Standard Chartered Bank upgrades Philippines GDP, foreseen growth to 7.1%

Standard Chartered Bank. Photo: ABC 

 

Standard Chartered Bank has just upgraded its economic growth forecast on Saturday, May 24, for the Philippines this year.

In a report, StanChart stated it hiked its full-year estimation to 7.1-percent from the earlier forecast of 6.7-percent. In light of its full-year upgrade, StanChart sees Philippine gross domestic product (GDP) having expanded in the first quarter at about the same pace as to that 6.5-percent in the fourth quarter of last year.

In sudden growth of the country's economic growth forecast, the bank cited strong growth from both domestic consumption and exports, as well as expectations of a pickup in natural disaster's rehabilitation later in the year.

StanChart also upped its first quarter GDP forecast growth to 2.4 percent from 1.5 percent in the end quarter of 2013.

Sales abroad of Philippine-made goods significantly increased by 6.5-percent in the first quarter. This was despite a new truck ban policy, which implemented by City Mayor Joseph 'Erap' Estrada, that made a bottlenecks in the country’s main cargo port in Manila.

As for domestic consumption, StanChart cited strong motor vehicle sales, which increased about 22-percent in the first four months of 2014. StanChart also cited affirmative revenues amongst the country’s giant companies.

"A measure of economic performance, GDP is the amount of final goods and services produced in the Philippines."

StanChart stated that the Standard and Poor’s recent upgrade of the Philippines’ credit rating would also skyrockets business confidence some time soon, opening its gate to similar upgrades by other major credit rating agencies.

All of these positive factors, along with the steady taper of the United States' Federal Reserve, should lead to the appreciation of the Philippine peso, StanChart said, adding that it now foreseen the exchange rate averaging P43:$1 by the end of 2014 and will eventually slip to P42.75 by mid-2015.

The bank forecast inflation averaging 4.4-percent by this year, which is on the mid-upper of the Bangko Sentral ng Pilipinas’ (BSP) full-year target of 3% to 5%. - Centrio Times

 

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Philippines Awarded ₱3.6 Billion Puerto Princesa Modern Airport project to Kumho Asiana Korean firm

Palawan Philippines Photo:thephilippines.com

 

THE Department of Transportation and Communications (DOTC) has awarded a $82.9-million design-and-build contract for the Puerto Princesa airport to Korea's Kumho Industrial Co. Ltd.-GS Engineering & Construction Joint Venture (Kumho-GS), an official said Tuesday.

 

The eco-tourism showcase that is Puerto Princesa, as well as the rest of Palawan, will soon have a modern, world-class airport which we can be as proud of as the destination itself, said Transportation and Communication Secretary Joseph Emilio Abaya.

 

"With beaches and other natural wonders attracting throngs of visitors from all over the globe, it will finally have a gateway that is befitting of its stature," he said.

 

In compliance with its Engineering, Procurement, and Construction (EPC) contract, Kumho-GS will begin with the design component by the third quarter of this year. While the joint venture is preparing the airport’s detailed engineering design, it will likewise begin mobilizing its equipment and securing various project permits.

 

Civil works at the existing site, or the build component, will begin in the fourth quarter of 2014. The project scope includes the construction of a new passenger terminal building, cargo terminal building, apron, connecting taxiways, a new air navigation system, and other support facilities.

 

Kumho-GS will have around 30 months to complete the project, which means that the DOTC expects the modern airport to be operational by first quarter of 2017.

 

Once the project is completed, the airport will have an annual capacity of about two million passengers. In 2013, it counted 1.335 million passengers, which is way beyond its passenger terminal building’s (PTB) current estimated capacity of only 350,000 passengers per annum.

 

“Apart from boosting our tourism sector, this project will also generate jobs, particularly in the infrastructure sector. Overall, the estimate is up to 1,400 total new jobs during construction alone,” Abaya added.

 

The project is largely funded through a Korean Export Import Bank (KEXIM) loan, to the tune of $71.612 million. The loan is payable in 40 years, inclusive of a ten-and-a-half-year grace period, at a concessional interest rate of 0.1% per annum.

 

As a tied official development assistance (ODA) loan, the bidding process was governed by the Guidelines for Procurement of Korea’s Economic Development Cooperation Fund (EDCF), and decisions were concurred with by KEXIM. Bidding for the project was also limited to South Korean firms.  (SDR/Sunnex)

 

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