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.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 4 201 5 201 6
Headline Inflation
Food Inflation
Non-Food Inflation
Source: PSA
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 4 201 5 201 6
Philippines
National Capital Region
Areas Outside the Nat ional Capital Region
Source: PSA
Fourth Quarter 2016 Report on Economic and Financial Developments | 11
Table B. Domestic Liquidity (M3)
Levels (in billion pesos) Growth Rates (in %)
Particulars Dec-16 Sep-16 Dec-15 Quarter-
on-
Quarter
Year-on-
Year
Domestic Liquidity
(M3),
9,497.90 8,860.70 8,429.90 7.2 12.7
of which:
Net Foreign Assets 4,309.00 4,498.80 3,998.80 -4.2 7.8
Domestic Claims 9,193.60 8,603.20 7,861.00 6.9 17
of which:
Net Claims on
Central Government
1,607.50 1,485.40 1,261.70 8.2 27.4
Claims on the
Private Sector
6,475.00 6,034.80 5,564.20 7.3 16.4
Net foreign assets (NFA) in peso terms rose by
7.8 percent y-o-y in December 2016. The BSP’s NFA
position continued to expand during the month on
the back of robust foreign exchange inflows coming
mainly from overseas Fil ipinos’ remittances and
business process outsourcing receipts. Likewise, the
NFA of banks increased due mainly to the growth in
banks’ foreign assets resulting from higher interbank
loans, deposits with other banks, and investments in
marketable debt securities.
Meanwhile, the growth of M4, a broader concept of
domestic l iquidity comprising broad money liabilities
and foreign currency deposits of residents,
accelerated to 13.3 percent y-o-y in December 2016
compared to the 12.1-percent growth in September
2016.
Monetary Policy Developments
During its monetary policy meetings in 10 November
and 22 December, the BSP decided to maintain its
key policy interest rate at 3.0 percent for the
overnight reverse repurchase or RRP facil ity. The
corresponding interest rates on the overnight lending
and deposit facil ities were also kept steady. The
reserve requirement ratios were likewise left
unchanged.
The BSP maintains monetary
policy settings in Q4 2016
The BSP’s decision was based on its assessment of
the dynamics and risks in the inflation environment
over the policy horizon. Latest forecasts continue to
indicate that average inflation would likely settle
below the target range of 3.0 percent ± 1 for 2016
and return gradually to a path consistent with the
inflation target in 2017-2018 due to higher oil prices
and strong domestic economic activity. The overall
balance of risks surrounding the inflation outlook
also remains ti lted to the upside, owing partly to the
pending petitions for adjustments in electricity rates
as well as the initial impact of the government’s
broad fiscal reform program. Meanwhile, increased
uncertainty in global economic prospects continues
to pose a key downside risk to the inflation outlook.
Nevertheless, inflation expectations remain broadly
consistent with the inflation target over the policy
horizon.
At the same time, the BSP also emphasized that
domestic demand conditions are l ikely to stay firm,
supported by solid private household spending,
higher government expenditure, and adequate
domestic l iquidity amid modest and uneven global
economic growth. In addition, the BSP has
considered the potential impact of the ongoing
monetary policy adjustment in the US on global
financial market conditions.
Chart 8. BSP Policy Rates In percent
0
1
2
3
4
5
6
7
Jan
201
4Fe
bM
arA
pr
May Jun
Jul
Au
gSe
pO
ctN
ov
Dec
Jan
201
5Fe
bM
arA
pr
May Jun
Jul
Au
gSe
pO
ctN
ov
Dec
Jan
201
6Fe
bM
arA
pr
May Jun
Jul
Au
gSe
pO
ctN
ov
Dec
Overnight RRP Rate
Overnight RP Rate
SDA Rate/Overnight Depos it Facility Rate*
* On 3 June 2016, Special Deposit Accounts (SDAs) were replaced by the Overnight Deposit Facility (ODF) in line with the implementation of the Interest Rate Corridor (IRC) System.
Source: BSP
12 | Fourth Quarter 2016 Report on Economic and Financial Developments
Given these considerations, the BSP was of the view
that prevailing monetary policy settings remain
appropriate. The BSP noted that maintaining
monetary policy settings at this juncture will give the
BSP more time to assess evolving economic
developmens and calibrate its policy tools as
appropriate. Going forward, the BSP will continue to
monitor emerging price and output conditions to
ensure price and financial stability conducive to
sustained economic growth.
Domestic Interest Rates
The primary market rates of the 91-day, 182-day, and
364-day treasury bil ls (T-bil l) increased in Q4 2016 by
2.4 bps, 23.7 bps and 20.1 bps relative to Q3 2016,
to settle at 1.4 percent, 1.7 percent and 1.9 percent,
respectively. The primary market rates rose as
investors remained cautious amid heightened
expectation of a US Fed hike by the end of the year.
Primary market interest rates rise
across all tenors
Similarly, the secondary market yields of government
securities (GS) for all maturities increased as of
end-December 2016 relative to yields as of
end-September 2016. The yields of all actively traded
tenors climbed by at least 22.5 bps (3-year) to at
most 165.3 bps (6-month), after the US Fed hiked
its policy rate in the last FOMC meeting for 2016.
Yields of secondary market GS
rise
Chart 9. Yield Curve of Government Securities
In percent
Domestic market interest rates showed mixed
trends. The interbank call loans, savings deposit and
bank lending rates were lower in Q4 2016 by 1.7 bps,
3.0 bps and 5.5 bps, respectively. Meanwhile, the
time deposit rate was higher by 13.2 bps.
Other market interest rates
show mixed trends
During its monetary policy meetings on
10 November and 22 December 2016, the Monetary
Board (MB) kept the interest rate on the BSP’s
overnight RRP facil ity at 3.0 percent. The
corresponding interest rates on the overnight lending
and deposit facil ities were also kept steady at
3.5 percent and 2.5 percent, respectively. The
reserve requirement ratios were likewise left
unchanged at 20 percent. Meanwhile, the interest
rates on the 7-day and the 28-day term deposit
facil ities (TDF) rose by 28.8 bps and 39.4 bps to settle
at 2.8 percent and 2.9 percent as of Q4 2016,
due to seasonal demand for more liquid assets as
well as market expectations of further policy rate
hikes by the US Federal Reserve.
0
1
2
3
4
5
6
7
3 mo 6 mo 1 yr 2 yr 3 yr 4 yr 5 yr 7 yr 10 yr 20 yr 25 yr
Q4 2015 Q1 2016 Q2 2016
Q3 2016 Q4 2016
Source: BSP-Department of Economic Statistics (DES)
Fourth Quarter 2016 Report on Economic and Financial Developments | 13
BSP’s policy rate and reserve
requirement ratio remain
steady
The MB’s decision was based on its assessment that
inflation continues to be manageable over the policy
horizon. Headline inflation is projected to settle
slightly below the lower edge of the 3.0 percent ±
1.0 ppt target range for 2016. However, inflation is
expected to gradually return to the target band in
2017 and 2018. The overall balance of risks
surrounding the inflation outlook remains ti lted to
the upside, coming from the pending petitions for
adjustments in electricity rates along with the
government’s fiscal reform program. Slower global
economic activity poses as the main downside risk to
inflation.
The differentials (gross and net of tax) between the
domestic and US interest rates narrowed in Q4 2016
relative to Q3 2016. The lower interest rate
differential can be traced to the 14.2 bps gain in
90-day LIBOR, and a 9.1 bps gain in average
US 90-day T-bil l rate relative to a much smaller
2.4 bps increase in RP 91-day T-bil l rate. Foreign
interest rates generally rose following the release of
upbeat US data on GDP, manufacturing activity,
services sector, home and retail sales, and corporate
earnings.
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 fell to 225 bps as of
end-December 2016, given the 25 bps increase in the
US Federal Funds rate against the unchanged BSP
policy rate. Compared to its September 2016 value,
the risk-adjusted spread between the two policy
rates narrowed further to 145 bps in December 2016
due to a 1 bp decline in risk premium (measured as
the difference between the 10-year ROP and the
10-year US note). The lower risk premium was due to
an 86.0 bps increase in the yields of the 10-year US
Treasury note relative to smaller 84.8 bps increase in
the yields of 10-year ROP note.
Financial Sector
Banking System
Financial Sector
The Philippine banking system remained resil ient in
supporting long-term economic growth and stable
financial condition. During the review quarter,
banks’ balance sheets exhibited steady growth in
assets and deposits. Furthermore, asset quality
indicators improved 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 financi al 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
remained to have the widest physical network,
consisting mainly of pawnshops.
Performance of the Banking System
Market Size
The number of banking institutions (head offices)
decreased to 613 offices as of end-September 2016
from the levels recorded as of the previous year at
634 offices and as of the previous quarter at
618 offices. This indicated continued consolidation of
banks as well as the exit of weaker players in the
banking system.
14 | Fourth Quarter 2016 Report on Economic and Financial Developments
Number of banks declines but
operating network expands
By banking classification, banks (head offices)
consisted of 41 U/KBs, 64 thrift banks (TBs), and
508 rural banks (RBs). Meanwhile, the operating
network (head offices and branches/agencies) of the
banking system expanded to 11,024 offices in
end-September 2016 from 10,538 offices during the
same period in the previous year and 10,936 offices
in end-June 2016, due mainly to the increase in the
branches/agencies of U/KBs, TBs and RBs.
The total resources of the banking system grew by
11.8 percent to P13.9 tril l ion as of end-December
2016 from the level of P12.4 tril l ion as of
end-December 2015, and by 5.8 percent from
P13.1 tril l ion as of the previous quarter. As a percent
of GDP, total resources stood at 96.0 percent as of
end-December 2016.
Chart 10. Total Resources of the Banking System
Levels in trillion pesos; share in percent
Savings Mobilization
Savings and demand deposits remained the primary
sources of funds for the banking system.
Demand, sav ings and time
deposits increase
Banks’ total deposits18
as of end-December 2016
amounted to P8.2 tril l ion, 12.6 percent and
6.0 percent higher than the year- and quarter-ago
level, respectively.
18
This refers to the total peso-denominated deposits of the banking system.
On a quarterly basis, demand, savings, and time
deposits expanded by 4.0 percent, 4.9 percent, and
10.7 percent, respectively. Likewise, foreign currency
deposits owned by residents (FCD-Residents)
increased by 6.4 percent to P1.7 tril l ion, q-o-q.19
Chart 11. Deposit Liabilities of Banks
In bi llion pesos
Bank Lending Operations
Outstanding loans of UKBs as of end-December
2016, net of banks' RRP placements with the BSP,
grew by 17.3 percent y-o-y. Similarly, bank lending
inclusive of RRPs increased by 16.1 percent y-o-y.
Bank lending sustains y-o-y
growth
Loans for production activities, which comprised
89.3 percent of UKBs’ aggregate loan portfolio
(net of RRPs), expanded by 16.9 percent in
end-December 2016, y-o-y.
19
FCD-Residents, along with M3, forms part of a money supply measure called M4. M ean while, M3 consists of savings deposits, time deposits,
demand deposits, currency in circulation, and deposit substitutes.
0.00
20.00
40.00
60.00
80.00
100.00
120.00
0.0
5.0
10.0
15.0
Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep
Total Resources (LHS) as % of GDP (RHS)
2 2012 2013 2014 2015 2016
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
8,000.0
Ma
r
Jun
Sep
De
c
Ma
r
Jun
Sep
De
c
Ma
r
Jun
Sep
De
c
Ma
r
Jun
Sep
De
c
Ma
r
Jun
Sep
De
c
Demand Savings Time
2012 2013 2014 2015 2016
Fourth Quarter 2016 Report on Economic and Financial Developments | 15
Chart 12. Loans Outstanding of Commercial Banks (Gross of RRPs) In tri l lion pesos
The growth in production loans was driven primarily
by increased lending to the following sectors:
information and communication (41.0 percent); real
estate activities (20.0 percent); electricity, gas,
steam and airconditioning supply (19.6 percent);
financial and insurance activities (17.2 percent);
wholesale and retail trade, repair of motor vehicles
and motorcycles (12.7 percent); and manufacturing
(6.1 percent). Bank lending to other sectors also
increased except in the case of public administration
and defense, compulsory social security
(-7.1 percent); mining and quarrying (-5.7 percent);
and water supply, sewerage, waste management
and remediation activities (-0.5 percent).
Loans for household consumption also increased by
23.4 percent due to the sustained growth in credit
card loans, motor vehicle loans and salary-based
general-purpose loans, offsetting the decline in other
types of household loans.
Credit Card Receivables
The combined credit card receivables (CCRs) of the
banking system as of end-September 2016, inclusive
of credit card subsidiaries, increased by 9.3 percent
to P183.1 bil l ion y-o-y, and by 2.1 percent q-o-q.
Credit card receivables
continue to rise
Meanwhile, the ratio of CCRs to the total loan
portfolio (TLP) slightly decreased to 2.74 percent as
of end-September, relative to the year- and
quarter-ago ratios of 2.91 percent and 2.78 percent,
respectively. In terms of loan quality, the ratio of
non-performing CCRs to total CCRs improved as it fell
to 6.24 percent from 8.00 percent and 6.42 percent
posted at end-September 2015 and end-June 2016,
respectively.
Motor Vehicle Loans20
As of end-September 2016, the banking system’s
combined motor vehicle loans (MVLs), inclusive of
non-bank subsidiaries, increased by 28.5 percent to
P364.3 bil l ion as of end-September 2016 from
P283.6 bil l ion as of a year ago and by 5.1 percent a
quarter ago.
Motor vehicle loans maintain
strong growth
Consumers’ strong demand for passenger cars and
commercial vehicles, the 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, increased to 5.46 percent from
the previous year and previous quarter’s ratios of
4.93 percent and 5.36 percent, respectively. In terms
of loan quality, the ratio of non-performing MVLs to
total MVLs improved to 4.34 percent from the
year-ago ratio of 4.79 percent and the quarter-ago
ratio of 4.77 percent.
Salary-Based General-Purpose Consumption Loans21
The banking system’s Salary-Based General-Purpose
Consumption Loans (SBGPCL), inclusive of non-bank
subsidiaries, increased by 37.9 percent to
P134.1 bil l ion as of end-September 2016 from the
year-ago level of P97.2 bil l ion and by 9.8 percent
from the quarter-ago level of P122.2 bil l ion. 22
20
Renamed effective September 2015 (formerly Auto Loans) 21
Formerly Salary Loans 22
Data collection started with June 2014 data.
0
1
2
3
4
5
6
7
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
2012 2013 2014 2015 2016
16 | Fourth Quarter 2016 Report on Economic and Financial Developments
Salary loans are on the uptrend
The share of total SBGPCLs to TLP increased to
2.01 percent from 1.69 percent 1.89 percent
registered a year- and quarter-ago, respectively. In
terms of loan quality, the ratio of non-performing
SBGPCLs to total SBGPCLs decreased to 4.07 percent
relative to the end-September 2015 ratio of
4.20 percent and the previous quarter ratio of
4.46 percent.
Residential Real Estate Loans
As of end-September 2016, the total residential real
estate loans (RRELs) of the banking system grew by
18.0 percent to P496.8 bil l ion from P420.9 bil l ion a
year-ago, and by 4.5 percent from P475.6 bil l ion a
quarter ago.
Residential real estate loans
sustain growth
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 increased to 7.44 percent
from the previous year’s and quarter’s ratios of
7.31 percent and 7.36 percent, respectively. In terms
of loan quality, the non-performing RRELs declined to
2.84 percent from 3.08 percent and 2.94 percent
registered a year and a quarter ago, respectively.
Asset Quality and Capital Adequacy
The Philippine banking system’s gross
non-performing loan (GNPL) ratio improved to
1.96 percent as of end-December 2016 relative to the
previous year’s and quarter’s ratios of 2.15 percent
and 2.19 percent, respectively, due mainly to the
expansion in the banking system’s TLP from
P6.3 bil l ion a year ago.23
23
For comparative purpos es, computations for periods prior to Janu ary 2013 are align ed with Circular No. 772. Certain ratios were round ed-off to the
nearest hundredths to show marginal movements.
Chart 13. Ratio of Gross NPLs and Net NPLs to Total Loans of the Banking System In percent
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.24
Similarly, the net non-performing loan
(NNPL) ratio declined to 0.57 percent as of
end-December 2016 relative to the previous year’s
ratio of 0.64 percent and the previous quarter’s ratio
of 0.74 percent. In computing for the NNPLs, specific
allowances for credit losses on TLP are deducted
from the GNPLs, said allowances increased to
P101.1 mill ion in end-December 2016 from
P98.6 mill ion posted a quarter ago.25
The Philippine banking system’s GNPL ratio of
1.96 percent was higher relative to that of Malaysia
(1.20 percent) and South Korea (1.71 percent) but
lower than that of Thailand (2.83 percent) and
Indonesia (3.03 percent).26
The loan exposures of banks remained adequately
covered as the banking system registered an NPL
coverage ratio of 119.4 percent as of end-December
2016 from 118.4 percent registered a year ago and
113.5 percent a quarter ago.
The capital adequacy ratio (CAR) of universal and
commercial banks (U/KBs) at end-September 2016
improved slightly to 15.40 percent on solo basis,
relative to the previous quarter ratio of
24
The 3.5 percent NPL ratio was based on the pre-2013 definition. 25
This typ e of pro visioning applies to loan accounts classified under loans
especially mention ed (LEM), substandard-secured loans, substandard-unsecured loans, doubtful accounts and loans considered as loss accounts. 26
Sources: M alaysia (Banking System’s Impairment ratio (net of imp airment
provisions, Q4 2016); South Korea (Domestic Banks’ Substandard o r Below Loans [SBLs] ratio, Q3 2016); Thai land (Total Fin ancial Institutions’ Gross NPLs ratio, Q4 2016); and Indonesia, IMF and fin ancial stabil ity reports
(Banks’ Nonperforming Loans to Gross Loans Ratio, Q3 2016).
0.000
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
0.000
0.200
0.400
0.600
0.800
1.000
1.200
Mar Jun Sep DecMar Jun Sep DecMar Jun Sep DecMar Jun Sep Dec Mar Jun Sep Dec
Net NPLs/Total Loans (RHS)
Gross NPLs/Total Loans (LHS)
2012 2013 2014 2015 2016
Fourth Quarter 2016 Report on Economic and Financial Developments | 17
15.37 percent. Likewise, the CAR on a consolidated
basis, increased slightly to 16.15 percent from the
quarter ago ratio of 16.12 percent. These figures
were well above the BSP regulatory threshold of
10.0 percent and international minimum of
8.0 percent.
Banks maintain high levels of
CAR amid tighter capital
requirements
The CAR of Philippines’ U/KBs on a consolidated basis
at 16.15 percent was higher than that of South Korea
(14.02 percent) but lower than that of Malaysia
(16.50 percent), Thailand (18.04 percent) and
Indonesia (20.64 percent).27
Chart 14. Capital Adequacy Ratio of Universal and Commercial Banks In percent
Banking Policies
Banking policies implemented during the quarter
were aimed at enhancing/providing
guidelines/regulations on the following:
(1) supervisory framework governing pawnshops;
(2) foreign exchange transactions; (3) Europay,
MasterCard, and Visa (EMV) card fraud liability shift
framework; (4) treatment of other comprehensive
income in the computation of Basel III non-stock
savings and loan associations (NSSLAs);
27
Sources: South Korea (Domestic Banks’ C apital R atio, Q1 2016); Malaysia (Banking System’s Total Cap ital Ratio, Q4 2016); Thailand (Commerc ial
Banks’ Capital Funds Percentage of Risk Assets, Q4 2016); and Indonesia, IMF and financial stabi lity reports (Commercial B anks, Regulatory Cap ital to Risk-Weighted Assets Ratio Q3 2016).
(5) implementation of section 2(a) to (d) of “The
Revised NSSLA of 1997”; (6) establishment/
relocation/voluntary closure/sale of branches;
(7) clean note and coin policy; (8) conversion of
microfinance-oriented thrift/rural banks/branches ;
and (9) governing fees on retail bank
products/services and dormant deposit accounts
(Annex A).
Capital Market Reforms
Capital market policy reforms continued to gain
ground during the fourth quarter of 2016 as the
government spearheaded measures to further the
development of the Philippine capital market. During
the period, the reforms focused on: (i) encouraging
more investments through a comprehensive tax
reform package that will aid revenue generation for
the government; and ii) a greater openness in view of
the country’s increasing integration with global
markets (see Annex B).
Stock Market
In the last three months of 2016, the Philippine Stock
Exchange index (PSEi) closed 9.3 percent lower
quarter-on-quarter to average 7,123.3 index points
during the period-in-review. Concerns over global
and domestic developments saw investors remaining
on the sidelines in Q4 2016. As of end-December
2016, the PSEi closed at 6,840.64 index points, lower
quarter-on-quarter by 10.3 percent and year-to-date
by 1.6 percent. (Table 10)
The local stocks close lower in
the last quarter of the year
amid a volatile env ironment
14.0
15.0
16.0
17.0
18.0
19.0
20.0
Mar Jun Sep DecMar Jun Sep DecMar Jun Sep DecMar Jun Sep DecMar Jun Sep
Solo Consolidated
2012 2013 2014 2015 2016
18 | Fourth Quarter 2016 Report on Economic and Financial Developments
Notwithstanding the country’s robust Q3 economic
growth, Philippine equities remained under pressure
amidst risk-off sentiment ahead of the US
presidential elections and the market’s knee-jerk
reaction to Donald Trump’s surprising election
victory. This has cast a cloud of uncertainty over the
impact of possible Trump policies on the Philippine
economy. Moreover, concerns over the much
anticipated rate hike finally implemented by the US
FED in December; the change in political leadership
in Italy and Austria; the uncertainty over other
scheduled elections in 2017 in the Netherlands
(March), France (April) and Germany (October); and,
rising geopolitical tensions following the
assassination of Russia’s ambassador to Turkey and
an apparent terrorist attack against shoppers at a
German Christmas market also weighed on the main
index.
Chart 15. Average PSEi In index points
Meanwhile, on the domestic front, political noise
related to Congressional hearings on the il legal drug
trade, and concerns over the possible action that the
Philippine Competition Commission may take against
the purchase by the two largest telecommunication
companies of the telecommunication assets of a
third player earlier in the year also dampened
sentiments. These developments offset positive news
of the country’s continued robust growth, the ECB’s
decision to extend its asset-buying program beyond
the March 2017 cut-off date and the OPEC’s
agreement to cut production by January 2017 to
raise oil prices.
Mirroring the decline in the PSEi, total market
capitalization declined by 3.6 percent,
quarter-on-quarter, to P14.4 tri l l ion in
end-December. However, this was higher
year-to-date by 7.2 percent from the P13.5 tril l ion
market capitalization posted in end-2015. Average
value turnover similarly dropped by 22.1 percent
quarter-on-quarter from P9.0 bil l ion in Q3 to
P7.0 bil l ion in Q4.
Chart 16. PSE Market Capitalization by Sector
Q4 2016, percent share
Given the uncertainty in the global and domestic
environment, foreign investors also dumped local
shares in the last three months of 2016. Preliminary
data from the PSE showed that foreign investors
registered net sales of P33.8 bil l ion during the review
quarter, a reversal from the net purchases of
P7.0 bil l ion posted in the preceding three months
ending September.
Chart 17. PSEi Foreign Transactions In bi llion pesos
Source: PSE
Financial 29.31%
Industrial 17.61%
Holding Firms
25.69%
Services 11.18%
Property 13.61%
Mining & Oil
2.48%
SME 0.12%
Source: PSE
Fourth Quarter 2016 Report on Economic and Financial Developments | 19
Lastly, data from Bloomberg similarly reflected a
deceleration in the domestic price-earnings ratio
from 20.77x in end-September to 18.63x in
end-December.
Bond Market
Local Currency Bond Market
Size and Composition28
Local currency (LCY) bonds issued by both the public
and private sectors amounted to P149.7 bil l ion in the
fourth quarter of 2016, 42.9 percent lower than the
P262.0 bil l ion registered in the previous quarter but
66.5 percent higher than the P89.9 bil l ion recorded in
the same period last year.
LCY bond issuances of public sector
decrease The NG issued Treasury bil ls (T-bil ls) and Fixed-rate
Treasury bonds (T-bonds) amounting to a total of
P77.5 bil l ion decreased by 63.1 percent from
Q3 2016. The decline in government issuance
reflects the higher yields demanded by investors.
Meanwhile, the private sector issuance of LCY bonds
amounted to P72.1 bil l ion, 39.1 percent higher than
the previous quarter and 185.8 percent higher than
Q4 2015. Local firms continue to tap the bond
market to take advantage of relatively lower rates as
they anticipate the US Fed to keep the rates steady
for the meantime before hiking rates again anytime
in 2017.
28
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 that were issued by the BTr
and GOCCs. These exclude issuances by the central bank.
Chart 18. LCY Bond Issuances
in bi llion pesos
Source: BTr, Bloomberg, Staff calculation
In terms of market share, issuances from the public
sector comprised 51.8 percent of the total bond
issuances while the private sector took the remaining
48.2 percent share. Bonds issued by the BTr
accounted for the entire public sector issuance while
issuers from the private sector came from real estate
companies.
Chart 19. LCY Bond Issuances As percent of market share; Q4 2016
Source: BTr, Bloomberg, Staff calcualtion
Primary Market 29
In the primary auctions conducted for both T-bil ls
and T-bonds, the NG offered a total of P135.0 bil l ion
of both short- and long-term debt securities. Demand
was robust as tenders were oversubscribed by
1.3 times. Tenders for T-bil ls reached P83.3 bil l ion as
against the NG’s offering of P60.0 bil l ion while for
T-bonds, tenders reached P90.1 bil l ion against the
P75.0 bil l ion offering.
29
The discussion includes primary market for government issuances only.
0
100
200
300
400
500
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Public Sector Private Sector
*Public: October 2016/ Private: October 2016 to November
51.8%
48.2%
Public Private Corp
*Public: October 2016/ Private: October 2016 to November 2016
20 | Fourth Quarter 2016 Report on Economic and Financial Developments
NG partially awards bids for
T-bills and T-bonds due to
relatively high yields demanded
The NG partially awarded the P135.0 bil l ion offering
in GS in Q4 2016 following the NG’s rejection of some
bids for both T-bil ls and T-bonds which were found to
be relatively higher than NG’s preferred rates.
Demand for shorter-term debt instruments tend to
be higher than long-term instruments given the
uncertain external developments that mainly affect
investment decisions in the long-term.
Secondary Market
Trading of both government and private corporate
bonds in the secondary market decreased by
51.0 percent to P345.9 bil l ion from P706.0 bil l ion
registered in the previous quarter. Likewise, on a
y-o-y basis, trading in the secondary market
decreased by 13.1 percent.
Trading decreases at the
secondary market
Trading was dominated mostly by Fixed Income
Treasury Notes (FITNs) which accounted for about
87 percent of the total trading while the share of
corporate bonds traded at the Philippine Dealing and
Exchange Corporation (PDEx) remained marginal at
1.5 percent. The relatively thin trading at the
secondary market reflected investor’s cautiousness
and concerns over the implications of the timing and
magnitude of further Fed interest rate hikes and the
uncertainty in the economic policy of the new
US administration.
Chart 20. Secondary Market Volume
In bi llion pesos
Source: Philillipine Dealing and Exchange Corporation (PDEx)
Foreign Currency Bond Market
During the quarter, the government refrained from
raising funds in the offshore market. The only foreign
issuance for the year was during the first quarter of
2016 amounting to US$2 bill ion with a 25-year tenor.
The NG opted to rely more on domestic financing
sources than on foreign creditors to l imit exposure to
foreign exchange risks. Meanwhile, for the private
sector, most firms also took advantage of the ample
domestic l iquidity, as indicated by a lone issuance by
a financial institution of US$300 mill ion bonds in the
foreign capital market. Sourcing by corporates of
their financing needs from the local capital market
reflects prudent l iability management and hedging
strategy as the dollar was expected to strengthen on
the back of the planned gradual US Fed rate hikes.
NG refrains from tapping the
international bond market in
raising funds
Credit Risk Assessment As of end-December 2016, Moody’s assigned the
Philippines a rating of Baa2, which is a notch above
the minimum investment grade and carries a
“stable” outlook. The factors behind the
Philippines’ investment grade credit rating were:
1) economic strength, citing robust economic
growth, favorable demographics, and rising
investments; 2) institutional strength due to the
ability of government institutions to implement
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2Q
201
03
Q2
010
4Q
201
01
Q2
011
2Q
201
13
Q2
011
4Q
201
11
Q2
012
2Q
201
23
Q2
012
4Q
201
21
Q2
013
2Q
201
33
Q2
013
4Q
201
31
Q2
014
2Q
201
43
Q2
014
4Q
201
41
Q2
015
2Q
201
53
Q2
015
4Q
201
51
Q2
016
2Q
201
63
Q2
016
4Q
201
6
Fourth Quarter 2016 Report on Economic and Financial Developments | 21
sound policies; 3) fiscal strength, referring to the
overall hea lth of government’s finances; 4) low
susceptibility to event risks given sound policies that
remain intact in both economic and political fronts;
5) low risk of banking system trouble; and 6) the
likewise low vulnerability of the economy to external
shocks.30
Philippine sovereign credit
ratings maintain investment
grade
On 13 November 2016, Japan-based debt watcher
Rating and Investment Information, Inc. (R&I)
affirmed the Philippines’ investment grade rating of
“BBB”, which is a notch above the minimum
investment grade and is assigned a “stable” outlook.
In its statement, the R&I said “The Philippines’
economy remains solid. Risks are l imited in terms of
external and fiscal positions, and the financial system
continues to be stable. Per capita income also keeps
improving.”
Among the other factors cited for affirming the
country’s investment grade rating include: 1) the
GIR providing sufficient buffer against external
shocks; 2) GIR is now higher than the country’s
external debt; 3) general government debt as a
percentage of GDP continues to decline; and 4)
private consumption and investments continue to
rise, supporting the Philippines’ official growth
targets.31
Table C. Latest Philippine Sovereign Credit Ratings
As of December 2016
30
Investor’s R elations Office, “Moody’s: Duterte Ad ministrat ion’s tax reform
infra agenda may boost PH credit rating, 18 October 2016. 31
Investor Relations Office, J apanes e ratings watchdog R&I affi rms PH investment grad e; s ays econo my rem ains ‘solid’ und er Duterte ad min,
13 November 2016.
Bond spreads
In October 2016, debt spreads widened following the
increased probability of a Fed rate hike by December
and the increased unpredictability of the outcome of
the US presidential election in November. The
increase in debt spreads were particularly evident in
the Philippines as the rise in negative investor
sentiments led to the poor performance of the stock
market and the Philippine peso.
Debt spreads narrow on
improved US economic data
In November, debt spreads widened further after
Donald Trump unexpectedly won over Hillary Clinton
in the US presidential election. Investors became
wary of the negative impact of the policy plans of US
President-elect Trump on emerging market
economies such as the Philippines.32
Prospects of
higher US government spending plan also cemented
the expectation of a 100 percent rate hike by the Fed
in December. Moreover, the increased concern over
Europe’s stability also created market jitters. 33
In December, debt spreads took a positive
turnaround and narrowed as investors appeared
upbeat as the Fed finally implemented the rate hike
reflecting higher growth expectations in the US.
Rising geopolitical tensions following the
assassination of Russia’s ambassador to Turkey, an
apparent terrorist attack against shoppers at a
German Christmas market; and concerns over the
change in European political leadership in Italy and
Austria provided relative uncertainty in bond
spreads.
By 30 December 2016, the Philippines’ 5-year
sovereign credit default swaps (CDS) stood at
111 bps, lower than the 116 bps in end-3Q and has
also remained lower than Indonesia’s 158 bps and
Malaysia’s 138 bps in the current quarter.
Meanwhile, the EMBIG Philippines ended the quarter
wider at 110 bps when compared to the previous
quarter’s closing of 102 bps.
32
Remittances and BPO industry may be adversely affected. 33
Start of BREXIT process and Italy’s referendum on constitutional reform.
Latest Philippine Sovereign Credit Ratings
As of December 2016
ptember 2016
2016
a
Rating
AgencyLocal Currency
(LT/ST)
Foreign Currency
(LT/ST)
Outlook
S&P BBB/A2 BBB/A2 Stable
Moody's Baa2/.n.a. Baa2n.a. Stable
Fitch BBB-/F3 BBB/n.a. Positive
22 | Fourth Quarter 2016 Report on Economic and Financial Developments
Chart 21. 5-Year CDS Spreads of Selected ASEAN Countries In basis points
Chart 22. EMBIG Spreads of Selected ASEAN Countries In basis points
Payments and Settlements System34 In Q4 2016, the total number of transactions settled
and processed in the Philippine Payments and
Settlements System (PhilPaSS) decreased by
1.5 percent to 406,791 from the previous quarter’s
level of 412,803. The decrease in volume was due
mainly to the decline in: Megalink transactions
(62.9 percent), and trades in government securities
(40.5 percent) and the US dollar (14.6 percent).
Both volume and value of
PhilPaSS transactions fall Q-o-Q
but show remarkable Y-o-Y
growth
34
Starting 1 April 2014, the volume and value of transactions exclude
payment transfers to BSP Payments Unit.
Similarly, the total value of transactions fell by
30.5 percent to P111.5 tril l ion from the previous
quarter level of P160.4 tril l ion. The drop in the value
of transactions was brought about by the decline in:
government securities (64.3 percent), overnight
deposit facil ity placements/maturities
(45.2 percent), interbank transactions (41.3 percent)
and US dollar trades (13.6 percent).
Table D. PhilPaSS Transactions
Overseas Fil ipino (OF) remittances coursed through
the REMIT system and interbank dealings continue to
dominate volume of transactions in the PhilPaSS
composing 75.2 percent of the total volume for the
quarter. In terms of value, interbank dealings,
reverse repurchase, term deposit, and overnight
deposit placements/maturities make up 91.3 percent
of the total value of transaction for the quarter.
On a year-on-year basis, Q4 2016 volume and value
of transactions increased by 13.1 percent and
68.4 percent, respectively.
As a result of lower volume and value of transactions,
total revenue derived from PhilPaSS operations
(mainly fees from settled debit instructions and third
party transactions) declined to P32.6 mill ion or
9.6 percent lower than the quarter-ago level of
P36.1 mill ion. On a y-o-y basis, total revenues rose by
2.1 percent.
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014 2015 2016
Philippines Indonesia Thailand Malaysia
0
50
100
150
200
250
300
350
400
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014 2015 2016
EMBIG Phil ippines EMBIG Malaysia
EMBIG Indonesia
2015
Q4 Q3 Q4 Y-o-Y
Volume 406,791 412,803 359,562 -1.5 13.1
Value 111.5 160.4 66.2 -30.57 68.4 (in trillion pesos)
Transation Fees 32.6 36.1 32.0 -9.67 2.1 (in million pesos)
Source: Payments and Settlements Office, BSP
Growth Rates (in percent)
2016
Q-o-Q
Fourth Quarter 2016 Report on Economic and Financial Developments | 23
External Sector
Balance of Payments
The country’s balance of payments position
registered a deficit of US$2.1 bil l ion in Q4 2016,
a reversal of the US$809 mill ion surplus posted in
Q4 2015.
Q4 2016 BOP position reverses
to deficit
This developed as the current account reversed to a
deficit during the quarter even as the financial
account registered lower net outflows (or net lending
by residents to the rest of the world). The deficit in
the current account was due mainly to the higher
deficit in trade-in-goods, combined with lower net
receipts of services and primary income.35
Meanwhile, the reduced net outflows in the financial
account was a result of the substantial increase in net
inflows of direct investments as well as the reversal
of portfolio investments to net inflows from net
outflows, which more than compensated for the
higher net outflows in the other investment account.
Economic recovery in China remained subdued and
growth prospects for ASEAN countries weakened due
to slower manufacturing activity across the region.
Meanwhile, economic activity in the US and euro
area remained steady and favorable business
sentiment supported the continued improvement of
the Japanese economy. Lingering uncertainties
arising from the uneven pace of economic growth
continued to factor into the country’s external
transactions, particularly the trade-in-goods account.
35
Primary Income account (formerly th e Income account) shows the flows for the use of labor and fin ancial resourc es between resid ent and non-resident institut ional units. Secondary Inco me account (formerly the
Current Transfers account) shows current transfers, in c ash or in kind, for nothing in return, between residents and non-residents.
Table E. Balance of Payments in mi llion US$
Current Account. The current account registered a
deficit of US$1 bil l ion in Q4 2016 (equivalent to
1.2 percent of GDP), a reversal of the US$1.4 bil l ion
surplus posted in Q4 2015.
Current account reverses to
deficit
This resulted primarily from the widening trade-in-
goods deficit along with the decline in net receipts in
the trade-in-services and primary income accounts.
Trade-in-Goods. The trade-in-goods deficit increased
to US$10 bill ion in Q4 2016 from US$7.5 bil l ion in Q4
2015 as the growth in imports of goods outpaced
that of exports by more than four times.
Trade-in-goods deficit widens
Exports of Goods. Exports of goods grew moderately
by 3.8 percent in Q4 2016 to
US$10.6 bil l ion from US$10.2 bil l ion in Q4 2015.
Increments in exports of coconut, mineral products,
fruits and vegetables, and other agro-based products
were posted during the quarter.
Balance of Payments ( in million US$)
2015 r 2016
Current Account 1442 -1032
Capital Account 23 24
Financial Account 926 54
Net Unclassified Items 270 -1006
Overall BOP* 809 -2068
r Revised
Q4
*Positive balance in the financial account indicates net outflows
while a negative balance indicates net inflows. The overall BOP
position, therefore, is equal to the current account plus the capital
account minus the financial account plus net unclassified items.
Details may not add up to total due to rounding.
24 | Fourth Quarter 2016 Report on Economic and Financial Developments
Exports of goods grow
moderately
Exports of coconut products grew by 71.3 percent to
US$489 mill ion in Q4 2016 on account mainly of
higher shipments of coconut oil (by 75.5 percent)
following the increase in its world market price.
Exports of coconut products contributed
2 percentage points to the 3.8 percent expansion in
exports. Mineral products exports rose by
24.8 percent to US$631 mill ion due to increased
shipments of other mineral products, largely nickel
ores and nickel oxide sinters and other intermediate
products of nickel metallurgy. Exports of fruits and
vegetables went up to US$351 mill ion attributed to
higher exports of bananas. These gains, however,
were partly offset by lower shipments of
manufactures and petroleum products.
Manufactured goods exports, comprising
82.4 percent of total exports of goods, fell by
1.5 percent on account mainly of lower shipments of
wood manufactures and non-consigned electronics.
Chart 23. Exports by Major Commodity Group in percent share
Imports of Goods. Imports of goods expanded by
16.5 percent to reach US$20.6 bil l ion in
Q4 2016 from US$17.7 bil l ion in Q4 2015. Except for
mineral fuels and lubricants, higher imports were
recorded in all major commodity groups during the
quarter.
Imports of goods outpace
exports
Imports of capital goods increased by 32.9 percent,
on account of higher imports of aircraft, ships and
boats, power generating and specialized machines,
telecommunication equipment and electrical
machines, and land transport equipment, excluding
passenger cars and motorized cycle. Imports of
capital goods contributed 8.1 percentage points to
the 16.5 percent increase in imports. Imports of raw
materials and intermediate goods grew by
17.3 percent, mostly semi-processed raw materials
(which increased by 15.4 percent), such as chemicals
and manufactured goods (notably iron and steel).
Imports of capital goods and raw materials and
intermediate goods combined, contributed
14.2 percentage points to the 16.5 percent increase
in imports, indicating continued expansion in
production to support domestic economic activity.
Imports of consumer goods went up by 19.9 percent,
boosted mainly by increased importation of durable
goods particularly passenger cars and motorized
cycles. Meanwhile, imports of mineral fuels and
lubricants dropped by 1.4 percent to US$2.1 bil l ion in
Q4 2016 due primarily to reduced imports of
petroleum crude oil (by 11.6 percent) following the
decline in import volume (from 19 mill ion barrels in
Q4 2015 to 18 mill ion barrels in Q4 2016) even as the
import price of crude oil increased during the
quarter.36
Chart 24. Imports by Major Commodity Group
in percent share
36
Based on World Bank Commodities Pr ice d ata, th e average price of Dubai crude oil in October-December 2016 increased to US$47.9/barrel
from US$41.2/barrel in October-December 2015.
Fourth Quarter 2016 Report on Economic and Financial Developments | 25
Trade-in-Services. Net receipts in trade-in-services
amounted to US$1.7 bil l ion in Q4 2016,
lower by 16.7 percent than the US$2.1 bil l ion net
receipts in the comparable quarter a year ago.
Net receipts in trade-in-services
decline
The decline was due largely to lower net receipts in
technical, trade-related, and other business services
(by 16.4 percent), coupled with higher net payments
in travel and transport services. Meanwhile, net
receipts in computer services were markedly higher
(by 134.7 percent), on account of higher business
process outsourcing (BPO) transactions, particularly
software publishing and development. Export
revenues from BPO services totaled US$4.6 bil l ion in
Q4 2016, 3.1 percent lower than the US$4.7 bil l ion
receipts in Q4 2015.
Primary Income. The primary income account posted
net receipts of US$721 mill ion in
Q4 2016, 21.6 percent lower than US$920 mill ion net
receipts in Q4 2015.
Net receipts in primary income
drop
This was due largely to the decline in compensation
inflows from resident overseas Fil ipino (OF) workers
(by 6.8 percent), specifically from sea-based workers
and increased net payments of investment income
(by 6.6 percent) on account of higher dividends paid
to foreign direct and portfolio investors.
Compensation inflows from resident OF workers
amounted to US$1.8 bil l ion during the quarter.
Secondary Income. Net receipts in the secondary
income account increased by 10.1 percent to
US$6.5 bil l ion in Q4 2016 from US$5.9 bil l ion in
Q4 2015.
Net receipts in secondary
income increase
Personal transfers grew by 9 percent to reach
US$6.1 bil l ion. The bulk of these personal transfers
comprised of non-resident OF workers' remittances
(about 98 percent), which increased by 9.2 percent to
US$6 bill ion.
Capital Account. Net receipts in the capital account
were marginally higher in Q4 2016 at US$24 mill ion.
The capital registers higher net
receipts
Receipts from other capital transfers to the National
Government (NG) increased during the quarter.
Financial Account. The financial account registered
net outflows (or net lending by residents to the
rest of the world) of US$54 mill ion in Q4 2016,
94.2 percent lower than the US$926 mill ion net
outflows in Q4 2015.
The financial account registers
lower net outflows
The lower net outflows resulted mainly from higher
net inflows of direct investments which more than
offset the increase in net outflows of other
investments.
Direct Investments. Net inflows of direct
investments reached US$1.8 bil l ion in Q4 2016,
twenty-two times the US$83 mill ion net inflows in
the comparable quarter a year ago.
Net inflows of direct investment
expand
This positive development was on account of a
marked reduction in residents’ net acquisition of
financial assets. Meanwhile, residents’ net incurrence
of l iabilities (foreign direct investments in the
Philippines or FDI) rose by 82.6 percent to
US$2.1 bil l ion, driven largely by the 149.7 percent
increase in non-residents’ net placements in debt
instruments issued by their local
26 | Fourth Quarter 2016 Report on Economic and Financial Developments
affil iates/subsidiaries (or intercompany borrowings)
to reach US$1.5 bil l ion. Non-residents’ net
placements of equity capital in local affi liates l ikewise
grew by 13.8 percent to US$418 mill ion, with fresh
infusions coming mostly from Hong Kong, Japan, the
United States (US), Taiwan, and Germany. These
inflows were channeled to arts, entertainment and
recreation; financial and insurance; real estate;
manufacturing; and wholesale and retail trade
activities.
Portfolio investment account
shifts to net inflows
Portfolio Investments. The portfolio investment
account registered net inflows totaling
US$309 mill ion in Q4 2016, a turnaround from
US$256 mill ion net outflows in the comparable
quarter of the previous year. This resulted mainly
from residents’ net disposal of financial assets
(amounting to US$418 mill ion), particularly non-
residents’ redemption of local banks’ holdings of
short-term debt securities amounting to
US$1.1 bil l ion. Meanwhile, residents’ net repayment
of l iabilities reached US$109 mill ion. These
repayments include non-residents’ net withdrawal of
placements in equity securities issued by local non-
bank corporations (US$435 mill ion) and banks
(US$218 mill ion), as well as in debt securities issued
by local corporates (US$363 mill ion).
Financial Derivatives. The financial derivatives
account recorded a net gain of US$78 mill ion during
the review quarter compared to a net loss of
US$18 mill ion in Q4 2016.
Trading in financial derivatives
result in net gain
Other Investments. The other investment account
yielded US$2.3 bil l ion net outflows in Q4 2016, more
than threefold the level posted in Q4 2015.
Other investments account
posts higher net outflows
Residents’ net acquisition of financial assets reached
US$2 bill ion, coming mostly from local banks’ short-
term net lending to non-residents (US$1 bil l ion) and
their placements of currency and deposits in foreign
banks (US$541 mill ion). Meanwhile, residents’ net
repayment of l iabilities reached US$307 mill ion, a
reversal of the US$11 mill ion net incurrence of
l iabilities in the same quarter of the previous year.
The primary sources of net outflows from the
liabilities side were net repayment of loans availed by
local corporates from non-resident creditors
(US$477 mill ion), non-residents’ net withdrawal of
currency and deposits in local banks
(US$403 mill ion), and residents’ net settlement of
trade credit and advances extended by non-residents
(US$311 mill ion).
International Reserves
The country’s gross international reserves (GIR) stood
at US$80.7 bil l ion as of end-December 2016, easing
from the record high of US$86.1 bil l ion in
end-September 2016. The GIR remains highly
adequate as it can cover 9.2-months’ worth of
imports of goods and payments of services and
income. It is also equivalent to 5.8 times the
country’s short-term external debt based on original
maturity and 4.1 times based on residual maturity.
Reserves remain adequate
The decline in reserves was due mainly to the
outflows arising from payments made by the NG for
its maturing foreign exchange obligations, foreign
exchange operations of the BSP, and revaluation
adjustments on the BSP’s gold holdings and foreign
currency-denominated reserves. These were partially
offset by the NG’s net foreign currency deposits.
Of the total reserves as of end-December 2016,
84.6 percent were held in foreign investments;
9.0 percent in gold; and 6.4 percent in holdings of
Special Drawing Rights (SDRs), the BSP’s reserve
position in the IMF, and foreign exchange.
Fourth Quarter 2016 Report on Economic and Financial Developments | 27
Chart 25. Gross International Reserves
In bi llion US dollars
Net international reserves (NIR), which refer to the
difference between the BSP’s GIR and total
short-term liabilities, amounted to US$80.7 bil l ion as
of end-December 2016, a decline of US$5.4 bil l ion
from end-September 2016.
Exchange Rate
The peso depreciated against the US dollar in the
fourth quarter of 2016. On a quarter-on-quarter
basis, the peso weakened by 4.2 percent to average
₱49.11/US$1 from the previous quarter’s average of
₱47.05/US$1. On a year-on-year basis, the peso
likewise depreciated by 4.6 percent relative to the
₱46.83/US$1 average in the fourth quarter of 2015 .37
The weakness of the peso against the US dollar was
due mainly to a confluence of factors such as: (i) the
US Fed rate hike in December 2016 and expectation
of more and faster rate increases in 2017; and
(i i) investor sentiment related to various changes in
political dynamics and their possible repurcussions
on economic policies such as the local elections, the
Brexit, referendum in Italy, and the victory of Donald
Trump in the US presidential elections. Mr. Trump’s
victory is expected to usher in a more stimulative
fiscal policy (lower taxes and more infrastructure
spending) which could result in higher interest rates
and inflation expectations.
37
Dollar rates or the reciprocal of the peso-dollar rates were used to
compute for the percentage change.
Peso depreciates against the
US dollar
In October 2016, the peso depreciated against the
US dollar by 1.9 percent to average ₱48.35/US$1
relative to the ₱47.43/US$1 a month ago on the back
of positive US economic data which strengthened the
prospect for an increase in US interest rate by
December 2016. In the domestic front, corporate
demand for foreign exchange was heavy due to
month-end requirements. Similarly, in November,
the peso depreciated against the US dollar by
1.6 percent to average ₱49.16/US$1. Potential
changes in US policy under President-elect Donald
Trump, specifically increased trade protection (such
as US withdrawal from the Trans-Pacific Partnership
trade deal) and the negative market sentiment due
to an expected Fed rate hike in December 2016,
triggered risk aversion to regional currencies
including the peso. In December, the peso
depreciated anew by 1.3 percent to average
₱49.82/US$1 as the outlook for Asian currencies,
including the peso remained clouded by expectations
that the US Fed could raise rates at a faster pace in
2017. Overall, the ample level of international
reserves, sustained structural inflows of foreign
exchange from overseas Fil ipino remittances, foreign
direct investments, and BPO and tourism receipts
continued to support the peso.38
On a year-to-date basis, the peso depreciated against
the US dollar by 5.4 percent on 29 December 2016 as
it closed at ₱49.72/US$1. The peso depreciated along
with most Asian currencies, except the Japanese yen,
Indonesian Rupiah, New Taiwan dollar and Thai Baht.
38
As of end-December 2016, country’s gross international reserves (GIR) stood at US$80.69 billion (revised) from the year-ago level of US$80.67
billion; personal remittances (cumulative) reached US$29.71 billion as of end-December 2016 from US$28.31 billion during the same period last year;
foreign direct investments (FDI) grew to US$6.97 billion as of end-November 2016 from the year-ago level of US$5.56 billion; tourism receipts expanded to US$4.04 billion at end-September 2016 from US$3.94 billion a year ago;
BPO receipts are expected to reach US$22.89 billion as of end-December 2016 (based on Information Technology and Business Processing Association of the Philippines [IBPAP] estimates) from the previous year level of
US$20.50 billion.
72
76
80
84
88
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014 2015 2016
Source: BSP
28 | Fourth Quarter 2016 Report on Economic and Financial Developments
Chart 26. Year-to-date Appreciation/Depreciation of Asian Currencies against US dollar In percent, as of 29 December 2016
Meanwhile, volatil ity as measured by the coefficient
of variation (COV) of the peso’s daily closing rates
stood at 1.4 percent during the fourth quarter of
2016, higher compared to the 1.2 percent in the
previous quarter. Compared to other currencies in
Asia, the volatil ity of the peso was in the middle of
the pack.39
On a real trade-weighted basis, the peso gained
external price competitiveness in Q4 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 decreased by 1.5 percent,
1.1 percent, and 1.7 percent, respectively, relative to
the third quarter of 2016. Behind this development
was the nominal depreciation of the peso against
these currency baskets.40,41
39
The volatility of the peso was higher than that of Thai baht and Chinese yuan but lower than that of Indonesian rupiah, Singaporean dollar, South
Korean won, Malaysian ringgit, and Japanese yen. 40
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. 41
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 vis -
à-vis a basket of foreign currencies.
Relative to Q4 2015, the peso likewise gained
external price competitiveness against the TPI, TPI-A,
and TPI-D baskets. This developed as the nominal
depreciation of the peso offset the impact of
widening inflation differential, resulting in a decrease
in the REER index of the peso by 4.3 percent,
6.7 percent, and 2.6 percent against the TPI, TPI-A,
and TPI-D baskets, respectively.
External Debt
Outstanding Philippine external debt stood at
US$74.8 bil l ion as of end-2016, a decline of
US$1.9 bil l ion (or 2.4 percent) from the
US$76.6 bil l ion end-September 2016 level.
Year-on-year (y-o-y), the debt stock l ikewise dropped
by US$2.7 bil l ion (or 3.5 percent) from the
US$77.5 bil l ion level in 2015.
External debt remains
manageable
This development is attributed to: (a) downward
foreign exchange (FX) revaluation adjustments of
US$1.8 bil l ion as the US dollar strengthened against
third currencies, particularly the Japanese Yen
(US$1.4 bil l ion); (b) net principal repayments of
US$611 mill ion, mainly by the National Government
(NG) and the Power Sector Assets and Liabilities
Management Corporation (PSALM); and (c) prior
period audit adjustments (negative US$73 mill ion).
The downward impact of these developments on the
debt stock was partially offset by the US$591 mill ion
transfer of Philippine debt papers from residents to
non-residents which had the effect of increasing
outstanding external debt.
Fourth Quarter 2016 Report on Economic and Financial Developments | 29
On a y-o-y basis, the debt stock l ikewise dropped due
to: (a) net principal repayments by both the public
and private sectors (US$3.4 bil l ion); (b) previous
periods’ audit adjustments (negative US$168 mill ion)
due to late reporting; and (c) negative (downward)
FX revaluation adjustments (US$36 mill ion).
However, the full downward impact of these factors
on the debt stock was partly offset by an increase in
non-residents investments in Philippine debt papers
issued offshore (US$846 mill ion).
Chart 27. Philippine External Debt In bi llion US dollars
Source: BSP-International Operations Department (IOD)
By Maturity
As of year-end, the maturity profile of the country’s
external debt continued to be largely medium- to
long-term (MLT) in nature [i.e., those with original
maturities longer than one (1) year], with a share to
total of 80.6 percent (US$60.2 bil l ion). This means
that FX requirements for debt payments are well
spread out and, thus, more manageable.
The weighted average maturity for all MLT loans
stood at 16.9 years at the close of 2016, slightly
better than the 16.5 years recorded a year ago.
Although q-o-q, this was shorter with the end-
September 2016 figure at 17.5 years.
Short-term (ST) loans [or those with original
maturities of up to one (1) year] stood at
US$14.5 bil l ion by the close of 2016, accounting for
19.4 percent of the debt stock. These accounts
consisted of: (a) bank liabilities of US$12.3 bil l ion
(domestic banks - US$7.4 bil l ion; foreign bank
branches - US$4.0 bil l ion; and government financial
institutions - US$801 mill ion); (b) trade credits
(US$2.1 bil l ion); and (c) other l iabilities
(US$188 mill ion).
Chart 28. Philippine External Debt by Maturity as of end-December 2016
Source: BSP-IOD
By Borrower
At the end of 2016, public sector borrowings were
down to US$37.5 bil l ion (or by US$1.8 bil l ion) from
US$39.3 bil l ion in September 2016, with its share to
total correspondingly declining from 51.3 percent to
50.1 percent. This was due largely to negative FX
revaluation adjustments (US$1.7 bil l ion) and net
principal repayments (US$896 mill ion), which were
partly offset by the increase in non-residents’
investments in public sector debt papers
(US$749 mill ion). About US$30.5 bil l ion
(81.5 percent of public sector obligations) were NG
borrowings.
Private sector debt remained almost unchanged on a
q-o-q basis at US$37.3 bil l ion, although its share to
total increased to 49.9 percent from 48.7 percent q-
o-q due to the substantial drop in public sector
accounts. As of end-2016, the following were noted
for private sector accounts: (a) increase in resident
holdings of private sector debt papers
(US$158 mill ion); (b) downward FX revaluation
adjustments (US$90 mill ion); and (c) prior periods’
adjustments due to late reporting (negative
US$74 mill ion). Net availments during the quarter
(US$286 mill ion) partly mitigated the decline in
private sector debt. About US$14.4 bil l ion
(or 38.7 percent) of these accounts were obtained
without BSP approval (including capital leases of
US$1.3 bil l ion).
72.0
73.0
74.0
75.0
76.0
77.0
78.0
79.0
80.0
Short-Term US$14.5
billion 19.4%
Medium- and Long-
Term US$60.2
Total = US$74.7 billion
30 | Fourth Quarter 2016 Report on Economic and Financial Developments
Chart 29. Philippine External Debt by Borrower
as of end-December 2016
Source: BSP-IOD
The 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 adequacy of the country’s FX
earnings to meet maturing obligations. As of
end-2016, the ratio increased to 7.8 percent as
against 5.2 percent a quarter ago, and 5.5 percent a
year ago.
The external debt ratio (a solvency indicator), or total
outstanding debt expressed as a percentage of
annual aggregate output or the gross national
income (GNI), continued to improve by year-end to
20.4 percent, from 21.1 percent in end-September
2016 and 21.9 percent as of end-2015. The same
trend was observed using GDP as denominator,
indicating the country's sustained strong position to
service FX obligations in the medium-term.
Foreign Interest Rates
The timing of exit from accommodative monetary
policy in advanced economies has differed across
countries depending on the strength of their
economic growth. Accommodative monetary policy
is expected to continue in countries where risk of low
inflation persists and recovery remains fragile due to
weakness in labor market conditions, slowdown in
spending, and anemic bank lending growth.
Monetary policy in some AEs
continues to be
accommodative, as recovery
remains fragile
In Q4 2016, the US Fed raised the target range for the
federal funds rate at 0.50-0.75 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 roll ing over maturing Treasury securities at
auction.42
Both the average US prime rate and
discount rate increased to 3.512 percent and
1.049 percent from the previous quarter’s figures of
3.500 percent and 1.000 percent, respectively
(Table 16). Moreover, the US Fed funds rate
increased to 0.499 percent from the 0.399 percent
average reported in the previous quarter.
The Monetary Policy Committee (MPC) of the Bank of
England (BOE) maintained the official bank rate paid
on commercial banks’ reserves at 0.25 percent. It
also continued the purchase of up to £10 bil l ion of
corporate bonds and £60 bil l ion of government
bonds, increasing the stock of the asset purchases to
£435 bil l ion.43
The Bank of Japan (BOJ) introduced the “Quantitative
and Qualitative Monetary Easing with Yield Curve
Control” as a new framework to further strengthen
its monetary easing scheme. The framework is
composed of two components: the first component is
the "yield curve control" in which the BOJ controls
short-term and long-term interest rates; and the
second component is an "inflation-overshooting
commitment" in which the BOJ commits itself to
expand the monetary base until inflation exceeds the
target of 2 percent. As for the short-term interest
rate, the BOJ applies a negative interest rate of
0.1 percent to current accounts that financial
institutions hold at the Bank. For the long- term
interest rate, the BOJ buys Japanese government
bonds (JGBs) at a rate of 80 tril l ion yen per year in
42
Press Release. (n.d.). Retrieved from
https://www.federalreserve.gov/newsevents/press/mon etary/20161214a.htm 43
Press Release. (n.d.). Retrieved from
http://www.bankofengland.co.u k/public ations/Pages /news/2016/012.aspx
Total = US$74.7 billion Public Sector
US$37.4 50.1%
Private Sector
US$37.3 49.9%
Fourth Quarter 2016 Report on Economic and Financial Developments | 31
order for the 10-year JGB yields to remain at around
zero percent. In terms of asset purchases, the BOJ
has doubled the purchase of exchange-traded funds
(ETFs) at an annual pace of 6 tril l ion yen from
3.3 tril l ion yen while the purchase of Japan real
estate investment trusts (J-REITs) were maintained at
90 bil l ion yen annually. Likewise, the BOJ continues
its purchases of commercial papers and corporate
bonds until their outstanding amounts reach
2.2 tril l ion yen and 3.2 tril l ion yen, respectively.44
Meanwhile, the Governing Council of the European
Central Bank decided to maintain the interest rates
on the deposit facil ity, main refinancing operation,
and marginal lending facility at -0.40 percent,
0.0 percent, and 0.25 percent, respectively. The
Governing Council also decided to continue its
purchases under the asset purchase program (APP) at
a monthly pace of €80 bil l ion until the end of March
2017 and starting in Apri l 2017, the net asset
purchases are intended to continue at a monthly
pace of €60 bil l ion until the end of December 2017.45
Meanwhile, both the 90-day LIBOR and 90-day
Singapore Interbank Offered Rate (SIBOR) increased
in Q4 2016 to 0.921 percent and 0.906 percent from
0.785 percent and 0.881 percent, respectively, as
global financial markets remained generally l iquid.
Chart 30. Selected Foreign Interest Rates In percent
44
Press Release. (n.d.). Retrieved from https:// www.boj.or.jp/en/announcements/releas e_2016/k161220a.pdf 45
Press Release. (n.d.). Retrieved from
https://www.ecb.europ a.eu/press/pr/date/2016/html/pr161208.en.html
Global Economic Developments
Developments in the fourth quarter (Q4) of 2016
showed a stable but average growth for the global
economy. While there has been a stronger-than-
expected momentum in growth in advanced
economies attributable to the continued recovery of
manufacturing output, the slowdown in some
emerging market economies contributed to the
modest growth for the global economy.
(see Table F. Macroeconomic Indicators for Selected
Economies)
The uptick in the US economy resulted in an annual
growth of 1.9 percent in Q4 2016. The increase in US
real GDP was driven primarily by positive
contributions from personal consumption
expenditure, private inventory investments,
residential and non-residential fixed investment, and
government spending. These were partly offset by
negative contributions from exports and increased
imports.46
For the fourth consecutive quarter, Japan
registered a 1.7 percent expansion amid stagnating
private demand and weakening yen. Strong external
dynamics and accommodative monetary policy
boosted business confidence, which resulted in
higher private non-residential investments.47
The Eurozone economic activity advanced by
1.7 percent in Q4 2016, a modest growth from the
previous quarter, as stronger growth in Germany and
France was partially offset by the weak economic
growth in Italy and the steady pace in output growth
in Spain.48
46
US Bureau of Economic Analysis 47
FocusEconomics 48
Eurostat
0.0000
0.5000
1.0000
1.5000
2.0000
2.5000
3.0000
3.5000
4.0000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016
US Prime Rate US Discount Rate
US Federal Funds Rate LIBOR (90 days)
SIBOR (90 days)1
Source: Bloomberg, Asian Wall Street Journal, Reuters 1SIBOR data refers to SIBOR rates ( in Singapore $)
32 | Fourth Quarter 2016 Report on Economic and Financial Developments
Chart 31. Real GDP of G3 Countries year-on-year growth; in percent
Meanwhile, most emerging economies in Asia
recorded stronger output growth. India’s economy
recorded one of the fastest growth in the region at
7 percent in Q4 2016 from 7.3 percent in Q3,
attributable to robust growth in public
administration, defense and other services,
manufacturing and trade, hotels, transportation and
communication services related to broadcasting.49
China also grew at a rapid pace of 6.8 percent, 50
driven by exports and real estate sector, and
complemented by supply-side structural reforms
such as reduction of overcapacity and inventories,
de-leveraging, lowering costs, and shoring up weak
growth areas. Economic growth in Hong Kong stood
at 3.1 percent underpinned largely by private
consumption expenditure and government spending.
Similarly, Singapore’s economy grew by 2.9 percent
from 1.1 percent in the previous quarter driven by
the expansion in manufacturing, and transportation
and storage sectors.51
Meanwhile, South Korea’s
economy slowed to 2.3 percent due to the lackluster
growth in household, public spending, investment,
and exports.
In the ASEAN-5 region, member countries posted
mixed GDP growth rates. The Malaysian economy
grew by 4.5 percent during the review quarter, a
modest improvement from the 4.3 percent growth in
the previous quarter. This was supported by the
expansion in domestic demand and exports. In
Vietnam, GDP grew by 6.2 percent buoyed by the
uptrend in the industry and manufacturing sectors.
Indonesia, Philippines, and Thailand, however,
49
Government of India, Ministry of Statistics and Programme Implementation 50
National Bureau of Statistics of China 51
The Ministry of Trade and Industry, Singapore
recorded a slightly weaker growth in the review
quarter. The Indonesian economy s hrank to
4.9 percent as growth was steered by weaker private
consumption, while investment, government
spending, and exports rebounded. The Philippine
economy grew by 6.6 percent, sl ightly slower from
the previous quarter’s 7.0 percent growth, driven
mainly by manufacturing, trade, real estate, renting
and other business activities.52
In Thailand, GDP
growth further softened in the current quarter to
3.0 percent. The decline in economic growth was
brought about by slowdown in private consumption
amidt expansion in major crop production of wet-
season rice.53
Average headline inflation rates generally increased
in major advanced economies in Q4 2016 as the
effects of past energy price declines dissipate.
Inflation in the US edged up to 1.8 percent from
1.1 percent while Japan’s inflation increased to
0.3 percent from -0.5 percent and Euro area inflation
to 0.7 percent from 0.3 percent.
Chart 32. Inflation of G3 Countries quarterly average, in percent
Most emerging Asian economies also recorded an
increase in inflation during the fourth quarter, except
for Hong Kong and India. South Korea recorded a
higher inflation rate at 1.4 percent during the review
quarter from the previous quarter’s 0.8 percent while
in Singapore, inflation was at 0.0 percent from
-0.4 percent a quarter ago. In China, inflation was
registered at 1.5 percent from 1.3 percent in the
previous quarter. Average inflation rates in Hong
Kong and India were lower at 1.2 percent and
2.7 percent during the review quarter from
52
Philippine Statistics Authority 53
National Economic and Social Development Board, Thailand
1.9
1.7
1.9
0.7
0.9
1.7
2.0
1.6 1.7
0.0
0.5
1.0
1.5
2.0
2.5
Q4 2015 Q3 2016 Q4 2016
US Japan Euro Area
Source: Bloomberg, Country Websites
0.5
1.1
1.8
0.3
-0.5
0.3 0.1
0.3
0.7
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
Q4 2015 Q3 2016 Q4 2016
US Japan Euro Area
Source: Bloomberg, Country Websites
Fourth Quarter 2016 Report on Economic and Financial Developments | 33
5.3 percent, and 3.1 percent in the previ ous quarter,
respectively.
In the ASEAN-5 region, average inflation rates
generally picked-up in Q4 2016, with Vietnam
recording the highest improvement, owing to faster
price increase in transport, beverages and tobacco,
household, and culture and entertainment. Inflation
in Indonesia during the review period was boosted by
domestic demand, weak external pressure, and
improved inflation expectations. Meanwhile, higher
prices for food and non-alcoholic beverages as well
as for transport, recreation and culture resulted in
higher inflation in the Philippines. Likewise,
Malaysia’s inflation was influenced mainly by growth
in food including food at home, food away from
home, and non-alcoholic beverages such as coffee,
tea, and cocoa. The rise in Thailand‘s Q4 inflation was
traced to increases in consumer prices particularly in
prices of energy and vehicles, and vehicles
operations.
Global labor market conditions moderately
improved. The unemployment rate in the US and
Euro area eased to 4.7 percent and 9.7 percent,
respectively, during the review quarter while Japan’s
unemployment rate grew moderately at 3.1 percent.
Chart 33. Unemployment Rates of G3 Countries In percent
In Asia, the unemployment rate in China was stable,
while that of Singapore’s slightly inched up to
2.2 percent from 2.1 percent a quarter-ago.
Meanwhile, the unemployment rates showed a
downtrend in the Philippines (4.7 percent), but
stagnant in Malaysia (3.5 percent) and with a slight
uptrend in Thailand at 1.0 percent.
Table F. Macroeconomic Indicators in Selected Economies in percent
Financial Condition of the BSP
Balance Sheet
The BSP’s total assets stood at P4,559.1 bil l ion as of
end-December 2016, lower by P201.6 bil l ion or
4.2 percent than the quarter-ago level of P4,760.7
bil l ion, but higher by P249.20 bil l ion or 5.8 percent
relative to the year-ago level of P4,309.9 bil l ion
(Table 17). Similarly, the BSP’s l iabilities fell by
P202.7 bil l ion or 4.3 percent, q-o-q, to
P4,500.7 bil l ion, albeit slightly higher by
P232.00 bil l ion or 5.4 percent compared to the end-
December 2015 level. Consequently, BSP’s net worth
for the review period was reported at P58.4 bil l ion or
1.9 percent above the quarter-ago level of
P57.3 bil l ion, and significantly greater by
41.8 percent than the year-ago net worth of
P41.2 bil l ion.
5.0 4.9 4.7
3.3 3.0 3.1
10.5 10.0 9.7
0.0
5.0
10.0
15.0
Q4 2015 Q3 2016 Q4 2016
US Japan Euro Area
Source: Bloomlberg, Country Websites
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
G3
US 1.9 1.6 1.3 1.7 1.9 0.5 1.1 1.0 1.1 1.8 5.0 4.9 4.9 4.9 4.7
Japan 0.7 0.2 0.6 0.9 1.7 0.3 0.0 -0.4 -0.5 0.3 3.3 3.2 3.2 3.0 3.1
Euro Area 2.0 1.7 1.6 1.6 1.7 0.1 0.0 -0.1 0.3 0.7 10.5 10.3 10.1 10.0 9.7
Emerging Asia3/
Hong Kong 1.9 0.8 1.7 1.9 3.1 2.3 2.8 2.6 3.1 1.2 3.3 3.3 3.4 3.4 3.3
South Korea 3.1 2.8 3.3 2.6 2.3 1.1 1.0 0.9 0.8 1.4 3.5 3.8 3.7 3.8 3.6
Singapore 1.8 2.0 2.0 1.1 2.9 -0.7 -0.8 -0.9 -0.4 0.0 1.9 1.9 2.1 2.1 2.2
China 6.8 6.7 6.7 6.7 6.8 1.7 1.3 1.0 1.3 1.5 4.1 4.0 4.1 4.0 4.0
India 7.2 7.9 7.1 g 6.5 5.7 6.2 5.3 2.7 n.a. n.a. n.a. n.a. n.a.
ASEAN-54/
Indonesia 5.0 4.9 5.2 5.0 4.9 4.8 4.3 3.5 3.0 3.3 n.a. 5.5 5.5 5.6
Malaysia 4.5 4.2 4.0 4.3 4.5 2.6 3.4 1.9 1.4 1.7 3.2 3.4 3.4 3.5 3.5
Philippines 6.5 6.8 7.0 7.1 6.6 1.0 1.1 1.5 2.0 2.5 5.6 5.8 6.1 5.4 4.7
Thailand 2.8 3.2 3.5 3.2 3.0 -0.9 -0.5 0.3 0.3 0.7 0.8 0.9 1.1 0.9 1.0
Vietnam 6.7 5.5 5.5 5.9 6.2 0.0 1.3 2.2 2.8 4.5 2.4 2.1 2.1 2.1 n.a.
Sources: Bloomberg, Country Websites
1/ Real GDP growth rate from Quarter One Year Ago
2/ Unemployment rate is the proportion (in percent) of the total number of unemployed as a percentage of the labor force
3/ Includes Emerging Asia countries classified in the July 2016 IMF World Economic Outlook (WEO) Update , plus Hong Kong, South Korea, and
Singapore.
4/ ASEAN-5 pertains to those countries in the said WEO Update.
CountryReal GDP (y-o-y growth rate)1/ Inflation (quarterly average) Unemployment rate2/
34 | Fourth Quarter 2016 Report on Economic and Financial Developments
BSP’s net worth improves from
the prev ious quarter
The BSP’s assets were composed largely of
international reserves amounting to P3,998.0 bil l ion
(U$80.7 bil l ion) as of end- December 2016, lower
than the quarter-ago balance of P4,158.0 bil l ion
(US$86.1 bil l ion). The reduction in the international
reserves was brought by lower net foreign currency
deposits following the payments made by the
National Government (NG) for its foreign currency
obligation and foreign exchange operations of the
BSP. Furthermore, the BSP’s gold holdings declined
during the review period due to the decrease in the
price of gold in the international market.
As of end-December 2016, the BSP’s l iabilities
amounted to P4,500.7 bil l ion, comprised mostly of
deposits and currency issues.54
This amount was
below the quarter-ago level of P4,703.4 bil l ion due
mainly to decreased deposits from Treasurer of the
Philippines account of about P181.2 bil l ion, and
lower placements in overnight deposit facil ities of
about P397.9 bil l ion.
Table G. Balance Sheet of the BSP In bi llion pesos
Income Statement
Based on preliminary and unaudited data, the BSP
registered a net income of P3.0 bil l ion for Q4 2016,
lower than the previous quarter’s net income of
P10.6 bil l ion. The decrease in net income was
54
As of 31 Dec emb er 2016, th ere were about 3.85 billion piec es of notes valued at P1.09 trillion and 26.35 billion pieces of coins valued at of P29.63
billion in circulation.
brought about by the drop in revenues of
P11.3 bil l ion and increase in expenses of P2.4 bil l ion,
partially offset by the rise in Gain on Foreign
Exchange Rate Fluctuations of P6.3 bil l ion (Table 18).
BSP registers net income in Q4
2016
Total revenues for Q4 2016 amounted to
P12.1 bil l ion, 48.4 percent lower than the
P23.4 bil l ion posted in the previous quarter, as
miscellaneous income dropped to P0.7 bil l ion from
the previous quarter’s level of P11.5 bil l ion.
Meanwhile, total expenditures advanced by P2.4
bil l ion to P19.4 bil l ion. The q-o-q rise in expenditures
was brought by higher cost of printing of coins and
other expenses, tempering the combined effect of
lower revenues and higher expenditures is the
P6.3 bil l ion rise in Gain on FX rate fluctuations.
Table H. Income Position of the BSP
In bi llion pesos
2015
Dec p, uSep Decr
Assets 4,559.1 4,760.7 4,309.9
Liabilities 4,500.7 4,703.4 4,268.7
Net Worth 58.4 57.3 41.2
Note:p
u Unaudited.r
Source:
2016
Based on the preliminary (pre-closing) BSP balance sheet
as of end-December 2016 prepared by the Financial
Accounting Department (FAD) of the BSP.
Details may not add up to total due to rounding off.
BSP
Restated based on the audited financial statements
prepared by BSP-FAD
2015
Q4 p ,u Q3 Q4 r
Revenues 12.085 23.422 13.477
Less: Expenses 19.364 16.993 19.162
Net Income/(Loss) Before Gain/(Loss) on FX R
Fluctuations and Income Tax Expense/(Benefit) (7.279) 6.429 (5.685)
Gain/(Loss) on Foreign Exchange Rate Fluctuations 10.413 4.145 3.897
Income Tax Expense/(Benefit) 0.104 0.002 (0.335)
Net Income/(Loss) After Tax 3.030 10.572 (1.453)
Note: Details may not add up to total due to rounding off.p
u
r
Source:
2016
BSP
Based on the preliminary (pre-closing) BSP income statement as of end-December
2016 prepared by the Financial Accounting Department (FAD) of the BSP.
Unaudited
Restated based on the audited financial statements prepared by BSP-FAD
Fourth Quarter 2016 Report on Economic and Financial Developments | 35
Conclusion, Challenges and Future Policy Directions Overall, the Philippine economy continues to be in a
position of strength, characterized by accelerating
growth, benign inflation environment, ample l iquidity
and credit, sound banking system, robust external
payments position, and adequate level of reserves.
Looking ahead, prospects for the domestic economy
continue to remain favorable as domestic growth
fundamentals are expected to remain intact. Growth
is expected to settle within the DBCC-approved
medium-term assumption of 6.5 - 7.5 percent in 2017
and 7.0-8.0 percent in 2018-2022, reflecting to an
important extent the stronger growth in
manufacturing and public sector construction,
particularly as more Public-Private Partnership (PPP)
projects and other government infrastructure
programs get underway. Domestic demand will
continue to underpin output expansion, supported
by steady growth in remittance inflows, low and
stable inflation, healthy credit growth and better
employment prospects. Increased spending on
infrastructure, education, health and targeted social
protection programs are not only there to provide
additional growth impetus, but would likewise
improve human capital and enhance the country’s
competitiveness. This would enable the country to
springboard to more rapid and sustainable economic
growth over the long run.
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.
Global growth is projected to pick up pace in 2017,
supported by strengthened economic activity in both
advanced economies and emerging market and
developing economies (EMDEs). In its January 2017
World Economic Outlook (WEO) Update, the
International Monetary Fund (IMF) expects global
growth to accelerate to 3.4 percent in 2017,
recovering moderately from the estimated
3.1 percent growth in 2016, with stronger-than-
expected outturn in the second half of 2016 and
stimulus coming from fiscal measures in major
economies, particularly United States and China.55
However, the global economic recovery in the
near-term remains fragile, with elevated uncertainty
emanating from the Brexit process and the scope of
potential policy shifts by the new US administration.
US President Donald Trump’s proposed expansionary
fiscal policies could lead to higher and faster-than-
expected hikes on US federal funds rate. Moreover,
the possible shift toward inward-looking policies
could result in slower global trade activity and weigh
on investments growth in EMDEs.
The IMF also stated that downside risks to the global
outlook continue to be pronounced. In addition to
the possibility of protectionist policies among many
countries, other risks involve factors such as the
extended financial turbulence and higher risk
aversion from the intensification of bank distress in
some European economies, the potential disruptive
rebalancing in China due to reliance on credit growth,
sizeable fiscal adjustments for commodity-exporting
countries, and financial stability issues in emerging
market economies. At the same time, political and
other risks l ike the refugee crisis in Europe,
geopolitical tensions and terrorism, climate-related
factors, and the spread of diseases such as the Zika
virus all pose additional downside risks to growth.
The growing expectations of further normalization of
monetary policy in the US and expected divergence
of other central bank policies are seen to trigger
bouts of portfolio rebalancing, resulting in capital
flows moving away from emerging markets and
exchange rate pressures in these economies. Data
from the Institute of International Finance (IIF)
showed capital flows reversing in EMs since October
2016, persisting towards December 2016 with the US
Federal Reserve raising its policy rate during the
month.
A protracted slowdown of the Chinese economy
could impact on the country’s exports given the
55
IMF January 2017 WEO Update.
36 | Fourth Quarter 2016 Report on Economic and Financial Developments
strong bilateral trade relations between the two
economies in recent years. For 2017, the IMF, in its
January 2017 WEO Update, upgraded its growth
forecast for China’s economy to 6.5 percent,
0.3 percentage points higher than the October 2016
WEO forecast due to an expected policy stimulus.
However, the IMF pointed out that continued
reliance on stimulus measures, rapid credit
expansion and lingering corporate debt concerns,
raises the risk of a sharper slowdown. Nevertheless,
the expected recovery in economic activity in
advanced economies, particularly the US, could
compensate for a potential slowdown in China.
Following the agreements of some of the
Organization of the Petroleum Exporting Countries
(OPEC) and non-OPEC producers in late 2016 to l imit
oil production, a modest recovery in oil prices is seen
to occur over the near term. In its January 2017
Commodity Markets Outlook (CMO), the World Bank
also projects non-energy commodity prices to rise in
2017 amid mounting supply constraints for metals,
particularly lead and zinc, and adverse weather
conditions in some parts of East Asia and South
America, leading to small uptick in prices of oils and
meals, as well as raw materials components.
On the inflation outlook, latest forecasts show that
inflation would likely settle within the target range of
3.0 percent ± 1.0 percentage point in 2017-2018.
Upside risks to inflation forecasts include possible
adjustments in electricity rates as well as the initial
impact of the government’s broad tax reform
program. Meanwhile, uncertainty over global growth
prospects continues to pose a key downside risk to
the inflation outlook.
Amid the uncertainties engulfing the global
environment, the government remains focused on
strengthening anchors and building defenses to
protect the economy from negative surprises and
buoy its sustainable growth momentum. First, on the
fiscal front, there is elbow room for fiscal authorities
to further boost public spending. The narrowing
debt-to-GDP ratios afford the government to
increase the fiscal deficit-to-GDP ratio target to
3.0 percent for 2017-2022. This would allow greater
flexibil ity to accelerate infrastructure spending and
investments in human capital, and pursue
much-needed structural reform agenda, steering a
stronger and more inclusive Philippine economy.
Second, there is enough leg room for monetary
policy to support economic activity. Real policy rates
are several basis points above zero-bound levels,
indicating adequate space to calibrate monetary
policy in the event of further tightening of global
financial conditions.
To continue to support the positive growth and
inflation dynamics in the country through enhancing
further monetary policy transmission, BSP adopted
operational reforms through the interest rate
corridor (IRC) system on 3 June 2016. The IRC is
expected to enhance the link between the BSP’s
monetary policy stance and financial markets, and
thereby impact the real economy. The IRC system has
provided the BSP the means to drain l iquidity
gradually and on a more long-term basis. This would
enhance the transmission of monetary policy to
market interest rates over the medium term.
Going forward, the BSP will continue to keep a
watchful eye over how domestic and external
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.
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 l iquidity 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 volatil ity 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.
To guard against possible formation of financial
imbalances, the BSP has expanded its crises
surveillance and monitoring toolkit. To name a few,
the Bank Distress Index is used to identify potential
banking crisis episodes in the country; the Philippine
Composite Index of Financial Stress is used to
Fourth Quarter 2016 Report on Economic and Financial Developments | 37
measure the degree of financial stress across
markets; and the Early Warning Systems on currency
crisis and on debt sustainability. The BSP continues to
further refine and expand these tools as appropriate.
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 resil ience
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 l ine
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
resil ient 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 i nclusive
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 l ikewise remain proactive in ensuring the
credibil ity 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.
38 | Fourth Quarter 2016 Report on Economic and Financial Developments
Annexes
Annex A. Banking Policies
Amendments to the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) - Pawnshop (P) Regulations (BSP Circular No. 938 dated 23 December 2016)
The Bangko Sentral ng Pilipinas (BSP) Monetary Board (MB) has approved a new supervisory
framework governing pawnshops in line with the BSP’s recognition of the important role of the pawnshop industry in building a more inclusive financial system and protecting the welfare of
financial consumers. Under the new rules, the BSP shall put high regard on the fitness and propriety of the pawnshop operators,
including its incorporators, directors, partners and officers, by focusing on their integrity, market reputation, competenc e and financial capacity. The
new rules also require the pawnshop operators to adopt the applicable BSP Regulations on Financial Consumer Protection. It is now mandated to disclose to their customers: (1) the effective interest rate of
the loan, including the charges on the transaction; and (2) the policy on insurance of pawned items, maturity date and grace period in cases when the
customer failed to redeem the loan. The new framework provides that the network-based approach shall be adopted wherein pawnshop
operators are only required to submit a notification to the BSP for the establishment and operation of pawnshop offices instead of the usual approval from the BSP prior to its operation. The new rules
introduce different types of BSP licenses to pawnshop operators depending on the type and/or level of complexity of business to be
undertaken. Moreover, each type of l icense will require a specific minimum amount of capital. It also reduced the documentary requirements for the establishment, transfer, and voluntary closure of
pawnshop offices/branches. Further, it also instituted a l imit on the borrowings of pawnshops to finance its pawning operations. Said
borrowings shall not come from more than 19 creditors. However, the limit does not cover borrowings for purposes of acquiring fixed assets
intended for business operations.
Existing pawnshop operators are given one year from the date of the effectivity of the new regulations to
secure their BSP license to operate a pawnshop business. Upon the expiration of the transitory period, all Acknowledgment of Registrations and/or Authority to Operate previously issued by the BSP
shall be considered automatically revoked. Amendments to Foreign Exchange (FX) Regulations (BSP Circular No. 937 dated 27 December 2016)
The BSP Amended the Manual of Regulations on Foreign Exchange Transactions (FX Manual) to align
with the provisions of Republic Act (R.A.) No. 10641 (An Act Allowing the Full Entry of Foreign Banks in the Philippines, amending for the Purpose R.A. No. 7721) and with the BSP Circular No. 858 dated 21
November 2014 implementing the said law. The approved policy changes involve mainly: (a)
inclusion of an express provision that the FX funding for permanently assigned capital of foreign bank branches must be inwardly remitted and converted to pesos at the exchange rate prevailing at the time
of remittance, pursuant to the pertinent provisions of the Manual of Regulations for Banks (MORB); (b) use of a general reference to the MORB instead of citing R.A. Nos. 7721 and 10641 or the specific provisions of
the MORB; and (c) revision of the definitions of “unimpaired capital of a local bank”, “unimpaired capital of foreign bank branches”, and “unimpaired
capital of foreign bank subsidiaries” as contained in the MORB. The Governor affirmed that the continuing review of
FX regulations is consistent with: (a) the BSP’s commitment to maintain a safe and sound financial system, a stable FX market, and an appropriate monetary policy; and (b) other applicable laws.
Guidelines on the Implementation of EMV Card Fraud Liability Shift Framework (BSP Circular No. 936 dated 27 December 2016)
In line with the policy decision to migrate the entire payment network to EMV technology by 1 January 2017, the MB, in its Resolution No. 2304 dated 23
December 2016, approved the EMV Card Fraud Liability Shift Framework (ECFLSF) which will take effec t also on January 1, 2017. Considering the
complexity and magnitude of the EMV migration process for the entire banking industry, the ECFLSF takes into consideration that BSP-supervised financial institutions (BSFIs) would not be fully migrated by the
set deadline.
Fourth Quarter 2016 Report on Economic and Financial Developments | 39
The issuance of the ECFLSF is expected to further accelerate EMV compliance efforts as well as speed
up the dispute resolution and restitution process for customers who have valid claims arising from counterfeit fraud or skimming attacks.
Pending full migration to the EMV technology, the use of magnetic stripes in payment cards and/or card-accepting devices shall be allowed subject to the ECFLSF. Nonetheless, BSFIs are expected to
achieve full EMV compliance as soon as possible or face monetary penalties and other sanctions pursuant to BSP Circular No. 875 dated 15 April 2015.
For this purpose, BSFIs should get approval from the BSP for a specific timeline for completi on of their respective EMV migration projects.
Amendments on the Treatment of Other Comprehensive Income in the Computation of Basel III Non-Stock Savings and Loan Associations
(NSSLAs) (BSP Circular No. 934 dated 23 December 2016) “The BSP issued BSP Circular No. 934 amending Part
II Qualifying Capital of Appendix 63b/AppendixQ-46 to section x1115/subsection 4115Q1 (2008-4116Q) of the MORB/MORNBFI on the risk-based capital adequacy framework for the Philippine banking
system to include the following items under (g) other comprehensive income:
Part II, Section A (3) (g) and Section B (10) (e)
(3) Remeasurement of Net Defined Benefit Liability/(Asset);
(4) Gains/(Losses) on fair value adjustments of hedging instruments; and
a. Cash flow hedge; and b. Hedge of a net investment in
foreign operations (5) Others (indicate the nature and amount
of the account lodge)”
Part II Section B, Section 2 (1) (8) (C) “(ii) Exchange differences arising on a monetary item
that forms part of a reporting bank’s net investment in a foreign operation denominated in the functional currency of the foreign operation.
(d) Remeasurements of Net Defined Benefit Liability (Asset) – This refers to remeasurements of the net defined benefit
liability (asset) made in accordance with PAS 19 “employee Benefits”.
(e) Net unrealized gains/(losses) on fair value attributable to changes in own credit
risk of financial liabilities designated at fair value through profit or loss – this refers to gains/(losses) resulting from change in the fair value of financial liabilities designated at
fair value through profit or loss where such gains/(losses) are attributable to changes in the bank’s own credit risk as provided under PFRS 9. (For early adopters of PFRS 9 on the
classification of financial l iabilities) (f) Others – This refers to Other
Comprehensive Income that cannot be appropriately classified under items (a) to (e).
Amendments to the Manual of Regulations for Non-Bank Financial Institutions applicable to NSSLAs (BSP Circular No. 933 dated 16 December 2016)
To prevent acts, practices or omissions considered prejudicial to the interest of NSSLA members, the BSP issued guidelines to be observed in
implementing section 2(a) to (d) of Republic Act No. 8367, otherwise known as “The Revised Non-Stock Savings and Loan Association Act of 1997”.
Section 1. Section 4184S and related subsections of the Manual of Regulations for Non-bank Financial Institutions applicable to Non-Stock Savings and Loan
Associations (MORNBFI-S Regulations), were added. These subsections pertain to: 1) Rules Governing Prejudicial Acts, Practices or Omissions; 2) Acts, Practices or Omissions considered prejudicial to the
interest of the members is also added enumerating acts, practices and omissions considered prejudicial to the interest of members; and 3) Enforcement actions.
Amendments to Relevant Provisions of the Manual of Regulations for Banks on the Establishment/Relocation/Voluntary Closure/Sale
of Branches (BSP Circular No. 932 dated 16 December 2016) Consistent with the BSP’s policy of promoting a
competitive banking environment and ease of doing business, the MB approved the amendments to the guidelines on the establishment of branches to
provide banks with more flexibility in expanding their branching network to strategic locations. The new regulation removed the use of theoretical
capital as well as the combined capital requirement tied to geographic location in evaluating branch applications since the branch network size and
40 | Fourth Quarter 2016 Report on Economic and Financial Developments
location of head office are already emb edded in the latest minimum capital requirement for banks.
The MB also reaffirmed the general thrust of allowing banks to establish branches anywhere in the Philippines, including in the cities previously
considered as restricted areas, namely, Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon and San Juan. The move is aligned with the initiatives on banking system liberalization which
include the removal of the branch moratorium in restricted areas and the gradual lifting of the suspension on the establishment of new domestic
banks. Anchored on their overall business model and strategic direction, smaller banks may now establish
branches in Metro Manila subject to higher capitalization and special licensing fee if said branches are to be located in the cities previously
considered as restricted areas. New Service Fees for Banks' Deposit and Withdrawal Transactions and Amendments to
Operational Processes under the Enhanced Cash Management (ECM) Services and Guidelines on Clean Note and Coin Policy (BSP Circular No. 931 dated 9 December 2016)
The BSP issued the guidelines on the Clean Note and Coin Policy (CNCP) and the new service fees for
banks’ deposit and withdrawal transactions. This recently issued BSP Circular stipulates the requirement on banks’ adoption of a CNCP which
include the following: (a) bank-wide coverage of the policy; (b) criteria to determine when a note/coin is to be pulled out of circulation; (c) guidelines in ensuring that the life of currency is extended; and (d)
deposit and/or exchange on a regular basis of unfit notes/coins with the BSP. The said circular also lays down the important roles
of compliance and internal audit functions of banks in assessing consistent adherence to the CNCP. In line with the implementation of the BSP’s ECM
services to better serve the country’s currency requirements, the BSP rationalized the service fee structure for banks’ deposit and withdrawal
transactions with the BSP, and amended some operational processes under the ECM services for greater efficiency. Fee on banks’ withdrawals of banknotes was waived, among others, to encourage
banks to withdraw new banknotes. Thereby, accelerating the replacement of unfit banknotes in circulation which is supportive of the BSP’s Clean Note Policy.
The BSP Coin Series continues to be legal tender. As such, they can be used as medium of exchange in all
business transactions in the country. Effective recirculation of coins will lead to less minting cost on the part of the BSP. This could potentially increase the amount of dividend that the
BSP will be able to remit to the National Government. In turn, allowing the National Government to allocate additional resources to build public infrastructures, particularly farm-to-market
roads and school buildings, among others. The BSP also encourages the public to exchange with
banks their unfit coins. A currency coin shall be considered unfit for circulation when it is bent or twisted out of shape or defaced or show signs of corrosion, but its genuineness and/or denomination
can still be readily and clearly determined/identified, or it has considerably reduced in weight by natural abrasion/wear and tear. Unfit coins shall not be
recirculated, but may be presented for exchange to or deposited with any bank pursuant to BSP Circular No. 829, Series of 2014.
Amendments to Subsection x102.5 of the MORB on the Conversion of Microfinance-Oriented Thrift/Rural Banks/Branches (BSP Circular No. 929 dated 28 October 2016)
The BSP amended the MORB to allow the conversion of microfinance-oriented thrift banks (TBs) and rural
banks (RBs) to regular TBs and RBs as well as the conversion of their microfinance-oriented branches to regular branches.
The circular states that TBs and RBs are allowed to convert to regular TBs and RBs provided, that they have complied with all the requirements for a regular TB/RB license and subject to the submission of
certification signed by the president or officer of equivalent rank stating that the allocation of at least 50 percent of the gross loan portfolio to microfinance
is no longer feasible sue to changes in market condition. This should be supported with a market study and strategic plan and business strategy.
Another requirement is the certified true copy of the resolution of the bank’s board of directors authorizing the conversion of the microfinance-
oriented bank into a regular bank. The bank must also change its business name to reflect its reclassification to a regular bank.
Fourth Quarter 2016 Report on Economic and Financial Developments | 41
Amendments to the Regulations Governing Fees on Retail Bank Products/Services and Dormant Deposit
Accounts (BSP Circular No. 928 dated 24 October 2016) The BSP enhanced the rules governing dormant
deposit accounts and the fees charged by banks on their retail products and services in line with the BSP Consumer Protection Framework.
Under the reform initiative, the imposition by banks and NSSLAs of dormancy fee has been subject to more stringent conditions. A monthly dormancy fee,
not exc eeding Ᵽ30.00, can only be imposed if there is no deposit or withdrawal from the account for five years; if the deposit is below the minimum monthly average daily balance; and if the depository bank or
NSSLA has complied with the notification requirements.
The new rules also require banks to give three notices pertaining to dormant accounts: (1) potential dormancy prior to the commencement of the dormancy period; (2) charging of dormancy fee; and
(3) escheat of account pursuant to the Unclaimed Balances Act. To comply with the notification requirements, a
depositor must be notified through postal mail, courier delivery, email, telephone or other means at least 60 days before the deposit becomes dormant;
and at least 60 days prior to the charging of dormancy fees. Depositors shall also be notified at least 60 days
before the start of proceedings for escheat or the transfer of unclaimed dormant deposits to the National Treasurer. There will be a permanent retention of records of escheated accounts for
purposes of tracing of deposits. NSSLAs are required under the new rules to notify
their members of the dormancy and the possible imposition of a dormancy fee at least 60 days prior to the dormancy of the account and 60 days prior to the imposition of the dormancy fee.
To enable financial consumers to compare fees, the amended policy also requires banks to post their fees
on retail deposit, remittance and loan products/services in their official website and in conspicuous places in all banking units.
Banks shall publicly notify clients of any amendments in the terms and conditions of retail bank products/services. Complementary individual notices to a client, however, shall be sent if the amendments
pertain to or will result to fees to be paid or charged on the account of the client.
Clients are granted the opportunity to manifest objection to amendments to fees’ terms and conditions and the right to exit the contract wi thout penalty.
The new regulations provide that fees for domestic fund transfers or remittances should be charged only to the sender. This enables determination of the
exact amount to be received by the beneficiary and allows consumers to decide on the most cost-efficient means for remitting money. Currently, both
the remitter and recipient/beneficiary pay for the remittance transaction. Under the enhanced rules, banks shall also adopt a
policy for the fees charged on financial products and services and a fee structure as a measure of Fair Treatment of its clients. The enhanced rules shall be
effec tive six months from publication in a newspaper of general circulation. However, the notification requirements and record retention of accounts subject to escheat shall be effective 15 days after
publication to cover the next round of escheat in January 2017.
Annex B. Capital Market Reforms56
Tax Reform Package
In the last week of September, the
Department of Finance (DOF) submitted to the Congress the first package of tax reforms designed to lower personal income taxes
rates while raising revenues. The proposed tax reform measures included restructuring the personal income tax system, widening the tax base, and adjusting excise taxes on
automobiles and petroleum products.
In October, the Congress started to discuss
the package and expected the tax policy
reform to be quickly put in place to enable the government to raise the additional funds needed to increase public infrastructure spending and investments in human capital
and social protection.
56
Source: Bangko Sentral ng Pilipinas, Media Releases, August 2016.
42 | Fourth Quarter 2016 Report on Economic and Financial Developments
Foreign Exchange Rules Further Liberalized
In December, the BSP furthered the
liberalization of foreign exchange rules and regulations as the country faced increasing integration with the global economy.
The approved policy changes mainly
involved: (a) inclusion of an express provision that the foreign exchange (FX) funding for permanently assigned capital of foreign bank branches must be inwardly
remitted and converted to pesos at the exchange rate prevailing at the time of
remittance, pursuant to the pertinent provisions of the Manual of Regulations for Banks (MORB); (b) use of a general referenc e to the MORB instead of citing R.A.
Nos. 7721 and 10641 or the specific provisions of the MORB; and (c) revision of the definitions of “unimpaired capital of a local bank”, “unimpaired capital of foreign
bank branches” and “unimpaired capital of foreign bank subsidiaries” as contained in the MORB.
Report on Economic and Financial Developments - Fourth Quarter 2016 Statistical Tables
1 Gross National Income and Gross Domestic Product by Industrial Origin
1a Gross National Income and Gross Domestic Product by Expenditure Shares
2 Selected Labor, Employment and Wage Indicators
3 Cash Operations of the National Government
4 Consumer Price Index in the Philippines
4a Consumer Price Index in the National Capital Region
4b Consumer Price Index in Areas Outside the National Capital Region
5 Monetary Indicators
6 Selected Domestic Interest Rates
7 Number of Financial Institutions
8 Total Resources of the Philippine Financial System
9 Ratios of Non-Performing Loans and Loan Loss Provisions to Total Loans of the Banking System
10 Stock Market Transactions
11 Balance of Payments
12 International Reserves of the Bangko Sentral ng Pilipinas
13 Exchange Rates of the Peso (Peso per Unit of Foreign Currency)
13a Exchange Rates of the Peso (Unit of Foreign Currency per Peso)
13b Effective Exchange Rate Indices of the Peso
14 Total External Debt
15 Selected Foreign Debt Service Indicators
16 Selected Foreign Interest Rates
17 Balance Sheet of the Bangko Sentral ng Pilipinas
18 Income Statement of the Bangko Sentral ng Pilipinas
1 GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGINfor periods indicated
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Agriculture, Hunting, Forestry and Fishing 179.7 167.0 155.8 216.3 181.4 166.9 155.7 215.8 173.5 163.6 160.2 213.3
Industry 561.3 614.5 558.1 657.3 590.8 652.2 592.4 700.4 643.8 698.4 642.3 753.8
Mining and Quarrying 21.7 30.3 16.4 13.3 21.1 27.7 16.4 15.2 23.5 25.6 16.0 15.1
Manufacturing 400.8 414.7 378.6 472.4 425.0 434.2 400.7 501.2 459.0 461.1 428.0 535.8
Construction 87.3 109.0 98.5 114.5 90.7 127.0 106.2 123.9 101.9 141.9 122.7 137.4
Electricity, Gas and Water Supply 51.5 60.5 64.6 57.2 54.0 63.3 69.1 60.1 59.4 69.7 75.6 65.5
Services 942.0 1,053.3 1,003.0 1,062.1 994.1 1,124.2 1,075.0 1,145.0 1,069.8 1,217.3 1,147.9 1,229.2
Transportation, Storage and Communication 130.0 144.0 119.1 144.9 141.0 153.6 128.7 158.1 148.6 164.5 134.7 168.0
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 255.2 288.4 312.0 330.2 270.3 307.6 338.3 354.3 290.5 334.7 358.9 378.6
Financial Intermediation 125.5 136.7 124.0 129.2 130.9 144.6 130.7 140.4 143.7 154.6 141.8 148.9
Real Estate, Renting and Busines Activities 182.3 209.8 206.1 205.1 194.0 224.2 222.2 221.1 211.5 245.1 242.0 240.9
Public Administration and Defense;
Compulsory Social Security 68.9 83.3 71.1 70.2 66.1 82.7 73.0 75.3 69.6 88.0 75.6 84.4
Other Services 180.1 191.1 170.6 182.4 191.8 211.4 182.2 195.8 206.0 230.5 194.9 208.4
Gross Domestic Product 1,683.0 1,834.8 1,716.8 1,935.7 1,766.4 1,943.2 1,823.1 2,061.1 1,887.1 2,079.2 1,950.4 2,196.4
Net Primary Income 370.7 362.9 355.8 373.3 372.5 372.1 380.1 416.2 409.5 390.7 388.8 433.1
Gross National Income 2,053.7 2,197.7 2,072.7 2,309.0 2,138.9 2,315.4 2,203.2 2,477.3 2,296.6 2,469.9 2,339.3 2,629.4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Agriculture, Hunting, Forestry and Fishing 0.9 3.3 -2.3 4.1 1.0 -0.1 -0.1 -0.2 -4.4 -2.0 2.9 -1.1
Industry 4.8 9.0 7.8 9.2 5.3 6.1 6.1 6.5 9.0 7.1 8.4 7.6
Mining and Quarrying 17.4 10.8 12.7 6.3 -2.5 -8.6 0.5 14.0 11.1 -7.6 -2.6 -0.5
Manufacturing 7.0 11.1 7.5 7.7 6.0 4.7 5.8 6.1 8.0 6.2 6.8 6.9
Construction -4.2 3.9 12.0 17.1 3.9 16.6 7.8 8.2 12.4 11.8 15.5 11.0
Electricity, Gas and Water Supply 0.5 4.2 2.4 7.4 5.0 4.6 7.0 5.2 9.9 10.0 9.5 8.9
Services 7.1 6.1 5.8 5.7 5.5 6.7 7.2 7.8 7.6 8.3 6.8 7.4
Transportation, Storage and Communication 8.2 6.8 5.3 5.5 8.4 6.6 8.0 9.1 5.4 7.1 4.7 6.3
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 6.3 6.7 7.0 3.4 5.9 6.7 8.4 7.3 7.5 8.8 6.1 6.9
Financial Intermediation 5.7 6.1 8.4 8.9 4.3 5.8 5.4 8.7 9.7 6.9 8.5 6.0
Real Estate, Renting and Busines Activities 10.1 8.5 6.7 9.7 6.4 6.9 7.8 7.8 9.0 9.3 8.9 9.0
Public Administration and Defense;
Compulsory Social Security 6.8 1.7 -2.5 11.4 -4.0 -0.8 2.6 7.3 5.2 6.4 3.7 12.1
Other Services 5.5 4.3 5.0 1.5 6.5 10.6 6.8 7.3 7.4 9.0 6.9 6.5
Gross Domestic Product 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.8 7.0 7.0 6.6
Net Primary Income 11.0 9.0 -2.6 1.1 0.5 2.5 6.8 11.5 9.9 5.0 2.3 4.1
Gross National Income 6.6 7.2 4.1 5.7 4.2 5.4 6.3 7.3 7.4 6.7 6.2 6.1
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Agriculture, Hunting, Forestry and Fishing 0.1 0.3 -0.2 0.5 0.1 0.0 0.0 0.0 -0.4 -0.2 0.2 -0.1
Industry 1.6 3.0 2.5 3.0 1.8 2.1 2.0 2.2 3.0 2.4 2.7 2.6
Mining and Quarrying 0.2 0.2 0.1 0.0 0.0 -0.1 0.0 0.1 0.1 -0.1 0.0 0.0
Manufacturing 1.6 2.4 1.6 1.9 1.4 1.1 1.3 1.5 1.9 1.4 1.5 1.7
Construction -0.2 0.2 0.6 0.9 0.2 1.0 0.4 0.5 0.6 0.8 0.9 0.7
Electricity, Gas and Water Supply 0.0 0.1 0.1 0.2 0.2 0.2 0.3 0.2 0.3 0.3 0.4 0.3
Services 3.9 3.5 3.4 3.1 3.1 3.9 4.2 4.3 4.3 4.8 4.0 4.1
Transportation, Storage and Communication 0.6 0.5 0.4 0.4 0.6 0.5 0.6 0.7 0.4 0.6 0.3 0.5
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 0.9 1.1 1.3 0.6 0.9 1.0 1.5 1.2 1.1 1.4 1.1 1.2
Financial Intermediation 0.4 0.5 0.6 0.6 0.3 0.4 0.4 0.6 0.7 0.5 0.6 0.4
Real Estate, Renting and Busines Activities 1.1 1.0 0.8 1.0 0.7 0.8 0.9 0.8 1.0 1.1 1.1 1.0
Public Administration and Defense;
Compulsory Social Security 0.3 0.1 -0.1 0.4 -0.2 0.0 0.1 0.3 0.2 0.3 0.1 0.4
Other Services 0.6 0.5 0.5 0.1 0.7 1.1 0.7 0.7 0.8 1.0 0.7 0.6
Gross Domestic Product 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.8 7.0 7.0 6.6
Note: Total may not add up due to rounding.
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.
Source of basic data: Philippine Statistics Authority (PSA)
LEVELS (in billion pesos; at constant 2000 prices)
2014 2015 2016
2016
ANNUAL CHANGE (in percent)
2014 2015 2016
CONTRIBUTION TO GDP GROWTH (in percent)
2014 2015
1a GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARESfor periods indicated
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Household Final Consumption Expenditure 1,161.2 1,213.1 1,170.9 1,406.9 1,231.9 1,291.3 1,241.9 1,499.0 1,318.4 1,387.0 1,330.1 1,592.8
Government Final Consumption Expenditure 185.1 219.5 168.9 155.3 185.5 224.7 195.4 179.8 207.5 254.9 201.4 186.9
Capital Formation 370.4 331.0 383.1 483.9 416.6 401.9 438.7 548.1 527.6 502.5 520.5 630.3
Fixed Capital 373.0 358.5 376.3 417.8 405.7 404.1 428.6 518.9 520.0 503.4 530.7 615.8
Construction 135.0 163.9 152.6 180.7 141.1 187.4 165.5 194.5 159.4 216.2 193.3 213.0
Durable Equipment 202.0 162.7 191.8 193.2 227.1 185.2 226.6 274.3 317.5 252.2 295.3 346.3
Breeding Stock & Orchard Dev't 26.1 22.5 18.3 30.4 26.1 23.0 19.0 31.2 27.2 23.8 19.6 32.3
Intellectual Property Products 9.8 9.4 13.6 13.5 11.4 8.6 17.6 18.8 15.9 11.2 22.5 24.2
Changes in Inventories -2.5 -27.5 6.8 66.1 10.9 -2.2 10.1 29.2 7.6 -0.9 -10.2 14.4
Exports 812.3 896.1 941.7 727.8 898.1 941.7 1,034.3 807.2 963.7 1,035.4 1,125.7 891.3
Less: Imports 858.9 807.4 938.4 852.1 963.3 909.1 1,090.4 979.4 1,146.2 1,120.2 1,238.5 1,126.6
Statistical Discrepancy 12.8 -17.5 -9.3 13.8 -2.4 -7.3 3.3 6.5 16.1 19.6 11.3 21.6
Gross Domestic Product 1,683.0 1,834.8 1,716.8 1,935.7 1,766.4 1,943.2 1,823.1 2,061.1 1,887.1 2,079.2 1,950.4 2,196.4
Net Primary Income 370.7 362.9 355.8 373.3 372.5 372.1 380.1 416.2 409.5 390.7 388.8 433.1
Gross National Income 2,053.7 2,197.7 2,072.7 2,309.0 2,138.9 2,315.4 2,203.2 2,477.3 2,296.6 2,469.9 2,339.3 2,629.4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Household Final Consumption Expenditure 6.3 5.7 4.9 5.3 6.1 6.4 6.1 6.5 7.0 7.4 7.1 6.3
Government Final Consumption Expenditure 3.4 1.5 -1.1 11.0 0.2 2.4 15.7 15.8 11.8 13.5 3.1 4.0
Capital Formation 8.6 7.7 -0.2 5.7 12.5 21.4 14.5 13.3 26.6 25.0 18.6 15.0
Fixed Capital 0.2 5.5 11.2 8.0 8.8 12.7 13.9 24.2 28.2 24.6 23.8 18.7
Construction -5.5 7.2 12.8 19.0 4.5 14.3 8.5 7.6 13.0 15.4 16.8 9.5
Durable Equipment 4.5 3.6 9.9 0.1 12.4 13.8 18.2 42.0 39.8 36.2 30.3 26.2
Breeding Stock & Orchard Dev't -4.4 -2.0 -1.6 2.3 0.1 2.3 3.6 2.6 4.1 3.6 3.1 3.7
Intellectual Property Products 14.6 37.5 37.1 8.5 15.9 -8.8 28.8 38.9 39.7 30.7 28.2 28.7
Changes in Inventories 91.9 14.7 -85.2 -6.8 528.8 92.0 49.3 -55.8 -29.8 59.3 -201.1 -50.6
Exports 13.4 9.0 11.9 13.0 10.6 5.1 9.8 10.9 7.3 10.0 8.8 10.4
Less: Imports 17.9 5.6 4.8 10.1 12.2 12.6 16.2 14.9 19.0 23.2 13.6 15.0
Statistical Discrepancy 280.2 -65.9 -240.5 25.4 -118.8 58.3 135.1 -53.0 765.7 369.3 246.2 232.9
Gross Domestic Product 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.8 7.0 7.0 6.6
Net Primary Income 11.0 9.0 -2.6 1.1 0.5 2.5 6.8 11.5 9.9 5.0 2.3 4.1
Gross National Income 6.6 7.2 4.1 5.7 4.2 5.4 6.3 7.3 7.4 6.7 6.2 6.1
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Household Final Consumption Expenditure 4.3 3.8 3.3 3.9 4.2 4.3 4.1 4.8 4.9 4.9 4.8 4.6
Government Final Consumption Expenditure 0.4 0.2 -0.1 0.9 0.0 0.3 1.5 1.3 1.2 1.6 0.3 0.3
Capital Formation 1.9 1.4 -0.1 1.4 2.7 3.9 3.2 3.3 6.3 5.2 4.5 4.0
Fixed Capital 0.0 1.1 2.3 1.7 1.9 2.5 3.0 5.2 6.5 5.1 5.6 4.7
Construction -0.5 0.6 1.1 1.6 0.4 1.3 0.8 0.7 1.0 1.5 1.5 0.9
Durable Equipment 0.5 0.3 1.1 0.0 1.5 1.2 2.0 4.2 5.1 3.4 3.8 3.5
Breeding Stock & Orchard Dev't -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1
Intellectual Property Products 0.1 0.1 0.2 0.1 0.1 0.0 0.2 0.3 0.3 0.1 0.3 0.3
Changes in Inventories 1.8 0.3 -2.4 -0.3 0.8 1.4 0.2 -1.9 -0.2 0.1 -1.1 -0.7
Exports 6.0 4.3 6.1 4.6 5.1 2.5 5.4 4.1 3.7 4.8 5.0 4.1
Less: Imports 8.2 2.5 2.7 4.3 6.2 5.5 8.9 6.6 10.4 10.9 8.1 7.1
Statistical Discrepancy 1.3 -0.4 -1.0 0.2 -0.9 0.6 0.7 -0.4 1.0 1.4 0.4 0.7
Gross Domestic Product 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.8 7.0 7.0 6.6
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)
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
CONTRIBUTION TO GDP GROWTH (in percent)
2014
2014 2015 2016
2014 2015 2016
2015 2016
LEVELS (in billion pesos; at constant 2000 prices)
ANNUAL CHANGE (in percent)
2 SELECTED LABOR, EMPLOYMENT AND WAGE INDICATORS
w/ Leyte w/o Leyte5 w/ Leyte w/o Leyte w/ Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/ Leyte
Employment Status 1
Labor Force (in thousands) 41,379 41,343 43,206 41,164 41,840 41,901 41,026 42,146 41,340 42,520 41,637 43,289 41,727 43,309 43,704 Employed 38,651 38,741 40,837 38,461 39,158 39,177 38,347 39,775 38,997 40,052 39,213 40,664 39,202 40,974 41,664
Employment Created2 1,253 494 (106) 160 752 44 1,797 1,889 Agriculture 34 (123)Industry 828 825 Services 935 1,186
Unemployed 2,728 2,602 2,367 2,703 2,681 2,723 2,679 2,371 2,343 2,468 2,424 2,625 2,525 2,335 2,040 Underemployed 7,118 7,180 7,478 6,883 6,983 8,220 7,990 7,020 6,865 7,881 7,716 7,431 7,148 7,094 7,508
Labor Force Participation Rate (%) 64.6 63.7 63 63.7 64.6 62.9 63.0 63.3 63.4 63.3 63.4 63.5 63.7 63.3 63.6 Employment Rate (%) 93.4 93.7 95 93.4 93.6 93.5 93.5 94.4 94.3 94.2 94.2 93.9 93.9 94.6 95.3 Unemployment Rate (%) 6.6 6.3 5 6.6 6.4 6.5 6.5 5.6 5.7 5.8 5.8 6.1 6.1 5.4 4.7 Underemployment Rate (%) 18.4 18.5 18 17.9 17.8 21.0 20.8 17.6 17.6 19.7 19.7 18.3 18.2 17.3 18.0 NCR Labor Turnover Rate (%) 1.2 1.4 0.5 1.2 3.2 0.6 1.0 2.3 3.67
Overseas Employment (Deployed, in thousands)2 1,833 1,844
Land-based 1,431 1,438
Sea-based 402 407
Strikes
Number of New Strikes 2 5 15 0 3 1 1 0 3 5 7
Number of Workers Involved 51 730 3,106 0 450 200 80 0 650 283 2173
Nominal Daily Wage Rates (in pesos)3
Non-Agricultural
NCR 466.0 481.0 491.0 466.0 481.0 481.0 481.0 481.0 491.0 491.0 491.0
Regions Outside NCR 362.5 362.5 378.5 362.5 362.5 362.5 362.5 362.5 364.0 378.5 378.5
Agricultural
NCR
Plantation 429.0 444.0 454.0 429.0 444.0 444.0 444.0 444.0 454.0 454.0 454.0
Non-Plantation 429.0 444.0 454.0 429.0 444.0 444.0 444.0 444.0 454.0 454.0 454.0
Regions Outside NCR
Plantation 337.5 337.5 353.5 337.5 337.5 337.5 337.5 337.5 337.5 353.5 353.5
Non-Plantation 322.0 335.0 335.0 322.0 322.0 322.0 335.0 335.0 335.0 335.0 335.0
Real Daily Wage Rates (in pesos), 2006=100 4
Non-Agricultural
NCR 356.5 363.8 361.6 354.1 365.8 365.8 363.8 364.7 369.2 366.1 361.6
Regions Outside NCR 260.2 257.8 265.2 259.3 260.0 260.6 257.8 259.1 250.7 268.3 265.2
Agricultural
NCR
Plantation 328.2 335.9 334.3 326.0 337.6 337.6 335.9 336.6 341.4 338.6 334.3
Non-Plantation 328.2 335.9 334.3 326.0 337.6 337.6 335.9 336.6 341.4 338.6 334.3
Regions Outside NCR
Plantation 242.3 240.0 247.7 241.4 242.1 242.6 240.0 241.2 240.0 250.5 247.7
Non-Plantation 224.7 229.5 223.5 224.4 223.3 223.0 229.5 228.5 225.9 225.1 223.5
Notes:1
2 Details may not add up to totals due to rounding.3
4
5 Annual 2014 data refer to the average estimates for April, July and October survey rounds only excluding data of the province of Leyte.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)
2016p
Q4Ave/Total
2015
Q1
2014
Ave/Total
2015 2016
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.
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.
Q2 Q3 Q4Ave/Total Q1 Q2 Q3
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 CASH OPERATIONS OF THE NATIONAL GOVERNMENT
for periods indicated
in billion pesos
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul
Revenues 398.4 535.3 491.3 483.5 470.5 615.2 519.2 504.0 479.0 622.0 545.8 549.2
Ratio to GDP 13.8 17.0 16.1 13.5 15.5 18.5 16.3 13.4 14.6 17.2 15.7 13.4
Tax 355.4 469.1 449.9 444.7 403.7 489.4 462.7 459.8 425.3 557.6 489.7 507.7
Non-tax 43.0 66.3 41.4 38.9 66.9 125.8 56.6 44.2 53.6 64.4 56.1 41.4
Expenditures 482.5 505.2 468.4 525.5 504.0 567.9 558.5 600.1 591.5 629.8 639.2 688.9
Ratio to GDP 16.7 16.1 15.4 14.7 16.6 17.1 17.5 15.9 18.1 17.5 18.4 16.8
Interest Payments 103.1 56.6 97.7 63.8 100.6 55.5 99.6 53.6 102.6 51.1 96.1 54.7
Equity 0.1 0.3 0.8 0.5 0.1 0.2 . 0.4 8.2 0.3 . 3.2
Net Lending 4.9 1.5 2.0 5.0 2.2 0.4 1.8 5.2 3.5 0.6 -0.4 11.6
Subsidy 1.2 48.3 12.7 18.2 3.7 40.3 11.8 22.2 8.2 28.4 45.8 20.8
Allotment to LGUs 85.1 89.0 85.8 84.4 97.1 96.8 96.8 96.8 121.7 108.5 108.1 111.5
Tax Expenditures 0.1 12.3 0.7 12.9 5.6 1.9 0.5 5.6 0.1 3.5 0.9 7.8
Others 288.0 297.1 268.7 340.8 294.7 372.8 347.9 416.2 347.1 437.6 388.8 479.3
Surplus/Deficit (-) -84.1 30.1 22.9 -42.0 -33.5 47.3 -39.3 -96.1 -112.5 -7.8 -93.4 -139.7
Ratio to GDP -2.9 1.0 0.8 -1.2 -1.1 1.4 -1.2 -2.6 -3.4 -0.2 -2.7 -3.4
Primary Balance 19.0 86.8 120.6 21.8 67.1 102.8 60.3 -42.5 -9.9 43.3 2.7 -85.0
Ratio to GDP 0.7 2.8 4.0 0.6 2.2 3.1 1.9 -1.1 -0.3 1.2 0.1 -2.1
Financing 1 7.0 31.3 69.9 67.0 -9.3 24.8 60.7 16.7 86.3 25.0 109.1 0.584.1 -30.1 -22.9 42.0 33.5 -47.3 39.3 96.1 112.5 7.8 93.4
External Borrowings -4.2 -5.3 26.6 -4.6 22.6 28.2 -0.6 14.5 14.6 -7.4 -5.6 -25.8
Domestic Borrowings 11.2 36.6 43.3 71.6 -31.9 -3.5 61.3 2.2 71.6 32.4 114.7 26.3
Total Change in Cash: Deposit/Withdrawal (-) -170.8 88.5 85.5 34.6 30.7 29.8 23.4 -85.5 -116.3 -9.2 -15.7 -116.4
Budgetary -77.1 61.5 92.8 25.0 -42.8 72.0 21.4 -79.4 -26.2 17.2 15.7 -139.2
Non-Budgetary Accounts 2 -93.7 27.0 -7.4 9.6 73.6 -42.2 2.0 -6.1 -90.1 -26.4 -31.4 22.7
1 Availment less repayment
2 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.
. rounds off to zero
- not available
Note: Details may not add up to total due to rounding off
Source: Bureau of the Treasury
201620152014
4 CONSUMER PRICE INDEX IN THE PHILIPPINES
for periods indicated
(2006=100)
Quarterly Average
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 124.3 126.0 126.7 127.6 128.2 129.7 131.2 131.4 132.3 133.2 134.4 135.9 137.7 139.0 140.7 140.8 141.1 141.3 141.5 142.2 142.7 143.4 144.4 145.7
FOOD AND NON-ALCHOLIC BEVERAGES 135.2 136.2 136.7 138.1 138.0 138.9 141.0 141.5 141.7 142.2 144.1 147.1 149.7 151.8 155.6 156.4 156.9 156.4 157.3 158.5 159.4 160.0 161.6 164.0
FOOD ITEMS 136.5 137.4 137.9 139.4 139.2 140.1 142.3 142.7 142.9 143.3 145.4 148.6 151.3 153.5 157.5 158.4 158.8 158.2 159.2 160.5 161.4 162.0 163.7 166.2
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 120.0 122.3 123.7 124.6 125.8 128.4 129.7 130.8 158.4 168.5 170.1 171.1 173.6 175.2 176.1 177.8 180.5 181.8 182.6 184.8 189.3 191.8 193.6 196.4
NON-FOOD 117.3 119.3 120.3 120.7 121.9 123.7 124.8 124.8 125.3 126.0 126.7 127.4 128.6 129.3 129.7 129.2 129.4 130.0 129.8 129.9 130.1 130.8 131.3 131.9
CLOTHING AND FOOTWEAR 116.5 117.8 119.3 119.9 120.9 123.7 125.3 125.9 126.8 128.2 129.1 129.7 131.3 132.5 133.5 134.1 135.4 136.0 136.6 137.2 138.0 139.1 140.1 140.8
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 117.7 120.6 121.1 121.7 123.4 125.9 127.2 126.5 126.9 127.7 127.8 129.1 130.9 131.5 130.9 129.6 129.4 130.1 128.7 128.1 128.1 128.8 129.0 129.6
ELECTRICITY, GAS AND OTHER FUELS 125.8 132.1 132.7 134.4 137.4 140.1 141.6 139.2 138.7 139.2 138.7 142.6 146.8 146.9 143.6 138.7 134.0 134.9 129.5 126.5 124.7 125.8 125.3 126.3
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 115.6 116.6 117.3 117.6 118.2 120.6 122.4 123.2 124.0 125.0 125.5 126.0 127.4 128.1 128.9 129.4 130.2 130.8 131.1 131.5 132.2 132.9 133.9 134.6
HEALTH 122.8 123.8 125.0 125.5 126.2 128.0 129.3 129.8 130.7 131.8 132.7 133.2 135.0 135.8 137.2 137.7 138.6 138.9 139.5 140.2 141.2 142.2 143.2 143.8
TRANSPORT 120.0 123.5 124.0 124.1 125.2 126.3 125.5 125.9 126.3 126.1 126.8 126.9 127.7 127.8 128.2 126.9 126.8 127.8 127.6 128.1 127.2 127.8 127.6 129.2
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 121.9 126.9 125.9 125.5 128.4 128.6 126.3 127.9 128.4 127.2 130.5 130.8 133.8 134.3 133.4 127.9 119.8 122.7 120.5 119.5 116.7 119.7 119.5 121.3
COMMUNICATION 92.5 92.4 92.4 92.2 92.2 92.5 92.6 92.6 92.7 92.6 92.7 92.6 92.7 92.7 92.7 92.7 92.6 92.6 92.7 92.7 92.7 92.8 92.8 92.8
RECREATION AND CULTURE 105.8 106.5 107.2 107.4 108.3 109.3 110.1 110.2 110.7 111.6 112.8 112.9 113.5 113.8 114.3 114.6 114.8 115.1 115.5 115.8 116.1 116.9 117.5 117.8
EDUCATION 126.8 128.7 132.7 132.8 132.9 134.8 138.7 138.7 138.7 140.8 145.2 145.2 145.2 147.5 152.6 152.6 152.6 154.4 158.1 158.1 158.1 159.0 160.9 161.0
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 117.9 119.0 119.9 120.4 121.5 123.0 123.8 124.2 125.0 125.9 126.5 126.9 127.6 128.3 128.7 129.2 129.6 129.9 130.3 130.9 131.7 132.7 133.4 133.8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 2.0 1.4 0.6 0.7 0.5 1.2 1.2 0.2 0.7 0.7 0.9 1.1 1.3 0.9 1.2 0.1 0.2 0.1 0.1 0.5 0.4 0.5 0.7 0.9
FOOD AND NON-ALCHOLIC BEVERAGES 2.7 0.7 0.4 1.0 -0.1 0.7 1.5 0.4 0.1 0.4 1.3 2.1 1.8 1.4 2.5 0.5 0.3 -0.3 0.6 0.8 0.6 0.4 1.0 1.5
FOOD ITEMS 2.8 0.7 0.4 1.1 -0.1 0.6 1.6 0.3 0.1 0.3 1.5 2.2 1.8 1.5 2.6 0.6 0.3 -0.4 0.6 0.8 0.6 0.4 1.0 1.5
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.3 1.9 1.1 0.7 1.0 2.1 1.0 0.8 21.1 6.4 0.9 0.6 1.5 0.9 0.5 1.0 1.5 0.7 0.4 1.2 2.4 1.3 0.9 1.4
NON-FOOD 1.6 1.7 0.8 0.3 1.0 1.5 0.9 0.0 0.4 0.6 0.6 0.6 0.9 0.5 0.3 -0.4 0.2 0.5 -0.2 0.1 0.2 0.5 0.4 0.5
CLOTHING AND FOOTWEAR 1.0 1.1 1.3 0.5 0.8 2.3 1.3 0.5 0.7 1.1 0.7 0.5 1.2 0.9 0.8 0.4 1.0 0.4 0.4 0.4 0.6 0.8 0.7 0.5
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 2.1 2.5 0.4 0.5 1.4 2.0 1.0 -0.6 0.3 0.6 0.1 1.0 1.4 0.5 -0.5 -1.0 -0.2 0.5 -1.1 -0.5 0.0 0.5 0.2 0.5
ELECTRICITY, GAS AND OTHER FUELS 4.1 5.0 0.5 1.3 2.2 2.0 1.1 -1.7 -0.4 0.4 -0.4 2.8 2.9 0.1 -2.2 -3.4 -3.4 0.7 -4.0 -2.3 -1.4 0.9 -0.4 0.8
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.7 0.9 0.6 0.3 0.5 2.0 1.5 0.7 0.6 0.8 0.4 0.4 1.1 0.5 0.6 0.4 0.6 0.5 0.2 0.3 0.5 0.5 0.8 0.5
HEALTH 0.9 0.8 1.0 0.4 0.6 1.4 1.0 0.4 0.7 0.8 0.7 0.4 1.4 0.6 1.0 0.4 0.7 0.2 0.4 0.5 0.7 0.7 0.7 0.4
TRANSPORT 2.8 2.9 0.4 0.1 0.9 0.9 -0.6 0.3 0.3 -0.2 0.6 0.1 0.6 0.1 0.3 -1.0 -0.1 0.8 -0.2 0.4 -0.7 0.5 -0.2 1.3
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 5.8 4.1 -0.8 -0.3 2.3 0.2 -1.8 1.3 0.4 -0.9 2.6 0.2 2.3 0.4 -0.7 -4.1 -6.3 2.4 -1.8 -0.8 -2.3 2.6 -0.2 1.5
COMMUNICATION -0.1 -0.1 0.0 -0.2 0.0 0.3 0.1 0.0 0.1 -0.1 0.1 -0.1 0.1 0.0 0.0 0.0 -0.1 0.0 0.1 0.0 0.0 0.1 0.0 0.0
RECREATION AND CULTURE 0.2 0.7 0.7 0.2 0.8 0.9 0.7 0.1 0.5 0.8 1.1 0.1 0.5 0.3 0.4 0.3 0.2 0.3 0.3 0.3 0.3 0.7 0.5 0.3
EDUCATION 0.1 1.5 3.1 0.1 0.1 1.4 2.9 0.0 0.0 1.5 3.1 0.0 0.0 1.6 3.5 0.0 0.0 1.2 2.4 0.0 0.0 0.6 1.2 0.1
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 1.0 0.9 0.8 0.4 0.9 1.2 0.7 0.3 0.6 0.7 0.5 0.3 0.6 0.5 0.3 0.4 0.3 0.2 0.3 0.5 0.6 0.8 0.5 0.3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 4.5 5.0 4.8 4.7 3.1 2.9 3.6 3.0 3.2 2.7 2.4 3.4 4.1 4.4 4.7 3.6 2.5 1.7 0.6 1.0 1.1 1.5 2.0 2.5
FOOD AND NON-ALCHOLIC BEVERAGES 5.6 6.2 5.3 4.9 2.1 2.0 3.1 2.5 2.7 2.4 2.2 4.0 5.6 6.8 8.0 6.3 4.8 3.0 1.1 1.3 1.6 2.3 2.7 3.5
FOOD ITEMS 5.9 6.3 5.4 5.0 2.0 2.0 3.2 2.4 2.7 2.3 2.2 4.1 5.9 7.1 8.3 6.6 5.0 3.1 1.1 1.3 1.6 2.4 2.8 3.6
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 3.8 5.3 6.1 6.2 4.8 5.0 4.9 5.0 25.9 31.2 31.1 30.8 9.6 4.0 3.5 3.9 4.0 3.8 3.7 3.9 4.9 5.5 6.0 6.3
NON-FOOD 3.6 4.0 4.4 4.5 3.9 3.7 3.7 3.4 2.8 1.9 1.5 2.1 2.6 2.6 2.4 1.4 0.6 0.5 0.1 0.5 0.5 0.6 1.2 1.5
CLOTHING AND FOOTWEAR 3.2 3.7 4.0 3.9 3.8 5.0 5.0 5.0 4.9 3.6 3.0 3.0 3.5 3.4 3.4 3.4 3.1 2.6 2.3 2.3 1.9 2.3 2.6 2.6
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 4.8 4.9 5.1 5.6 4.8 4.4 5.0 3.9 2.8 1.4 0.5 2.1 3.2 3.0 2.4 0.4 -1.1 -1.1 -1.7 -1.2 -1.0 -1.0 0.2 1.2
ELECTRICITY, GAS AND OTHER FUELS 10.5 8.3 8.9 11.3 9.2 6.1 6.7 3.6 0.9 -0.6 -2.0 2.4 5.8 5.5 3.5 -2.7 -8.7 -8.2 -9.8 -8.8 -6.9 -6.7 -3.2 -0.2
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 2.4 2.4 2.6 2.4 2.2 3.4 4.3 4.8 4.9 3.6 2.5 2.3 2.7 2.5 2.7 2.7 2.2 2.1 1.7 1.6 1.5 1.6 2.1 2.4
HEALTH 3.1 3.4 3.3 3.1 2.8 3.4 3.4 3.4 3.6 3.0 2.6 2.6 3.3 3.0 3.4 3.4 2.7 2.3 1.7 1.8 1.9 2.4 2.7 2.6
TRANSPORT 4.2 6.6 6.9 6.3 4.3 2.3 1.2 1.5 0.9 -0.2 1.0 0.8 1.1 1.3 1.1 0.0 -0.7 0.0 -0.5 0.9 0.3 0.0 0.0 0.9
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 8.2 10.8 11.1 8.9 5.3 1.3 0.3 1.9 0.0 -1.1 3.3 2.3 4.2 5.6 2.2 -2.2 -10.5 -8.6 -9.7 -6.6 -2.6 -2.4 -0.8 1.5
COMMUNICATION -0.1 -0.2 -0.3 -0.4 -0.3 0.1 0.2 0.4 0.5 0.1 0.1 0.0 0.0 0.1 0.0 0.1 -0.1 -0.1 0.0 0.0 0.1 0.2 0.1 0.1
RECREATION AND CULTURE 1.1 1.3 1.6 1.7 2.4 2.6 2.7 2.6 2.2 2.1 2.5 2.5 2.5 2.0 1.3 1.5 1.1 1.1 1.0 1.0 1.1 1.6 1.7 1.7
EDUCATION 4.3 4.5 5.1 4.8 4.8 4.7 4.5 4.4 4.4 4.5 4.7 4.7 4.7 4.8 5.1 5.1 5.1 4.7 3.6 3.6 3.6 3.0 1.8 1.8
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 2.4 2.8 3.1 3.2 3.1 3.4 3.3 3.2 2.9 2.4 2.2 2.2 2.1 1.9 1.7 1.8 1.6 1.2 1.2 1.3 1.6 2.2 2.4 2.2
Source: Philippine Statistics Authority (PSA)
2 0 1 1
2 0 1 1
2 0 1 1
Year-on-Year Change (in percent)
2 0 1 2
2016
2013
2013
2013
2016
2016
2015
2015
2015
2014
2014
2014
Quarter-on-Quarter Change (in percent)
2 0 1 2
2 0 1 2
4a CONSUMER PRICE INDEX IN METRO MANILA
for periods indicated
(2006=100)
Quarterly Average
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 119.5 120.9 121.2 122.1 122.9 123.7 125.6 125.4 125.7 125.8 126.5 127.8 129.2 130.3 131.4 131.0 131.6 131.6 131.9 132.1 132.0 132.7 133.7 135.1
FOOD AND NON-ALCHOLIC BEVERAGES 130.3 130.6 130.5 132.9 131.6 132.0 135.3 135.2 134.9 134.7 136.5 139.6 141.3 143.3 147.1 147.6 147.6 146.4 148.4 150.2 150.3 151.4 153.9 158.2
of which: FOOD ITEMS 131.5 131.7 131.6 134.2 132.7 133.0 136.5 136.3 135.9 135.7 137.6 141.0 142.8 144.9 149.0 149.5 149.4 148.0 150.2 152.1 152.3 153.4 156.1 160.7
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 117.6 118.9 119.1 119.5 120.4 122.5 124.2 126.5 140.3 144.7 145.8 146.5 151.2 152.6 153.2 153.9 155.1 155.9 156.4 156.5 158.7 161.1 163.9 164.9
NON-FOOD 115.2 117.0 117.4 117.7 119.4 120.3 121.7 121.4 121.7 121.8 122.0 122.6 123.8 124.6 124.6 123.8 124.7 125.1 124.7 124.2 124.0 124.5 124.9 125.1
CLOTHING AND FOOTWEAR 118.7 118.9 121.2 121.3 123.1 126.6 129.8 130.4 131.1 132.3 132.6 132.8 135.5 136.8 138.2 139.1 140.6 141.1 142.2 142.3 142.9 144.7 146.0 146.5
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 116.6 119.2 119.3 120.0 121.8 122.9 124.5 123.4 123.5 123.5 123.0 124.2 125.5 126.3 125.0 123.3 124.1 124.4 122.5 121.3 120.8 120.9 120.9 120.8
of which: ELECTRICITY, GAS AND OTHER FUELS 119.1 124.3 124.4 126.8 128.7 130.4 134.3 129.3 127.7 127.2 125.1 129.4 133.1 133.7 127.9 121.2 117.6 116.2 105.8 101.1 99.8 99.5 99.0 98.2
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 112.1 112.2 112.3 112.4 112.7 114.1 117.7 119.2 120.5 120.8 120.8 121.1 123.7 124.7 125.6 126.2 126.3 126.4 126.5 126.5 126.8 127.1 128.1 128.8
HEALTH 126.7 127.0 128.8 129.0 130.0 130.8 132.4 132.6 134.5 134.7 136.5 136.6 139.7 140.4 143.4 143.6 145.3 145.4 147.0 147.0 147.3 148.0 148.4 148.8
TRANSPORT 110.8 114.3 114.0 113.7 114.9 114.4 113.8 114.3 114.2 113.5 114.2 114.6 115.6 115.6 115.6 113.7 116.5 117.2 116.7 116.9 116.0 115.9 115.9 117.4
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 113.8 118.0 116.8 116.1 118.5 117.4 117.0 119.0 117.8 115.2 118.2 119.6 122.9 122.8 121.6 115.8 109.0 111.2 108.7 107.7 104.6 107.6 107.5 109.7
COMMUNICATION 93.6 93.4 93.3 93.2 93.1 93.7 93.9 93.9 93.9 93.9 93.9 93.9 94.1 94.1 94.1 94.1 94.1 94.2 94.3 94.3 94.3 94.4 94.4 94.4
RECREATION AND CULTURE 107.5 107.4 107.3 107.3 110.2 111.1 112.5 112.5 113.1 114.1 114.8 114.8 115.9 116.7 117.6 117.9 118.5 119.1 119.9 120.3 120.6 122.3 124.2 124.4
EDUCATION 130.6 132.2 135.5 135.5 135.5 137.0 140.0 140.0 140.0 142.1 146.2 146.2 146.2 149.0 154.5 154.5 154.5 157.3 163.0 163.0 163.0 164.4 167.3 167.3
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 114.8 115.9 116.3 116.5 119.5 119.9 120.7 120.7 120.9 121.1 121.2 121.3 121.8 122.7 123.1 123.1 123.3 123.3 123.6 123.6 124.0 124.8 125.0 125.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 1.6 1.2 0.2 0.7 0.7 0.7 1.5 -0.2 0.2 0.1 0.6 1.0 1.1 0.9 0.8 -0.3 0.5 0.0 0.2 0.2 -0.1 0.5 0.8 1.0
FOOD AND NON-ALCHOLIC BEVERAGES 1.3 0.2 -0.1 1.8 -1.0 0.3 2.5 -0.1 -0.2 -0.1 1.3 2.3 1.2 1.4 2.7 0.3 0.0 -0.8 1.4 1.2 0.1 0.7 1.7 2.8
of which: FOOD ITEMS 1.4 0.2 -0.1 2.0 -1.1 0.2 2.6 -0.1 -0.3 -0.1 1.4 2.5 1.3 1.5 2.8 0.3 -0.1 -0.9 1.5 1.3 0.1 0.7 1.8 2.9
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 1.1 1.1 0.2 0.3 0.8 1.7 1.4 1.9 10.9 3.1 0.8 0.5 3.2 0.9 0.4 0.5 0.8 0.5 0.3 0.1 1.4 1.5 1.7 0.6
NON-FOOD 1.9 1.6 0.3 0.3 1.4 0.8 1.2 -0.2 0.2 0.1 0.2 0.5 1.0 0.6 0.0 -0.6 0.7 0.3 -0.3 -0.4 -0.2 0.4 0.3 0.2
CLOTHING AND FOOTWEAR 0.7 0.2 1.9 0.1 1.5 2.8 2.5 0.5 0.5 0.9 0.2 0.2 2.0 1.0 1.0 0.7 1.1 0.4 0.8 0.1 0.4 1.3 0.9 0.3
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 2.3 2.2 0.1 0.6 1.5 0.9 1.3 -0.9 0.1 0.0 -0.4 1.0 1.0 0.6 -1.0 -1.4 0.6 0.2 -1.5 -1.0 -0.4 0.1 0.0 -0.1
of which: ELECTRICITY, GAS AND OTHER FUELS 2.8 4.4 0.1 1.9 1.5 1.3 3.0 -3.7 -1.2 -0.4 -1.7 3.4 2.9 0.5 -4.3 -5.2 -3.0 -1.2 -9.0 -4.4 -1.3 -0.3 -0.5 -0.8
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.3 0.1 0.1 0.1 0.3 1.2 3.2 1.3 1.1 0.2 0.0 0.2 2.1 0.8 0.7 0.5 0.1 0.1 0.1 0.0 0.2 0.2 0.8 0.5
HEALTH 1.4 0.2 1.4 0.2 0.8 0.6 1.2 0.2 1.4 0.1 1.3 0.1 2.3 0.5 2.1 0.1 1.2 0.1 1.1 0.0 0.2 0.5 0.3 0.3
TRANSPORT 3.4 3.2 -0.3 -0.3 1.1 -0.4 -0.5 0.4 -0.1 -0.6 0.6 0.4 0.9 0.0 0.0 -1.6 2.5 0.6 -0.4 0.2 -0.8 -0.1 0.0 1.3
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 6.1 3.7 -1.0 -0.6 2.1 -0.9 -0.3 1.7 -1.0 -2.2 2.6 1.2 2.8 -0.1 -1.0 -4.8 -5.9 2.0 -2.2 -0.9 -2.9 2.9 -0.1 2.0
COMMUNICATION -0.2 -0.2 -0.1 -0.1 -0.1 0.6 0.2 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.1 0.0 0.0
RECREATION AND CULTURE 0.1 -0.1 -0.1 0.0 2.7 0.8 1.3 0.0 0.5 0.9 0.6 0.0 1.0 0.7 0.8 0.3 0.5 0.5 0.7 0.3 0.2 1.4 1.6 0.2
EDUCATION 0.0 1.2 2.5 0.0 0.0 1.1 2.2 0.0 0.0 1.5 2.9 0.0 0.0 1.9 3.7 0.0 0.0 1.8 3.6 0.0 0.0 0.9 1.8 0.0
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 1.6 1.0 0.3 0.2 2.6 0.3 0.7 0.0 0.2 0.2 0.1 0.1 0.4 0.7 0.3 0.0 0.2 0.0 0.2 0.0 0.3 0.6 0.2 0.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 4.1 4.2 3.9 3.8 2.8 2.3 3.6 2.7 2.3 1.7 0.7 1.9 2.8 3.6 3.9 2.5 1.9 1.0 0.4 0.8 0.3 0.8 1.4 2.3
FOOD AND NON-ALCHOLIC BEVERAGES 5.0 5.8 4.5 3.3 1.0 1.1 3.7 1.7 2.5 2.0 0.9 3.3 4.7 6.4 7.8 5.7 4.5 2.2 0.9 1.8 1.8 3.4 3.7 5.3
of which: FOOD ITEMS 5.3 6.0 4.7 3.5 0.9 1.0 3.7 1.6 2.4 2.0 0.8 3.4 5.1 6.8 8.3 6.0 4.6 2.1 0.8 1.7 1.9 3.6 3.9 5.7
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.3 2.9 2.8 2.8 2.4 3.0 4.3 5.9 16.5 18.1 17.4 15.8 7.8 5.5 5.1 5.1 2.6 2.2 2.1 1.7 2.3 3.3 4.8 5.4
NON-FOOD 3.9 3.5 3.6 4.1 3.6 2.8 3.7 3.1 1.9 1.2 0.2 1.0 1.7 2.3 2.1 1.0 0.7 0.4 0.1 0.3 -0.6 -0.5 0.2 0.7
CLOTHING AND FOOTWEAR 3.5 2.9 3.3 2.9 3.7 6.5 7.1 7.5 6.5 4.5 2.2 1.8 3.4 3.4 4.2 4.7 3.8 3.1 2.9 2.3 1.6 2.6 2.7 3.0
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 4.9 3.3 3.8 5.3 4.5 3.1 4.4 2.8 1.4 0.5 -1.2 0.6 1.6 2.3 1.6 -0.7 -1.1 -1.5 -2.0 -1.6 -2.7 -2.8 -1.3 -0.4
of which: ELECTRICITY, GAS AND OTHER FUELS 9.9 0.0 2.3 9.5 8.1 4.9 8.0 2.0 -0.8 -2.5 -6.9 0.1 4.2 5.1 2.2 -6.3 -11.6 -13.1 -17.3 -16.6 -15.1 -14.4 -6.4 -2.9
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 2.2 1.1 0.8 0.5 0.5 1.7 4.8 6.0 6.9 5.9 2.6 1.6 2.7 3.2 4.0 4.2 2.1 1.4 0.7 0.2 0.4 0.6 1.3 1.8
HEALTH 4.1 4.1 3.3 3.2 2.6 3.0 2.8 2.8 3.5 3.0 3.1 3.0 3.9 4.2 5.1 5.1 4.0 3.6 2.5 2.4 1.4 1.8 1.0 1.2
TRANSPORT 4.1 6.9 7.2 6.1 3.7 0.1 -0.2 0.5 -0.6 -0.8 0.4 0.3 1.2 1.9 1.2 -0.8 0.8 1.4 1.0 2.8 -0.4 -1.1 -0.7 0.4
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 9.0 10.5 11.3 8.2 4.1 -0.5 0.2 2.5 -0.6 -1.9 1.0 0.5 4.3 6.6 2.9 -3.2 -11.3 -9.4 -10.6 -7.0 -4.0 -3.2 -1.1 1.9
COMMUNICATION -0.1 -0.3 -0.6 -0.6 -0.5 0.3 0.6 0.8 0.9 0.2 0.0 0.0 0.2 0.2 0.2 0.2 0.0 0.1 0.2 0.2 0.2 0.2 0.1 0.1
RECREATION AND CULTURE 1.6 0.7 0.1 -0.1 2.5 3.4 4.8 4.8 2.6 2.7 2.0 2.0 2.5 2.3 2.4 2.7 2.2 2.1 2.0 2.0 1.8 2.7 3.6 3.4
EDUCATION 3.7 3.7 3.8 3.8 3.8 3.6 3.3 3.3 3.3 3.7 4.4 4.4 4.4 4.9 5.7 5.7 5.7 5.6 5.5 5.5 5.5 4.5 2.6 2.6
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 2.8 3.7 3.0 3.1 4.1 3.5 3.8 3.6 1.2 1.0 0.4 0.5 0.7 1.3 1.6 1.5 1.2 0.5 0.4 0.4 0.6 1.2 1.1 1.3
Source: Philippine Statistics Authority (PSA)
2 0 1 2
2014
2014
2014
2 0 1 1
Year-on-Year Change (in percent)
2013
2013
2015
2015
2016
2016
2016
Quarter-on-Quarter Change (in percent)
2 0 1 1 2013 2015
2 0 1 2
2 0 1 22 0 1 1
4b CONSUMER PRICE INDEX IN AREAS OUTSIDE METRO MANILA
for periods indicated
(2006=100)
Quarterly Average
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 125.8 127.6 128.4 129.3 129.8 131.6 133.0 133.3 134.4 135.5 136.8 138.5 140.4 141.7 143.6 143.8 144.1 144.3 144.6 145.3 146.0 146.8 147.7 149.0
FOOD AND NON-ALCHOLIC BEVERAGES 136.3 137.4 138.0 139.2 139.3 140.4 142.2 142.8 143.2 143.7 145.7 148.7 151.4 153.5 157.4 158.3 158.8 158.5 159.1 160.3 161.3 161.8 163.2 165.2
of which: FOOD ITEMS 137.5 138.6 139.2 140.5 140.5 141.5 143.5 144.0 144.4 144.8 147.0 150.1 153.0 155.2 159.3 160.2 160.7 160.3 161.0 162.3 163.2 163.7 165.2 167.3
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 120.4 123.0 124.7 125.6 126.8 129.6 130.8 131.6 162.1 173.3 175.0 176.0 178.1 179.7 180.7 182.6 185.6 187.0 187.8 190.5 195.4 197.9 199.5 202.8
NON-FOOD 118.1 120.3 121.5 122.0 122.8 125.1 126.0 126.1 126.7 127.7 128.6 129.3 130.6 131.2 131.7 131.3 131.2 131.9 131.8 132.1 132.4 133.3 133.9 134.6
CLOTHING AND FOOTWEAR 115.8 117.4 118.6 119.5 120.2 122.7 123.9 124.4 125.4 126.8 127.9 128.6 130.0 131.0 131.9 132.5 133.7 134.3 134.7 135.5 136.4 137.2 138.2 138.9
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 118.2 121.2 121.9 122.5 124.1 127.3 128.4 128.0 128.4 129.5 130.0 131.4 133.4 133.9 133.6 132.4 131.8 132.7 131.5 131.1 131.4 132.3 132.7 133.5
of which: ELECTRICITY, GAS AND OTHER FUELS 128.2 134.9 135.6 137.0 140.6 143.4 144.1 142.6 142.4 143.4 143.4 146.9 151.7 151.5 148.9 144.7 139.6 141.3 137.6 135.2 133.2 134.8 134.3 135.9
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 116.9 118.2 119.0 119.5 120.2 122.9 124.0 124.7 125.3 126.5 127.2 127.8 128.7 129.3 130.0 130.5 131.6 132.3 132.7 133.3 134.1 135.0 136.0 136.7
HEALTH 121.7 122.9 124.0 124.6 125.1 127.2 128.5 129.0 129.7 131.0 131.7 132.3 133.7 134.6 135.5 136.1 136.7 137.1 137.5 138.3 139.5 140.6 141.8 142.4
TRANSPORT 122.9 126.4 127.1 127.4 128.4 130.0 129.1 129.5 130.1 130.0 130.7 130.7 131.4 131.7 132.1 131.0 130.0 131.2 130.9 131.6 130.7 131.5 131.3 132.9
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 124.7 130.1 129.1 129.0 131.4 132.7 130.0 131.5 132.8 132.2 135.5 135.3 138.3 139.0 138.2 132.8 124.2 127.3 125.3 124.3 121.6 124.6 124.4 126.0
COMMUNICATION 92.0 92.0 92.0 91.8 91.8 91.9 92.0 92.0 92.1 92.0 92.1 92.0 92.1 92.1 92.0 92.0 91.9 91.9 91.9 91.9 91.9 92.0 92.0 92.0
RECREATION AND CULTURE 105.2 106.2 107.1 107.4 107.7 108.7 109.2 109.4 109.8 110.8 112.1 112.3 112.6 112.8 113.2 113.4 113.6 113.7 114.0 114.2 114.5 115.0 115.2 115.4
EDUCATION 125.7 127.7 131.9 132.0 132.1 134.2 138.3 138.3 138.3 140.4 144.9 144.9 144.9 147.1 152.0 152.0 152.0 153.5 156.6 156.7 156.7 157.5 159.1 159.2
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 119.2 120.3 121.4 122.1 122.5 124.3 125.2 125.8 126.8 128.0 128.7 129.4 130.2 130.8 131.2 131.9 132.4 132.7 133.2 134.2 135.0 136.1 137.0 137.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 2.1 1.4 0.6 0.7 0.4 1.4 1.1 0.2 0.8 0.8 1.0 1.2 1.4 0.9 1.3 0.1 0.2 0.1 0.2 0.5 0.5 0.5 0.6 0.9
FOOD AND NON-ALCHOLIC BEVERAGES 2.9 0.8 0.4 0.9 0.1 0.8 1.3 0.4 0.3 0.3 1.4 2.1 1.8 1.4 2.5 0.6 0.3 -0.2 0.4 0.8 0.6 0.3 0.9 1.2
of which: FOOD ITEMS 3.0 0.8 0.4 0.9 0.0 0.7 1.4 0.3 0.3 0.3 1.5 2.1 1.9 1.4 2.6 0.6 0.3 -0.2 0.4 0.8 0.6 0.3 0.9 1.3
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.5 2.2 1.4 0.7 1.0 2.2 0.9 0.6 23.2 6.9 1.0 0.6 1.2 0.9 0.6 1.1 1.6 0.8 0.4 1.4 2.6 1.3 0.8 1.7
NON-FOOD 1.5 1.9 1.0 0.4 0.7 1.9 0.7 0.1 0.5 0.8 0.7 0.5 1.0 0.5 0.4 -0.3 -0.1 0.5 -0.1 0.2 0.2 0.7 0.5 0.5
CLOTHING AND FOOTWEAR 1.0 1.4 1.0 0.8 0.6 2.1 1.0 0.4 0.8 1.1 0.9 0.5 1.1 0.8 0.7 0.5 0.9 0.4 0.3 0.6 0.7 0.6 0.7 0.5
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 2.0 2.5 0.6 0.5 1.3 2.6 0.9 -0.3 0.3 0.9 0.4 1.1 1.5 0.4 -0.2 -0.9 -0.5 0.7 -0.9 -0.3 0.2 0.7 0.3 0.6
of which: ELECTRICITY, GAS AND OTHER FUELS 4.6 5.2 0.5 1.0 2.6 2.0 0.5 -1.0 -0.1 0.7 0.0 2.4 3.3 -0.1 -1.7 -2.8 -3.5 1.2 -2.6 -1.7 -1.5 1.2 -0.4 1.2
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.9 1.1 0.7 0.4 0.6 2.2 0.9 0.6 0.5 1.0 0.6 0.5 0.7 0.5 0.5 0.4 0.8 0.5 0.3 0.5 0.6 0.7 0.7 0.5
HEALTH 0.8 1.0 0.9 0.5 0.4 1.7 1.0 0.4 0.5 1.0 0.5 0.5 1.1 0.7 0.7 0.4 0.4 0.3 0.3 0.6 0.9 0.8 0.9 0.4
TRANSPORT 2.8 2.8 0.6 0.2 0.8 1.2 -0.7 0.3 0.5 -0.1 0.5 0.0 0.5 0.2 0.3 -0.8 -0.8 0.9 -0.2 0.5 -0.7 0.6 -0.2 1.2
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 6.0 4.3 -0.8 -0.1 1.9 1.0 -2.0 1.2 1.0 -0.5 2.5 -0.1 2.2 0.5 -0.6 -3.9 -6.5 2.5 -1.6 -0.8 -2.2 2.5 -0.2 1.3
COMMUNICATION -0.1 0.0 0.0 -0.2 0.0 0.1 0.1 0.0 0.1 -0.1 0.1 -0.1 0.1 0.0 -0.1 0.0 -0.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0
RECREATION AND CULTURE 0.3 1.0 0.8 0.3 0.3 0.9 0.5 0.2 0.4 0.9 1.2 0.2 0.3 0.2 0.4 0.2 0.2 0.1 0.3 0.2 0.3 0.4 0.2 0.2
EDUCATION 0.1 1.6 3.3 0.1 0.1 1.6 3.1 0.0 0.0 1.5 3.2 0.0 0.0 1.5 3.3 0.0 0.0 1.0 2.0 0.1 0.0 0.5 1.0 0.1
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 0.8 0.9 0.9 0.6 0.3 1.5 0.7 0.5 0.8 0.9 0.5 0.5 0.6 0.5 0.3 0.5 0.4 0.2 0.4 0.8 0.6 0.8 0.7 0.4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ALL ITEMS 4.6 5.2 5.0 5.0 3.2 3.1 3.6 3.1 3.5 3.0 2.9 3.9 4.5 4.6 5.0 3.8 2.6 1.8 0.7 1.0 1.3 1.7 2.1 2.5
FOOD AND NON-ALCHOLIC BEVERAGES 5.8 6.2 5.4 5.1 2.2 2.2 3.0 2.6 2.8 2.4 2.5 4.1 5.7 6.8 8.0 6.5 4.9 3.3 1.1 1.3 1.6 2.1 2.6 3.1
of which: FOOD ITEMS 6.0 6.4 5.5 5.2 2.2 2.1 3.1 2.5 2.8 2.3 2.4 4.2 6.0 7.2 8.4 6.7 5.0 3.3 1.1 1.3 1.6 2.1 2.6 3.1
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 4.1 5.9 6.8 6.9 5.3 5.4 4.9 4.8 27.8 33.7 33.8 33.7 9.9 3.7 3.3 3.7 4.2 4.1 3.9 4.3 5.3 5.8 6.2 6.5
NON-FOOD 3.6 4.4 4.9 4.8 4.0 4.0 3.7 3.4 3.2 2.1 2.1 2.5 3.1 2.7 2.4 1.5 0.5 0.5 0.1 0.6 0.9 1.1 1.6 1.9
CLOTHING AND FOOTWEAR 3.1 3.9 4.2 4.3 3.8 4.5 4.5 4.1 4.3 3.3 3.2 3.4 3.7 3.3 3.1 3.0 2.8 2.5 2.1 2.3 2.0 2.2 2.6 2.5
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 4.8 5.5 5.7 5.7 5.0 5.0 5.3 4.5 3.5 1.7 1.2 2.7 3.9 3.4 2.8 0.8 -1.2 -0.9 -1.6 -1.0 -0.3 -0.3 0.9 1.8
of which: ELECTRICITY, GAS AND OTHER FUELS 10.7 11.2 11.3 11.7 9.7 6.3 6.3 4.1 1.3 0.0 -0.5 3.0 6.5 5.6 3.8 -1.5 -8.0 -6.7 -7.6 -6.6 -4.6 -4.6 -2.4 0.5
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 2.5 2.9 3.2 3.1 2.8 4.0 4.2 4.4 4.2 2.9 2.6 2.5 2.7 2.2 2.2 2.1 2.3 2.3 2.1 2.1 1.9 2.0 2.5 2.6
HEALTH 2.8 3.2 3.3 3.2 2.8 3.5 3.6 3.5 3.7 3.0 2.5 2.6 3.1 2.7 2.9 2.9 2.2 1.9 1.5 1.6 2.0 2.6 3.1 3.0
TRANSPORT 4.2 6.5 6.8 6.5 4.5 2.8 1.6 1.6 1.3 0.0 1.2 0.9 1.0 1.3 1.1 0.2 -1.1 -0.4 -0.9 0.5 0.5 0.2 0.3 1.0
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 8.3 11.3 11.2 9.7 5.4 2.0 0.7 1.9 1.1 -0.4 4.2 2.9 4.1 5.1 2.0 -1.8 -10.2 -8.4 -9.3 -6.4 -2.1 -2.1 -0.7 1.4
COMMUNICATION -0.1 -0.2 -0.2 -0.3 -0.2 -0.1 0.0 0.2 0.3 0.1 0.1 0.0 0.0 0.1 -0.1 0.0 -0.2 -0.2 -0.1 -0.1 0.0 0.1 0.1 0.1
RECREATION AND CULTURE 0.9 1.5 2.1 2.4 2.4 2.4 2.0 1.9 1.9 1.9 2.7 2.7 2.6 1.8 1.0 1.0 0.9 0.8 0.7 0.7 0.8 1.1 1.1 1.1
EDUCATION 4.5 4.8 5.5 5.1 5.1 5.1 4.9 4.8 4.7 4.6 4.8 4.8 4.8 4.8 4.9 4.9 4.9 4.4 3.0 3.1 3.1 2.6 1.6 1.6
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 2.2 2.3 3.1 3.3 2.8 3.3 3.1 3.0 3.5 3.0 2.8 2.9 2.7 2.2 1.9 1.9 1.7 1.5 1.5 1.7 2.0 2.6 2.9 2.5
Source: Philippine Statistics Authority (PSA)
2014
2014
2014
2 0 1 2
Quarter-on-Quarter Change (in percent)
20152013
2015
2015
2 0 1 2
Year-on-Year Change (in percent)
2 0 1 2
2016
2016
2016
2013
2013
2 0 1 1
2 0 1 1
2 0 1 1
5 MONETARY INDICATORS (DCS CONCEPT: SRF-Based) 1
as of periods indicated
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
A. Liquidity
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 9,888.7 10,031.8 10,254.7 10,459.2 11,206.5
2. M3 : Broad Money Liabilities (3+6) 7,029.4 7,100.1 7,219.2 7,703.9 7,650.0 7,755.4 7,851.4 8,429.9 8,542.0 8,728.1 8,860.7 9,497.9
% to GDP 59.6 58.8 58.6 60.9 59.8 59.8 59.9 63.3 63.1 63.1 62.7 65.7
3. M2 (4+5) 6,795.8 6,864.3 6,949.3 7,396.3 7,344.3 7,434.5 7,510.8 8,067.3 8,219.0 8,412.6 8,525.7 9,137.9
% to GDP 57.7 56.9 56.4 58.5 57.4 57.3 57.3 60.6 60.7 60.8 60.4 63.2
4. M1: Currency Outside Depository Corporations and Transferable Deposits (Narrow Money ) 2,051.6 2,107.2 2,134.1 2,316.4 2,312.1 2,379.2 2,453.3 2,667.6 2,712.4 2,794.2 2,858.8 3,069.6
% to GDP 17.4 17.5 17.3 18.3 18.1 18.3 18.7 20.0 20.0 20.2 20.2 21.2
Currency Outside Depository Corporations (Currency in Circulation) 586.2 580.3 588.0 713.7 658.9 653.8 670.0 791.4 766.3 776.9 795.6 921.2
Transferable Deposits (Demand Deposits) 1,465.4 1,526.9 1,546.1 1,602.6 1,653.2 1,725.4 1,783.3 1,876.2 1,946.1 2,017.3 2,063.2 2,148.4
5. Other deposits included in broad money 4,744.3 4,757.1 4,815.2 5,080.0 5,032.2 5,055.3 5,057.5 5,399.7 5,506.6 5,618.4 5,666.9 6,068.3
Savings Deposits 3,084.4 3,007.0 3,077.0 3,191.8 3,209.8 3,269.9 3,357.5 3,586.9 3,702.9 3,824.2 3,898.5 4,097.6
Time Deposits 1,659.8 1,750.1 1,738.1 1,888.2 1,822.4 1,785.4 1,700.0 1,812.8 1,803.7 1,794.1 1,768.4 1,970.7
6. Securities Other Than Shares Included in Broad Money (Deposit Substitutes) 233.5 235.8 269.9 307.6 305.6 320.9 340.7 362.7 323.0 315.5 335.0 360.0
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 1,526.7 1,598.6 1,708.6
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 1,971.1 2,144.4 2,374.9 2,642.8 2,296.1
B. Domestic Claims 6,332.0 6,473.9 6,605.5 7,053.0 6,997.4 7,114.6 7,387.2 7,861.0 8,075.9 8,328.7 8,603.2 9,193.6
1. Net Claims on Central Government 1,188.5 1,110.2 1,033.6 1,119.1 1,096.9 1,124.5 1,209.0 1,261.7 1,447.1 1,411.2 1,485.4 1,607.5
Claims on Central Government 1,735.0 1,733.2 1,738.6 1,862.7 1,862.6 1,926.4 2,019.0 1,992.6 2,066.8 2,039.6 2,103.7 2,101.5
Less: Liabilities to Central Government 546.5 623.1 705.0 743.7 765.7 801.9 810.0 730.9 619.7 628.4 618.3 494.0
2. Claims on Other Sectors 5,143.4 5,363.7 5,571.9 5,933.9 5,900.4 5,990.1 6,178.2 6,599.3 6,628.8 6,917.5 7,117.9 7,586.1
Claims on Other Financial Corporations 559.5 574.6 613.6 630.3 628.2 628.8 667.9 680.5 689.9 722.7 724.0 771.5
Claims on State and Local Government 73.3 71.9 70.5 71.5 70.5 70.6 74.0 76.6 77.8 80.5 81.9 82.8
Claims on Public Nonfinancial Corporations 265.1 271.2 268.0 269.3 271.9 274.2 281.4 278.0 282.1 286.8 277.2 256.8
Claims on Private Sector 4,245.5 4,446.0 4,619.8 4,962.9 4,929.9 5,016.5 5,154.9 5,564.2 5,578.9 5,827.5 6,034.8 6,475.0
C. Net Foreign Assets 3,576.3 3,586.6 3,709.1 3,752.1 3,875.6 3,871.7 3,962.4 3,998.8 4,100.3 4,300.9 4,498.8 4,309.0
1. Bangko Sentral ng Pilipinas 3,520.0 3,476.6 3,524.1 3,514.4 3,556.8 3,598.5 3,731.8 3,762.8 3,778.5 3,973.9 4,141.6 3,946.4
Claims on Non-residents 3,597.3 3,551.7 3,599.6 3,587.4 3,627.5 3,671.8 3,806.9 3,837.3 3,852.5 4,045.5 4,214.3 4,023.8
Less: Liabilities to Non-residents 77.3 75.2 75.4 73.0 70.8 73.2 75.0 74.4 74.0 71.6 72.8 77.4
2. Other Depository Corporations 56.3 110.0 185.0 237.7 318.9 273.2 230.5 235.9 321.8 327.0 357.3 362.5
Claims on Non-residents 810.2 828.5 864.0 1,028.7 964.1 951.0 985.1 1,023.9 1,070.9 1,108.2 1,134.4 1,211.8
Less: Liabilities to Non-residents 753.9 718.5 679.0 790.9 645.3 677.7 754.5 787.9 749.1 781.2 777.2 849.3
2014 2015 2016
6 SELECTED DOMESTIC INTEREST RATES
for periods indicated; in percent per annum
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
4.1 4.4 4.7 3.6 2 1.7 0.6 1 1.1 1.5 2 2.5Interbank Call Loans 2.0147 2.0618 2.3356 2.5384 2.5266 2.5225 2.5241 2.5291 2.5289 2.5293 2.5247 2.5074 -2.0853 -2.3382 -2.3644 -1.0616 0.5266 0.8225 1.9241 1.5291 1.4289 1.0293 0.5247 0.0074Savings Deposits 0.5370 0.6270 0.6460 0.7030 0.7170 0.6720 0.7210 0.7270 0.7370 0.7140 0.7290 0.6990 -3.5630 -3.7730 -4.0540 -2.8970 -1.2830 -1.0280 0.12100 -0.2730 -0.3630 -0.7860 -1.2710 -1.8010Time Deposits (All Maturities) 0.9740 0.9870 1.0480 1.3470 1.3760 1.5220 1.4720 1.6290 1.6120 1.5210 1.4450 1.5770 -3.1260 -3.4130 -3.6520 -2.2530 -0.6240 -0.1780 0.8720 0.6290 0.5120 0.0210 -0.5550 -0.9230
Lending Rates
6.7287 6.8083 6.8860 6.7818 6.8698 6.9390 6.9376 6.7607 6.8407 6.7760 6.6280 6.4397 2.6287 2.4083 2.1860 3.1818 4.8698 5.2390 6.3376 5.7607 5.7407 5.2760 4.6280 3.93974.3688 4.3417 4.3861 4.4397 4.5031 4.5183 4.5025 4.3579 4.4055 4.4067 4.2788 4.1097 0.2688 -0.0583 -0.3139 0.8397 2.5031 2.8183 3.9025 3.3579 3.3055 2.9067 2.2788 1.6097
5.5000 5.4780 5.5350 5.5820 5.4280 5.5150 5.6250 5.7390 5.6310 5.6240 5.6840 5.6290 1.4000 1.0780 0.8350 1.9820 3.4280 3.8150 5.0250 4.7390 4.5310 4.1240 3.6840 3.1290
Bangko Sentral Rates 3
… … … … … … … … … .. .. .. … … … … … … … … … .. .. ..3.5000 3.5000 3.7500 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 3.4902 3.0000 3.0000 -0.6000 -0.9000 -0.9500 0.4000 2.0000 2.3000 3.4000 3.0000 2.9000 1.9902 1.0000 0.5000
… … … … … … … … … 2.5000 2.5000 2.5000 … … … … … … … … … … … …
7-Day … … … … … … … … … 2.5000 2.5000 2.7882 … … … … … … … … … 1.0000 0.5000 0.288228-Day … … … … … … … … … 2.5000 2.5129 2.9071 … … … … … … … … … 1.0000 0.5129 0.4071
Rate on Government Securities Treasury Bills, All Maturities 1.2880 1.5000 1.5000 1.5720 1.6910 2.0780 1.9980 1.7440 1.6130 1.6990 1.5050 1.5630 -2.8120 -2.9000 -3.2000 -2.0280 -0.3090 0.3780 1.3980 0.7440 0.5130 0.1990 -0.4950 -0.9370
1.0650 1.2740 1.2580 1.2860 1.4690 1.9400 1.8610 1.7100 1.5550 1.5970 1.4160 1.4400 -3.0350 -3.1260 -3.4420 -2.3140 -0.5310 0.2400 1.2610 0.7100 0.4550 0.0970 -0.5840 -1.06001.4000 1.5890 1.5820 1.7000 1.7290 2.2070 2.0140 1.6970 1.5800 1.6540 1.4520 1.6890 -2.7000 -2.8110 -3.1180 -1.9000 -0.2710 0.5070 1.4140 0.6970 0.4800 0.1540 -0.5480 -0.81101.5400 1.8630 1.8090 1.8250 1.9480 2.2630 2.2000 1.8970 1.7230 1.8570 1.6790 1.8800 -2.5600 -2.5370 -2.8910 -1.7750 -0.0520 0.5630 1.6000 0.8970 0.6230 0.3570 -0.3210 -0.6200
Government Securities in the Secondary Market 4 3.9 4.4 4.4 2.7 2.4 1.2 0.4 1.5 1.1 1.9 2.3 2.63-Month 1.6917 1.3229 1.7104 2.5409 2.2714 2.0765 1.6817 2.6667 1.7650 1.7567 1.5857 2.0755 -2.2083 -3.0771 -2.6896 -0.1591 -0.1286 0.8765 1.2817 1.1667 0.6650 -0.1433 -0.7143 -0.52456-Month 2.0367 1.4938 1.9479 2.6432 2.5795 2.1980 1.7967 2.9183 1.8950 1.5949 1.2931 2.9464 -1.8633 -2.9062 -2.4521 -0.0568 0.1795 0.9980 1.3967 1.4183 0.7950 -0.3051 -1.0069 0.34641-Year 2.3125 1.8917 2.1729 2.6955 2.6886 2.4297 2.5467 2.3710 1.7313 2.1671 2.0107 2.4520 -1.5875 -2.5083 -2.2271 -0.0045 0.2886 1.2297 2.1467 0.8710 0.6313 0.2671 -0.2893 -0.14802-Year 2.7563 2.8542 2.9813 3.0568 3.1959 2.6999 2.6143 3.9847 3.4700 2.3877 2.2855 3.8676 -1.1437 -1.5458 -1.4187 0.3568 0.7959 1.4999 2.2143 2.4847 2.3700 0.4877 -0.0145 1.26763-Year 3.1650 2.8917 3.3833 3.4500 3.4136 3.0281 3.1016 3.6625 3.6900 3.0660 3.2925 3.5170 -0.7350 -1.5083 -1.0167 0.7500 1.0136 1.8281 2.7016 2.1625 2.5900 1.1660 0.9925 0.91704-Year 3.3917 3.1750 3.5083 3.5705 3.5864 3.7717 3.7263 3.8750 3.2332 3.3067 2.8798 3.8814 -0.5083 -1.2250 -0.8917 0.8705 1.1864 2.5717 3.3263 2.3750 2.1332 1.4067 0.5798 1.28145-Year 3.7479 3.9812 4.2146 3.6795 3.8273 3.8900 3.4923 3.9250 3.4583 2.8997 3.6321 4.7426 -0.1521 -0.4188 -0.1854 0.9795 1.4273 2.6900 3.0923 2.4250 2.3583 0.9997 1.3321 2.14267-Year 3.8615 4.0292 4.1229 4.1475 3.8932 3.7189 4.1617 4.5853 4.2283 2.9197 3.4483 4.8857 -0.0385 -0.3708 -0.2771 1.4475 1.4932 2.5189 3.7617 3.0853 3.1283 1.0197 1.1483 2.285710-Year 4.4562 4.1667 4.3475 4.3705 4.0614 4.3550 3.7995 4.1000 4.6900 4.2183 3.6455 4.6281 0.5562 -0.2333 -0.0525 1.6705 1.6614 3.1550 3.3995 2.6000 3.5900 2.3183 1.3455 2.028120-Year 5.3938 5.3750 5.3125 5.1727 4.9850 4.6511 5.1350 5.5217 5.2317 4.2415 4.6482 5.3771 1.4938 0.9750 0.9125 2.4727 2.5850 3.4511 4.7350 4.0217 4.1317 2.3415 2.3482 2.777125-Year 5.6354 5.4329 5.3750 4.9500 4.7659 .. 4.7280 4.8916 .. .. .. .. 1.7354 1.0329 0.9750 2.2500 2.3659 .. 4.3280 3.3916 .. .. .. ..
1 Nominal interest rate less inflation rate2 Refers to the weighted average interest rate of reporting commercial banks' interest incomes on their outstanding peso-denominated loans3 Beginning 3 June 2016, the BSP shifted its monetary operations to an interest rate corridor (IRC) system. The repurchase (RP) and Special Deposit Account (SDA) windows were replaced by standing overnight lending and overnight deposit facilities, respectively.
The reverse repurchase (RRP) facility was modified to a purely overnight RRP. In addition, the term deposit facility (TDF) will serve as the main tool for absorbing liquidity. Starting 3 June 2016, the interest rates for these facilities were set as follows: 3.5 percent in the OLF
(a reduction from 6.0 percent); 3.0 percent in the overnight RRP rate (an adjustment from 4.0 percent); and 2.5 percent in the ODF (no change from the previous SDA rate). The OLF and ODF will serve as the upper bound and lower bound, respectively, of the IRC system.4 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 Preliminaryr Revised
- Not Available
.. No Transaction/No Quotation/No Issue
... Blank
Source: Bangko Sentral ng Pilipinas
REAL INTEREST RATES 1NOMINAL INTEREST RATES
HighLow
364-Day
Overnight Lending Facility (OLF)Overnight RRPOvernight Deposit Facility (ODF)Term Deposit Auction Facility (TDF)
20152014
91-Day182-Day
All Maturities 2
2016201520142016
7 NUMBER OF FINANCIAL INSTITUTIONS 1
as of periods indicated
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
T o t a l 28,065 28,094 28,128 28,232 28,331 28,319 28,293 28,471 27,504 27,659 27,891
Head Offices 6,943 6,888 6,840 6,735 6,721 6,685 6,625 6,576 6,328 6,296 6,279
Branches/Agencies 21,122 21,206 21,288 21,497 21,610 21,634 21,668 21,895 21,176 21,363 21,612
Banks 10,020 10,120 10,207 10,361 10,456 10,528 10,538 10,756 10,849 10,936 11,024
Head Offices 667 664 652 648 646 638 634 632 622 618 613
Branches/Agencies 9,353 9,456 9,555 9,713 9,810 9,890 9,904 10,124 10,227 10,318 10,411
Universal and Commercial Banks 5,514 5,583 5,738 5,833 5,901 5,946 5,946 6,060 6,094 6,133 6,147
Head Offices 36 36 36 36 36 36 36 40 41 41 41
Branches/Agencies 5,478 5,547 5,702 5,797 5,865 5,910 5,910 6,020 6,053 6,092 6,106
Thrift Banks 1,856 1,878 1,873 1,920 1,927 2,013 1,999 2,086 2,130 2,124 2,180
Head Offices 70 70 69 69 69 70 69 68 66 64 64
Branches/Agencies 1,786 1,808 1,804 1,851 1,858 1,943 1,930 2,018 2,064 2,060 2,116
Savings and Mortgage Banks 1,219 1,242 1,248 1,280 1,317 1,386 1,356 1,517 1,545 1,548 1,562
Head Offices 28 28 28 28 28 29 28 28 27 26 26
Branches/Agencies 1,191 1,214 1,220 1,252 1,289 1,357 1,328 1,489 1,518 1,522 1,536
Private Development Banks 437 432 440 444 408 416 417 338 355 363 404
Head Offices 19 19 19 19 19 19 19 18 18 18 19
Branches/Agencies 418 413 421 425 389 397 398 320 337 345 385
Stock Savings and Loan Assns. 171 175 154 165 171 180 195 200 199 182 184
Head Offices 19 19 18 18 18 18 18 18 17 16 16
Branches/Agencies 152 156 136 147 153 162 177 182 182 166 168
Microfinance Banks 29 29 31 31 31 31 31 31 31 31 30
Head Offices 4 4 4 4 4 4 4 4 4 4 3
Branches/Agencies 25 25 27 27 27 27 27 27 27 27 27
Rural Banks 2,650 2,659 2,596 2,608 2,628 2,569 2,593 2,610 2,625 2,679 2,697
Head Offices 561 558 547 543 541 532 529 524 515 513 508
Branches/Agencies 2,089 2,101 2,049 2,065 2,087 2,037 2,064 2,086 2,110 2,166 2,189
Non-Banks r 18,045 17,974 17,921 17,871 17,875 17,791 17,755 17,715 16,655 16,723 16,867
Head Offices r 6,276 6,224 6,188 6,087 6,075 6,047 5,991 5,944 5,706 5,678 5,568
Branches/Agencies r 11,769 11,750 11,733 11,784 11,800 11,744 11,764 11,771 10,949 11,045 11,198
Investment Houses 26 25 25 25 25 25 25 25 26 26 26
Head Offices 16 15 15 15 15 15 15 15 16 16 16
Branches/Agencies 10 10 10 10 10 10 10 10 10 10 10
Finance Companies 88 88 88 88 88 88 110 110 118 118 93
Head Offices 20 20 20 20 20 20 22 22 22 22 5
Branches/Agencies 68 68 68 68 68 68 88 88 96 96 88
ABB Forex Corporations - - - - - - 5 5 5 5 5
Head Offices - - - - - - 5 5 5 5 5
Branches/Agencies - - - - - - - - - - -
Investment Companies 3 3 2 2 2 2 2 2 2 2 2
Head Offices 3 3 2 2 2 2 2 2 2 2 2
Branches/Agencies - - - - - - - - - - -
Securities Dealers/Brokers 13 13 13 13 13 13 13 13 13 13 13
Head Offices 13 13 13 13 13 13 13 13 13 13 13
Branches/Agencies - - - - - - - - - - -
Pawnshops 17,584 17,513 17,461 17,422 17,426 17,340 17,278 17,238 16,170 16,237 16,372
Head Offices 6,022 5,971 5,936 5,847 5,835 5,807 5,745 5,698 5,460 5,432 5,420
Branches/Agencies 11,562 11,542 11,525 11,575 11,591 11,533 11,533 11,540 10,710 10,805 10,952
Lending Investors 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - - - - -
Non-Stock Savings and Loan Assns. 198 199 199 199 199 201 200 200 199 200 200
Head Offices 71 71 71 71 71 71 70 70 69 69 69
Branches/Agencies 127 128 128 128 128 130 130 130 130 131 131
Private Insurance Companies 2 r 110 110 110 99 99 99 99 99 99 99 99
Head Offices r 108 108 108 96 96 96 96 96 96 96 96
Branches/Agencies r 2 2 2 3 3 3 3 3 3 3 3
Government Non-Banks 4 4 4 4 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4 4 4 4 4
Branches/Agencies - - - - - - - - - - -
Venture Capital Corporations - - - - - - - - - - -
Head Offices - - - - - - - - - - -
Branches/Agencies - - - - - - - - - - -
Credit Card Companies 3 3 3 3 3 3 3 3 3 3 3
Head Offices 3 3 3 3 3 3 3 3 3 3 3
Branches/Agencies - - - - - - - - - - -
Other Non-Bank with QBF 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - - - - -
Electronic Money Issuer 4 4 4 4 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4 4 4 4 4
Branches/Agencies - - - - - - - - - - -
Remittance Agent 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - - - - -
Credit Granting Entities 9 9 9 9 9 9 9 9 9 9 9
Head Offices 9 9 9 9 9 9 9 9 9 9 9
Branches/Agencies - - - - - - - - - - -
1 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.p Preliminary_ zero or nil
Source: Bangko Sentral ng Pilipinas
2014 2015 2016 p
8 TOTAL RESOURCES OF THE PHILIPPINE FINANCIAL SYSTEM 1
as of periods indicated
in billion pesos
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
T o t a l 9,522.0 9,797.5 9,981.4 10,633.4 10,772.5 11,285.1 11,820.7 12,814.6 13,032.3 13,339.7 13,488.3 14,446.6 14,322.0 14,453.5 14,779.2 15,381.7 15,559.2 15,963.8 16,212.2 17,028.1
Banks 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 10,612.2 10,751.0 11,546.2 11,374.2 11,502.7 11,863.2 12,406.3 12,529.9 12,865.9 13,114.3 13,908.8
Universal and Commercial Banks 6,668.0 6,877.6 7,054.3 7,486.6 7,547.6 7,995.5 8,505.4 9,300.4 9,412.5 9,545.6 9,658.0 10,398.4 10,238.9 10,327.9 10,670.8 11,159.2 11,254.8 11,578.5 11,810.5 12,545.3
Thrift Banks 608.6 606.2 622.4 681.5 679.3 739.8 764.6 809.1 825.0 848.7 866.6 916.2 899.3 964.7 979.6 1,034.1 1,055.1 1,064.0 1,080.4 1,104.4
Rural Banks 179.4 179.4 200.8 200.8 207.9 189.8 184.8 183.3 227.7 217.9 226.4 231.6 236.0 210.1 212.8 213.0 220.0 223.4 226.3 226.3 a
Non-Banks 2 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 2,916.0 2,975.4 3,029.4 3,098.1 3,114.2 3,119.3
1 Excludes the Bangko Sentral ng Pilipinas; amount includes allowance for probable losses.
2 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
As of end-September 2016p
Preliminary
Notes: Data on Non-Banks are based on Consolidated Statement of Condition (CSOC).
Data on Rural Banks were based on CSOC up to March 2010. Data from April 2010 onwards are based on FRP. Details may not add up to total due to rounding off.
Source: Bangko Sentral ng Pilipinas
2016 p
(3)
2015
Institutions
(1)
(2)
2012 2013 2014
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 Gross Non-Performing Loans 3 Net Non-Performing Loans 3Total Loans Loan Loss Provisions
UB&KBs TBs RBs Total UB&KBs TBs RBs Total UB&KBs TBs RBs Total UB&KBs TBs RBs Total UB&KBs TBs RBs Total
2006 117.410 20.550 9.045 147.005 2073.698 249.993 83.234 2406.925 97.031 10.138 3.820 110.989
2007 97.634 20.231 9.841 127.706 2195.110 295.499 100.215 2590.824 91.123 9.560 3.587 104.270
2008 88.191 20.107 9.563 117.861 2502.662 303.632 95.892 2902.186 88.201 10.774 3.636 102.611
2009 80.912 23.396 10.157 114.465 2725.200 321.742 97.534 3144.476 90.898 12.097 3.952 106.947
2010
Mar 81.382 25.189 9.363 115.934 2531.003 320.902 99.346 2951.251 91.982 12.702 4.380 109.064
Jun 87.668 25.868 9.491 123.027 2682.230 326.275 100.778 3109.283 95.394 13.723 4.603 113.720
Sep 83.141 28.177 9.417 120.735 2670.645 343.058 97.794 3111.497 97.379 14.500 4.533 116.412
Dec 80.215 26.323 10.249 116.787 2802.041 359.484 103.695 3265.220 95.040 14.123 5.102 114.265
2011
Mar 82.410 25.911 11.838 120.159 2759.938 354.660 117.155 3231.753 99.197 16.645 5.970 121.812
Jun 74.143 22.746 12.198 109.087 3030.631 367.867 119.701 3518.199 93.548 13.420 6.113 113.081
Sep 74.326 22.699 12.127 109.152 3021.051 364.469 121.659 3507.179 91.944 13.618 6.296 111.858
Dec 71.938 21.953 12.263 106.154 3222.105 383.731 120.963 3726.799 90.903 12.946 6.176 110.025
2012
Mar 106.354 26.090 13.940 146.384 18.918 11.550 7.470 37.938 3192.496 402.540 123.740 3718.776 124.968 18.170 7.690 150.828
Jun 102.098 24.360 14.370 140.828 11.393 9.530 7.350 28.273 3388.091 432.990 124.870 3945.951 127.269 18.270 8.230 153.769
Sep 103.420 25.830 14.800 144.050 13.224 11.340 7.060 31.624 3444.161 410.520 128.780 3983.461 128.598 18.560 9.000 156.158
Dec 100.610 26.530 15.850 142.990 11.310 12.220 6.910 30.440 3650.760 449.260 128.580 4228.600 128.460 18.090 10.220 156.770
2013
Mar 99.357 26.930 17.250 143.537 16.245 12.240 8.073 36.558 3625.043 439.240 129.473 4193.756 127.487 18.960 10.420 156.867
Jun 100.912 27.840 15.910 144.662 14.569 12.320 7.420 34.309 3760.891 468.830 128.740 4358.461 131.291 20.130 9.750 161.171
Sep 100.638 28.895 16.400 145.933 16.497 13.088 7.870 37.455 3922.085 490.705 126.790 4539.580 131.338 20.199 9.740 161.277
Dec 90.509 27.729 17.306 135.544 8.050 12.291 8.250 28.591 4256.963 508.199 131.788 4896.950 130.440 20.107 10.327 160.874
2014
Mar 93.323 27.057 18.114 138.494 9.939 13.146 8.800 31.885 4329.734 547.791 137.889 5015.414 131.790 18.771 10.612 161.173
Jun 94.798 27.165 17.867 139.830 12.437 12.931 8.895 34.263 4513.288 562.850 132.888 5209.026 133.317 19.088 10.240 162.645
Sep 96.181 26.049 16.476 138.706 14.129 11.572 8.257 33.958 4704.656 575.778 134.611 5415.045 133.708 19.375 9.486 162.569
Dec 93.055 25.373 16.402 134.830 15.289 11.346 8.104 34.739 5117.884 576.057 138.436 5832.377 132.542 19.468 9.563 161.573
2015 p
Mar 97.365 27.293 16.758 141.416 18.093 12.116 8.407 38.616 4991.914 600.981 139.144 5732.039 134.544 20.460 9.646 164.650
Jun 94.122 29.954 14.254 138.330 15.356 14.141 6.501 35.998 5110.488 638.154 119.780 5868.422 134.924 21.456 8.910 165.290
Sep 95.241 30.503 13.997 139.741 18.006 14.300 5.998 38.304 5244.589 668.457 121.416 6034.462 133.090 22.036 9.196 164.322
Dec 91.598 31.199 13.706 136.503 21.672 14.692 5.513 41.877 5719.665 689.019 118.711 6527.395 129.220 23.045 9.381 161.646
2016 p
Mar 97.112 34.346 14.215 145.673 29.065 16.288 5.741 51.094 5659.766 728.258 122.708 6510.732 129.193 25.001 9.739 163.933
Jun 98.198 36.158 14.473 148.829 30.689 17.388 5.576 53.653 5940.313 731.832 126.088 6798.233 130.708 25.617 10.178 166.503
Sep 98.398 37.414 14.380 150.192 28.399 18.049 5.157 51.605 6144.623 745.564 128.012 7018.199 133.465 26.440 10.499 170.404
Dec 93.801 36.654 14.380 a 144.835 21.264 17.340 5.157 a 43.761 6706.311 778.133 128.012 a 7612.456 135.699 26.775 10.499 a 172.973
1 Data include banks under liquidation, foreign office transactions and interbank loans2 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 September 2016p Preliminary
Details may not add up due to rounding off.
Source: Bangko Sentral ng Pilipinas
9 RATIO OF NON-PERFORMING LOANS (NPL) AND LOAN LOSS PROVISIONS 1
TO TOTAL LOANS OF THE BANKING SYSTEM
end-of-period, in percent
UBs &KBs TBs RBs Total UBs &KBs TBs RBs Total UBs &KBs TBs RBs Total UBs &KBs TBs RBs Total
2006 5.662 8.220 10.867 6.108 4.679 4.055 4.589 4.611
2007 4.448 6.846 9.820 4.929 4.151 3.235 3.579 4.025
2008 3.524 6.622 9.973 4.061 3.524 3.548 3.792 3.536
2009 2.969 7.272 10.414 3.640 3.335 3.760 4.052 3.401
2010
Mar 3.215 7.849 9.425 3.928 3.634 3.958 4.409 3.696
Jun 3.268 7.928 9.418 3.957 3.557 4.206 4.567 3.657
Sep 3.113 8.213 9.629 3.880 3.646 4.227 4.635 3.741
Dec 2.863 7.322 9.884 3.577 3.392 3.929 4.920 3.499
2011
Mar 2.986 7.306 10.105 3.718 3.594 4.693 5.096 3.769
Jun 2.446 6.183 10.190 3.101 3.087 3.648 5.107 3.214
Sep 2.460 6.228 9.968 3.112 3.043 3.736 5.175 3.189
Dec 2.233 5.721 10.138 2.848 2.821 3.374 5.106 2.952
2012
Mar 3.331 6.481 11.266 3.936 0.593 2.869 6.037 1.020 3.914 4.514 6.215 4.056
Jun 3.013 5.626 11.508 3.569 0.336 2.201 5.886 0.717 3.756 4.219 6.591 3.897
Sep 3.003 6.292 11.492 3.616 0.384 2.762 5.482 0.794 3.734 4.521 6.989 3.920
Dec 2.756 5.905 12.327 3.381 0.310 2.720 5.374 0.720 3.519 4.027 7.948 3.707
2013
Mar 2.741 6.131 13.323 3.423 0.448 2.787 6.235 0.872 3.517 4.317 8.048 3.740
Jun 2.683 5.938 12.358 3.319 0.387 2.628 5.764 0.787 3.491 4.294 7.573 3.698
Sep 2.566 5.888 12.935 3.215 0.421 2.667 6.207 0.825 3.349 4.116 7.682 3.553
Dec 2.126 5.456 13.132 2.768 0.189 2.419 6.260 0.584 3.064 3.957 7.836 3.285
2014
Mar 2.155 4.939 13.137 2.761 0.230 2.400 6.382 0.636 3.044 3.427 7.696 3.214
Jun 2.100 4.826 13.445 2.684 0.276 2.297 6.694 0.658 2.954 3.391 7.706 3.122
Sep 2.044 4.524 12.240 2.561 0.300 2.010 6.134 0.627 2.842 3.365 7.047 3.002
Dec 1.818 4.405 11.848 2.312 0.299 1.970 5.854 0.596 2.590 3.380 6.908 2.770
2015 p
Mar 1.950 4.541 12.044 2.467 0.362 2.016 6.042 0.674 2.695 3.404 6.932 2.872
Jun 1.842 4.694 11.900 2.357 0.300 2.216 5.427 0.613 2.640 3.362 7.439 2.817
Oct 1.816 4.563 11.528 2.316 0.343 2.139 4.940 0.635 2.538 3.297 7.574 2.723
Dec 1.601 4.528 11.546 2.091 0.379 2.132 4.644 0.642 2.259 3.345 7.902 2.476
2016 p
Mar 1.716 4.716 11.584 2.237 0.514 2.237 4.679 0.785 2.283 3.433 7.937 2.518
Jun 1.653 4.941 11.478 2.189 0.517 2.376 4.422 0.789 2.200 3.500 8.072 2.449
Sep 1.601 5.018 11.233 2.140 0.462 2.421 4.029 0.735 2.172 3.546 8.202 2.428
Dec 1.399 4.711 11.233 a 1.903 0.317 2.228 4.029 a 0.575 2.023 3.441 8.202 a 2.272
1 Data include banks under liquidation, foreign office transactions and interbank loans2 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 September 2016p Preliminary
Details may not add up due to rounding off.
Source: Bangko Sentral ng Pilipinas
Loan Loss Provisions/Total Loans NPL/Total Loans 2 Gross NPL/Total Loans 3 Net NPL/Total Loans 3
10 STOCK MARKET TRANSACTIONS
volume in million shares, value in million pesos
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Volume 113,135 122,113 155,537 424,409 150,587 68,804 191,792 82,078 97,625 135,028 118,017 91,601
Financials 992 1,341 1,558 1,090 978 1,238 1,154 725 741 1,012 1,906 1,450
Industrial 12,328 13,115 13,644 25,346 10,913 6,133 11,872 5,550 6,153 6,410 11,122 5,345
Holding Firms 5,728 6,984 12,527 12,142 10,844 6,076 25,300 13,115 8,600 11,584 9,081 7,749
Property 12,053 22,136 20,366 15,629 12,138 8,586 7,757 16,680 10,446 11,770 20,015 12,974
Services 7,058 12,923 17,377 32,885 21,263 9,370 8,628 10,202 17,038 17,876 31,139 20,533
Mining & Oil 74,975 64,492 89,992 336,889 94,056 37,160 136,929 35,490 54,421 85,693 44,046 42,982
SME (in thousand shares) 317 1,120,339 71,577 421,612 393,244 239,362 149,843 315,570 222,462 681,589 708,473 565,685
ETF1/ (in thousand shares) 426 668 791 4,748 1,893 2,235 1,715 1,220 2,964 1,008 943 987
Value 457,085 535,924 548,203 588,908 641,594 553,577 517,832 438,408 407,066 524,669 576,329 421,435
Financials 65,888 73,681 69,826 68,898 74,595 88,404 66,529 43,993 51,044 81,396 78,796 64,291
Industrial 104,206 110,557 94,254 119,148 145,948 143,103 150,323 91,553 90,691 88,097 130,479 92,713
Holding Firms 121,554 120,483 131,683 126,267 174,325 136,336 108,947 119,313 98,158 141,840 145,256 106,019
Property 67,867 105,044 79,090 108,390 103,447 75,621 77,548 104,550 74,676 93,801 103,546 75,656
Services 83,835 96,404 143,589 137,725 111,491 85,432 94,494 67,320 74,501 94,777 96,593 64,268
Mining & Oil 13,688 22,756 29,113 24,360 27,328 21,899 17,914 8,583 15,738 17,146 16,669 15,622
SME (in thousand pesos) 5,312 6,927,918 557,346 3,581,718 4,226,414 2,498,500 1,876,456 2,957,202 1,927,800 7,488,170 4,868,616 2,748,376
ETF1/ (in thousand pesos) 42,130 72,183 90,521 539,579 234,748 282,800 200,392 139,155 331,093 123,996 120,654 116,416
Composite Index (end of period) 6428.71 6844.31 7283.07 7230.57 7940.49 7564.50 6893.98 6952.08 7262.30 7796.25 7629.73 6840.64
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
201620152014
11 PHILIPPINES: BALANCE OF PAYMENTS
in million U.S. dollars
Growth (%)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 2016 p
Current Account 1906 2959 959 1442 730 141 763 -1032 -171.6(Totals as percent of GNI) 2.3 3.3 1.1 1.5 0.9 0.2 0.9 -1.0(Totals as percent of GDP) 2.8 4.0 1.4 1.8 1.1 0.2 1.0 -1.2
Export 25793 26862 26758 26438 26499 27622 29051 26834 1.5
Import 23887 23903 25799 24996 25770 27481 28288 27867 11.5
Goods, Services, and Primary Income -3783 -2818 -4948 -4449 -5179 -6071 -5594 -7517 -69.0
Export 19918 20848 20683 20316 20411 21231 22512 20193 -0.6
Import 23701 23665 25631 24764 25590 27302 28106 27710 11.9
Goods and Services -4047 -3404 -5034 -5369 -5820 -6767 -6129 -8238 -53.5(Totals as percent of GNI) -4.9 -3.8 -6.0 -5.6 -6.9 -7.3 -6.9 -8.3(Totals as percent of GDP) -5.9 -4.6 -7.3 -6.7 -8.4 -8.7 -8.3 -9.9
Export 17635 18534 18261 17833 18024 18860 20088 17830 .
Import 21682 21938 23295 23201 23844 25627 26217 26068 12.4
Goods -5332 -4196 -6328 -7453 -7816 -8347 -7943 -9973 -33.8(Totals as percent of GNI) -6.4 -4.7 -7.5 -7.7 -9.3 -9.0 -8.9 -10.0(Totals as percent of GDP) -7.8 -5.6 -9.2 -9.3 -11.3 -10.8 -10.7 -12.0
Credit: Exports 10567 11234 11170 10226 10183 10709 11933 10619 3.8
Debit: Imports 15899 15430 17499 17679 17999 19057 19876 20592 16.5
Services 1285 791 1295 2084 1995 1580 1814 1735 -16.7
Credit: Exports 7068 7300 7091 7606 7841 8151 8155 7211 -5.2
Debit: Imports 5783 6508 5796 5523 5845 6570 6341 5476 -0.8
Primary Income 264 587 85 920 642 696 535 721 -21.6
Credit: Receipts 2284 2314 2422 2483 2387 2371 2424 2363 -4.9
Debit: Payments 2019 1727 2337 1563 1745 1675 1889 1641 5.0
Secondary Income 5689 5777 5907 5890 5908 6212 6357 6485 10.1
Credit: Receipts 5874 6015 6075 6122 6088 6390 6540 6642 8.5
Debit: Payments 186 238 168 232 180 179 183 157 -32.2
Capital Account 17 22 22 23 24 26 28 24 3.6
Credit: Receipts 24 25 24 26 28 30 32 28 9.1
Debit: Payments 7 4 2 2 3 4 4 4 63.6
Financial Account 130 1750 -506 926 955 -910 849 54 -94.2
Net Acquisition of Financial Assets -20 1886 2066 2205 1686 2279 1446 1653 -25.1
Net Incurrence of Liabilities -150 136 2573 1279 730 3189 596 1599 25.0
Direct Investment 250 -131 -136 -83 -1049 -969 -387 -1829 -2107.4
Net Acquisition of Financial Assets 1127 975 2380 1057 288 1878 1280 253 -76.0
Net Incurrence of Liabilities 876 1106 2516 1140 1337 2847 1667 2082 82.6
Portfolio Investment -431 3540 2106 256 1446 880 -634 -309 -220.9
Net Acquisition of Financial Assets 915 1292 626 510 488 1247 -198 -418 -182.0
Net Incurrence of Liabilities 1345 -2248 -1479 254 -958 367 436 -109 -143.0
Financial Derivatives 2 -31 17 18 -3 59 -11 -78 -530.9
Net Acquisition of Financial Assets -133 -155 -135 -108 -155 -210 -191 -145 -33.9
Net Incurrence of Liabilities -135 -124 -152 -126 -152 -270 -180 -67 46.9
Other Investment 309 -1628 -2493 736 562 -880 1882 2269 208.4
Net Acquisition of Financial Assets -1928 -226 -806 747 1065 -636 555 1962 162.8
Net Incurrence of Liabilities -2237 1402 1687 11 503 244 -1327 -307 -2870.1
NET UNCLASSIFIED ITEMS -916 -424 -1363 270 -8 -233 1073 -1006 -472.3
OVERALL BOP POSITION 877 807 124 809 -210 843 1014 -2068 -355.8(Totals as percent of GNI) 1.1 0.9 0.1 0.8 -0.2 0.9 1.1 -2.1(Totals as percent of GDP) 1.3 1.1 0.2 1.0 -0.3 1.1 1.4 -2.5
Debit: Change in Reserve Assets 888 796 135 798 -199 833 1025 -2079 -360.5Credit: Change in Reserve Liabilities 11 -11 11 -11 11 -11 11 -10 2.9
Details may not add up to total due to rounding.
p Preliminary
r Revised to reflect data updates from official data sources, updated estimates on OF remittances related data, and post-audit adjustments
. Rounds off to zero
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
2015 r 2016 p
12 INTERNATIONAL RESERVES as of periods indicated
in million US dollars
Mar Jun Sep Dec Mar Jun Sep Dec
Gross International Reserves 80,459 80,644 80,551 80,667 82,977 85,284 86,139 80,692
Gold 7,437 7,378 7,015 6,703 7,765 8,336 8,307 7,259
SDRs 1,168 1,190 1,188 1,173 1,193 1,184 1,182 1,138
Foreign Investments 70,565 70,647 70,800 71,739 71,379 73,295 73,850 68,290
Foreign Exchange 850 985 1,103 613 2,217 2,020 2,342 3,563
Reserve Position in the Fund 439 445 445 439 424 449 458 442
Net International Reserves 80,446 80,642 80,538 80,665 82,964 85,282 86,126 80,689
Details may not add up to total due to rounding
Source: Bangko Sentral ng Pilipinas
2 0 1 5 2 0 1 6
13 EXCHANGE RATES OF THE PESO
pesos per unit of foreign currency
period averages
2013 42.4462 0.4356 56.3942 66.4139 41.0195 33.9347 5.4725 13.4839 1.3832 0.0041 1.4305 0.0388 6.9048 11.3184 11.5567
Jan 40.7295 0.4580 54.1270 65.0893 42.7556 33.1823 5.2537 13.4143 1.3549 0.0042 1.4011 0.0382 6.5456 10.8608 11.0893
Feb 40.6723 0.4372 54.3618 63.0701 41.9596 32.8469 5.2446 13.1338 1.3647 0.0042 1.3727 0.0374 6.5255 10.8455 11.0736
Mar 40.7127 0.4293 52.8776 61.3734 41.9971 32.6803 5.2477 13.0966 1.3788 0.0042 1.3700 0.0370 6.5492 10.8564 11.0848
Apr 41.1422 0.4221 53.5266 62.9378 42.7442 33.2313 5.2999 13.4866 1.4164 0.0042 1.3793 0.0367 6.6485 10.9711 11.2020
May 41.2976 0.4092 53.5926 63.1389 40.9360 33.0769 5.3210 13.6880 1.3898 0.0042 1.3870 0.0372 6.7247 11.0124 11.2440
Jun 42.9069 0.4406 56.6122 66.4568 40.5481 34.0634 5.5291 13.6649 1.3959 0.0044 1.4334 0.0378 6.9941 11.4413 11.6823
Jul 43.3559 0.4350 56.7089 65.8438 39.7304 34.2142 5.5896 13.6030 1.3950 0.0043 1.4482 0.0385 7.0675 11.5609 11.8044
Aug 43.8639 0.4484 58.4174 67.8155 39.5530 34.4837 5.6559 13.3993 1.3899 0.0042 1.4640 0.0393 7.1644 11.6961 11.9425
Sep 43.8318 0.4420 58.5044 69.4375 40.6011 34.6960 5.6527 13.4795 1.3821 0.0039 1.4785 0.0404 7.1617 11.6874 11.9338
Oct 43.1825 0.4415 58.8668 69.5227 41.0612 34.7164 5.5693 13.5813 1.3850 0.0038 1.4696 0.0405 7.0723 11.5148 11.7573
Nov 43.5546 0.4357 58.7584 70.1141 40.6381 34.9239 5.6184 13.6441 1.3786 0.0038 1.4758 0.0410 7.1480 11.6137 11.8586
Dec 44.1043 0.4276 60.3768 72.1669 39.7100 35.1010 5.6885 13.6152 1.3677 0.0037 1.4864 0.0418 7.2565 11.7602 12.0081
2014 44.3952 0.4208 59.0432 73.1731 40.0974 35.0648 5.7252 13.5828 1.3672 0.0037 1.4659 0.0422 7.2076 11.8363 12.0872
Jan 44.9266 0.4321 61.2469 74.0269 39.8717 35.3263 5.7920 13.6219 1.3657 0.0037 1.4918 0.0422 7.4251 11.9795 12.2323
Feb 44.8950 0.4397 61.3016 74.3135 40.2635 35.4679 5.7867 13.5655 1.3756 0.0038 1.4817 0.0419 7.3893 11.9711 12.2238
Mar 44.7916 0.4381 61.9409 74.4520 40.6363 35.3400 5.7711 13.6530 1.3832 0.0039 1.4738 0.0419 7.2601 11.9437 12.1953
Apr 44.6416 0.4351 61.6350 74.6995 41.6028 35.5664 5.7572 13.7098 1.3815 0.0039 1.4773 0.0428 7.1717 11.9035 12.1542
May 43.9236 0.4314 60.3484 73.9965 40.8495 35.1096 5.6660 13.6035 1.3513 0.0038 1.4582 0.0429 7.0410 11.7116 11.9588
Jun 43.8175 0.4293 59.5975 74.0822 41.0022 35.0303 5.6528 13.6158 1.3474 0.0037 1.4609 0.0430 7.0296 11.6829 11.9300
Jul 43.4665 0.4276 58.9257 74.2780 40.8363 34.9877 5.6085 13.6594 1.3531 0.0037 1.4523 0.0426 7.0096 11.5901 11.8342
Aug 43.7673 0.4258 58.3659 73.2141 40.7390 35.0739 5.6473 13.7637 1.3663 0.0038 1.4599 0.0427 7.1085 11.6701 11.9160
Sep 44.0751 0.4119 56.9349 71.9350 40.0406 34.9299 5.6860 13.7383 1.3708 0.0037 1.4653 0.0427 7.1795 11.7517 12.0001
Oct 44.7979 0.4156 56.8661 72.0912 39.3383 35.1776 5.7746 13.7129 1.3812 0.0037 1.4743 0.0423 7.3101 11.9421 12.1967
Nov 44.9514 0.3875 56.1001 70.9959 38.9172 34.7182 5.7970 13.4555 1.3717 0.0037 1.4646 0.0411 7.3394 11.9815 12.2384
Dec 44.6878 0.3755 55.2554 69.9919 37.0710 34.0494 5.7632 12.8943 1.3589 0.0036 1.4306 0.0405 7.2276 11.9074 12.1666
2015 45.5028 0.3760 50.5291 69.5888 34.2412 33.1266 5.8697 11.7236 1.3308 0.0034 1.4340 0.0403 7.2423 12.1317 12.3892
Jan 44.6044 0.3764 51.8185 67.5228 36.1260 33.3326 5.7531 12.4698 1.3627 0.0035 1.4109 0.0410 7.1705 11.8776 12.1439
Feb 44.2214 0.3728 50.2159 67.7105 34.4404 32.6549 5.7028 12.2812 1.3575 0.0035 1.4017 0.0402 7.0756 11.7850 12.0397
Mar 44.4457 0.3695 48.2323 66.6675 34.4120 32.3068 5.7290 12.1122 1.3638 0.0034 1.4139 0.0400 7.1198 11.8512 12.1011
Apr 44.4136 0.3717 47.9446 66.4142 34.3952 32.9291 5.7303 12.2206 1.3660 0.0034 1.4340 0.0409 7.1605 11.8431 12.0921
May 44.6106 0.3697 49.8209 68.9978 35.2446 33.4497 5.7545 12.4089 1.3334 0.0034 1.4578 0.0409 7.1904 11.8964 12.1456
Jun 44.9831 0.3635 50.4958 70.0355 34.6977 33.4578 5.8023 12.0537 1.3345 0.0034 1.4560 0.0404 7.2488 11.9957 12.2476
Jul 45.2649 0.3674 49.8437 70.4481 33.6277 33.2927 5.8396 11.9158 1.3212 0.0034 1.4535 0.0396 7.2911 12.0702 12.3242
Aug 46.1420 0.3746 51.3555 71.9861 33.7471 33.0760 5.9513 11.4516 1.3053 0.0034 1.4373 0.0393 7.2960 12.3033 12.5633
Sep 46.7504 0.3891 52.5457 71.7659 33.0060 33.0510 6.0323 10.8822 1.2991 0.0033 1.4330 0.0395 7.3395 12.4684 12.7301
Oct 46.3609 0.3860 52.0504 71.0269 33.4019 33.0814 5.9821 10.8995 1.2978 0.0034 1.4287 0.0405 7.2971 12.3660 12.6235
Nov 47.0067 0.3844 50.6537 71.5190 33.5722 33.3169 6.0650 10.9313 1.3159 0.0034 1.4422 0.0409 7.3878 12.5325 12.7995
Dec 47.2303 0.3874 51.3725 70.9713 34.2240 33.5709 6.0936 11.0560 1.3129 0.0034 1.4392 0.0403 7.3302 12.5910 12.8606
2016 47.4925 0.4375 52.5568 64.3793 35.3147 34.4082 6.1185 11.4772 1.3461 0.0036 1.4741 0.0410 7.1506 12.6651 12.9315
Jan 47.5111 0.4021 51.6548 68.4806 33.3269 33.1651 6.1066 10.9323 1.3139 0.0034 1.4228 0.0395 7.2323 12.6654 12.9370
Feb 47.6361 0.4141 52.9010 68.3006 33.9669 33.9074 6.1201 11.4192 1.3378 0.0035 1.4337 0.0393 7.2749 12.7053 12.9705
Mar 46.7240 0.4135 51.9247 66.5513 34.9329 34.0062 6.0204 11.4424 1.3248 0.0036 1.4323 0.0394 7.1776 12.4619 12.7224
Apr 46.2845 0.4215 52.4798 66.2094 35.4511 34.2935 5.9679 11.8771 1.3192 0.0035 1.4320 0.0404 7.1471 12.3449 12.6025
May 46.8023 0.4300 52.9396 68.0290 34.2659 34.1821 6.0285 11.6100 1.3226 0.0035 1.4382 0.0399 7.1690 12.4809 12.7435
Jun 46.4645 0.4396 52.2377 66.2371 34.3588 34.3220 5.9861 11.3847 1.3159 0.0035 1.4375 0.0398 7.0512 12.3922 12.6515
Jul 47.0581 0.4514 52.0597 61.9364 35.3963 34.8462 6.0671 11.7313 1.3431 0.0036 1.4656 0.0412 7.0452 12.5482 12.8131
Aug 46.6809 0.4611 52.3221 61.2008 35.5976 34.6821 6.0190 11.6032 1.3442 0.0035 1.4804 0.0421 7.0226 12.4492 12.7105
Sep 47.4294 0.4657 53.1722 62.3769 35.9735 34.9092 6.1151 11.5624 1.3668 0.0036 1.5073 0.0428 7.1076 12.6480 12.9144
Oct 48.3482 0.4666 53.3734 59.8314 36.8331 34.9908 6.2329 11.5970 1.3798 0.0037 1.5323 0.0430 7.1919 12.8925 13.1645
Nov 49.1550 0.4546 53.0779 61.1309 37.0383 34.8767 6.3375 11.3852 1.3921 0.0037 1.5486 0.0423 7.1866 13.1085 13.3840
Dec 49.8156 0.4300 52.5389 62.2673 36.6355 34.7173 6.4203 11.1822 1.3932 0.0037 1.5589 0.0422 7.2017 13.2843 13.5645
Source: Bangko Sentral ng Pilipinas
Thai BahtUS DollarJapanese
YenEuro
Pound
Sterling
Singapore
Dollar
Hongkong
Dollar
Malaysian
Ringgit
Australian
Dollar
New Taiwan
Dollar
South
Korean Won
Indonesian
Rupiah
Chinese
YuanSaudi Rial
Emirati
Dirham
13a EXCHANGE RATES OF THE PESO
units of foreign currency per peso
period averages
2013 0.0236 2.2977 0.0178 0.0151 0.0244 0.0295 0.1829 0.0742 0.7230 245.5338 0.6997 25.8055 0.1451 0.0884 0.0866
Jan 0.0246 2.1833 0.0185 0.0154 0.0234 0.0301 0.1903 0.0745 0.7381 237.3247 0.7137 26.1531 0.1528 0.0921 0.0902
Feb 0.0246 2.2870 0.0184 0.0159 0.0238 0.0304 0.1907 0.0761 0.7327 238.0952 0.7285 26.7344 0.1532 0.0922 0.0903
Mar 0.0246 2.3291 0.0189 0.0163 0.0238 0.0306 0.1906 0.0764 0.7253 238.0952 0.7299 27.0040 0.1527 0.0921 0.0902
Apr 0.0243 2.3692 0.0187 0.0159 0.0234 0.0301 0.1887 0.0741 0.7060 236.4865 0.7250 27.2303 0.1504 0.0911 0.0893
May 0.0242 2.4438 0.0187 0.0158 0.0244 0.0302 0.1879 0.0731 0.7195 237.2881 0.7210 26.9162 0.1487 0.0908 0.0889
Jun 0.0233 2.2697 0.0177 0.0150 0.0247 0.0294 0.1809 0.0732 0.7164 229.7461 0.6976 26.4293 0.1430 0.0874 0.0856
Jul 0.0231 2.2990 0.0176 0.0152 0.0252 0.0292 0.1789 0.0735 0.7168 232.0888 0.6905 25.9770 0.1415 0.0865 0.0847
Aug 0.0228 2.2300 0.0171 0.0147 0.0253 0.0290 0.1768 0.0746 0.7195 240.1130 0.6830 25.4567 0.1396 0.0855 0.0837
Sep 0.0228 2.2622 0.0171 0.0144 0.0246 0.0288 0.1769 0.0742 0.7235 256.7237 0.6764 24.7496 0.1396 0.0856 0.0838
Oct 0.0232 2.2651 0.0170 0.0144 0.0244 0.0288 0.1796 0.0736 0.7220 262.1723 0.6805 24.6943 0.1414 0.0868 0.0851
Nov 0.0230 2.2954 0.0170 0.0143 0.0246 0.0286 0.1780 0.0733 0.7254 265.9574 0.6776 24.3813 0.1399 0.0861 0.0843
Dec 0.0227 2.3387 0.0166 0.0139 0.0252 0.0285 0.1758 0.0734 0.7311 272.3147 0.6728 23.9394 0.1378 0.0850 0.0833
2014 0.0225 2.3819 0.0170 0.0137 0.0250 0.0285 0.1747 0.0736 0.7315 267.1980 0.6823 23.7037 0.1388 0.0845 0.0827
Jan 0.0223 2.3140 0.0163 0.0135 0.0251 0.0283 0.1727 0.0734 0.7322 270.9677 0.6703 23.7101 0.1347 0.0835 0.0818
Feb 0.0223 2.2745 0.0163 0.0135 0.0248 0.0282 0.1728 0.0737 0.7269 266.3116 0.6749 23.8692 0.1353 0.0835 0.0818
Mar 0.0223 2.2828 0.0161 0.0134 0.0246 0.0283 0.1733 0.0732 0.7229 255.4745 0.6785 23.8908 0.1377 0.0837 0.0820
Apr 0.0224 2.2981 0.0162 0.0134 0.0240 0.0281 0.1737 0.0729 0.7239 255.7201 0.6769 23.3846 0.1394 0.0840 0.0823
May 0.0228 2.3180 0.0166 0.0135 0.0245 0.0285 0.1765 0.0735 0.7400 261.5193 0.6858 23.3281 0.1420 0.0854 0.0836
Jun 0.0228 2.3295 0.0168 0.0135 0.0244 0.0285 0.1769 0.0734 0.7422 271.7391 0.6845 23.2612 0.1423 0.0856 0.0838
Jul 0.0230 2.3389 0.0170 0.0135 0.0245 0.0286 0.1783 0.0732 0.7390 269.9229 0.6886 23.4480 0.1427 0.0863 0.0845
Aug 0.0228 2.3485 0.0171 0.0137 0.0245 0.0285 0.1771 0.0727 0.7319 266.4797 0.6850 23.4308 0.1407 0.0857 0.0839
Sep 0.0227 2.4279 0.0176 0.0139 0.0250 0.0286 0.1759 0.0728 0.7295 269.9229 0.6824 23.4244 0.1393 0.0851 0.0833
Oct 0.0223 2.4064 0.0176 0.0139 0.0254 0.0284 0.1732 0.0729 0.7240 270.2703 0.6783 23.6559 0.1368 0.0837 0.0820
Nov 0.0222 2.5810 0.0178 0.0141 0.0257 0.0288 0.1725 0.0743 0.7290 270.2703 0.6828 24.3576 0.1363 0.0835 0.0817
Dec 0.0224 2.6630 0.0181 0.0143 0.0270 0.0294 0.1735 0.0776 0.7359 277.7778 0.6990 24.6842 0.1384 0.0840 0.0822
2015 0.0220 2.6606 0.0198 0.0144 0.0292 0.0302 0.1705 0.0855 0.7517 293.6672 0.6974 24.8330 0.1381 0.0825 0.0808
Jan 0.0224 2.6570 0.0193 0.0148 0.0277 0.0300 0.1738 0.0802 0.7338 282.8619 0.7088 24.3937 0.1395 0.0842 0.0823
Feb 0.0226 2.6821 0.0199 0.0148 0.0290 0.0306 0.1754 0.0814 0.7366 287.0091 0.7134 24.9017 0.1413 0.0849 0.0831
Mar 0.0225 2.7067 0.0207 0.0150 0.0291 0.0310 0.1745 0.0826 0.7332 292.9427 0.7072 25.0114 0.1405 0.0844 0.0826
Apr 0.0225 2.6904 0.0209 0.0151 0.0291 0.0304 0.1745 0.0818 0.7320 292.3077 0.6974 24.4310 0.1397 0.0844 0.0827
May 0.0224 2.7048 0.0201 0.0145 0.0284 0.0299 0.1738 0.0806 0.7499 294.1176 0.6860 24.4738 0.1391 0.0841 0.0823
Jun 0.0222 2.7511 0.0198 0.0143 0.0288 0.0299 0.1723 0.0830 0.7493 294.1176 0.6868 24.7350 0.1380 0.0834 0.0816
Jul 0.0221 2.7217 0.0201 0.0142 0.0297 0.0300 0.1712 0.0839 0.7569 294.1176 0.6880 25.2583 0.1372 0.0828 0.0811
Aug 0.0217 2.6698 0.0195 0.0139 0.0296 0.0302 0.1680 0.0873 0.7661 297.3396 0.6958 25.4726 0.1371 0.0813 0.0796
Sep 0.0214 2.5698 0.0190 0.0139 0.0303 0.0303 0.1658 0.0919 0.7698 307.0175 0.6979 25.3287 0.1362 0.0802 0.0786
Oct 0.0216 2.5906 0.0192 0.0141 0.0299 0.0302 0.1672 0.0917 0.7705 298.5075 0.7000 24.6997 0.1370 0.0809 0.0792
Nov 0.0213 2.6014 0.0197 0.0140 0.0298 0.0300 0.1649 0.0915 0.7600 290.9091 0.6934 24.4574 0.1354 0.0798 0.0781
Dec 0.0212 2.5814 0.0195 0.0141 0.0292 0.0298 0.1641 0.0904 0.7617 292.7581 0.6948 24.8334 0.1364 0.0794 0.0778
2016 0.0211 2.2911 0.0190 0.0156 0.0283 0.0291 0.1635 0.0872 0.7432 280.3539 0.6791 24.4247 0.1399 0.0790 0.0774
Jan 0.0210 2.4867 0.0194 0.0146 0.0300 0.0302 0.1638 0.0915 0.7611 293.6858 0.7029 25.2972 0.1383 0.0790 0.0773
Feb 0.0210 2.4147 0.0189 0.0146 0.0294 0.0295 0.1634 0.0876 0.7475 283.5821 0.6975 25.4760 0.1375 0.0787 0.0771
Mar 0.0214 2.4183 0.0193 0.0150 0.0286 0.0294 0.1661 0.0874 0.7548 281.5013 0.6982 25.4022 0.1393 0.0802 0.0786
Apr 0.0216 2.3723 0.0191 0.0151 0.0282 0.0292 0.1676 0.0842 0.7580 284.5528 0.6983 24.7554 0.1399 0.0810 0.0793
May 0.0214 2.3255 0.0189 0.0147 0.0292 0.0293 0.1659 0.0861 0.7561 284.9389 0.6953 25.0597 0.1395 0.0801 0.0785
Jun 0.0215 2.2750 0.0191 0.0151 0.0291 0.0291 0.1671 0.0878 0.7599 286.8318 0.6956 25.0970 0.1418 0.0807 0.0790
Jul 0.0213 2.2154 0.0192 0.0161 0.0283 0.0287 0.1648 0.0852 0.7446 277.7778 0.6823 24.2748 0.1419 0.0797 0.0780
Aug 0.0214 2.1688 0.0191 0.0163 0.0281 0.0288 0.1661 0.0862 0.7439 282.0513 0.6755 23.7709 0.1424 0.0803 0.0787
Sep 0.0211 2.1475 0.0188 0.0160 0.0278 0.0286 0.1635 0.0865 0.7317 278.5146 0.6634 23.3697 0.1407 0.0791 0.0774
Oct 0.0207 2.1433 0.0187 0.0167 0.0271 0.0286 0.1604 0.0862 0.7247 270.2703 0.6526 23.2477 0.1390 0.0776 0.0760
Nov 0.0203 2.1998 0.0188 0.0164 0.0270 0.0287 0.1578 0.0878 0.7183 270.2703 0.6457 23.6490 0.1391 0.0763 0.0747
Dec 0.0201 2.3255 0.0190 0.0161 0.0273 0.0288 0.1558 0.0894 0.7178 270.2703 0.6415 23.6967 0.1389 0.0753 0.0737
Source: Bangko Sentral ng Pilipinas
Saudi RialEmirati
Dirham
Australian
Dollar
Chinese
Yuan
South
Korean Won
Malaysian
Ringgit
Thailand
Baht
Indonesian
Rupiah
New Taiwan
Dollar
Pound
Sterling
Singapore
Dollar
Hongkong
DollarUS Dollar
Japanese
YenEuro
13b EFFECTIVE EXCHANGE RATE INDICES OF THE PESO1980 = 100
period averages
Overall 1
Advanced 2
Developing 3 Overall Advanced Developing
2013 15.26 12.38 24.45 87.44 81.57 115.85
Jan 15.53 12.43 25.14 91.17 84.88 120.98
Feb 15.72 12.65 25.35 90.71 84.77 120.01
Mar 15.82 12.82 25.37 90.76 84.87 120.03
Apr 15.71 12.81 25.07 90.41 84.79 119.30
May 15.75 12.96 24.97 90.39 85.15 118.89
Jun 15.14 12.27 24.27 87.15 80.87 115.93
Jul 15.08 12.29 24.09 85.75 80.37 113.22
Aug 14.88 12.02 23.92 84.33 78.11 112.32
Sep 14.89 12.07 23.89 84.35 78.23 112.25
Oct 14.97 12.11 24.04 85.06 78.90 113.18
Nov 14.94 12.15 23.90 85.09 79.45 112.66
Dec 14.85 12.10 23.72 84.84 79.26 112.29
2014 14.92 12.24 23.72 87.20 82.50 114.36
Jan 14.67 11.95 23.44 87.94 83.88 114.67
Feb 14.63 11.86 23.46 86.39 81.79 113.25
Mar 14.65 11.85 23.54 85.66 80.46 112.93
Apr 14.68 11.90 23.54 85.92 80.23 113.76
May 14.89 12.07 23.88 87.16 81.07 115.72
Jun 14.96 12.15 23.95 87.81 81.73 116.53
Jul 15.03 12.24 24.02 87.64 82.21 115.66
Aug 14.97 12.26 23.83 87.20 82.03 114.84
Sep 15.06 12.49 23.75 87.29 82.95 114.13
Oct 14.94 12.40 23.55 86.88 82.77 113.38
Nov 15.18 12.79 23.69 88.19 85.48 113.67
Dec 15.46 13.04 24.09 89.30 86.67 114.98
2015 15.68 13.25 24.39 92.12 90.22 117.81
Jan 15.63 13.22 24.30 95.00 94.32 120.30
Feb 15.85 13.44 24.61 94.86 94.18 120.11
Mar 15.93 13.60 24.61 94.28 93.73 119.27
Apr 15.85 13.60 24.39 94.07 93.46 119.06
May 15.75 13.46 24.30 92.87 91.48 118.28
Jun 15.75 13.47 24.29 92.72 91.39 118.03
Jul 15.76 13.44 24.35 91.80 90.76 116.61
Aug 15.65 13.15 24.46 90.91 88.29 116.98
Sep 15.51 12.84 24.50 89.59 85.57 116.69
Oct 15.56 12.94 24.48 90.07 86.49 116.86
Nov 15.48 12.99 24.20 90.11 87.48 115.98
Dec 15.44 12.88 24.24 89.74 86.54 116.06
2016 15.00 12.20 24.01 88.81 84.16 116.34
Jan 15.41 12.67 24.45 93.82 90.98 120.87
Feb 15.18 12.43 24.17 90.50 87.53 116.80
Mar 15.31 12.57 24.32 90.58 87.29 117.21
Apr 15.24 12.48 24.25 90.46 86.51 117.71
May 15.16 12.32 24.25 90.03 84.92 118.33
Jun 15.21 12.29 24.43 90.41 84.79 119.33
Jul 14.98 12.12 24.06 88.20 83.21 115.92
Aug 14.95 12.04 24.08 87.58 82.02 115.71
Sep 14.75 11.88 23.78 86.29 80.59 114.25
Oct 14.60 11.77 23.50 85.49 79.88 113.16
Nov 14.62 11.84 23.47 86.11 80.90 113.50
Dec 14.73 12.07 23.44 86.66 82.26 113.38
2 U.S., Japan, Euro Area, and Australia
3 Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.
r Revised
Source: Bangko Sentral ng Pilipinas
Trading Partners Index Trading Partners Index
1 Australia, Euro Area, U.S., Japan, Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.
N O M I N A L R E A L
14 TOTAL EXTERNAL DEBT 1/
as of periods indicated
in million US dollars
Medium & Medium &
Trade Non-Trade Long- Term Trade Non-Trade Long- Term
Grand Total 2,458 11,630 62,534 76,622 a 2,087 12,440 60,237 74,763 a
Public Sector 517 38,776 b 39,293 801 36,669 b 37,470
Banks 517 3,423 3,940 801 3,119 3,921Bangko Sentral ng Pilipinas 1,346 c 1,346 1,292 c 1,292
Others 517 2,076 2,594 801 1,828 2,629
Non-Banks 35,353 35,353 33,549 33,549NG and Others 35,353 35,353 33,549 33,549
Private Sector 2,458 11,113 23,758 37,329 2,087 11,638 23,568 37,293
Banks 10,847 3,116 13,963 11,450 3,666 15,116
Foreign Bank Branches 4,197 176 4,373 d 4,012 166 4,178 d
Domestic Banks 6,650 2,940 9,589 7,438 3,500 10,938
Non-Banks 2,458 266 20,642 e 23,366 2,087 188 19,902 e 22,177
1 Covers debt owed to non-residents, with classification by borrower based on primary obligor per covering loan/rescheduling agreement/document.
Exclusions
a Residents' holdings of Philippine debt papers issued offshore;
Non-residents' holdings of peso-denominated debt securities
Inclusions
b Cumulative foreign exchange revaluation on US$-denominated
multi-currency loans from Asian Development Bank and World Bankc Accumulated SDR allocations from the IMFd "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"e 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
13,587
1,346
13,139
1,306
2,931 3,123
1 -43
1,172 1,121
30 September 2016 31 December 2016
TotalShort-termShort-term
Total
30 September 2016 31 December 2016
17,121
4,982
16,529
5,506
15 SELECTED FOREIGN DEBT SERVICE INDICATORS
for periods indicated
in million US dollars
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Debt Service Burden (DSB) 1 1736 1250 1245 1352 2292 1473 1422 1956
Principal 991 700 544 762 1572 954 711 1355
Interest 745 550 701 590 720 519 711 600
Export Shipments (XS) 2 10567 11234 11170 10226 10183 10709 11933 10619
Exports of Goods and Receipts 24383 25471 25136 24832 24945 26084 27476 25223
from Services and Income (XGSI) 2, 3
Current Account Receipts (CAR) 2 25957 27130 26786 26484 26499 27622 29051 26834
External Debt 75319 74998 75607 77474 77640 77721 76622 74763
Gross Domestic Product (GDP) 68367 74271 69147 80404 69147 77567 73912 83365
Gross National Income (GNI) 83304 89518 84312 96335 84315 92953 89198 99430
Ratios (%) :
DSB to XS 16.43 11.13 11.15 13.22 22.51 13.75 11.92 18.42
DSB to XGSI 7.12 4.91 4.95 5.45 9.19 5.65 5.18 7.75
DSB to CAR 6.69 4.61 4.65 5.11 8.65 5.33 4.89 7.29
DSB to GNI 2.08 1.40 1.48 1.40 2.72 1.58 1.59 1.97
External Debt to GDP 26.06 25.68 25.94 26.49 26.50 26.23 25.46 24.57
External Debt to GNI 21.58 21.28 21.48 21.90 21.90 21.71 21.12 20.42
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 Preliminaryr Revised
Source: BSP
2015 r 2016 p
16 SELECTED FOREIGN INTEREST RATES
period averages; in percent
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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 3.5000 3.5000 3.5119
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 1.0000 1.0000 1.0492
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 0.3831 0.3994 0.4491
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 0.6433 0.7853 0.9208
SIBOR (90 days)1
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 1.0062 0.8807 0.9059
1 SIBOR data refers to SIBOR rates (in Singapore $)
Source: Bloomberg, Asian Wall Street Journal, Reuters
2014 2016 2013 2015 2012
17 BALANCE SHEET OF THE BANGKO SENTRAL NG PILIPINASas of periods indicated
Mar Jun Sep Dec r Mar Jun Sep Dec r Mar Jun Sep Dec p,u
Assets 4,040.9 4,028.2 4,062.2 4,087.6 4,134.4 4,180.5 4,296.4 4,309.9 4,405.5 4,591.3 4,760.7 4,559.1
4,040.9 4,028.2 4,062.2 4,087.6 4,134.4 4,180.5 4,296.4 4,309.9 4,405.5 4,591.3 4,760.7 4,559.1
International Reserves 3,545.2 3,500.3 3,547.2 3,535.8 3,581.1 3,622.1 3,753.7 3,782.4 3,798.6 3,991.3 4,158.0 3,998.0
Domestic Securities 219.0 222.0 222.0 222.4 223.0 223.1 223.4 222.6 224.0 224.2 224.8 223.2
Loans and Advances 85.6 85.2 85.0 85.3 85.1 85.3 85.7 85.5 163.5 154.5 151.7 151.1
Revaluation of International Reserves 0.0 26.1 7.5 41.7 35.9 36.7 0.0 0.0 0.0 0.0 0.0 0.0
Bank Premises and Other Fixed Assets 17.7 17.8 18.1 18.1 18.0 17.9 18.0 18.3 18.1 17.9 18.0 18.1
Derivative Instruments in a Gain/Loss (-) Position 0.0 -0.1 0.7 0.1 1.3 0.4 0.2 0.0 0.0 1.5 1.6 0.0
Other Assets 173.3 177.0 181.8 184.2 190.0 194.9 215.6 201.0 201.3 201.9 206.6 168.8
Liabilities 3,985.3 3,973.5 4,013.3 4,042.7 4,092.5 4,137.3 4,253.9 4,268.7 4,362.9 4,545.3 4,703.4 4,500.7
Currency Issue 708.0 705.0 714.5 929.5 809.7 798.6 817.3 1,005.2 930.5 931.4 942.1 1,124.2
Deposits 2,855.2 2,883.2 2,909.4 2,724.6 2,893.1 2,945.9 2,952.6 2,788.9 2,935.7 2,967.2 2,991.7 2,679.0
Reserve Deposits of Other Depository Corporations (ODCs) 11,116.4 1,251.3 1,285.5 1,386.7 1,277.7 1,324.4 1,373.3 1,456.2 1,427.0 1,393.5 1,559.4 1,631.6
Reserve Deposits of Other Financial Corporations (OFCs) 2 0.5 3.2 4.1 7.7 7.6 7.1 6.8 5.7 4.0 2.7 2.5 1.9
Overnight Deposit Facility 3 1,332.4 1,163.0 1,066.3 845.0 1,052.2 1,008.1 953.7 828.3 1,027.5 1,004.7 634.5 236.6
Term Deposit Facility 3 .. .. .. .. .. .. .. .. .. 90.1 330.1 529.2
Treasurer of the Philippines 4 333.6 390.1 476.7 415.2 478.6 528.0 544.1 426.8 336.3 332.2 318.1 136.9
Other Foreign Currency Deposits 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.1 0.1 0.1
Foreign Financial Institutions 35.5 39.7 39.5 39.5 43.7 44.4 39.3 39.3 108.7 111.1 111.1 111.1
Other Deposits 5 36.9 35.8 37.4 30.4 33.4 33.9 35.3 32.5 31.7 32.9 35.9 31.6
Foreign Loans Payable 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Bonds Payable 22.9 21.8 22.9 22.4 22.8 22.6 23.9 23.6 23.5 23.5 24.8 24.9
Derivative Instruments in a Loss Position 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.8 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 0.2 0.1 0.0
Allocation of SDRs 58.0 56.5 55.8 54.3 51.7 53.2 55.1 54.7 54.3 55.1 56.7 56.1
Revaluation of International Reserves 33.6 0.0 0.0 0.0 0.0 0.0 86.2 73.9 96.2 252.3 371.3 299.5
Reverse Repurchase Facility 3296.5 296.3 299.1 302.3 304.8 306.3 308.5 311.7 309.8 305.0 305.0 305.1
Other Liabilities 10.9 10.5 11.5 9.6 10.2 10.8 10.1 10.6 10.9 10.5 11.6 11.9
Net Worth 55.6 54.7 48.9 44.9 41.9 43.2 42.5 41.2 42.6 46.0 57.3 58.4
Capital 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Surplus/Reserves 5.6 4.7 -1.1 -5.1 -8.1 -6.8 -7.5 -8.8 -7.4 -4.0 7.3 8.4
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 Starting 3 June 2016, the Reverse Repurchase Agreement and Special Deposit Account have been replaced by the Reverse Repurchase Facility and Overnight Deposit Facility, respectively,
and a Term Deposit Facility was introduced in line with the implementation of the Interest Rate Corridor (IRC) system. Includes accrued interest payables.
4 Includes foreign currency deposits.
5Mostly GOCC deposits.
p Based on the preliminary (pre-closing) BSP balance sheet as of end-December 2016 prepared by the Financial Accounting Department (FAD) of the BSP.
r As restated based on the audited financial statements prepared by FAD of the BSP.
u Unaudited
.. No transaction
Source: Bangko Sentral ng Pilipinas
20162014 2015
18 INCOME POSITION OF THE BANGKO SENTRAL NG PILIPINAS
Q1 Q2 Q3 Q4 r FY r Q1 Q2 Q3 Q4 r FY r Q1 Q2 Q3 Q4 p,u FY p,u
Revenues 10.524 12.961 12.690 13.606 49.781 15.299 16.083 11.806 13.477 56.665 13.167 20.533 23.422 12.085 69.207
Interest Income 7.656 7.908 8.266 9.175 33.005 8.454 9.735 10.226 10.777 39.192 11.495 11.503 11.698 11.288 45.984
International Reserves 5.966 6.045 6.121 6.900 25.032 6.111 7.333 7.639 8.058 29.141 8.824 9.026 9.342 10.553 37.745
Domestic Securities 0.297 0.501 0.792 0.856 2.446 0.941 1.021 1.147 1.240 4.349 1.052 1.023 0.967 0.926 3.968
Loans and Advances 0.513 0.438 0.426 0.441 1.818 0.424 0.417 0.438 0.418 1.697 0.438 0.501 0.417 -0.450 0.906
Others 0.880 0.924 0.927 0.978 3.709 0.978 0.964 1.002 1.061 4.005 1.181 0.953 0.972 0.259 3.365
Miscellaneous Income 2.724 4.767 4.159 4.312 15.962 6.672 5.584 1.184 2.442 15.882 1.263 9.037 11.522 0.741 22.563
Net Income from Branches 0.144 0.286 0.265 0.119 0.814 0.173 0.764 0.396 0.258 1.591 0.409 -0.007 0.202 0.056 0.660
Expenses 15.097 16.010 19.433 18.079 68.619 17.308 18.538 17.993 19.162 73.001 16.684 18.146 16.993 19.364 71.187
Interest Expenses 11.131 10.646 11.982 12.398 46.157 12.022 12.240 12.325 12.202 48.789 11.550 10.986 10.858 10.226 43.620
Legal Reserve Deposits of Banks 0.006 0.006 0.002 0.000 0.014 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
National Government Deposits 1.180 1.383 2.076 2.199 6.838 2.205 2.651 2.614 2.544 10.014 1.828 1.498 1.495 1.301 6.122
Reverse Repurchase Facility 1 2.605 2.619 2.761 3.073 11.058 3.033 3.083 3.140 3.133 12.389 3.148 2.874 2.339 2.338 10.699
Overnight Deposit Facility 1 6.932 6.149 6.637 6.528 26.246 6.291 6.003 6.233 5.803 24.330 6.064 6.010 5.096 2.781 19.951
Term Deposit Facility 1 .. .. .. .. .. .. .. .. .. .. .. 0.085 1.386 3.217 4.688
Loans Payable and Other
Foreign Currency Deposits 0.505 0.474 0.494 0.482 1.955 0.487 0.494 0.326 0.706 2.013 0.500 0.506 0.532 0.577 2.115
Other Liabilities -0.097 0.015 0.012 0.116 0.046 0.006 0.009 0.012 0.016 0.043 0.010 0.013 0.010 0.012 0.045
Cost of Minting/Printing of Currency 0.924 1.467 1.484 2.888 6.763 1.940 1.711 1.585 2.949 8.185 1.284 2.362 1.775 3.819 9.240
Taxes and Licenses 0.241 0.170 1.959 -1.588 0.782 0.355 0.225 0.252 0.256 1.088 0.364 0.251 0.259 0.175 1.049
Others 2.801 3.727 4.008 4.381 14.917 2.991 4.362 3.831 3.755 14.939 3.486 4.547 4.101 5.144 17.278
Net Income/(Loss) Before Gain/(Loss) on FXR Fluctuations and
Income Tax Expense/(Benefit) -4.573 -3.049 -6.743 -4.473 -18.838 -2.009 -2.455 -6.187 -5.685 -16.336 -3.517 2.387 6.429 -7.279 -1.980
Gain/(Loss) on Foreign Exchange Rate Fluctuations 2
8.978 -0.741 0.852 -0.153 8.936 -1.176 3.496 5.333 3.897 11.550 3.673 0.878 4.145 10.413 19.109
Income Tax Expense/(Benefit) 0.000 0.000 0.000 -0.037 -0.037 0.000 0.000 0.002 -0.335 -0.333 0.000 0.000 0.002 0.104 0.106
Net Income/(Loss) After Tax 4.405 -3.790 -5.891 -4.589 -9.865 -3.185 1.041 -0.856 -1.453 -4.453 0.156 3.265 10.572 3.030 17.023
Note: Details may not add up to total due to rounding off.
1 Starting 3 June 2016, the Reverse Repurchase Agreement and Special Deposit Account have been replaced by the Reverse Repurchase Facility and Overnight Deposit Facility, respectively,
and a Term Deposit Facility was introduced in line with the implementation of the Interest Rate Corridor (IRC) system.
2 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
Based on the preliminary (pre-closing) BSP income statement as of end-December 2016 prepared by the Financial Accounting Department of the BSP.r
As restated based on the audited financial statements prepared by FAD of the BSP.u
Unaudited..
No transaction
Source: Bangko Sentral ng Pilipinas
for periods indicated
201620152014
LEVELS (in billion pesos)