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First 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 SB A N G K O S E N T R A L N G P I L I P I N A SB A N G K O S E N T R A L N G P I L I P I N A SB 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
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
Domestic Interest Rates 11
Monetary Policy Developments 12
Financial Sector
Banking System 12
Banking Policies 17
Capital Market Reforms 17
Stock Market 17
Bond Market 19
Credit Risk Assessment 21
Payments and Settlements System 22
External Sector
Balance of Payments 22
International Reserves 25
Exchange Rate 25
External Debt 27
Foreign Interest Rates 28
Global Economic Developments 29
Financial Condition of the BSP
Balance Sheet 31
Income Statement 31
Conclusion, Challenges and Future Policy Directions 32
Annexes
Statistical Tables
First Quarter 2016 Report on Economic and Financial Developments | 1
Executive Summary
Philippine economic growth accelerates.
The Philippine economy exceeded growth
expectations as real GDP grew by 6.9 percent during
the first quarter of 2016. This was the highest
year-on-year growth for a quarter recorded since Q3
2013 and also placed the Philippines as the fastest
growing economy in the region, ahead of China
(6.7 percent), Indonesia (4.9 percent) and Malaysia
(4.2 percent).
Employment conditions improve. The preliminary
results of the January 2016 Labor Force Survey
showed a general improvement in the country’s
labor and employment indicators. The
unemployment rate declined to 5.8 percent in Q1
2016 from 6.6 percent in the previous year while the
number of employed persons increased by
8.7 percent to 39.2 million, supported by the strong
employment growth in the construction sub-sector
and services sector. In contrast, underemployment
rate climbed to 19.7 percent from 17.9 percent a
year ago.
National Government (NG) cash operations yield a
higher deficit. The cash operations of the NG yielded
a deficit of P112.5 billion in Q1 2016, more than
triple the year-ago level of P33.5 billion. As a
percent of GDP, the NG’s cash position accounted
for -3.4 percent in Q1 2016, larger than the year-ago
level of -1.1 percent. Total revenues increased to
P479.0 billion from P470.5 billion in the previous
year owing to improved collections by the Bureau of
Internal Revenue (BIR) and the Bureau of Customs
(BOC). Meanwhile, total expenditures during the
review period increased by 17.4 percent from the
previous year to reach P591.5 billion due to
increased allotment to local government units
(LGUs) as well as rise in maintenance and other
operating expenditures.
Inflation inches upward. Headline inflation inched
higher to 1.1 percent in Q1 2016 from the
quarter-ago rate of 1.0 percent but remained below
the Government’s inflation target range of
3.0 percent ± 1.0 percentage point (ppt) for 2016.
Inflation pressures were attributed mainly to higher
prices of selected food items namely, meat,
vegetables, sugar as well as oils and fats.
Domestic liquidity expands. Money supply or M3
grew by 11.7 percent as of end-March 2016 to reach
P8.5 trillion, faster than the 9.4-percent expansion
as of end-December 2015. The increase in M3 was
driven largely by the 15.4-percent growth in
domestic claims or credits to the economy. Likewise,
credits extended to the private sector grew by
12.8 percent, consistent with the sustained growth
in bank lending.
The BSP maintains key policy rates in Q1. During its
monetary policy meetings on 11 February and
23 March, the BSP decided to maintain its key policy
interest rates at 4.0 percent for the overnight
borrowing or RRP facility and 6.0 percent for the
overnight lending or RP facility. The interest rates on
term RRPs, RPs, and SDAs were also kept steady.
Similarly, the reserve requirement ratios were left
unchanged. These policy decisions were based on
the BSP’s assessment of a manageable inflation
outlook and robust growth conditions. The BSP
noted that the risks to the inflation outlook have
shifted to the downside arising from slower-than-
expected global economic activity and potential
second-round effects from lower international oil
prices.
Domestic interest rates show mixed trends.
Average Treasury bill rates in the primary market
declined in Q1 2016, reflecting market preference
for short-term papers amid economic slowdown in
2 | First Quarter 2016 Report on Economic and Financial Developments
China and expected delay in further US policy rate
increases. Similarly, secondary market yields of
government securities decreased as of end-March
2016 relative to yields as of end-2015 as global
growth prospects remain subdued. Savings and time
deposit rates were higher during the review quarter
while interbank call loan rates and bank lending
rates were lower.
The Philippine banking system remains sound and
resilient. The Philippine banking system continued to
support long-term economic growth. Banks’ balance
sheets were marked by sustained growth in assets
and deposits. Asset quality indicators showed mixed
trends, while capital adequacy ratios remained
above international standards, even with the
implementation of the tighter Basel III framework.
Resources of the banking system grew by
10.1 percent to P12.5 trillion as of end-March 2016
from the year-ago level of P11.4 trillion. As a
percent of GDP, total resources stood at
92.5 percent. Universal and commercial banks
(U/KBs) continued to account for 90 percent of the
total resources of the banking system.
The Philippine banking system’s gross
non-performing loan (GNPL) ratio stood at
2.2 percent as of end-March 2016, an improvement
relative to the 2.5 percent posted a year-ago, but
slightly higher than the quarter-ago level of
2.1 percent. Meanwhile, the net non-performing
loan ratio increased slightly to 0.8 percent relative to
the 0.7 percent posted a year- and 0.6 percent a
quarter-ago. Prudent lending regulations along with
banks’ initiatives to improve their asset quality kept
the GNPL ratio below its pre-Asian crisis level of
3.5 percent.
Under the Basel III framework, the capital adequacy
ratios (CAR) of U/KBs stood at 15.5 percent and
16.4 percent on solo and consolidated bases at the
end of the third quarter in 2015. The banks’ latest
CAR on solo basis rose quarter-on-quarter from the
15.5 percent posted at end-June last year. On the
other hand, U/KBs’ CAR on consolidated basis at
end-September last year slightly declined from the
16.4 posted a quarter earlier.
Domestic equity prices continue to trend
downward. The Philippine Stock Exchange index
(PSEi) declined by 3.4 percent to average
6,766.4 index points in Q1 2016 from the average of
7,002.8 index points posted in the preceding
quarter. Persistent anxiety over weak global growth,
exacerbated by China’s bumpy economic transition
to a more sustainable growth path, the threat of
plunging oil prices and deepening monetary policy
divergence in advance economies dampened
sentiments. From the peak of 8,127.5 index points
posted in April 2015, the PSEi hit bear territory with
the benchmark index posting its lowest in
23 months at 6,084.3 index points on 21 January
2016.
Debt spreads widen. The cost of insuring Philippine
sovereign debt averaged 119 basis points (bps) in Q1
2016, up from the Q4 2015 average of 107 bps.
Against those of neighboring economies, the
Philippine CDS traded lower than Indonesia’s average
of 231 bps, Malaysia’s 182 bps and Thailand’s
151 bps. Meanwhile, the risk premium from holding a
Philippine sovereign bond over a similarly tenored US
Treasury bond slightly climbed as indicated by the
wider EMBIG Philippine spreads which averaged
124 bps, slightly higher than the previous quarter’s
123 bps. The wider debt spreads for the quarter
imply a rise in the cost of the country’s external
financing.
The BOP position reverses to a deficit. The BOP
position registered a deficit of US$210 million in Q1
2016, a reversal of the US$877 million surplus posted
in the same quarter the prior year. This developed as
a result of higher net outflows in the financial
account, even as the current account recorded a
surplus. The current account registered a lower
surplus at US$447 million as the trade-in-goods deficit
widened significantly with declining exports and
increasing imports. Meanwhile, the financial account
recorded higher net outflows of US$959 million
stemming largely from the other investment account,
First Quarter 2016 Report on Economic and Financial Developments | 3
particularly residents’ net repayment of loans and
placement of deposits abroad.
GIR level remains adequate. The country’s GIR as of
end-March 2016 rose to US$83.0 billion,
2.9 percent higher than its end-2015 level. The GIR
remains ample to cover 10.4 months’ worth of
imports of goods and services. It is also equivalent to
5.4 times the country’s short-term external debt
based on original maturity and 4.0 times based on
residual maturity. The increase in reserves was due
mainly to the NG’s net foreign currency deposits as
well as the BSP’s income from investments abroad
and revaluation adjustments on the BSP’s foreign
currency-denominated reserves. These inflows were
offset partially by payments made by the NG on its
maturing foreign exchange obligations.
External debt remains manageable. The
outstanding external debt of the country stood at
US$77.6 billion as of end-March 2016, higher by
0.2 percent on a q-o-q basis and also higher by
3.1 percent on a y-o-y basis. The increase during the
quarter was attributed to the following: (a) foreign
exchange (FX) revaluation adjustments
(US$814 million) as the US Dollar weakened,
particularly against the Japanese Yen; (b) previous
periods’ adjustments due to late reporting
(US$609 million); and (c) increased investments in
Philippine debt papers by non-resident investors
(US$224 million). In terms of maturity profile,
81.6 percent of the country’s external debt as of
end-March 2016 was primarily medium- to long-
term dated. This implies that FX requirements for
debt payments are well spread out and, thus, more
manageable. In addition, total outstanding debt
expressed as a percentage of gross national income
(GNI) remained at the end-2015 level of
21.9 percent.
The peso depreciates against the US dollar.
The peso depreciated against the US dollar in
Q1 2016 by 0.9 percent to average P47.30/US$1.
On a y-o-y basis, the peso depreciated by
6.1 percent relative to the P44.42/US$1 average in
Q1 2015. The weakening of the peso can be
attributed to the risk aversion towards emerging
market assets arising from concerns on the Chinese
economy and declining oil prices.
Global economic conditions remain uneven. Global
economic activity remained soft for both advanced
and developing economies. Meanwhile, global labor
market conditions generally showed signs of
improvement as inflation rates in advanced and
emerging economies were generally mixed.
The US economy grew by 2.0 y-o-y in Q1 2016 due to
positive contributions from consumer spending, and
residential fixed investment. Similarly, economic
activity in the Euro area grew by 1.5 percent in Q1
2016, albeit slightly lower than previous quarter’s
growth, as majority of Euro area economies
expanded except for Greece. In contrast, GDP
growth in Japan remained stagnant at zero percent
as private consumption and capital expenditure
remained soft.
Output growth among emerging economies in Asia
also remained weak. South Korea’s real GDP growth
decelerated to 2.7 percent in Q1 2016 as sluggish
exports continued to weigh on growth. The
Singaporean economy grew by only 1.8 percent due
to the weak performance of its manufacturing
sector. Meanwhile, the Chinese economy’s growth
moderated to 6.7 percent in Q1 2016 due to the
slowdown in the services sector while India
continued to expand at 7.3 percent.
Among , the ASEAN member states, Thailand’s GDP
expanded by 3.2 percent during the review quarter,
supported by the increase in net exports and
accelerated government spending. Indonesia slowed
down to 4.9 percent as household consumption
remained subdued. In Vietnam, GDP declined to
5.5 percent, driven mainly by the decline in
manufacturing and the prolonged drought that led
to the contraction in the agricultural sector. Malaysia
grew by 4.2 percent due to slower growth in the
manufacturing and services sectors.
4 | First Quarter 2016 Report on Economic and Financial Developments
Introduction The Philippine economy accelerated in Q1 2016 as
the real gross domestic product (GDP) posted a
stronger-than-expected growth of 6.9 percent. This
provides a confidence boost for the Government in
the ability of the economy to reach the GDP growth
target of 6.8-7.8 percent for 2016. In Q4 2015, the
country’s GDP posted 6.3 percent during the
quarter, bringing the 2015 GDP to 5.8 percent.
The sustained economic growth during the quarter
under review was accompanied by a slight uptick in
headline inflation to 1.1 percent, but remained
below the low end of the Government’s 2016
inflation target range of 3.0 percent ± 1.0 percentage
point (ppt). In Q4 2015, the headline inflation was
1.0 percent, bringing the 2015 inflation rate to
1.4 percent.
Meanwhile, domestic liquidity grew by
11.7 percent y-o-y as of end-March 2016 to reach
P8.5 trillion. During the prior quarter, domestic
liquidity increased by 8.3 percent, supported by the
sustained expansion in credits extended to the
domestic economy.
Taking into account the benign inflation
environment, the BSP decided to maintain its policy
interest rate during the review quarter. Interest
rates on term RRPs, RPs, and SDAs were also kept
steady. Similarly, the reserve requirement ratios
were left unchanged. The decision to keep policy
settings unchanged was based on the BSP’s
assessment of a manageable inflation outlook and
robust growth conditions.
The National Government (NG) reported a fiscal
deficit of P112.5 billion in Q1 2016, more than triple
the year-ago level of P33.5 billion. A quarter ago, NG
posted a fiscal deficit of P96.1 billion. As a percent of
GDP, the NG’s cash
position accounted for -3.4 percent in Q1 2016,
larger than the year-ago level of -1.1 percent.
The Philippine banking system remained stable
during the quarter review. Banks’ balance sheets
were marked by sustained growth in assets and
deposits as well as improved asset quality
indicators. Capital adequacy ratios remained above
international standards, even with the
implementation of tighter regulations under the
Basel III framework.
On the external front, there has been some capital
flow volatility resulting mainly from the continued
risk aversion towards emerging market assets over
concerns on weak global growth, declining oil prices,
and worries on the Chinese economy. This
tempered the performance of domestic financial
markets and led to a widening in risk premiums.
These developments, in turn, led to depreciation
pressures on the peso.
The country’s balance of payments (BOP) position
yielded a deficit of US$210 million in Q1 2016, a
reversal of the US$877 million surplus posted in the
same quarter a year ago. The negative BOP balance
during the quarter was a result of the higher net
outflows in the financial account, even as the current
account recorded a surplus.
The country’s gross international reserves (GIR) as of
end-March 2016 rose to US$83.0 billion,
2.9 percent higher than its level as of end-December
2015 (US$80.7 billion). At this level, the GIR is
adequate to cover 10.4 months’ worth of imports
and 5.4 times the country’s short-term external
debt. The increase in reserves was due mainly to the
NG’s net foreign currency deposits as well as the
BSP’s income from investments abroad and
revaluation adjustments on the BSP’s foreign
currency-denominated reserves.
First Quarter 2016 Report on Economic and Financial Developments | 5
Real Sector
Aggregate Supply and Demand
The domestic economy accelerated in Q1 2016 as
the real gross domestic product (GDP) posted a
stronger-than-expected growth of 6.9 percent. This
was the highest year-on-year growth for a quarter
recorded since Q3 2013, boosting the confidence of
the government in the ability of the economy to
reach the official GDP growth target of 6.8-7.8
percent for the full year of 2016. At this rate, the
Philippine economy has outperformed other Asian
economies, including China (6.7 percent), Indonesia
(4.9 percent) and Malaysia (4.2 percent).
Domestic economy
accelerates
Lending solid support to the Q1 2016 growth on the
supply side is the services sector, which remained a
key growth driver during the quarter. The continued
strong performance of the services sector was on
the account of the expansion in all its sub-sectors,
specifically the trade and maintenance of motor
vehicles, motorcycles, personal and household
goods, real estate, renting and business activities,
and financial intermediation accounts. On the
demand side, growth was notably investment-
driven. In fact, the contribution of investments to
the overall Q1 2016 GDP growth outpaced that of
private consumption, which historically has been the
main growth driver of the Philippine economy.
Meanwhile, real Gross National Income (GNI) during
the quarter was likewise the highest since Q3 2013
as it grew by 7.6 percent, buttressed by the
10.7 percent growth in Net Primary Income (NPI).
Chart 1. Gross Domestic Product and Gross National
Income
annual growth rate in percent; at constant 2000 prices
GDP by industry
The Q1 2016 output remains services sector-led,
with the sector maintaining its role as the primary
growth engine of the Philippine economy from the
production side. The sector, which expanded by
7.9 percent, contributed 4.4 ppts to the Q1 2016
GDP growth. The sustained resilience of the services
sector was reinforced by the equally robust
expansion of the following sub-sectors: financial
intermediation (9.1 percent), real estate, renting and
business activities (9.0 percent), and trade and
maintenance of motor vehicles, motorcycles,
personal and household goods (8.0 percent).
Meanwhile, the industry sector also continued to
perform quite strongly as it grew by 8.7 percent in
Q1 2016, enabling it to contribute 2.9 ppts to the
overall output growth during the quarter. This has
been the highest growth posted by the sector since
Q1 2015. The robust growth of the sector was
underpinned mainly by the notable performance of
the manufacturing (which contributed 1.9 ppts to
the industry sector’s output) and construction
(0.6 ppts), as well as utilities (0.3 ppts) subsectors.
Among the top performing manufacturing products
include: radio, television and communication
equipment and apparatus (which contributed
3.0 ppts to the 8.1 percent growth of the
manufacturing sub-sector in Q1 2016), chemical and
chemical products (2.8 ppts), and food manufactures
(2.1 ppts).
2
3
4
5
6
7
8
9
10
2013 2014 2015 2016
Real GDP Real GNI
6 | First Quarter 2016 Report on Economic and Financial Developments
On the contrary, the agriculture, hunting, forestry,
and fishing (AHFF) sector remains confronted with
weather-related challenges, resulting in a negative
performance in Q1 2016. The 4.4 percent
contraction registered by the sector in the quarter
was the highest rate of contraction in the past four
consecutive quarters. The intensification of the El
Niño weather phenomenon in the first three months
of 2016 took its toll on agricultural output. The
shrinkage of the agriculture sector shaved off
0.4 ppts from the overall Q1 2016 GDP growth. A
number of major crops posted double-digit declines
during the quarter including palay (10.0 percent),
corn (19.0 percent), and mango (21.4 percent). Amid
the dry spell, the fishing sub-sector also contracted
by 4.9 percent in Q1 2016. Nonetheless, with
appropriate stock management in place, the
reduction in agricultural output did not result in
drastic food price hikes.
Chart 2. Gross Domestic Product, by Industry
annual growth rate in percent; at constant 2000 prices
GDP by expenditure
On the expenditure side, a structural transformation
has been gradually emerging as investments became
the primary growth engine during the quarter. The
strong 23.8 percent growth of capital formation in
Q1 2016 represented the highest of the series of
double-digit expansions of the sector for the past
five consecutive quarters. This development
underscores the commitment of the government to
promote investments to complement resilient
consumer spending. Capital formation accounted
for 5.6 ppts of the Q1 2016 output. Bulk of the
robust growth in investments was accounted for by
the 25.6 percent expansion in fixed capital formation
during the quarter. This was, in turn, buttressed by
the 36.6 percent expansion of durable equipment
and 12.0 percent increase in construction activities.
The construction subsector largely benefited from
the reversal of public construction to a 39.9 percent
expansion in Q1 2016 from a 23.0 percent
contraction in Q1 2015. This developed as capital
outlays of major government agencies increased in
line with the government’s commitment to ramp up
public spending.
Meanwhile, household consumption remains a
stable growth driver for the economy as it
accelerated by 7.0 percent, the highest since Q2
2012. The lingering low inflation environment, as
well as the sustained strong inflow of remittances
from overseas Filipinos (OFs) continued to provide
support to household spending.
However, given the weak and uneven growth of the
global economy, net exports slashed 5.4 ppts from
the Q1 2016 real GDP growth. With mounting
uncertainties in the external environment led by the
slowdown and rebalancing in China, further decline
in global commodity prices particularly oil, and
declining capital flows to emerging market and
developing economies, trade sector performance in
the country remained subdued. Nonetheless,
prospects for greater regional integration could
partially provide a lift to the export sector by
providing more opportunities for client and product
diversification.
The performance of the domestic economy in Q1
2016 highlights the critical role of strong
macroeconomic fundamentals in dealing with both
global and domestic challenges. Meanwhile, the
structural transformation that has been emerging, as
exhibited by the notable contribution of investments
in the Q1 2016 real GDP growth, is an indication of
the continued favorable sentiment of both investors
and consumers on the prospects of the Philippine
economy. Election-related spending, which provided
a boost to the Q1 2016 output growth, is also
expected to contribute even more to the growth
-4
-2
0
2
4
6
8
10
12
14
2013 2014 2015 2016
Agriculture, Hunting, Forestry and Fishing Industry Services
First Quarter 2016 Report on Economic and Financial Developments | 7
outlook in the succeeding quarter. The peaceful
conduct of the national and local elections should
provide a positive feedback to investors and a sense
of continuity of macroeconomic performance,
supported by the domestic sources of resilience
including ample policy space.
Chart 3. Gross Domestic Product, by Expenditure
annual growth rate in percent; at constant 2000 prices
Labor and Employment
The preliminary results of the January 2016 Labor
Force Survey (LFS)11 of the Philippine Statistics
Authority (PSA) showed an improvement in the
country’s labor and employment indicators. In
January 2016, the number of employed persons
increased by 2.0 percent to 39.2 million from
38.5 million in the previous year, attributed to the
robust growth in both the industry and services
sectors.
Labor market buoys growth in
industry and services sector
Employed persons in the industry sector grew by
8.7 percent as the employment in construction sub-
sector expanded by 18.2 percent, approximately
459,000 workers. Likewise, employment in the
services sector increased by 5.6 percent, with
208,000 workers employed in public administration
and defense/compulsory security sub-sector.
Meanwhile, employment in the agriculture sector
11 Preliminary estimates of the January 2016 LFS continues to exclude the
Province of Leyte because the large number of households were displaced
by typhoon Yolanda.
declined by 8.2 percent as the El Niño phenomenon
affected several parts of the country. Of the
39.2 million employed persons, 56.3 percent are
employed in the services sector, 26.9 percent in the
agriculture sector, and 16.8 percent in the industry
sector.
Employment increased across most classes of
workers. During the reference period, the number
of wage and salary workers rose by 12.1 percent or
2.7 million workers, of which 76.2 percent worked
for private establishments. Similarly, the number of
those who work for private households went up by
16.6 percent or around 318,000 workers. In terms of
employment status, those who worked on a full-time
basis increased by 11.6 percent or 2.7 million
workers; while those who worked on a part-time
basis decreased by 12.7 percent or 1.8 million
workers.
The number of jobless persons declined to
2.4 million in January 2016 from 2.7 million a year
ago, bringing the unemployment rate down to
5.8 percent in January 2016 from 6.6 percent during
the same period a year ago. Conversely, the
underemployment12 rate rose to 19.7 percent from
17.9 percent.
Chart 4. Unemployment and Underemployment Rates
in percent
12 Underemployment covers all employed persons who desire to have
additional hours of work or additional job, or have a new job with longer
working hours. During the reference period, the underemployed persons
are those who work for less than 40 hours.
17.017.518.018.519.019.520.020.521.021.522.022.523.023.524.0
5.5
6.0
6.5
7.0
7.5
8.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Unemployment Rate (LHS) Underemployment Rate (RHS)
2012 2013 2014 2015 2016
-35
-25
-15
-5
5
15
25
35
45
55
2013 2014 2015 2016
Household Final Consumption Expenditure
Government Final Consumption Expenditure
Capital Formation
8 | First Quarter 2016 Report on Economic and Financial Developments
Meanwhile, the labor force participation rate13
in January 2016 contracted to 63.4 percent from
63.7 percent in January 2015. This could be due to
the faster growth in population size (those who are
15 years old and above) compared to the growth in
the number of persons in the labor force.
Fiscal Sector
National Government Cash
Operations
The cash operations of the NG yielded a deficit of
P112.5 billion in Q1 2016, more than triple the
year-ago level of P33.5 billion. As a percent of GDP,
the NG’s cash position accounted for -3.4 percent in
Q1 2016, larger than the year-ago level of -1.1
percent.
NG cash operations yield a
higher deficit
Total revenues for Q1 2016 reached P479.0billion,
higher than the year-ago level of P470.5 billion. Total
revenues as a share of GDP is recorded at
14.7 percent in Q1 2016, slightly lower than the
previous year’s 15.5 percent. The y-o-y increase in
revenues was due mainly to improved collections by
the Bureau of Internal Revenue (BIR) and the Bureau
of Customs (BOC). Tax collections, which constituted
88.7 percent of total revenues, amounted to
P424.7 billion, 5.2 percent higher than the year-ago
level. Non-tax revenues, which consisted mainly of
collections made by the Bureau of the Treasury (BTr),
decreased by 19.0 percent y-o-y.
13 Labor Force Participation Rate is computed by dividing the total number
of persons in the labor force by the total population 15 years old and
above.
Meanwhile, total expenditures in Q1 2016 reached
P591.5 billion, 17.4 percent higher than the
P504.0 billion expenditures in Q1 2015. Total
disbursements as a percent of GDP is recorded at
18.1 percent in Q1 2016. The y-o-y increase in
expenditures can be attributed mainly to increased
allotment to local government units (LGUs) as well
as for maintenance and other operating
expenditures (MOOE)14 during the quarter.
Netting out the interest payments from the
expenditures, the resulting primary balance
amounted to P60.3 billion, representing
3.3 percent of GDP in the review quarter.
The NG made net availments in Q1 2016 amounting
to P86.3 billion, a reversal from the net repayment
of P9.3 billion made in Q1 2015. The net availments
came mainly from domestic borrowings.
Chart 5. Cash Operations of the National Government
in billion pesos
The NG will continue to pursue fiscal consolidation in
the medium term by supporting legislative initiatives
to raise revenues and widen the tax base. The NG
has more resources that can be allocated to
accelerate infrastructure spending. The need to
address infrastructure gaps is a top priority. There
are plans to increase spending on infrastructure to
5 percent of GDP in 2016.
14 Infrastructure and other capital outlays also significantly improved during
the review period.
-200
-100
0
100
200
300
400
500
600
700
2013 2014 2015 2016
Revenues
Expenditures
Surplus/Deficit (-)
First Quarter 2016 Report on Economic and Financial Developments | 9
Monetary Sector
Prices
Headline inflation was higher in Q1 2016 due largely
to higher prices of selected food items. Inflation
went up to 1.1 percent from 1.0 percent in the
previous quarter but remained below the low end of
the government’s announced target of 3.0 percent ±
1.0 percentage point for 2016.
Supply-dynamics continue to
drive domestic inflation
On the other hand, indicators of underlying price
pressures like core inflation15 eased to 1.6 percent
from 1.8 percent in the previous quarter. Similarly,
two out of the three alternative measures of core
inflation computed by the BSP were lower in Q1 2016
while the weighted median measure was steady
relative to the previous quarter.
Table 1. Alternative Core Inflation Measures
quarterly averages of year-on-year change
Food inflation accelerated to 1.6 percent in
Q1 2016 from 1.3 percent in the previous quarter.
15 Excludes certain volatile food and energy items.
The slightly higher food inflation can be traced mainly
to price increases in certain key food items namely,
meat, vegetables, sugar as well as oils and fats.
Meanwhile, rice prices continued to decline
compared to year-ago levels as the arrival of
additional rice importation and onset of the main
harvest season in the previous quarter ensured
sufficient supply during the start of the year.
Rice accounts for 8.9 percent of total CPI basket.
On the other hand, non-food inflation remained
steady in Q1 2016 at 0.5 percent. Inflation for
housing, water, electricity, gas, and other fuels
remained in the negative territory as utility rates
declined. Electricity rates decreased during the
quarter on lower generation charges while water
rates also declined during the quarter.
Chart 6. Food and Non-Food Inflation in the Philippines
(2006=100)
in percent
Furthermore, despite increases in international crude
prices earlier this year, prices of domestic petroleum
products remained lower compared to year-ago
levels. This led to lower inflation for transport
services due largely to fare rollbacks (i.e., public
utility jeepney) during the quarter.
Nonetheless, the continued decline in inflation for
utilities- and oil-related items were counterbalanced
by higher price increases in health, recreation and
culture as well as restaurants and miscellaneous
goods and services. Transport fares for air and sea
travel also increased due to seasonal demand for
provincial trips during the Easter holiday in March.
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 2.0 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 0.8 1.1 1.2 1.3 1.3
Q1 1.1 1.6 1.2 1.3 1.31
The trimmed mean represents the average infla ti on rate of the (weighted) middle 70 percent
in a lowest-to-hi ghest ranki ng of year-on-year i nfl ati on rates for a l l CPI components .2
The weighted median represents the middl e i nfl ati on rate (corres ponding to a cumul ati ve CPI
we ight of 50 percent) i n a l owest-to-highest ra nking of year-on-year i nfl ati on rates .3
The net of volati l e i tems method excludes the fol lowing i tems: bread and cereals , meat, fish,
fruit, vegetabl es , gas , sol id fuel s , fuels and l ubri cants for personal trans port equipment, and
passenger transport by road, which repres ents 39.0 percent of a l l i tems. The seri es has been
recomputed us ing a new methodol ogy that is a l igned with PSA's method of computi ng the
officia l core inflation, which re-weights remai ning i tems to comprise 100 percent of the core
basket after excl uding non-core items . The previ ous methodol ogy reta i ned the weights of
vol ati le items i n the CPI bas ket whil e keeping their i ndi ces cons tant at 100.0 from month to month.
Source: PSA, BSP estimates
0
1
2
3
4
5
6
7
8
9
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2015 2016
Headline Inflation
Food Inflation
Non-Food Inflation
10 | First Quarter 2016 Report on Economic and Financial Developments
NCR inflation slows down on
lower prices of non-food
items…
In terms of price development by area, inflation in
the National Capital Region (NCR) dropped anew to
0.3 percent from 0.8 percent in the previous quarter
as non-food items continued to pull down inflation.
Prices of oil-related CPI items such as electricity, gas,
and other fuels as well as operation of personal
transport equipment16 remained negative for the
sixth consecutive quarter in Q1 2016.
On the other hand, the following food items posted
higher inflation rates within NCR during the quarter:
corn, meat, milk, cheese, and eggs along with
vegetables. Rice inflation continued to decline
relative to year-ago levels due mainly to higher
supply arising from importations and onset of the
harvest season.
… while inflation in AONCR rises
For areas outside NCR (AONCR), inflation continued
to accelerate at 1.3 percent in Q1 2016 from
1.0 percent in the previous quarter, as both food and
non-food items increased.
Higher price increases in corn along with milk,
cheese, and eggs, both of which were previously
decreasing, boosted food inflation in AONCR in
Q1 2016. Likewise, year-on-year vegetable inflation
accelerated from the previous quarter, contributing
to higher food inflation.
In contrast to the national and NCR trend, non-food
inflation in AONCR increased in Q1 2016 as health
and catering services as well as medical products and
personal care and effects went up during the quarter.
It should be noted that inflation for electricity, gas,
and other fuels as well as transport remained in
negative territory.
16 This includes gas oils for motor vehicles.
Chart 7. Inflation Rate (2006=100)
in percent
Domestic Liquidity17
Money supply or M3 grew by 11.7 percent y-o-y as
of end-March 2016 to reach P8.5 trillion. This
growth was faster than the 9.4-percent expansion as
of end-December 2015.
The increase in M3 was driven largely by the
15.4-percent y-o-y growth in domestic claims or
credits to the domestic economy in March 2016.
Credits extended to the private sector grew by
12.8 percent, consistent with the sustained growth
in bank lending. Meanwhile, net claims on the
central government rose by 33.6 percent.
Net foreign assets (NFA) in peso terms rose by
5.8 percent y-o-y in March 2016. The BSP’s NFA
position continued to expand on the back of robust
foreign exchange inflows coming mainly from
overseas Filipinos’ remittances, business process
outsourcing receipts, and portfolio investments.
Meanwhile, the NFA of banks also increased, driven
largely by the increase in banks’ foreign assets
resulting from investments in marketable debt
securities.
17 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
1
2
3
4
5
6
2013 2014 2015 2016
Philippines National Capital Region Areas Outside the National Capital Region
First Quarter 2016 Report on Economic and Financial Developments | 11
Table 2. Domestic Liquidity (M3)
Levels (in billion pesos) Growth Rates
(in %)
Particulars Mar
2016
Dec
2015
Mar
2015
Quarter
On
Quarter
Year
On
Year
Domestic
Liquidity (M3), 8,548.0 8,426.2 7,650.0 1.4 11.7
of which:
Net Foreign
Assets 4,100.1 3,998.8 3,875.6 2.5 5.8
Domestic
Claims 8,077.4 7,860.5 6,997.4 2.8 15.4
of which:
Net Claims
on Central
Government
1,465.8 1,263.0 1,096.9 16.1 33.6
Claims on
Other Sectors 6,611.5 6,597.4 5,900.4 0.2 12.1
Source: Department of Economic Statistics, Bangko Sentral ng Pilipinas
Domestic Interest Rates
The primary market rates of the 91-day, 182-day,
and 364-day treasury bills (T-bill) declined to
1.56 percent, 1.58 percent and 1.72 percent in Q1
2016 from the Q4 2015 rates of 1.71 percent,
1.70 percent and 1.90 percent, respectively. The
lower primary market rates reflected market
preference for short-term papers amid economic
slowdown in China and expected delay in further US
policy rate increases.
Primary market interest rates fall
across the board
Similarly, the secondary market yields of
government securities (GS) for most maturities
decreased as of end-March 2016 relative to yields as
of end-December 2015.
Yields of secondary market GS
mostly decline
The yields of most tenors dropped by at least
29.0 bps (20-year) to at most 102.3 bps (6-month)
amid subdued global growth prospects. Meanwhile,
the yields of 3-year and 10-year GS increased by
2.8 bps and 59.0 bps, respectively.
Chart 8. Yield Curve of Government Securities
in percent
Domestic market interest rates showed mixed
trends, reflecting global uncertainty. The savings
deposit and time deposit rates were slightly higher in
Q1 2016 by 1.0 bp and 1.2 bps, respectively.
Meanwhile, the bank lending and interbank call
loans rates were lower by 10.8 bps and 0.02 bps,
respectively.
Other market interest rates
show mixed trends
The differentials (gross and net of tax) between the
domestic and US interest rates narrowed in Q1 2016
relative to Q4 2015. The 14.5 bps decrease in the
average RP 91-day T-bill rate led to the lower
differential against the average US 90 -day T-bill rate
and LIBOR which increased by 7.9 bps and 21.6 bps,
respectively. Higher foreign interest rates reflected
investor optimism following the release of stronger-
than-expected US manufacturing activity during the
quarter.
Adjusted for risk premium,
interest rate differentials narrow
The positive differential between the BSP's policy
interest rate (overnight borrowing or RRP rate) and
the US Federal Funds target rate persisted at 350
bps as of end-March 2016, as the US Federal Funds
target rate and the RRP rate remained unchanged
during the quarter. Compared to its December 2015
value, the risk-adjusted spread between the two
policy rates widened by 17.8 bps in March 2016, due
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
Q1 2015 Q2 2015 Q3 2015
12 | First Quarter 2016 Report on Economic and Financial Developments
to lower risk premium (measured as the difference
between the 10-year ROP and the 10-year US note).
The decline in the risk premium was traced to a
66.6-bp decrease in the yields of 10-year ROP note
amid a more modest 48.8-bp decrease in the yields
of the 10-year US Treasury note.
Monetary Policy Developments
During its monetary policy meetings on
11 February and 23 March, the BSP decided to
maintain its key policy interest rates at
4.0 percent for the overnight borrowing or RRP
facility and 6.0 percent for the overnight lending or
RP facility. The interest rates on term RRPs, RPs, and
SDAs were also kept steady. Similarly, the reserve
requirement ratios were left unchanged.
BSP maintains monetary policy
settings
The BSP’s assessment of a manageable inflation
outlook and robust growth conditions continue to
support steady monetary policy settings. Latest
forecasts indicate that average inflation is likely to
settle within the target range of 3.0 percent ± 1
percentage point for 2016-2017, while inflation
expectations continue to be firmly anchored within
the inflation target band over the policy horizon.
The BSP also noted that the risks surrounding the
inflation outlook have shifted slightly to the
downside. Downward price pressures could arise
from slower-than-expected global economic activity
and potential second-round effects from lower
international oil prices. Meanwhile, upside risks to
the inflation outlook persist, particularly those that
could emanate from the impact of El Niño dry
weather conditions on food prices and utility rates as
well as pending petitions for power rate
adjustments.
The BSP observed that domestic demand conditions
are likely to stay firm, supported by solid private
household and capital spending, buoyant business
sentiment, and adequate credit and domestic
liquidity. The BSP also recognized that uncertainty
over economic growth prospects across the globe
could continue to drive volatility in global financial
markets.
Given these considerations, the BSP affirmed the
need to keep a watchful eye over domestic and
external developments to ensure that the monetary
policy stance remains in line with the BSP’s price and
financial stability objectives.
Financial Sector
Banking System
Financial Sector
The Philippine banking system continues to be
resilient as it supports long-term economic growth.
Banks’ balance sheets were marked by a steady
growth in assets and deposits. Asset quality
indicators showed mix trends, while capital
adequacy ratios remained above international
standards, even with the implementation of the
tighter Basel III framework.
Philippine banking system posts
steady growth in assets and
deposits
Banks continued to dominate the financial sector,
with universal and commercial banks (U/KBs)
accounting for 90 percent of total banks’ assets. In
terms of the number of head offices and
branches/agencies, non-bank financial
intermediaries had a wider physical network than
banks, consisting mainly of pawnshops.
First Quarter 2016 Report on Economic and Financial Developments | 13
Performance of the Banking System
Market Size
The number of banking institutions (head offices) fell
to 632 as of end-December 2015 from the year-
and quarter- ago levels of 648 and 635, respectively,
indicating continued consolidation of banks as well
as the exit of weaker players in the banking system.
By banking classification, banks (head offices)
consisted of 40 U/KBs, 68 thrift banks (TBs), and
524 rural banks (RBs). Meanwhile, the operating
network (head offices and branches/agencies) of the
banking system expanded to 10,756 offices in Q4
2015 from 10,361 offices during the same period in
the previous year and 10,561 offices in Q3 2015, due
mainly to the increase in the branches/agencies of
U/KBs, TBs and RBs.
Number of banks declines, but
operating network expands
The total resources of the banking system grew by
10.1 percent to P12.5 trillion as of end-March 2016
from the year-ago level of P11.4 trillion, and by
0.9 percent from the P12.4 trillion level posted a
quarter-ago. As a percent of GDP, total resources
stood at 92.5 percent.
Chart 9. Total Resources of the Banking System
Levels in trillion pesos; share in percent
Savings Mobilization
Savings and demand deposits were the primary
sources of funds for the banking system. Banks’
total deposits18 as of end-March 2016 amounted to
P7.4 trillion, 11.3 percent or P0.8 trillion higher than
the year-ago level.
Demand and savings deposits
expand while time deposit
declines
On a quarterly basis, the 2.2 percent growth in
deposits was lower than the 6.4 percent growth
posted in the previous quarter. Demand and savings
deposits expanded by 3.7 percent and 3.0 percent,
respectively19, while time deposits declined by
0.7 percent. On the other hand, foreign currency
deposits owned by residents (FCD-Residents) grew
by 2.1 percent to P1.5 trillion.20
Chart 10. Deposit Liabilities of Banks
in billion pesos
Bank Lending Operations
Outstanding loans of UKBs as of end-March 2016,
net of banks' RRP placements with the BSP grew by
14.8 percent y-o-y and by 0.1 percent q-o-q.
Similarly, bank lending inclusive of RRPs increased
by 13.5 percent during the same period. Commercial
banks' loans have been increasing steadily at a
double-digit pace y-o-y since January 2011.
18 This refers to the total peso-denominated deposits of the banking
system. 19 Along with the savings, time and demand deposits, M3 includes currency
in circulation and deposit substitutes. 20 M4 is the sum of M3 and FCD-Residents. Along with savings, time and
demand deposits, M3 includes currency in circulation and deposit
14 | First Quarter 2016 Report on Economic and Financial Developments
Bank lending sustains growth
y-o-y
Loans for production activities, which comprised
81.4 percent of banks’ aggregate loan portfolio,
expanded by 15.0 percent y-o-y in March. The
growth in production loans was driven primarily by
increased lending to the following sectors: real
estate activities (20.2 percent); electricity, gas,
steam and airconditioning supply (31.8 percent);
wholesale and retail trade, repair of motor vehicles
and motorcycles (13.6 percent); financial and
insurance activities (10.6 percent); and information
and communication (28.0 percent). Bank lending to
other sectors likewise expanded during the month
except for professional, scientific, and technical
activities which declined by 9.6 percent. Similarly,
loans for household consumption grew by
15.9 percent due to sustained growth in credit card
loans, motor vehicle loans, and salary-based general
purpose loans.
Chart 11. Loans Outstanding of Commercial Banks (Gross
of RRPs)
in trillion pesos
Credit Card Receivables
The combined credit card receivables (CCRs) of
U/KBs and TBs as of end-December 2015, inclusive
of credit card subsidiaries, increased by 9.1 percent
to P179.3 billion relative to the previous year’s level
of P164.3 billion.
Credit card receivables
continue to rise
Meanwhile, the ratio of CCRs to the total loan
portfolio (TLP) was at 2.9 percent, lower than the
3.0 percent registered a year ago. In terms of loan
quality, despite the 0.7 percent increase in non-
performing CCRs, its ratio to total CCRs improved to
7.6 percent from the previous year’s 8.2 percent
mainly due to the increase in total CCRs.
Motor Vehicle Loans21
The combined motor vehicle loans (MVLs) of U/KBs
and TBs, inclusive of non-bank subsidiaries,
increased by 32.1 percent to P303.9 billion as of end-
December 2015 from P230.1 billion a year ago and
by 7.2 percent from P238.6 billion a quarter ago.
Motor vehicle loans maintain
strong growth
Consumers’ strong demand for passenger cars
(particularly, the sub-compact cars) and commercial
vehicles, introduction of new and refreshed models,
appropriate product mix, as well as flexible financing
schemes from banks and other car financing firms
helped sustain the rise in vehicle purchases. The
share of total MVLs to TLP, exclusive of interbank
loans, remained at 4.9 percent relative to previous
quarter. In terms of loan quality, the ratio of non-
performing MVLs to total MVLs declined to
4.6 percent from 4.8 percent posted in Q3 2015.
Salary-Based General-Purpose Consumption Loans22
Salary Based General-Purpose Consumption Loans
(SBGPCL) extended by U/KBs and TBs, inclusive of
non-bank subsidiaries, increased significantly by
68.1 percent to P104.3 billion as of end-December
2015 from the year-ago level of P62.1 billion23 and
21 Renamed effective September 2015 (formerly Auto Loans) 22 Formerly Salary Loans 23 Data collection started with June 2014 data.
First Quarter 2016 Report on Economic and Financial Developments | 15
by 7.2 percent from the quarter-ago level of
P97.2 billion.
Salary loans register the highest
growth among other consumer
loan types
The share of total SBGPCLs to TLP, exclusive of
interbank loans, of 1.7 percent was similar to that
posted in Q3 2015. In terms of loan quality, the ratio
of non-performing SBGPCLs to total SBGPCLs
declined to 3.9 percent from 4.2 percent posted in
Q3 2015.
Residential Real Estate Loans
As of end-December 2015, the combined residential
real estate loans (RRELs) grew by 11.5 percent to
P444.0 billion from P398.2 billion a year-ago, and by
5.5 percent relative to the previous quarter’s level of
P420.9 billion.
Residential real estate loans
continue to grow
Sustained household investments in residential
properties, the slow rise in the cost of construction
materials, the increase in the number of projects
unveiled by real estate developers as well as banks’
intensified promotional campaigns supported the
growth in real estate purchases during the review
period. Total RRELs to TLP slightly decreased to
7.2 percent, relative to the previous quarter’s ratio
of 7.3 percent. By industry, U/KBs held a bigger slice
of the total residential real estate exposure at
58.1 percent (P258.0 billion), while TBs accounted
for the remaining 41.9 percent (P186.1 billion). In
terms of loan quality, with respect to the previous
quarter’s ratio, the non-performing RRELs still
remained at 3.1 percent of total RRELs of U/KBs and
TBs.
Asset Quality and Capital Adequacy
The Philippine banking system’s gross
non-performing loan (GNPL) ratio of 2.2 percent as
of end-March 2016 was an improvement from the
previous year’s level of 2.5 percent, but slightly
higher than the quarter-ago level of 2.1 percent.24
Banks’ initiatives to improve their asset quality along
with prudent lending regulations helped maintain
the GNPL ratio below its pre-Asian crisis level of
3.5 percent.25 The increase reflected the combined
effect of the GNPL increase of P8.7 billion, from
P136.5 billion in Q4 2015 to P145.2 billion in Q1
2016, and the contraction in the banking system’s
TLP by P20.7 billion. Similarly, the net non-
performing loan (NNPL) ratio increased, though
mildly, to 0.8 percent relative to the 0.7 percent
posted a year ago, and 0.6 percent a quarter ago. In
computing for the NNPLs, specific allowances for
credit losses26 on TLP are deducted from the GNPLs.
The said allowances decreased to P94.3 billion in
end-March 2016 from P94.6 billion posted a quarter
ago.
Chart 12. Ratio of Gross NPLs and Net NPLs to Total
Loans of the Banking System
in percent
The Philippine banking system’s GNPL ratio of
2.2 percent was higher relative to South Korea
(1.7 percent) and Malaysia (1.2 percent), but lower
24 For comparative purposes, computations for periods prior to January
2013 are aligned with Circular No. 772. Certain ratios were rounded-off to
the nearest hundredths to show marginal movements. 25 The 3.5 percent NPL ratio was based on the pre-2013 definition. 26 This type of provisioning applies to loan accounts classified under loans
especially mentioned (LEM), substandard-secured loans, substandard-
unsecured loans, doubtful accounts and loans considered as loss accounts.
16 | First Quarter 2016 Report on Economic and Financial Developments
when compared with Thailand (2.6 percent) and
Indonesia (2.4 percent).27
The loan exposures of banks remained adequately
covered as the banking system registered an NPL
coverage ratio of 112.7 percent. The Q1 2016
coverage ratio was lower than the 116.4 percent
registered a year ago and the 118.4 percent posted
in end-December 2015. The ratio is indicative of
banks’ continued compliance with the loan-loss
provisioning requirements of the BSP to ensure
adequate buffers against potential credit losses.
Banks maintain high levels of
CAR amid tighter capital
requirements
Compliance with the BSP capital framework for
U/KBs under the Basel III framework28 took effect on
1 January 2014. The new Basel III regime
incorporates adjustments to the treatment of bank
capital in ways that enhance the use of the capital
adequacy ratio (CAR) as a prudential measure.
The CAR of U/KBs stood at 15.55 percent on solo
basis and 16.40 percent on consolidated basis at the
end of the third quarter in 2015. These figures are
well-above the BSP regulatory threshold of
10.0 percent and international minimum of
8.0 percent. The banks’ latest CAR on solo basis rose
quarter-on-quarter from the 15.48 percent posted at
end-June last year. On the other hand, U/KBs’ CAR
on consolidated basis at end-September last year
slightly declined from the 16.42 percent posted a
quarter earlier.
27 Sources: IMF and financial stability reports, Indonesia (Banks’
Nonperforming Loans to Gross Loans Ratio, Q4 2015); Malaysia (Banking
System’s Net Impaired Loans, Q1 2016); Thailand (Total Financial
Institutions’ Gross NPLs, Q1 2016); and South Korea (Domestic Banks’
Substandard or Below Loans [SBLs], Q1 2016). 28 Basel III no longer counts towards “bank capital” those Basel II-compliant
capital instruments that do not have the feature of loss absorbency. Loss
absorbency refers to the ability of bank-eligible capital instruments other
than common equity to behave and act in the same way as common equity
shares at the point where the bank takes losses and becomes non-viable.
In addition, Basel III now deducts from capital the investments of banks in
non-allied undertakings, defined benefit pension fund assets, goodwill and
other intangible assets.
The industry’s capitalization remains predominantly
composed of Common Equity Tier 1 (CET 1), the
highest quality among instruments eligible as bank
capital. The CET 1 of U/KBs increased quarter-on-
quarter to 12.99 percent and 13.92 percent of risk
weighted assets (RWA) from 12.87 percent and
13.89 percent last quarter on both solo and
consolidated bases, respectively. Their Tier 1 ratio
also grew to 13.18 percent and 14.08 percent from
13.06 percent and 14.05 percent last quarter on
both solo and consolidated bases, respectively. Tier
1 is composed of common equity and qualified
capital instruments. Both CET 1 and Tier 1 ratios of
U/KBs were also above the BSP thresholds of
6.0 percent and 7.5 percent, respectively.
Said capital ratios increased amid the U/KBs’
profitable operations and issuance of new shares as
well as the infusion of foreign bank capital.
Chart 13. Capital Adequacy Ratio of Universal and
Commercial Banks
in percent
The CAR of U/KBs on a consolidated basis at
16.4 percent was higher than South Korea
(14.0 percent), but lower compared to those of
Indonesia (21.3 percent), Thailand (17.5 percent),
and Malaysia (16.5 percent).29
29 Sources: IMF and financial stability reports, Indonesia (Commercial Banks,
Regulatory Capital to Risk-Weighted Assets Ratio Q4 2015); Thailand
(Commercial Banks’ Capital Funds Percentage of Risk Assets, Q1 2016);
Malaysia (Banking System’s Total Capital Ratio, Q1 2016); and South Korea
(Domestic Banks’ Capital Ratio, Q1 2016).
First Quarter 2016 Report on Economic and Financial Developments | 17
Banking Policies
Banking policies implemented during the quarter
were aimed at enhancing/providing guidelines on
the following: (1) public and/or publicly-guaranteed
foreign loan agreement and other agreements which
give rise to a foreign/foreign currency obligation of
the public sector; (2) agricultural value chain
financing framework; (3) Unit Investment Trust Fund
(UITF); (4) Basel III framework on liquidity standards
- liquidity coverage ratio and disclosure standards;
(5) phased lifting of the moratorium on the grant of
new banking license or establishment of new
domestic banks; (6) activities and services allowable
for micro-banking offices; and (7) operational risk
management and outsourcing; and (8) cooling-off
provisions of the BSP regulations on financial
consumer protection.
Capital Market Reforms
Capital market policy reforms continued to gain
ground during the first quarter of 2016 as the BSP
and other government agencies, as well as the
private sector adopted measures to develop further
the Philippine capital market. During the period, the
reforms focused on providing flexibility in raising
foreign capital and encouraging more foreign
investors to invest in the country (see Annex B).
Stock Market
In the first three months of 2016, the Philippine
Stock Exchange index (PSEi) averaged
6,766.4 index points, lower by 3.4 percent from the
average of 7,002.8 index points posted in the
preceding quarter. Persistent anxiety over weak
global growth, exacerbated by China’s bumpy
economic transition to a more sustainable growth,
the threat of plunging oil prices and deepening
monetary policy divergence in advance economies
dampened sentiments.
External headwinds dampen
stock trading
However, despite the q-o-q decline, the index
generally trended upwards during the period. In
January 2016, the local bourse hit bear territory with
the benchmark index posting its lowest in
23 months at 6,084.3 index points on 21 January,
which was about 25.1 percent below the peak
posted in April 2015 of 8,127.5 index points.30 The
drop mirrored the global sell-off triggered by
developments in China, the rising geopolitical
tensions in the Middle East, falling oil prices and
concerns on the continued normalization of US
interest rates.
After, bottoming out in January, the PSEi began to
rally in February and eventually closed the quarter
higher. The US Fed’s decision to defer further
interest rates hikes, the People’s Bank of China’s
continued liquidity injection and monetary easing,
the Bank of Japan’s negative interest rates, the
European Central Bank’s aggressive stimulus
program and the recovery of global crude oil prices
from US$30 per barrel to the US$40 per barrel level
saw investors’ risk appetite improve. Moreover,
reports of generally positive earnings by domestic
firms in the last quarter of 2015 also encouraged the
return of foreign investors in the local bourse.
From the low posted in January, the main index
lifted to reach a seven-month peak of
7,376.4 index points posted on 21 March, about
21.2 percent higher than the low registered in
January.
30 The PSEi actually entered bear territory on 11 January 2016, as it closed
at 6,288.26 index points, about 22.6 percent below the peak in April 2015.
18 | First Quarter 2016 Report on Economic and Financial Developments
Chart 14. Average PSEi
in index points
This technically placed local equities in bull territory
for most of the remaining days of March. However,
gains were tempered by investors’ cautious stance
ahead of the presidential elections and the release
of listed companies’ first-quarter earnings results in
May. In end-March, the PSEi closed at
7,262.3 index points, 4.5 percent higher year-to-
date.
The general improvement in investor appetite was
reflected in foreign investors’ return to the local
bourse in March. From being net sellers of
P2.2 billion and P4.0 billion in January and February,
respectively, foreign investors reverted back to being
net purchasers of P9.6 billion worth of local stocks in
March. Year-to-date, this brings foreign investor
transactions in the local bourse, which accounted for
about 50.1 percent of the total investors’
transactions in the first three months of 2016, to an
aggregate net purchase of P3.5 billion worth of
shares.
Foreign investors return to local
bourse
Other stock market indicators similarly mirrored
improved sentiments in the latter half of the quarter
in review. After posting a decline to P12.6 trillion in
January 2016 from P13.5 trillion in end-2015, total
stock market capitalization rose to P13.9 trillion in
end-March. But thus far the Philippine stock market
has yet to see an initial public offering (IPO) during
the period. On the other hand, data from Bloomberg
indicated that the Philippine price-earnings ratio
improved slightly from an average of 20.07x in Q4
2015 to 20.11x during the quarter-in-review. At this
level, Philippine shares remain the second most
expensive in the ASEAN5 region, after Indonesia‘s
27.35x.
Chart 15. PSEi Foreign Transactions
in billion pesos, as of 31 March 2016
Meanwhile, the average indices of seven of the
nine Asia-Pacific stock indices monitored declined in
Q1 2016 relative to the preceding quarter. The
decline was led by China, which fell by
16.1 percent q-o-q, followed by Hong Kong
(-11.4 percent), Singapore (-7.6 percent), Australia
(-3.2 percent), Thailand (-3.1 percent) and Malaysia
(-0.3 percent). The Philippines was in the middle of
the pack, declining by 3.4 percent q-o-q. In contrast,
the remaining two markets, New Zealand and
Indonesia, outperformed the rest of the region
posting positive growths q-o-q. Indonesian stocks
rose 4.0 percent largely due to Indonesia’s
rebounding economy, accelerating infrastructure
spending and the three policy rate cuts made by
Bank Indonesia during the quarter. New Zealand
stocks, on the other hand, increased by 5.0 percent,
benefiting from the steady appreciation of investors’
risk appetite on expectations that the US Fed will
proceed slowly on any further increases in US policy
interest rates and following the RBNZ’s surprise rate
cut in March.
First Quarter 2016 Report on Economic and Financial Developments | 19
Chart 16. PSE Market Capitalization by Sector
end-March 2016, Percent share (%)
Chart 17. Quarter-on-Quarter Performance on Asia-
Pacific Stock Markets (%)
Bond Market
Local Currency Bond Market
Size and Composition31
Local currency (LCY) bonds issued by both the public
and private sectors amounted to P141.2 billion in Q1
2016, 57.1 percent higher than the P89.9 billion
registered in the previous quarter and 38.4 percent
higher than the P102.0 billion recorded in the same
period last year.
31 This refers to the peso-denominated bond issuances by both public and
private sectors. Public sector issuances of LCY bonds include issuances in
the primary market and rollovers of maturing series which were issued by
the BTr and GOCCs. This excludes issuances by the central bank. Source:
Bureau of the Treasury, Bloomberg, Staff calculation
LCY bond issuances of public
sector increase
The NG issued Treasury bills (T-bills) and Fixed-rate
Treasury bonds (T-bonds) amounting to a total of
P132.2 billion which increased by 104.5 percent
from Q4 2015. Meanwhile, the private sector
issuance of LCY bonds amounted to P9.0 billion,
64.3 percent lower than the Q4 level and
25.3 percent lower than Q1 last year. The low
activity by the corporates reflects the risk of higher
interest payments as the Fed starts to normalize.
Chart 18. LCY Bond Issuances
in billion pesos
Source: Bureau of the Treasury, Bloomberg, Staff calculation
In terms of market share, issuances from the NG
continued to dominate the domestic securities
market, comprising 93.6 percent of the total bond
issuances while the private sector comprised the
remaining 6.4 percent. Bonds issued by the BTr
accounted for the entire public sector issuance while
issuers from the private sector came from non-
financial corporations and real estate.
Chart 19. LCY Bond Issuances
As % of market share
Source: Bureau of the Treasury, Bloomberg, Staff calculation
20 | First Quarter 2016 Report on Economic and Financial Developments
Primary Market 32
In the primary auctions conducted for both T-bills
and T-bonds, the NG offered a total of P135.0 billion
of both short- and long-term debt securities in Q1
2016. Demand was robust as tenders were
oversubscribed by 2.1 times. Tenders for T-bills
reached P135.3 billion as against the NG’s offering of
P60.0 billion while for T-bond, tenders reached
P160.9 billion against the P75.0 billion offering.
The NG partially awards bids for
T-bonds due to higher yields
demanded
The NG partially awarded P132.2 billion in GS,
P60.0 billion in T-bills and P72.2 billion in T-bonds.
The higher rates demanded by investors led the NG
to accept partially bids for T-bills and T-bonds in
some of the auctions conducted during the first
quarter. Demand for shorter-term debt instrument
was higher as the market traded on a wait-and-see
stance for longer debt papers due to concerns over a
weakening Chinese economy and the pace and
timing of the US Fed’s monetary policy
normalization.
Secondary Market
Trading of both government and private corporate
bonds in the secondary market increased by
124.9 percent to P895.7 billion from P398.2 billion
registered in the previous quarter. On a y-o-y basis,
trading in the secondary market declined by
40.8 percent.
Trading increases at the
secondary market
Trading at the Fixed Income Exchange (FIE) was
dominated mostly by Fixed Income Treasury Notes
(FITNs), which accounted for about 93 percent of the
total trading followed by T-bills with 3.5 percent
share, retail T-bonds (RTBs) with 2.5 percent, and
32 The discussion includes primary market for government issuances only.
corporate bonds with 1 percent. The lukewarm
trading at the secondary market reflected investors
trading cautiously over concerns of a weakening
Chinese economy and the anticipated hikes in the
Fed funds rate.
Chart 20. Secondary Market Volume
in billion pesos
Source: Philippine Dealing and Exchange Corp.
Foreign Currency Bond Market
The government raised funds in the offshore market
that issued US$2 billion worth of new 25-year US
dollar bonds in the first quarter of 2016. The bonds
were priced at par with a coupon of 3.7 percent, the
lowest coupon ever issued on a global basis. This is
also the first sovereign USD bond issuance and the
longest-dated USD bond issuance from Asia during
the quarter.
The NG taps the international
bond market in raising funds
The proceeds of the issuance will be used to fund
the country’s switch and tender offer33, and related
expenses while the remaining amounts will be used
for general purposes including budgetary support.
33 The tender offer exercise targeted existing bondholders to switch into
the new Global Bonds. Bonds with a total notional value of USD 5.6 billion
were submitted for the switch tender offer and the NG accepted a market
value of USD 1.5 billion from the submissions.
First Quarter 2016 Report on Economic and Financial Developments | 21
Credit Risk Assessment
Philippine sovereign credit rating remained
unchanged in Q1 2016. The latest credit assessment
was Moody’s credit rating of Philippine banks in
November 2015. Moody’s Investor Service gave
Philippine banks a “stable” outlook after it upgraded
the credit ratings of various banks in the country.
The stable outlook means that the new and higher
credit ratings of banks are likely to be maintained
over the short term.
Philippine sovereign credit
rating is unchanged
Among the banks whose credit ratings were revised
recently include Banco de Oro, Metropolitan Bank
and Trust Co., Bank of the Philippine Islands, Land
Bank of the Philippines, Philippine National Bank,
and Rizal Commercial Banking Corp. Moody’s said
the Philippine banks’ resilience to stress is positive
compared to other banking systems around the
world.
Table 3. Latest Philippine Sovereign Credit Ratings
as of March 2016
Bond Spreads
Bond Spreads
Bond spreads
Bond spreads
The cost of insuring Philippine sovereign debt
increased in the first quarter of 2016. The country’s
5-year sovereign credit default swap (CDS) spreads
averaged 119 bps in Q1 2016, up from the Q4 2015
average of 107 bps. Against those of neighboring
economies, the Philippine CDS traded lower than
Indonesia’s average of 231 bps, Malaysia’s 182 bps
and Thailand’s 151 bps. Meanwhile, the risk
premium from holding a Philippine sovereign bond
over a similarly tenored US Treasury bond slightly
climbed as indicated by the wider EMBIG Philippine
spreads which averaged 124 bps, higher than the
previous quarter’s 123 bps.
Debt spreads widen due to
uncertainty on the external
front
In January 2016, debt spreads took a negative
turnaround, widening to levels last seen during the
taper tantrum in 2013. Investors traded on a safe-
haven mode that pushed yields of US Treasury bonds
lower while raising yields of the relatively risky
emerging market bonds higher (including the
Philippines) which resulted in wider debt spreads.
The rout in China’s financial market sapped
investors’ risk appetite away from higher yielding
emerging market assets, which wiped out gains from
most of Asia’s equities market and weakened their
currencies against the US dollar. Investors were also
surprised as the Bank of Japan adopted a negative
interest rate strategy.
Chart 21. 5-Year CDS Spreads of Selected ASEAN
Countries
in basis points
In February 2016, debt spreads further widened as
concerns over China and the continued drop in oil
prices spurred market jitters. China’s foreign-
exchange reserves shrank by US$99.5 billion in
January to US$3.23 trillion, the lowest level since
2012. Meanwhile, talks between Venezuela and
Saudi Arabia failed to mitigate oil supply issues.
In March, debt spreads narrowed as the global
economic and financial environment remained calm.
0
50
100
150
200
250
300
350
Jan
-…
Feb
-…
Ma
r…
Ap
r-…
Ma
y…
Jun
-…
Jul-
14
Au
g-…
Sep
-…
Oct
-…
No
v…
De
c-…
Jan
-…
Feb
-…
Ma
r…
Ap
r-…
Ma
y…
Jun
-…
Jul-
15
Au
g-…
Sep
-…
Oct
-…
No
v…
De
c-…
Jan
-…
Feb
-…
Ma
r…
Philippines Indonesia
As of 31
Mar
IDN: 197
MLY: 153
THA: 130
LOWEST
(2013-
2015)
PEAK
(2013-
2015)
Dec 16 '15
(US Fed hike)
IND: 237 bps
MLY: 190 bps
THA:138
PHL: 111 bps
Jan 4 '16
(China
stockmarket
selloff)
IND: 245 bps
MLY: 193 bps
THA: 145 bps
PHL: 117 bps
Latest Philippine Sovereign Credit Ratings
as of March 2016
aRating
Agency
Local Currency
(LT/ST)
Foreign Currency
(LT/ST)
Outlook
S&P BBB/A2 BBB/A2 Stable
Moody's Baa2/.n.a. Baa2/n.a. Stable
Fitch BBB-/F3 BBB/n.a. Positive
22 | First Quarter 2016 Report on Economic and Financial Developments
Yields continued to decrease as investors stay
cautious and away from high risk assets.
By 31 March, the Philippines 5-year sovereign CDS
stood at 104 bps, lower than the 109 bps in end-
2015 and has remained lower than Indonesia’s
197 bps, Malaysia’s 153 bps and Thailand’s 130 bps.
The EMBIG Philippines also ended the quarter
narrower at 107 bps compared to the previous
quarter’s closing of 124 bps.
Chart 22. EMBIG Spreads of Selected ASEAN Countries
in basis points
Payments and Settlements System34
In Q1 2016, the total number of transactions settled
and processed in the Philippine Payments and
Settlements System (PhilPaSS) increased by
3.7 percent to 372,734 from the previous quarter’s
level of 359,562. The uptick in volume was due to
the increase in trading of government securities via
expanded delivery-versus-payment (eDvp)
(127.5 percent), and interbank transactions
(2.7 percent) partially negated by the decline in
transactions on Overseas Filipino (OF) remittances
coursed through the REMIT system (3.0 percent).
Both volume and value of
PhilPaSS transactions increase
Similarly, the total value of transactions increased by
15.4 percent to P76.4 trillion from the previous
quarter’s level of P66.2 trillion. The upswing was due
34 Starting 1 April 2014, the volume and value of transactions exclude
payment transfers to BSP Payments Unit.
to the increase in the following: RRP eTrading
(75.8 percent), SDA placements with the BSP
Treasury Department (TD) (14.4 percent), and
interbank transactions (14.1 percent).
On a y-o-y basis, the volume and value of
transactions increased by 9.5 percent and
9.0 percent, respectively.
The total revenue derived from PhilPaSS operations
reached P35.2 million, 10.2 percent higher than the
previous quarter, but 1.1 percent lower relative to
previous year’s level. The q-o-q increase was mainly
due to higher volume of transactions, particularly
interbank and third party systems.
Table 4. PhilPaSS Transactions
2016
2015
Growth rates
(%)
Q1 Q4 Q1 Q-o-Q Y-o-Y
Volume 372,734 359,562 340,533 3.7 9.5
Value (in Trillion
PhP) 76.4 66.2 70.1 15.4 9.0
Transaction Fees
(in Mln PhP) 35.2 32.0 35.6 10.2 -1.1
Source: Payments and Settlements Office, Bangko Sentral ng
Pilipinas
External Sector
Balance of Payments
The country’s balance of payments position yielded a
deficit of US$210 million in Q1 2016, a reversal of
the US$877 million surplus registered in Q1 2015.
BOP position reverses to a
deficit
The negative overall BOP position was a result of
higher net outflows (or net lending by residents to
the rest of the world) in the financial account, even
as the current account recorded a surplus. The
financial account recorded higher net outflows at
US$959 million stemming largely from the other
0
50
100
150
200
250
300
350
400
450
Jan
-14
Feb
-14
Ma
r-1
4
Ap
r-1
4
May
-14
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-1
4
De
c-1
4
Jan
-15
Feb
-15
Ma
r-1
5
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
De
c-1
5
Jan
-16
Feb
-16
Ma
r-1
6
EMBIG Philippines
EMBIG Malaysia
EMBIG Indonesia
As of 31 Mar
Indonesia: 299 bps
Malaysia: 208 bps
Philippines: 107 bps
Dec 16 '15
(US Fed hike)
Indonesia: 340 bps
Malaysia: 232 bps
Philippines:125
bps
Jan 4 '16
(China stockmarket
selloff)
Indonesia: 330 bps
Malaysia: 228 bps
Philippines: 127
bps
First Quarter 2016 Report on Economic and Financial Developments | 23
investment account, particularly residents’ net
repayment of loans and placement of deposits
abroad. Meanwhile, the current account registered
a lower surplus at US$447 million as the trade-in-
goods deficit widened significantly with declining
exports and increasing imports. Global economic
activity softens in early 2016 even as growth in the
US, euro area and Japan continued to regain
momentum. In contrast, downturns were noted in
major emerging markets such as India and China.
The subdued economic outlook for emerging
markets dampened global growth prospects to
which several central banks responded by easing
monetary policy settings in order to stave off
deflationary pressures.
Table 5. Balance of Payments
in million US$
The current account registered a surplus of US$447
million (equivalent to 0.6 percent of GDP) in Q1
2016, lower than the US$2.2 billion surplus
(3.2 percent of GDP) posted in Q1 2015.
Current account surplus falls
sharply
The sharp decline in the current account surplus was
attributed to the significant widening of the
trade-in-goods deficit as merchandise exports fell
while merchandise imports increased. Higher net
receipts in the services, primary and secondary
income accounts kept the current account in surplus
territory, offsetting the widened trade-in-goods
deficit.35
35 Primary Income account (formerly the Income account) shows the flows
for the use of labor and financial resources between resident and non-
The trade-in-goods deficit widened to US$8 billion in
Q1 2016 from US$4.8 billion in Q1 2015 due to the
combined effects of the decline in exports of goods
by 11.9 percent and the expansion in imports of
goods by 12.8 percent.
Trade-in-goods deficit widens
Exports of goods declined to US$9.2 billion in Q1
2016 from US$10.5 billion in Q1 2015, as exports to
major trading partners notably the U.S., China and
Japan exhibited declines during the quarter. Weaker
exports were attributed mainly to manufactures,
which fell by 9.2 percent, particularly lower
shipments of chemicals, garments, machinery and
transport equipment, processed food and
beverages, and other manufactures. Lower exports
of coconut oil and mineral products such as copper
metal, gold and other mineral products also
contributed to the fall in total exports.
Exports of goods fall
Meanwhile, exports of non-consigned electronic
products and wood manufactures mitigated the
drop in manufactures, increasing by 7.4 percent and
52.3 percent, respectively. In addition, shipments of
refined sugar and fruits and vegetables such as
bananas and canned pineapples also helped mitigate
the fall in total exports.
Chart 23. Exports by Major Commodity Group
in percent share
resident institutional units. Secondary Income account (formerly the
Current Transfers account) shows current transfers, in cash or in kind,
for nothing in return, between residents and non-residents.
Balance of Payments ( in million US$)
2015 2016
Current Account 2165 447
Capital Account 17 25
Financial Account* 152 959
Net Unclassified Items -1153 277
Overall BOP 877 -210
Q1
*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.
24 | First Quarter 2016 Report on Economic and Financial Developments
Imports of goods amounted to US$17.3 billion in Q1
2016 higher than the US$15.3 billion posted in Q1
2015, due mainly to increased imports of capital
goods, raw materials and intermediate goods, and
consumer goods.
Imports of goods increase
Imports of capital goods increased by
49.2 percent, driven largely by higher imports of
power generating and specialized machines and
telecommunication equipment and electrical
machines. Imports of raw materials and
intermediate goods rose by 22.4 percent as imports
of semi-processed raw materials grew by
30.7 percent, particularly raw materials used to
manufacture non-consigned electronics. Likewise,
imports of consumer goods went up by 39.2 percent,
buoyed by higher imports of durables particularly
passenger cars and motorized cycles.
Meanwhile, imports of petroleum crude oil declined
by 24.7 percent as the price of crude oil in the
international market remained low. In terms of
volume, however, demand for imported oil
increased as importation of petroleum crude rose to
28 million barrels in Q1 2016 from 19 million barrels
in Q1 2015.36
Chart 24. Imports by Major Commodity Group
in percent share
36 Based on World Bank Commodities Price data, the average price of
Dubai crude oil in Jan-Mar 2016 declined to US$30.6/barrel from
US$52.2/barrel in Jan-Mar 2015.
Net receipts in trade-in-services rose to
US$1.5 billion in Q1 2016, compared to the
US$957 million net receipts in Q1 2015.
Net receipts in trade-in-services
rise
The 56.4 percent growth was due largely to the
decrease in net payments in travel services
combined with higher net receipts in technical,
trade-related and other business services
(5.7 percent),37 and computer services
(27.4 percent).38 Export revenues in business process
outsourcing services totaled US$4.7 billion in Q1
2016, or a growth of 15.0 percent from the
US$4.1 billion receipts in Q1 2015.
The primary income account recorded net receipts
of US$579 million in
Q1 2016, more than twice the US$265 million
netreceipts in Q1 2015. This was due largely to the
decline in payments of investment income
(by 10.8 percent) as residents paid lower dividends
to non-resident investors. The 1.5 percent increase
in compensation inflows from resident overseas
Filipino (OF) workers (US$1.9 billion) also
contributed to the increase in net receipts in primary
income.
Net receipts in primary income
expand
Net receipts in the secondary income account
reached US$6.4 billion in Q1 2016, 11.1 percent
higher than the US$5.7 billion net receipts in Q1
2015. The large net receipts were attributed mainly
to the US$5.6 billion personal transfers (which grew
by 3.0 percent). The bulk of these personal
transfers came from non-resident OF workers'
remittances (about 98 percent), which increased by
3.2 percent to US$5.5 billion. The steady demand for
skilled Filipino manpower overseas and the
37 Include manufacturing services on physical inputs owned by others,
mostly electronic products, and business process outsourcing (BPOs)
pertaining mostly to contact centers, animation, and medical
transcriptions. 38 Include BPOs pertaining to software publishing and development.
First Quarter 2016 Report on Economic and Financial Developments | 25
initiatives of banks and non-bank remittance service
providers to expand their international and domestic
market coverage through tie-ups abroad as well as
the introduction of innovations in their remittance
products continued to provide support to the
sustained inflow of remittances.
Net receipts in secondary
income increase
Net receipts in the capital account increased to
US$25 million in Q1 2016 from US$17 million in Q1
2015. Inflows arising from the NG’s receipts in other
capital transfers were higher during the quarter.
Capital account registers
higher net receipts
The financial account yielded net outflows (or net
lending by residents to the rest of the world) of
US$959 billion in Q1 2016, more than sixfold the
US$152 million net outflows in Q1 2015. This was
due mainly to the significant increase in net outflows
of other investments (by more than five times)
coupled with the reversal of portfolio investments to
net outflows from net inflows. These higher net
outflows, however, were partly offset by the reversal
of the direct investment account to net inflows from
net outflows during the quarter.
Net outflows in the financial
account rise markedly
International Reserves
The country’s gross international reserves (GIR) as of
end-March 2016 rose to US$83.0 billion, 2.9 percent
higher than its level as of end-December 2015. This
can cover 10.4 months’ worth of imports of goods
and payments of services and income. It is also
equivalent to 5.4 times the country’s short-term
external debt based on original maturity and
4.0 times based on residual maturity.
Gross international reserves
remain highly adequate
The increase in reserves was due mainly to the NG’s
net foreign currency deposits as well as the BSP’s
income from investments abroad as well as
revaluation adjustments on the BSP’s foreign
currency-denominated reserves. These were
partially offset by payments made by the NG for its
maturing foreign exchange obligations.
Of the total reserves as of end-March 2016,
86.0 percent were held in foreign investments;
9.4 percent in gold; and 4.6 percent in holdings of
Special Drawing Rights (SDRs), the BSP’s reserve
position in the IMF, and foreign exchange.
Net international reserves (NIR), which refer to the
difference between the BSP’s GIR and total short-
term liabilities, amounted to US$83.0 billion as of
end-March 2016, an increase of US$2.3 billion from
end-2015.
Chart 25. Gross International Reserves
in billion US dollars
Exchange Rate
The peso depreciated against the US dollar in the
first quarter of 2016. On a q-o-q basis, the peso
weakened by 0.9 percent to average P47.30/US$1
from the previous quarter’s average of P46.87/US$1.
On a y-o-y basis, the peso depreciated by 6.1 percent
relative to the P44.42/US$1 average in the first
26 | First Quarter 2016 Report on Economic and Financial Developments
quarter of 2015.39 The weakness of the peso during
the review quarter was due to the risk aversion
towards emerging market assets arising from
concerns on the Chinese economy and declining oil
prices.
The peso depreciates against
the US dollar
In January 2016, the peso weakened to average
P47.51/US$1 relative to the P47.23/US$1 average in
December 2015 on continued risk aversion towards
emerging market assets. The peso depreciated
further in February to average P47.64/US$1 on safe-
haven buying following the contraction in China’s
manufacturing sector.40 Meanwhile, the Bank of
Japan’s move to introduce a negative interest rate
policy rendered support for Asian currencies,
tempering the depreciation of the peso. In March,
the trend reversed as the peso appreciated to
average P46.72/US$1 on improved risk appetite
towards emerging market assets following
aggressive stimulus measures from the European
Central Bank and dovish statement on the outlook
for interest rates by the US Federal Reserve. Overall,
the sustained inflows of foreign exchange from
overseas Filipino remittances, foreign direct
investments, BPO and tourism receipts, as well as
the healthy level of gross international reserves and
the country’s robust economic growth provided
stability to the peso.41
On a year-to-date basis, the peso appreciated
against the US dollar by 2.2 percent on
31 March 2016 as it closed at P46.07/US$1, moving
in tandem with most Asian currencies, except the
Indian rupee which depreciated vis-à-vis the US.42
39 Dollar rates or the reciprocal of the peso-dollar rates were used to
compute for the percentage change. 40 Official manufacturing purchasing managers’ index fell to 49.4 in January
from 49.7 in December, marking the lowest level since August 2012 and the
sixth straight month of contraction. A reading below 50 indicates a
contraction. (Source: National Bureau of Statistics of China) 41 GIR stood at US$83.0 billion as of end-March 2016 (revised).
42 Based on the last done deal transaction in the afternoon.
Chart 26. Year-to-date Appreciation/Depreciation of
Asian Currencies against US dollar
in percent, as of 31 March 2016
Meanwhile, volatility, as measured by the coefficient
of variation (COV) of the peso’s daily closing rates
stood at 1.15 percent during the first quarter of
2016, slightly higher compared with the 0.93 percent
in the previous quarter.43
On a real trade-weighted basis, the peso lost
external price competitiveness in the first quarter of
2016, against the basket of currencies of all trading
partners (TPI), trading partners in advanced (TPI-A)
and developing countries (TPI-D) as the real effective
exchange rate (REER) index of the peso increased by
1.8 percent, 2.0 percent, and 1.7 percent,
respectively, relative to the fourth quarter of 2015.
These developed mainly on account of widening
inflation differential which more than offset the
nominal depreciation of the peso against these
currency baskets.44,45
43 The coefficient of variation is computed as the standard deviation of the
daily closing exchange rate divided by the average exchange rates for the
period. 44 The Trading Partners Index (TPI) measures the nominal and real effective
exchange rates of the peso across the currencies of 14 major trading
partners of the Philippines, which includes US, Euro Area, Japan, Australia,
China, Singapore, South Korea, Hong Kong, Malaysia, Taiwan, Indonesia,
Saudi Arabia, United Arab Emirates, and Thailand. The TPI-Advanced
measures the effective exchange rates of the peso across currencies of
trading partners in advanced countries comprising of the US, Japan, Euro
Area, and Australia. The TPI-Developing measures the effective exchange
rates of the peso across 10 currencies of partner developing countries
which includes China, Singapore, South Korea, Hong Kong, Malaysia,
Taiwan, Indonesia, Saudi Arabia, United Arab Emirates, and Thailand. 45 The REER index represents the Nominal Effective Exchange Rate (NEER)
index of the peso, adjusted for inflation rate differentials with the countries
whose currencies comprise the NEER index basket. A decrease in the REER
index indicates some gain in the external price competitiveness of the peso,
while a significant increase indicates the opposite. The NEER index,
meanwhile, represents the weighted average exchange rate of the peso vis-
à-vis a basket of foreign currencies.
First Quarter 2016 Report on Economic and Financial Developments | 27
Relative to the first quarter of 2015, the peso gained
external price competitiveness against the TPI, TPI-A,
and TPI-D baskets during the first quarter of 2016.
Against the TPI and TPI-D baskets, the combined
effects of the peso’s nominal depreciation and
narrowing inflation differential resulted in the real
depreciation of the peso by 3.3 percent and 1.6
percent, respectively. Meanwhile, the nominal
depreciation of the peso which more than offset the
widening inflation differential against the TPI-A
basket led to the real depreciation of the peso by
5.8 percent.
External Debt
Outstanding Philippine external debt stood at
US$77.6 billion as of end-March 2016, up by US$166
million (or 0.2 percent) from the end-December
2015 level of US$77.5 billion. Y-o-y, the debt stock
rose by US$2.3 billion (or 3.1 percent) from
US$75.3 billion in March 2015.
External debt stays
manageable
The increase in the debt levels during the first
quarter of 2016 was attributed to:
(a) foreign exchange (FX) revaluation adjustments
(US$814 million) as the US Dollar weakened,
particularly against the Japanese Yen; (b) previous
periods’ adjustments due to late reporting (US$609
million); and (c) increased investments in Philippine
debt papers by non-resident investors
(US$224 million). The upward impact of these
developments on debt stock was partially offset by
US$1.5 billion net repayments, mainly by banks.
Similarly, the y-o-y increase was due to the
following: (a) net availments (US$2.1 billion);
(b) previous periods’ adjustments (US$1.1 billion);
and (c) FX revaluation adjustments (US$577 million),
which were partially offset by the US$1.4 billion
decline in non-resident investments in Philippine
debt papers.
By Maturity
As of end-March 2016, the maturity profile of the
country’s external debt continued to be largely
medium- to long-term (MLT) [i.e., those with original
maturities longer than one (1) year] in tenor with
share to total external debt at 81.6 percent
(US$63.3 billion).
Short-term (ST) loans [or those with original
maturities of up to one (1) year] stood at
US$14.3 billion by the close of the first quarter of
2016 and accounted for the 18.4 percent balance of
debt stock.
By Borrower
Public sector external debt stood at US$38.9 billion
(or 50.1 percent of total debt stock), slightly higher
than the US$38.3 billion (49.4 percent of total debt
stock) as of end-2015 due to FX revaluation
adjustments (US$765 million) arising from a weaker
US Dollar.
Private sector debt, on the other hand, aggregated
US$38.7 billion (49.9 percent of total debt stock),
down by US$489 million q-o-q due to net
repayments of US$1.3 billion, mainly by banks.
The debt service ratio (DSR), which relates principal
and interest payments (debt service burden or DSB)
to exports of goods and receipts from services and
primary income, is a measure of the adequacy of the
country’s FX earnings to meet maturing obligations.
The ratio increased to 9.5 percent during the quarter
under review from 4.3 percent in end-2015.
The external debt ratio (a solvency indicator), or
total outstanding debt expressed as a percentage of
annual aggregate output (GNI) remained at the end-
2015 level of 21.9 percent. Using GDP as
denominator, the ratio was likewise unchanged at
26.5 percent.
28 | First Quarter 2016 Report on Economic and Financial Developments
Chart 27. Philippine External Debt
in percent, as of end-March 2016
Foreign Interest Rates
The timing of exit from accommodative monetary
policy in advance economies (AEs) will differ across
countries depending on the strength of their
economic growth. Accommodative monetary policy
is expected to continue in countries where the
recovery remains fragile due to weakness in labor
market conditions, slowdown in spending, and
anemic bank lending growth.
Monetary policy in some AEs
remains accommodative as
recovery remains fragile
In Q1 2016, the US Fed maintained the target range
for the federal funds rate at 0.25-0.50 percent. At
the same time, the Fed maintained its existing policy
of reinvesting principal payments from its holdings
of agency debt and agency mortgage-backed
securities and of rolling over maturing Treasury
securities at auction.46 Both the average US prime
rate and discount rate increased to 3.500 percent
and 1.000 percent from the quarter-ago average of
3.284 percent and 0.794 percent, respectively. In
addition, the US Fed funds rate increased to
0.369 percent from the 0.157 percent average
reported in the previous quarter.
46 Press Release. (n.d.). Retrieved from
https://www.federalreserve.gov/newsevents/press/monetary/20160316a.
htm
Meanwhile, the Monetary Policy Committee (MPC)
of the Bank of England (BOE) maintained its
monetary policy settings, keeping the official bank
rate paid on commercial banks’ reserves at
0.5 percent in Q4 2015. The MPC also decided to
maintain the stock of asset purchases financed by
the issuance of central bank reserves at
£375 billion.47
The Bank of Japan (BOJ), after shifting to
quantitative and qualitative monetary easing policy,
adopted monetary base control, which involved the
change in the main operating target for its money
market operations (MMO) from the uncollateralized
overnight call rate. Thus, for the review quarter, the
BOJ continued to conduct MMO to increase the
monetary base at about 80 trillion yen from 60-70
trillion yen yearly. In addition, the BOJ continued to
buy Japanese government bonds (JGBs) annually at
80 trillion yen from 50 trillion yen, exchange-traded
funds (ETFs) at 3 trillion yen from 1 trillion yen, and
Japan REITs at 90 billion yen from 30 billion yen. The
BOJ likewise maintained its purchases of commercial
papers and corporate bonds until their outstanding
amounts reach 2.2 trillion yen and 3.2 trillion yen,
respectively. Moreover, the BOJ decided to
introduce "Quantitative and Qualitative Monetary
Easing (QQE) with a Negative Interest Rate" in order
to achieve the inflation target of 2 percent. The BOJ
will apply a negative interest rate of -0.1 percent to
current accounts that financial institutions hold at
the Bank.48
Meanwhile, the Governing Council of the European
Central Bank decided to decrease the interest rates
on deposit facility, main refinancing operation, and
marginal lending facility by 10 bps, 5 bps, and 5 bps
to -0.40 percent, 0.0 percent, and 0.25 percent,
respectively. Moreover, the monthly purchases
47 Press Release. (n.d.). Retrieved from
http://www.bankofengland.co.uk/publications/Pages/news/2016/003.aspx 48The BOJ will adopt a three-tier system in which the outstanding balance of
each financial institution's current account at the Bank will be divided into
three tiers, to each of which a positive interest rate, a zero interest rate or a
negative interest rate will be applied, respectively.
Short-Term
US$14.3
billion
18.4%Medium-
and Long-
Term
US$63.3
billion
81.6%
TOTAL = US$77.6
billion
First Quarter 2016 Report on Economic and Financial Developments | 29
under the asset purchase programme were also
expanded to €80 billion from €60 billion.49
Lastly, the 90-day LIBOR and 90-day Singapore
Interbank Offered Rate (SIBOR) increased in Q1 2016
to 0.625 percent and 1.237 percent from 0.409
percent and 1.092 percent in Q4 2015, respectively,
even as global financial markets remained generally
liquid.
Chart 28. Selected Foreign Interest Rates
in percent
Global Economic Developments
Global Economic Developments
Global Economic Developments
In Q1 2016, global economic activity remained soft
for both advanced and developing economies.
Meanwhile, global labor market conditions generally
showed signs of improvement while inflation rates in
advanced and emerging economies were generally
mixed.
US real GDP expanded by 2.0 percent y-o-y in Q1
2016, unchanged from previous quarter’s growth.
The growth in real GDP was due to positive
contributions from consumer spending, and
residential fixed investment that were partly offset
by negative contributions from non-residential fixed
investment, private inventory investment, and
exports.50 Economic growth in Japan remained
stagnant at zero percent as private consumption and
capital expenditure remained soft.51
49 Press Release. (n.d.). Retrieved from
https://www.ecb.europa.eu/press/pr/date/2016/html/pr160310.en.html 50 US Bureau of Economic Analysis 51 Statistics Bureau of Japan
Economic activity in the Euro area grew by
1.5 percent in Q1 2016 slightly lower than the
1.6 percent growth registered in the previous
quarter as majority of Euro area economies
expanded except for Greece.52
Meanwhile, most emerging economies in Asia
recorded weaker output growth. South Korea’s
economy slowed down to 2.7 percent from the
previous quarter’s 3.1 percent as sluggish exports
continued to weigh on growth. The Singaporean
economy grew by only 1.8 percent in Q1 2016,
unchanged from the revised growth recorded a
quarter-ago, due to the weak performance of its
manufacturing sector.53 Economic activity in Hong
Kong likewise decelerated to 0.8 percent from
1.9 percent in the previous quarter as retail sales
and services weakened amid the deceleration in
tourist arrivals. The Chinese economy moderated to
6.7 percent in Q1 2016, slightly down from the
6.8 percent growth recorded in the previous quarter
due to the slowdown in the services sector.54 The
Indian economy expanded by 7.3 percent during the
review quarter, unchanged from the previous
quarter.55
In the ASEAN region, Philippines and Thailand posted
higher GDP growth rates during the review quarter.
The Philippine economy grew by 6.9 percent from
6.5 percent in the previous quarter due to robust
private consumption and investments.56 In Thailand,
GDP expanded by 3.2 percent during the review
quarter, as compared to the 2.8 percent expansion
in the previous quarter due to an increase in net
exports and accelerated government spending.57
Meanwhile other ASEAN economies registered a
sluggish growth in GDP. The Indonesian economy
slowed down to 4.9 percent in Q1 2016 from the
5.0 percent expansion reported in the previous
quarter as household consumption remained
subdued.58 In Vietnam, GDP decelerated to
52Eurostat 53 The Ministry of Trade and Industry, Singapore 54 National Bureau of Statistics of China 55 Indian Ministry of Statistics and Programme Implementation 56 Philippine Statistics Authority 57 National Economic and Social Development Board, Thailand 58 Statistics Indonesia
30 | First Quarter 2016 Report on Economic and Financial Developments
5.5 percent during the review quarter from
6.7 percent a quarter ago, driven mainly by the
decline in manufacturing and the prolonged drought
that led to the contraction in the agricultural sector.
The Malaysian economy expanded by 4.2 percent
during the review quarter, moderating from a
4.5-percent growth in the previous quarter due to
slower growth in the manufacturing and services
sectors.59
Chart 29. Real GDP
y-o-y growth, in percent
In terms of domestic prices of goods, average
inflation rates were mixed among major advanced
economies in Q1 2016. In the US, inflation rates
increased to 1.1 percent from 0.5 percent. In
contrast, inflation in Japan and Euro area decreased
to 0.1 percent and 0.0 percent from 0.3 percent and
0.1 percent, respectively.
Inflation rates in emerging Asian economies were
likewise mixed. Average inflation rates in Hong Kong
and China inched up to 2.8 percent, and 2.1 percent,
respectively, during the review quarter from 2.3
percent, and 1.5 percent in the previous quarter.
South Korea registered a slightly lower inflation rate
at 1.0 percent during the review quarter compared
to previous quarter’s 1.1 percent. In India, inflation
decelerated to 5.3 percent during the review
quarter from 5.5 percent in the previous quarter.
Meanwhile, inflation rate in Singapore was recorded
at -0.8 percent from -0.7 percent a quarter ago. In
ASEAN economies, average inflation rates in
Indonesia and Malaysia declined during the review
59 Bank Negara Malaysia
quarter, while inflation rates in the Philippines,
Thailand, and Vietnam picked up slightly.
Chart 30. Inflation
quarterly average, in percent
Global labor market conditions generally improved.
The unemployment rate in the US, Japan, and the
Euro area eased to 4.9 percent, 3.2 percent, and
10.3 percent during the review quarter from
5.0 percent, 3.3 percent, and 10.5 percent,
respectively, a quarter ago. In Asia, unemployment
rate in South Korea and Hong Kong increased to
3.8 percent and 3.4 percent from 3.5 percent and
3.3 percent, respectively, from quarter-ago levels.
Singapore’s unemployment rate inched up to
2.5 percent. China’s unemployment rate declined to
4.0 percent in Q1 2016 from 4.1 percent in the
previous quarter. Unemployment rates in ASEAN
countries also showed mixed trends increasing in the
Philippines (5.8 percent), Thailand (0.9 percent), and
Malaysia (3.4 percent), but decreased in Vietnam
(2.3 percent) during the review quarter.
Table 6. Macroeconomic Indicators in Selected
Economies in percent
Macroeconomic Indicators in Selected Economies, Q1 2016
(in percent)
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
G3
US 2.9 2.7 2.1 2.0 2.0 -0.1 0.2 0.1 0.5 1.1 5.6 5.4 5.2 5.0 4.9
Japan -0.9 0.7 1.8 0.9 0.0 2.3 0.5 0.1 0.3 0.1 3.5 3.4 3.4 3.3 3.2
Euro Area 1.3 1.6 1.6 1.6 1.5 -0.3 0.2 0.1 0.1 0.0 11.2 11.0 10.7 10.5 10.3
Emerging Asia
Hong Kong 2.4 2.9 2.2 1.9 0.8 4.4 3.0 2.3 2.3 2.8 3.3 3.2 3.3 3.3 3.4
South Korea 2.4 2.2 2.8 3.1 2.7 0.6 0.5 0.7 1.1 1.0 3.6 3.8 3.6 3.5 3.8
Singapore 2.7 1.7 1.8 1.8 1.8 -0.3 -0.4 -0.6 -0.7 -0.8 2.4 3.8 2.5 2.4 2.5
China 7.0 7.0 6.9 6.8 6.7 1.2 1.4 1.7 1.5 2.1 4.1 4.0 4.1 4.1 4.0
India 7.5 7.6 7.7 7.3 7.3 6.6 5.9 4.6 5.5 5.3 n.a. n.a. n.a. n.a. n.a.
ASEAN
Indonesia 4.7 4.7 4.7 5.0 4.9 6.5 7.1 7.1 4.8 4.3 n.a. n.a. n.a. n.a. n.a.
Malaysia 5.7 4.9 4.7 4.5 4.2 0.7 2.1 3.0 2.6 2.1 3.4 3.1 3.2 3.2 3.4
Philippines 5.0 5.9 6.2 6.5 6.9 2.4 1.7 0.6 1.0 1.1 6.6 6.4 6.5 5.6 5.8
Thailand 3.0 2.7 2.9 2.8 3.2 -0.5 -1.1 -1.1 -0.9 -0.5 1.0 0.9 0.9 0.8 0.9
Vietnam 6.0 6.3 6.5 6.7 5.5 0.7 1.0 0.5 0.3 1.3 2.2 2.4 2.4 2.4 2.3
Sources: Bloomberg, Country Websites
2/ Average inflation rate was around -0.03 percent for the second quarter of 2015
Unemployment rate1/
Country
Real GDP (y-o-y growth rate) Inflation (quarterly average)
1/ Unemployment rate is the proportion (in percent) of the total number of unemployed as a percentage of the labor force
First Quarter 2016 Report on Economic and Financial Developments | 31
Financial Condition of the BSP
Balance Sheet
Based on the preliminary and unaudited statement
of financial condition of the BSP as of end-March
2016, total assets reached P4,403.7 billion,
2.2 percent or P94.1 billion higher than the
quarter-ago level. Likewise, the aggregate level
surged by 6.5 percent or by P269.3 billion relative to
the end-March 2015 level. The BSP’s liabilities
increased by 2.2 percent or by P92.1 billion, q-o-q,
to P4,361.0 billion, and by 6.6 percent or
P268.5 billion relative to the end-March 2015 level.
As a result, the BSP’s net worth improved to
P42.6 billion compared to the quarter-ago level of
P40.8 billion. This amount was higher by 1.7 percent
or P0.7 billion than the P41.9 billion posted at
end-March 2015.
BSP’s net worth improves
The increase in the BSP’s assets was due largely to
the higher level of loans and advances to the NG,
which amounted to P163.5 billion in Q1 2016, an
increase of 91.2 percent or P78.0 billion from the
previous quarter’s P85.5 billion. The increase in
assets was also brought about by the higher level of
domestic securities, the expansion in international
reserves due to the rise in net foreign currency
deposit by the NG60 as well as income from
investments abroad, and revaluation adjustment on
the BSP’s foreign currency-denominated reserves.
Similarly, the BSP’s liabilities increased during the
review period due to higher placement of deposits in
60 Includes proceeds from NG issuance of ROP Global Bonds amounting to
US$495 million and from program loans extended by the Asian
Development Bank.
the BSP’s Special Deposit Accounts and Foreign
Financial Institutions Account. In the same way,
revaluation adjustment of international reserves
drove liabilities to increase by P22.3 billion from its
quarter-ago level.
Table 7. Balance Sheet of the BSP in billion pesos
2016t 2015
Mar Decp.u Mar
Assets
4,403.7
4,309.6
4,134.4
Liabilities
4,361.0
4,268.9
4,092.5
Net Worth
42.6
40.8
41.9 p.u Preliminary and unaudited based on core Financial Accounting
System (cFAS) Production Environment.
t Tentative and subject to change based on cFAS Development
Environment.
Note: Details may not add up to total due to rounding off
Income Statement
Based on preliminary and unaudited data, the BSP
registered a net income of P0.16 billion for Q1 2016
due mainly to gains in foreign exchange revaluation,
a turnaround from the P1.3 billion loss in Q4 2015.
BSP registers net income
Total revenues for Q1 2016 amounted to
P13.2 billion, lower than the P13.6 billion posted in
the previous quarter, as interest income from
domestic securities decreased by 15.2 percent from
the previous quarter’s level. Miscellaneous income,
likewise, fell by 49.5 percent or P1.2 billion, q-o-q.
Total expenditures amounted to P16.7 billion,
P2.3 billion lower than the level posted last quarter.
The q-o-q decrease in expenditures was due mainly
to reduced cost of minting/printing of currency,
interest expense on NG deposits and other deposits,
and other expenses.
32 | First Quarter 2016 Report on Economic and Financial Developments
Table 8. Income Position of the BSP for periods indicated
in billion pesos
Conclusion, Challenges and Future Policy Directions The Philippine economy continues to stand on solid
footing, supported by broadening growth drivers
and sustained benign inflation environment. Despite
the ongoing fragility in the global economy and
extreme weather conditions, robust domestic
demand buoyed economic expansion of 6.9 percent
in the first quarter of the year, exceeding market
expectations and moving within the government
target of 6.8-7.8 percent for 2016. While the
country’s progress toward a high growth trajectory
appears to be on track, several key developments
have emerged, posing potential risks and challenges
to the economic outlook.
Chief among these concerns is the subdued outlook
for the world economy. At the moment, the
consensus seems to be that global economic
conditions are likely to remain modest and uneven.
In its latest World Economic Outlook (WEO) in April
2016, the International Monetary Fund (IMF)
downgraded its growth projections anew for 2016 by
0.2 percentage point to 3.2 percent from 3.4 percent
in the January 2016 WEO update. The downward
revision largely reflects major macroeconomic
realignments including the slowdown and
rebalancing in China, lower commodity prices,
resulting slowdown in investment and trade, and
declining capital flows to emerging market and
developing economies. As a result, the pickup in
global activity is expected to be more gradual than
earlier projected in advanced economies as well as
emerging market and developing economies.61
In addition, further decline in the prices of oil and
other commodities will continue to feed into a
generally weak global economy. While oil-importing
emerging market economies are benefiting from
terms-of-trade gains, in some instances, they could
face tighter financing conditions and weakness in
external demand, which counter the positive terms-
of-trade impact on domestic demand and growth. In
its April 2016 issue of the Commodity Markets
Outlook (CMO), the World Bank expects all main
commodity indexes to decline in 2016 due to
persistently elevated supplies, and weak growth
prospects in emerging market and developing
economies, thereby affecting demand for industrial
commodities (e.g., energy, metals, and agricultural
raw materials).
Continued weakness in the global economic
environment, along with low oil prices, are seen to
impact on the country’s trade and remittance
channels. Nonetheless, exports are seen to register
positive growth this year, on account of steady albeit
moderate global demand, improvement in domestic
agricultural production as extreme weather
conditions are seen to normalize beginning the
second quarter of 2016, and expected gains from
61 IMF April 2016 WEO.
2016 2015
Q1 t Q1 Q4 p,u
Revenues 13.167 15.299 13.559
Less: Expenses 16.684 17.308 18.942
Net Income/(Loss) Before
Gain/(Loss) on FXR
Fluctuations and
Income Tax
-3.517 -2.009 -5.383
Expense/(Benefit)
Gain/(Loss) on Foreign
Exchange Rate Fluctuations 1
3.673 -1.176 3.897
Income Tax
Expense/(Benefit) 0.000 0.000 -0.183
Net Income/(Loss) After Tax 0.156 -3.185 -1.303
Note:
Details may not add up to total due to rounding off. p,u Preliminary and unaudited based on core Financial Accounting
System (cFAS) Production Environment. t Tentative and subject to change based on cFAS Development
Environment.
First Quarter 2016 Report on Economic and Financial Developments | 33
forging strategic multilateral and bilateral trade
agreements as well as further economic integration
within the ASEAN region. In addition, growth of
overseas Filipinos’ (OFs) remittances in 2016 is
projected to be at 4.0 percent, on the back of steady
deployment of OF workers and greater
diversification in terms of country-destinations.
The shift in the global growth dynamics is also
reflected in the risk sentiment of investors toward
emerging market economies (EMEs). Global market
sentiment remains fickle, resulting in volatility of
capital flows which in turn presents challenges to
macroeconomic management. Heightened risk
aversion and deteriorating market confidence could
cause investors to pull back from EM assets in favor
of safe haven assets.
Nonetheless, the US Fed is seen to be taking a less
aggressive stance in the pace of its tightening
compared to the more aggressive tone in December
2015, with the median forecast falling from four
expected rate hikes this year to two. This could
lessen the pressure of more stringent external
financing conditions as retrenchments of emerging
market portfolio inflows could ease off. Likewise, the
continued accommodative monetary policy stance
and low interest rate environment in the euro area
and Japan could drive some capital to flow to EMEs,
particularly those who exhibit solid macroeconomic
fundamentals such as the Philippines.
The Philippines also has its own idiosyncratic
challenges to domestic demand. Among others, the
impact of El Niño and other weather disturbances
present upside risk to inflation and downside risks to
growth in the near term. Moreover, one of the
urgent areas crucial to increasing national
productivity and overall potential growth is to
address infrastructure bottlenecks, while improving
the quality of existing road and transportation
networks. This will enhance connectivity and
mobility of goods and services and maximize the
potential of growth areas outside Metro Manila.
On the inflation outlook, baseline forecasts suggest
that the current inflation environment is expected to
begin to move back to target range of 2.0 to
4.0 percent during the second half of 2016, with
inflation expectations remaining well anchored to
the target. Lending support to this are the impact of
election spending, assumed increase in
non-agriculture minimum wage in July 2016, positive
base effects, as well as oil price futures showing an
uptrend, albeit on a gradual path. However, the
overall risks surrounding the inflation outlook are
slightly to the downside. This could come from
slower global economic activity and further decline
in oil prices. Meanwhile, pending petitions for
adjustments in electricity rates and the impact on
food and utility prices of stronger-than-expected El
Niño conditions pose upside risks to inflation.
Amid the tough headwinds, the government is well-
equipped to sustain the economic growth
momentum over the medium term. Enthused by the
country’s sustained strong economic performance,
the government remains committed to pursue its
macroeconomic targets and growth objectives over
the medium-term. Even with the change in political
leadership, the Philippine economy is poised to
continue its promising growth story and ride out the
external and domestic challenges on the back of
domestic sources of growth, structural and policy
reforms in place, and ample fiscal and monetary
policy space.
The synchronization of fiscal and monetary policies
to ensure a macroeconomic environment that will
support consumer confidence and investment
spending would be necessary to mitigate the impact
of weak external demand. The NG’s fiscal
consolidation efforts have been on track and have
created fiscal space to accelerate infrastructure
spending and to provide much-needed public
investments to stimulate economic growth.
Meanwhile, there remains sufficient monetary policy
space to guard against potential risks.
Going forward, the BSP will continue to keep a
watchful eye over how domestic and external
34 | First Quarter 2016 Report on Economic and Financial Developments
developments will evolve to ensure that an enabling
monetary and financial environment is maintained
to achieve the country’s growth objectives, while
safeguarding price and financial stability.
By June 2016, the BSP will transition to an Interest
Rate Corridor (IRC) system to enhance its ability to
better influence short-term market interest rates to
move closely with the BSP policy rate. The
operational shift is aimed at strengthening the
transmission of changes in the monetary policy
stance to the rest of the economy, and enabling the
BSP to better manage inflation and promote long-
term sustainable growth. Over time, the IRC system
is also expected to further develop the domestic
capital market by increasing money market
transactions, and bolstering active liquidity
management and monitoring programs by banks.
In response to uncertainties in the global financial
market, the BSP will be able to help mitigate the
adverse impact of capital outflows on the domestic
economy by ensuring adequate level of liquidity in
the economy and the financial markets during
periods of heightened uncertainty and increased risk
aversion. While guarding against speculative flows
that could contribute to the peso’s volatility and
undermine the inflation target, the BSP will continue
to maintain a market-determined exchange rate and
a comfortable level of international reserves as
safeguard against external shocks.
The sound and stable condition of the Philippine
banking system has been one of the anchors of the
sustained robust performance of the domestic
economy. The state of the country’s financial
system, at present, is grounded on the structural and
regulatory reforms pursued by the BSP over the
years. This reform momentum will be further
sustained with a view to toughen its resilience
against shocks as well as to boost its role as a
catalyst for durable long-term economic growth. To
this end, the BSP will continue to ensure that a
sound regulatory framework, that would allow
Philippine banks to cope with challenges related to
global financial volatilities, is in place.
The BSP will also continue to pursue reforms
promoting effective risk management, a stronger
capital base and improved corporate governance
standards, which are essential ingredients to
ensuring stability in the financial system. The BSP
will continue to craft banking regulations that are
responsive, consistent with best practices and in line
with the international financial architecture reform
agenda.
In addition, the BSP will continue to actively pursue
initiatives to promote a deeper domestic capital
market that will complement the presence of a
resilient banking system. The policy thrust is to focus
on enhancing further the infrastructure and the
regulatory framework for capital market
transactions to promote efficiency in trading,
settlement and delivery of securities. At the same
time, the BSP will continue to adopt policies and
programs that would help develop a sound,
responsive, and inclusive financial system that will
broaden the access of the underserved and the
unbanked segments of our population to the
financial sector. Among the key strategies in the
BSP’s financial inclusion agenda are putting in place
banking regulations that leverage on technology to
increase access to financial products; strengthening
financial consumer protection; and raising financial
education and awareness to new financial products
and modes of delivery. The BSP will likewise remain
proactive in ensuring the credibility and promoting a
safe, sound and efficient payments and settlements
system with the continued enhancement of its
processes and provision of necessary infrastructure
through the operation of the Philippines’ real time
gross settlement system or the PhilPaSS.
Finally, amid the increasing interconnectedness of
global financial markets, the BSP will remain an
active participant in regional and international
cooperation programs and fora, in order to reap the
benefits of collaborative engagement.
Annexes
A Circular on Public and/or Publicly-Guaranteed Foreign Loan Agreement and Other Agreements
which Give Rise to a Foreign/Foreign Currency Obligation of the Public Sector
B Providing flexibility in raising foreign capital and encouraging more foreign investors to invest in
the country
Annex A
Circular on Public and/or Publicly-Guaranteed Foreign Loan Agreement and Other Agreements which Give
Rise to a Foreign/Foreign Currency Obligation of the Public Sector
The BSP issued the amendment or revision to Circular No. 381 dated 14 July 1978 as follows:
Effective immediately, no public and/or publicly guaranteed foreign loan, deferred payment or any other
agreements which give rise to a foreign/foreign currency obligation or liability of the public sector (whether
primarily or subsidiarily), including promissory notes or guarantees issued in connection therewith submitted
to the BSP for approval and/or registration under the provisions of pertinent laws, circulars, rules and
regulations shall be approved and/or registered if the covering agreements/documents are notarized or
otherwise evidenced by a public instrument. (BSP Circular No. 909 dated 30 March 2016)
Circular on Public and/or Publicly-Guaranteed Foreign Loan Agreement and Other Agreements which Give
Rise to a Foreign/Foreign Currency Obligation of the Public Sector
The BSP issued the amendment or revision to Circular No. 381 dated 14 July 1978 as follows:
Effective immediately, no public and/or publicly guaranteed foreign loan, deferred payment or any other
agreements which give rise to a foreign/foreign currency obligation or liability of the public sector (whether
primarily or subsidiarily), including promissory notes or guarantees issued in connection therewith submitted
to the BSP for approval and/or registration under the provisions of pertinent laws, circulars, rules and
regulations shall be approved and/or registered if the covering agreements/documents are notarized or
otherwise evidenced by a public instrument. (BSP Circular No. 909 dated 30 March 2016)
Agricultural Value Chain Financing Framework
The agriculture and fisheries sectors have traditionally been significant contributors in the Philippine economy,
accounting for 10 percent of the country’s Gross Domestic Product and employing 11.2 million Filipinos in
2014. Despite the important impact of these sectors, obtaining credit remains a challenge. Lack of access to
finance by smallholder farmers put them in a bigger disadvantage making them unable to integrate to higher
value markets. In general, the sector is considered a high risk market due to its inherent susceptibility to
weather conditions, flooding, pest infestations, and man-made calamities, among others.
The new issuance by the BSP on agricultural value chain financing addresses the associated credit risks with
the agriculture and fisheries sector by shifting the focus of lending from individual farmers and fisher folks to
the whole value chain. A value chain is defined as a set of actors, suppliers, processors, and aggregators who
conduct linked sequence of value-adding activities involved in bringing a product from its raw material stage to
the consumers.
The framework provides minimum prudential expectations including the need for adequate policies and
procedures on the analysis of the value chain, availability of appropriate products, utilization of innovative
disbursement schemes, and adoption of anchor-firm triggered loan release. The issuance also allows financial
institutions to put in place a disaster contingency mechanism requiring the adoption of risk mitigants to
minimize losses and provide relief to a borrower to facilitate recovery.
To encourage engagement in the lending scheme, incentives are also provided to financial institutions that
comply with the regulatory expectations. The incentives include compliance with agri-agra requirement and
an additional 25 percent increase in the single borrower’s limit for loans granted to participants in the
agricultural value chains for a period of three years.
Annex A
The BSP hopes that the issuance will provide the necessary guidance for banks to be able to serve the needs of
the agriculture and fisheries sector, specifically the smallholders, in a manner that is viable and sustainable.
(BSP Circular No. 908 dated 14 March 2016)
Amendment to Unit Investment Trust Fund (UITF) Regulations
The BSP under BSP Circular No. 907 issued a revision to subsections X410.8/4410Q.8 of MORB and MORNBFI
to amend the section pertaining to feeder fund/fund-of-funds as follows:
In the case of feeder fund/fund-of-funds, the exposure limit shall be applied on the target fund’s underlying
investments. Notwithstanding said limit, if the target fund is allowed by its respective regulatory authority to
invest in units/shares of other open-ended CIS, the exposure limit prescribed by said regulatory authority shall
instead apply. Furthermore, the investments in any one target fund shall not exceed ten percent (10%) of the
total net asset value of the target fund.
(BSP Circular No. 907 dated 10 March 2016)
Implementation of Basel III Framework on Liquidity Standards - Liquidity Coverage Ratio and Disclosure
Standards
The BSP issued the Liquidity Coverage Ratio (LCR) framework aimed at strengthening the liquidity position of
universal and commercial banks (U/KBs). This is part of the Basel 3 reform package issued by the Basel
Committee on Banking Supervision (BCBS).
Under the new rule, U/KBs, including foreign bank branches, shall hold sufficient High Quality Liquid Assets
(HQLAs) that can be easily converted into cash to service liquidity requirements over a 30-day stress
period. This provides banks with a minimum liquidity buffer to be able to take corrective action to address a
liquidity stress event.
The LCR is one of the components of the new liquidity standard under Basel 3. The other is the Net Stable
Funding Ratio (NSFR) which looks at the liquidity requirements of banks over a longer period of one year. This
is being finalized and the BSP said that the exposure draft may be issued within the year.
The LCR should be seen as complementing the minimum Capital Adequacy rules. While the latter safeguards
the industry over solvency risks, the LCR imposes a minimum standard to protect banks against liquidity risks
which may happen even if a bank is still solvent.
The approval of the Monetary Board provides for an observation period from 01 July this year to end-2017,
during which banks will start reporting their LCR to the BSP. The observation period provides the banks with
adequate transition to the new prudential standard.
Beginning 01 January 2018, the LCR threshold that banks will be required to meet will be 90 percent which will
then be increased to 100 percent beginning 01 January 2019. (BSP Circular No. 905 dated 10 March 2016)
Phased Lifting of the Moratorium on the Grant of New Banking License or Establishment of New Domestic
Banks
The BSP approved the phased lifting of the moratorium on the grant of new banking license or establishment
of new domestic banks to promote competitive banking environment while preserving its basic thrust of
encouraging mergers and consolidations
Thus, the suspension of the grant of new banking licenses or the establishment of new banks under Subsection
x102.2 of the MORB has been lifted under a two-phased approach. Under phase 1of the liberalization. The
grant of new universal/commercial banking license shall be allowed in connection with the upgrading of an
existing domestic thrift bank. Under Phase 2, the moratorium on the establishment of new domestic banks
shall be fully lifted and locational restriction shall be fully liberalized starting 1 January 2018.
Annex A
The establishment of banks in the cities or municipalities where there are no banking offices as well as the
establishment of microfinance-oriented thrift and rural banks shall continue to be allowed as governed by
existing regulations.
A new banking organization must have suitable/fit shareholders, adequate financial strength, a legal structure
in line with its operational structure, a management with sufficient expertise and integrity to operate the bank
in a sound and prudent manner. (BSP Circular No. 902 dated 15 February 2016)
Amendment to Sec. X151 of the MORB on the Activities and Services Allowable for Micro-Banking Offices
The BSP recently approved a measure that further promotes financial inclusion by expanding the scope of
allowable activities in micro-banking offices (MBOs).
MBOs are scaled-down offices which provide a specified range of banking activities and services such as
acceptance of micro-deposits, disbursement of micro-loans, selling of microinsurance, purchase of foreign
currency, bills payments, government pay-outs, and e-money conversion. Prior to the recently approved
measure, MBOs could perform the customer identification process and facilitate account activation but the
approval and actual opening of the deposit account shall be done only at the head office or branch. Clients
who want to transact in MBOs would therefore still need to go to a head office or branch to open a deposit
account. This practice did not fully capture the potential of MBOs as a banking presence in remote and rural
areas where travelling to a bank branch may be prohibitive in terms of cost.
The new issuance by the BSP enables MBOs to complete the process of account opening from application up
to the acceptance of initial deposit provided that the necessary controls are in place.
The MBO policy is one of the initiatives of the BSP to extend the physical reach of financial services. As of June
2015, there were 531 MBOs present in 337 municipalities, of which 64 municipalities are being served by
MBOs alone. Increasingly, areas that were unbanked before now enjoy banking presence due to MBOs. In
2014, for example, 11 out of 19 previously unbanked municipalities gained banking presence as a result of
MBO establishment, while the remaining 8 municipalities became banked because of regular OBOs.
Banks have also taken advantage of the opportunities presented by the MBO policy. The number of banks with
MBOs increased to 35 banks in 2014 from just 5 banks in 2011, a year after the release of the MBO regulation.
Because of MBOs, these banks are able to expand outreach at lower costs. Some estimates indicate that
monthly operating expenses are 7 to 8 times lower in MBOs as compared to a bank branch.
The recent policy issuance is also expected to further promote savings mobilization through micro-deposits
collected in MBOs. Micro-deposits, which are basic savings accounts especially designed for low income
earners, have maintaining balance less than P100 and have no dormancy charges. As of June 2015, there are
2.3 million micro-deposit accounts amounting to P4.6 billion. (BSP Circular No. 901 dated 29 January 2016)
Guidelines on Operational Risk Management and Amendments to the Outsourcing Framework
The BSP Monetary Board (MB) recently approved the guidelines on operational risk management (ORM) as
part of the continuing initiatives of the BSP to strengthen the risk management systems of its supervised
financial institutions (BSFIs) and promote their sustained safe and sound operations.
Operational risk is among the top risk exposures of BSFIs, which cuts across all activities, products, and
services, and may even come in tandem with the other types of risks, e.g., credit, liquidity, and market. It may
result from weak controls, inadequate policies on acceptable behavior and practices, poor working
environment, weak sales and marketing practices, system failures, or natural or man-induced disasters, among
others. Although operational risk is inherent in all areas of operations, it is more often managed on a
fragmented basis, which tends to discount its overall impact on BSFIs’ operations. In this regard, the risk of
loss arising from operational risk events may also be potentially underestimated.
Annex A
The BSP expects BSFIs to be sensitive to sources of operational risk and to adopt a holistic framework that
would facilitate identification, assessment, monitoring, and management of said type of risk as part of the
enterprise-wide risk management system. The MB-approved ORM guidelines highlight that each personnel
has a responsibility in the effective implementation of the ORM framework. It is therefore critical to have
personnel who are competent to carry-out their respective duties and responsibilities, and possess a high
degree of integrity.
In this view, the board of directors should adopt policies in the areas of recruitment and selection,
performance management, training and development, remuneration and compensation, and succession
planning to promote a culture of high standards of ethical behavior and consistency of performance in the
organization. Said policies should require continuing assessment of the fitness and propriety of personnel,
with the results of said assessment considered in the development of individual training and development
program.
The ORM guidelines also emphasize the three lines of defense principle in managing operational risk. Business
line management and personnel, as the first line of defense, are expected to ensure that policies and
processes in their respective areas of responsibilities are consistent with the organization’s overall ORM
framework. The operational risk management function (ORMF), as part of the second line of defense, is
expected to recommend to the board of directors appropriate policies and procedures relating to operational
risk management and controls, as well as design and implement the operational risk assessment methodology,
tools, and risk reporting systems. The compliance function, on the other hand, is expected, among others, to
determine inappropriate conduct/behavior of personnel, officers, and the board, that may lead to fraud or any
form of business disruption. The internal audit function, as the third line of defense, should conduct an
independent assessment of the ORM framework including the implementation of the operational risk
management policies and procedures.
Guidance in managing operational risk related to prudential reporting is likewise covered in the guidelines. In
particular, BSFIs are expected to adopt a framework that ensures the integrity of information submitted to the
BSP and compliance with the standards prescribed on acceptable reporting quality. The ORM guidelines warn
that persistent concerns on the integrity and accuracy of prudential reports, including failure to comply with
the directives of the BSP, may be considered as unsafe or unsound practice.
In line with the approval of ORM guidelines, the BSP MB, also approved the amendments to the outsourcing
framework to set-out an overarching governance framework, and align expectations on outsourcing activities
with the ORM principles. (BSP Circular No. 899 dated 18 January 2016 and BSP Circular No. 900 dated
18 January 2016)
Amendments to the cooling-off provisions of the BSP Regulations on Financial Consumer Protection
The BSP issued an advisory to public on their right to “cooling-off” as part of the fair treatment standards of
the BSP Financial Consumer Protection (FCP) Regulations.
“Cooling-off” is the right of the BSP-supervised financial institution (BSFI) client to cancel his contract without
penalty. BSFIs should give their clients at least two (2) banking days from the signing of the contract to
cancel.
This right to cooling-off is one of the key requirements of the new BSP Financial Consumer Protection
Regulation that seeks to empower clients by giving them the opportunity to reconsider long-term investment
decisions.
Cooling-off is applicable only to individuals and not corporations, partnerships and associations. This right shall
cover investment in long-term financial instruments with a remaining term of at least one year. Examples are
government securities, corporate bonds and Long Term Negotiable Certificate of Deposit (LTNCD).
Annex A
To avail, the client should notify the BSFI in writing about his intention to terminate the agreement within the
cooling-off period. The client shall shoulder only reasonable amount of processing or administrative fees plus
any mark to market costs from the signing of the contract up to its cancellation. BSFIs should disclose these
costs, including the benchmark from which market value of the financial instrument will be determined, prior
to the signing of the agreement or in the agreement. (BSP Circular No. 898 dated 14 January 2016)
Annex B
Providing flexibility in raising foreign capital and encouraging more foreign investors to invest in the country
• In February, the BSP further liberalized rules governing foreign exchange (FX) transactions in the
Philippines. The policy amendments are as follows:
� Prior BSP approval is no longer required for the borrowings from offshore sources/FCDUs of
banks of the following resident entities.
� Purely private sector loans (without a guarantee from the public sector or banks) for
the financing of energy and power infrastructure projects.
� Private nonbank financial institutions engaged in microfinance activities where
proceeds from the loans are to be used for microfinance lending.
� Conversion to FX of pesos arising from disapproved subscriptions of non-resident investors
to stock rights offering of companies listed at the Philippine Stock Exchange is now allowed.
• In March, the Philippine Stock Exchange (PSE) asked comments and suggestions from stakeholders on
its draft Rules on Dollar Denominated Securities (DDS). The new securities product is intended for
companies interested in listing dollar denominated shares in addition to their peso common shares.
The proposed rules cover the listing and disclosure, trading, clearing and settlement, and fees of DDS.
Under the proposed rules, companies who are already listed at the Exchange can issue a new set of
securities, either common or preferred shares, which are quoted, traded, and settled in US dollars.
This will provide more products and services for the market and will allow companies flexibility in
raising capital in dollars.1
1 Source: Philippine Stock Exchange, Press Release, March 2016.
Statistical Tables
List of 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 Metro Manila
4b Consumer Price Index in Areas Outside Metro Manila
5 Monetary Indicators
6 Selected Domestic Interest Rates
7 Number of Financial Institutions
8 Total Resources of the Philippine Financial System
9 Non-Performing Loans (NPL), Total Loans and Loan Loss Provisions of the Banking
System
Ratio of Non-Performing Loans (NPL) and Loan Loss Provisions to Total loans of the
Banking System
10 Stock Market Transactions
11 Philippines Balance of Payments
12 International Reserves
13 Exchange Rates of the Peso (pesos per unit of foreign currency)
13a Exchange Rates of the Peso (units 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 Position of the of the Bangko Sentral ng Pilipinas
1 GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN
for periods indicated
in million pesos, at constant 2000 prices
2016 2016 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Agriculture, Hunting, Forestry and Fishing 179,664 166,993 155,801 216,321 181,414 166,891 155,657 215,786 173,493 0.9 3.3 -2.3 4.1 1.0 -0.1 -0.1 -0.2 -4.4 0.1 0.3 -0.2 0.5 0.1 0.0 0.0 0.0 -0.4
Industry 561,261 614,518 558,090 657,319 590,832 652,185 592,408 700,372 642,512 4.8 9.0 7.8 9.2 5.3 6.1 6.1 6.5 8.7 1.6 3.0 2.5 3.0 1.8 2.1 2.0 2.2 2.9
Mining and Quarrying 21,674 30,307 16,368 13,346 21,135 27,706 16,449 15,209 23,531 17.4 10.8 12.7 6.3 -2.5 -8.6 0.5 14.0 11.3 0.2 0.2 0.1 0.0 0.0 -0.1 0.0 0.1 0.1
Manufacturing 400,802 414,742 378,608 472,363 424,988 434,160 400,662 501,178 459,226 7.0 11.1 7.5 7.7 6.0 4.7 5.8 6.1 8.1 1.6 2.4 1.6 1.9 1.4 1.1 1.3 1.5 1.9
Construction 87,323 108,954 98,541 114,460 90,695 127,003 106,211 123,851 100,498 -4.2 3.9 12.0 17.1 3.9 16.6 7.8 8.2 10.8 -0.2 0.2 0.6 0.9 0.2 1.0 0.4 0.5 0.6
Electricity, Gas and Water Supply 51,462 60,515 64,573 57,150 54,013 63,316 69,086 60,133 59,257 0.5 4.2 2.4 7.4 5.0 4.6 7.0 5.2 9.7 0.0 0.1 0.1 0.2 0.2 0.2 0.3 0.2 0.3
Services 942,065 1,053,313 1,002,988 1,062,081 994,112 1,124,152 1,075,033 1,144,929 1,072,535 7.1 6.1 5.8 5.7 5.5 6.7 7.2 7.8 7.9 3.9 3.5 3.4 3.1 3.1 3.9 4.2 4.3 4.4
Transportation, Storage and
Communication 130,050 144,019 119,066 144,909 140,956 153,595 128,651 158,088 148,612 8.2 6.8 5.3 5.5 8.4 6.6 8.0 9.1 5.4 0.6 0.5 0.4 0.4 0.6 0.5 0.6 0.7 0.4
Trade and Repair of Motor Vehicles,
Motorcycles, Personal & Household Goods 255,154 288,374 312,034 330,248 270,314 307,620 338,276 354,316 291,890 6.3 6.7 7.0 3.4 5.9 6.7 8.4 7.3 8.0 0.9 1.1 1.3 0.6 0.9 1.0 1.5 1.2 1.2
Financial Intermediation 125,519 136,690 124,033 129,243 130,949 144,619 130,698 140,448 142,870 5.7 6.1 8.4 8.9 4.3 5.8 5.4 8.7 9.1 0.4 0.5 0.6 0.6 0.3 0.4 0.4 0.6 0.7
R. Estate, Renting and Business Activities 182,283 209,789 206,129 205,104 193,992 224,220 222,210 221,070 211,503 10.1 8.5 6.7 9.7 6.4 6.9 7.8 7.8 9.0 1.1 1.0 0.8 1.0 0.7 0.8 0.9 0.8 1.0
Public Administration & Defense;
Compulsory Social Security 68,920 83,358 71,171 70,212 66,134 82,685 72,967 75,297 70,600 6.9 1.8 -2.4 11.5 -4.0 -0.8 2.5 7.2 6.8 0.3 0.1 -0.1 0.4 -0.2 0.0 0.1 0.3 0.3
Other Services 180,140 191,084 170,554 182,366 191,768 211,414 182,231 195,709 207,060 5.5 4.3 5.0 1.5 6.5 10.6 6.8 7.3 8.0 0.6 0.5 0.5 0.1 0.7 1.1 0.7 0.7 0.9
Gross Domestic Product 1,682,990 1,834,824 1,716,879 1,935,722 1,766,358 1,943,228 1,823,097 2,061,086 1,888,540 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.9 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.9
Net Primary Income 370,692 362,940 355,845 373,270 372,543 372,131 380,082 416,155 412,326 11.0 9.0 -2.6 1.1 0.5 2.5 6.8 11.5 10.7
Gross National Income 2,053,682 2,197,764 2,072,724 2,308,992 2,138,900 2,315,359 2,203,179 2,477,241 2,300,866 6.6 7.2 4.1 5.7 4.1 5.4 6.3 7.3 7.6
Source : Philippine Statistics Authority (PSA)
Annual Change (%) Contribution to GDP Growth (percentage points)Levels
2015 2015 20152014
Note: Data on Real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System
of National Accounts (PSNA) in accordance with the 1993/1998 System of National Accounts prescribed by the United Nations.Total may not add up due to rounding.
2014 2014
1a GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES
for periods indicated
in million pesos, at constant 2000 prices
2016 2016 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Household Final Consumption Expenditure 1,161,170 1,213,139 1,170,933 1,406,949 1,231,928 1,291,318 1,241,881 1,499,010 1,318,346 6.3 5.7 4.9 5.3 6.1 6.4 6.1 6.5 7.0 4.3 3.8 3.3 3.9 4.2 4.3 4.1 4.8 4.9
Government Final Consumption Expenditure 185,112 219,474 168,867 155,300 185,519 224,704 195,352 179,771 203,954 3.4 1.5 -1.1 11.0 0.2 2.4 15.7 15.8 9.9 0.4 0.2 -0.1 0.9 0.0 0.3 1.5 1.3 1.0
Capital Formation 370,434 330,962 383,065 483,902 416,596 401,895 438,731 548,058 515,703 8.6 7.7 -0.2 5.7 12.5 21.4 14.5 13.3 23.8 1.9 1.4 -0.1 1.4 2.7 3.9 3.2 3.3 5.6
Fixed Capital 372,973 358,500 376,298 417,835 405,710 404,105 428,624 518,857 509,481 0.2 5.5 11.2 8.0 8.8 12.7 13.9 24.2 25.6 0.0 1.1 2.3 1.7 1.9 2.5 3.0 5.2 5.9
Construction 135,039 163,895 152,551 180,735 141,104 187,392 165,467 194,530 158,024 -5.5 7.2 12.8 19.0 4.5 14.3 8.5 7.6 12.0 -0.5 0.6 1.1 1.6 0.4 1.3 0.8 0.7 1.0
Durable Equipment 202,002 162,741 191,782 193,178 227,095 185,158 226,602 274,349 310,106 4.5 3.6 9.9 0.1 12.4 13.8 18.2 42.0 36.6 0.5 0.3 1.1 0.0 1.5 1.2 2.0 4.2 4.7
Breeding Stock & Orchard Dev't 26,106 22,467 18,336 30,386 26,126 22,987 18,997 31,176 27,199 -4.4 -2.0 -1.6 2.3 0.1 2.3 3.6 2.6 4.1 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1
Intellectual Property Products 9,827 9,398 13,629 13,536 11,385 8,568 17,557 18,802 14,151 14.6 37.5 37.1 8.5 15.9 -8.8 28.8 38.9 24.3 0.1 0.1 0.2 0.1 0.1 0.0 0.2 0.3 0.2
Changes in Inventories -2,539 -27,538 6,767 66,067 10,887 -2,209 10,106 29,201 6,222 91.9 14.7 -85.2 -6.8 528.8 92.0 49.3 -55.8 -42.8 1.8 0.3 -2.4 -0.3 0.8 1.4 0.2 -1.9 -0.3
Exports 812,350 896,065 941,728 727,843 898,070 941,672 1,034,252 807,172 957,356 13.4 9.0 11.9 13.0 10.6 5.1 9.8 10.9 6.6 6.0 4.3 6.1 4.6 5.1 2.5 5.4 4.1 3.4
Less: Imports 858,943 807,366 938,428 852,141 963,339 909,069 1,090,388 979,368 1,119,583 17.9 5.6 4.8 10.1 12.2 12.6 16.2 14.9 16.2 8.2 2.5 2.7 4.3 6.2 5.5 8.9 6.6 8.8
Statistical Discrepancy 12,867 -17,450 -9,287 13,869 -2,417 -7,293 3,269 6,442 12,764 280.6 -65.5 -240.0 25.7 -118.8 58.2 135.2 -53.6 628.0 1.3 -0.4 -1.0 0.2 -0.9 0.6 0.7 -0.4 0.9
Gross Domestic Product 1,682,990 1,834,824 1,716,879 1,935,722 1,766,358 1,943,228 1,823,097 2,061,086 1,888,540 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.9 5.6 6.8 5.7 6.7 5.0 5.9 6.2 6.5 6.9
Net Primary Income 370,692 362,940 355,845 373,270 372,543 372,131 380,082 416,155 412,326 11.0 9.0 -2.6 1.1 0.5 2.5 6.8 11.5 10.7
Gross National Income 2,053,682 2,197,764 2,072,724 2,308,992 2,138,900 2,315,359 2,203,179 2,477,241 2,300,866 6.6 7.2 4.1 5.7 4.1 5.4 6.3 7.3 7.6
Source : Philippine Statistics Authority (PSA)
20152014 2014
Levels Annual Change (%) Contribution to GDP Growth (percentage points)
20152015
Note: Data on Real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System of National Accounts (PSNA) in accordance with the
1993/1998 System of National Accounts prescribed by the United Nations. Total may not add up due to rounding.
2014
2 SELECTED LABOR, EMPLOYMENT AND WAGE INDICATORS
w/ Region VIII w/o Region VIII w/o Leyte4 w/ Leyte w/o Leyte w/ Region VIII w/o Region VIII w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Region VIIIw/o Region VIII w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte
Employment Status 1
Labor Force (in thousands) 40,050 41,379 41,343 39,387 41,588 41,231 41,319 40,090 41,164 41,840 41,898 41,024 42,151 41,345 42,515 41,637
Employed 37,310 38,651 38,741 36,418 38,664 38,453 38,837 37,455 38,461 39,158 39,174 38,344 39,779 39,000 40,047 39,213
Employment Created 1,024 281 1,653 1,063 1,044 1,037 494 (109) 163 752
Unemployed 2,740 2,728 2,602 2,969 2,924 2,778 2,482 2,635 2,703 2,681 2,724 2,680 2,372 2,345 2,469 2,424
Underemployed 6,870 7,118 7,180 7,103 7,027 7,049 7,278 6,548 6,883 6,983 8,219 7,989 7,021 6,866 7,879 7,716
Labor Force Participation Rate (%) 64.4 64.6 63.7 63.8 65.2 64.4 64.3 63.8 63.7 64.6 62.9 63.0 63.3 63.4 63.3 63.4
Employment Rate (%) 93.2 93.4 93.7 92.5 93.0 93.3 94.0 93.4 93.4 93.6 93.5 93.5 94.4 94.3 94.2 94.2
Unemployment Rate (%) 6.8 6.6 6.3 7.5 7.0 6.7 6.0 6.6 6.6 6.4 6.5 6.5 5.6 5.7 5.8 5.8
Underemployment Rate (%) 18.4 18.4 18.5 19.5 18.2 18.3 18.7 17.5 17.9 17.8 21.0 20.8 17.7 17.6 19.7 19.7
Labor Turnover Rate (%) 1.2 0.6 0.9 2.4 1.0 0.5 1.2 3.2
Overseas Employment (Deployed, in thousands) 1,645 513 468 439 225
Land-based 1,292 413 377 349 152
Sea-based 354 99 91 90 73
Strikes
Number of New Strikes 2 5 0 0 0 2 0 3 1 1
Number of Workers Involved 51 730 0 0 0 51 0 450 200 80
Nominal Daily Wage Rates (in pesos)2
Non-Agricultural
NCR 466.0 481.0 466.0 466.0 466.0 466.0 466.0 481.04
481.0 481.0 481.0
Regions Outside NCR 362.5 362.5 349.5 362.5 362.5 362.5 362.5 362.54
362.5 362.5 362.5
Agricultural
NCR
Plantation 429.0 444.0 429.0 429.0 429.0 429.0 429.0 444.04
444.0 444.0 444.0
Non-Plantation 429.0 444.0 429.0 429.0 429.0 429.0 429.0 444.04
444.0 444.0 444.0
Regions Outside NCR
Plantation 337.5 337.5 324.5 337.5 337.5 337.5 337.5 337.54
337.5 337.5 337.5
Non-Plantation 322.0 335.0 322.0 322.0 322.0 322.0 322.0 322.04
322.0 335.0 335.0
Real Daily Wage Rates (in pesos), 2006=100 3
Non-Agricultural
NCR 356.5 363.8 361.0 356.5 354.6 356.5 354.1 365.84
365.8 363.8 364.7
Regions Outside NCR 260.2 257.8 255.9 261.7 259.3 260.2 259.3 260.04
260.6 257.8 259.1
Agricultural
NCR
Plantation 328.2 335.9 332.3 328.2 326.5 328.2 326.0 337.64
337.6 335.9 336.6
Non-Plantation 328.2 335.9 332.3 328.2 326.5 328.2 326.0 337.64
337.6 335.9 336.6
Regions Outside NCR
Plantation 242.3 240.0 237.6 243.7 241.4 242.3 241.4 242.14
242.6 240.0 241.2
Non-Plantation 224.7 229.5 230.3 226.9 225.0 224.7 224.4 223.34
223.0 229.5 228.5
Notes:1
2
3
4Annual 2014 data refer to the average estimates for April, July and October survey rounds only excluding data of the province of Leyte.
PPreliminary
Sources: Philippine Overseas Employment Administration (POEA), National Wages and Productivity Commission (NWPC), and National Conciliation and Mediation Board (NCMB) and Philippine Statistics Authority (PSA)
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.
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.
Q3 Q4
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 Q3Q1Q1 Q4 Q1Q2
2016p
2015p
20142014
Ave/Total
2015
Ave/Total
3 CASH OPERATIONS OF THE NATIONAL GOVERNMENT
for periods indicated
in billion pesos
2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Jan Apr Jul Oct Jan Apr Jul Oct Jan
Revenues 398.4 535.3 491.3 483.5 470.5 615.2 519.2 504.0 479.0
Ratio to GDP 13.8 17.0 16.1 13.5 15.5 18.5 16.3 13.4 14.7
Tax 355.4 469.1 449.9 444.7 403.7 489.4 462.7 459.8 424.7
Non-tax 43.0 66.3 41.4 38.9 66.9 125.8 56.6 44.2 54.2
Expenditures 482.5 505.2 468.4 525.5 504.0 567.9 558.5 600.1 591.5
Ratio to GDP 16.7 16.1 15.4 14.7 16.6 17.1 17.5 15.9 18.1
Interest Payments 103.1 56.6 97.7 63.8 100.6 55.5 99.6 53.6 102.6
Equity 0.1 0.3 0.8 0.5 0.1 0.2 — 0.4 8.2
Net Lending 4.9 1.5 2.0 5.0 2.2 0.4 1.8 5.2 3.5
Subsidy 1.2 48.3 12.7 18.2 3.7 40.3 11.8 22.2 8.2
Allotment to LGUs 85.1 89.0 85.8 84.4 97.1 96.8 96.8 96.8 107.1
Tax Expenditures 0.1 12.3 0.7 12.9 5.6 1.9 0.5 5.6 0.1
Others 288.0 297.1 268.7 340.8 294.7 372.8 347.9 416.2 361.8
Surplus/Deficit (-) -84.1 30.1 22.9 -42.0 -33.5 47.3 -39.3 -96.1 -112.5
Ratio to GDP -2.9 1.0 0.8 -1.2 -1.1 1.4 -1.2 -2.6 -3.4
Primary Balance 19.0 86.8 120.6 21.8 67.1 102.8 60.3 -42.5 -9.9
Ratio to GDP 0.7 2.8 4.0 0.6 2.2 3.1 1.9 -1.1 -0.3
Financing 1
7.0 31.3 69.9 67.0 -9.3 24.8 60.7 16.7 86.384.1 -30.1 -22.9 42.0 33.5 -47.3 39.3 96.1 112.5
External Borrowings -4.2 -5.3 26.6 -4.6 22.6 28.2 -0.6 14.5 14.6
Domestic Borrowings 11.2 36.6 43.3 71.6 -31.9 -3.5 61.3 2.2 71.6
Total Change in Cash: Deposit/Withdrawal (-) -170.8 88.5 85.5 34.6 30.7 29.8 23.4 -85.5 -116.3
Budgetary -77.1 61.5 92.8 25.0 -42.8 72.0 21.4 -79.4 -26.2
Non-Budgetary Accounts 2
-93.7 27.0 -7.4 9.6 73.6 -42.2 2.0 -6.1 -90.1
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.
— zero or nil
n.a. not available
Note: Details may not add up to total due to rounding off
Source: Bureau of the Treasury
20152014
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
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION 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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES -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
of which: FOOD ITEMS -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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION 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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION -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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Source: Philippine Statistics Authority (PSA)
2016
2016
2016
2015
2015
2015
2014
2014
2014
Quarter-on-Quarter Change (in percent)
2 0 1 2
2 0 1 2
Year-on-Year Change (in percent)
2 0 1 2 2013
2013
2013
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
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION 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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES -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
of which: FOOD ITEMS -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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION -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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION -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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Source: Philippine Statistics Authority (PSA)
2015
2 0 1 2
2 0 1 2 2015
2015
2016
2016
2016
Quarter-on-Quarter Change (in percent)
Year-on-Year Change (in percent)
2013
2013
2 0 1 2
2014
2014
20142013
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
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION 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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION 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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ALL ITEMS 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
FOOD AND NON-ALCHOLIC BEVERAGES 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
of which: FOOD ITEMS 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
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 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
NON-FOOD 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
CLOTHING AND FOOTWEAR 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
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 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
of which: ELECTRICITY, GAS AND OTHER FUELS 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
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 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
HEALTH 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
TRANSPORT 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
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 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
COMMUNICATION -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
RECREATION AND CULTURE 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
EDUCATION 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
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 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
Source: Philippine Statistics Authority (PSA)
2016
2016
2016
2013
2013
Year-on-Year Change (in percent)
2014
2014
2014
2 0 1 2
Quarter-on-Quarter Change (in percent)
20152013
2015
2015
2 0 1 2
2 0 1 2
5 MONETARY INDICATORS (DCS CONCEPT: SRF-Based) 1
as of periods indicated
levels in billion pesos
2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 p
Q1 r
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 9,885.0 10,037.8
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 8,426.2 8,548.0
% to GDP 59.6 58.8 58.6 60.9 59.8 59.8 59.9 63.3 63.1
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 8,068.8 8,209.9
% to GDP 57.7 56.9 56.4 58.5 57.4 57.3 57.3 60.6 60.6
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 2,667.4 2,712.1
% to GDP 17.4 17.5 17.3 18.3 18.1 18.3 18.7 20.0 20.0
Currency Outside Depository Corporations (Currency in Circulation) 586.2 580.3 588.0 713.7 658.9 653.8 670.0 791.5 766.3
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 1,875.9 1,945.9
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 5,401.5 5,497.8
Savings Deposits 3,084.4 3,007.0 3,077.0 3,191.8 3,209.8 3,269.9 3,357.5 3,586.1 3,694.4
Time Deposits 1,659.8 1,750.1 1,738.1 1,888.2 1,822.4 1,785.4 1,700.0 1,815.4 1,803.4
6. Securities Other Than Shares Included in Broad Money (Deposit Substitutes) 233.5 235.8 269.9 307.6 305.6 320.9 340.7 357.3 338.1
7. Transferable & Other Deposits in Foreign Currency (FCDU Deposits-Residents) 1,185.6 1,251.7 1,303.9 1,346.8 1,366.9 1,370.8 1,482.8 1,458.8 1,489.8
8. Liabilities Excluded from Broad-Money (Other Liabilities) 1,693.2 1,708.6 1,791.6 1,754.4 1,856.1 1,860.1 2,015.3 1,974.3 2,139.6
B. Domestic Claims 6,332.0 6,473.9 6,605.5 7,053.0 6,997.4 7,114.6 7,387.2 7,860.5 8,077.4
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 1,263.0 1,465.8
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 1,993.9 2,085.2
Less: Liabilities to Central Government 546.5 623.1 705.0 743.7 765.7 801.9 810.0 730.8 619.4
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 6,597.4 6,611.5
Claims on Other Financial Corporations 559.5 574.6 613.6 630.3 628.2 628.8 667.9 680.6 689.5
Claims on State and Local Government 73.3 71.9 70.5 71.5 70.5 70.6 74.0 76.6 77.9
Claims on Public Nonfinancial Corporations 265.1 271.2 268.0 269.3 271.9 274.2 281.4 278.0 282.1
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 5,562.2 5,562.0
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 4,100.1
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
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
Less: Liabilities to Non-residents 77.3 75.2 75.4 73.0 70.8 73.2 75.0 74.4 74.0
2. Other Depository Corporations 56.3 110.0 185.0 237.7 318.9 273.2 230.5 235.9 321.6
Claims on Non-residents 810.2 828.5 864.0 1,028.7 964.1 951.0 985.1 1,023.9 1,070.7
Less: Liabilities to Non-residents 753.9 718.5 679.0 790.9 645.3 677.7 754.5 787.9 749.1
1 Based on the Standardized Report Forms (SRFs), a unified framework for reporting monetary and financial statistics to the International Monetary Fund.p Preliminaryr Revised
Note : Details may not add up to totals due to rounding.
Source : Bangko Sentral ng Pilipinas
20152014
6 SELECTED DOMESTIC INTEREST RATES
for periods indicated; in percent per annum
2014 2015 2016 2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
4.1 4.4 4.7 3.6 2.4 1.7 0.6 1 1.2
Interbank Call Loans 2.0147 2.0618 2.3356 2.5384 2.5266 2.5225 2.5241 2.5291 2.5289 -2.0853 -2.3382 -2.3644 -1.0616 0.1266 0.8225 1.9241 1.5291 1.3289
Savings Deposits 0.5370 0.6270 0.6460 0.7030 0.7170 0.6720 0.7210 0.7270 0.7370 -3.5630 -3.7730 -4.0540 -2.8970 -1.6830 -1.0280 0.12100 -0.2730 -0.4630
Time Deposits (All Maturities) 0.9740 0.9870 1.0480 1.3470 1.3760 1.5220 1.4720 1.6290 1.6410 -3.1260 -3.4130 -3.6520 -2.2530 -1.0240 -0.1780 0.8720 0.6290 0.4410
Manila Reference Rates (All Maturities) 2
1.2500 1.3125 1.3750 N.T. N.T. N.T. N.T. N.T. N.T. -2.8500 -3.0875 -3.3250 N.T. N.T. N.T. N.T. N.T. N.T.
Lending Rates
6.7287 6.8083 6.8860 6.7818 6.8698 6.9390 6.9376 6.7607 6.8407 2.6287 2.4083 2.1860 3.1818 4.4698 5.2390 6.3376 5.7607 5.6407
4.3688 4.3417 4.3861 4.4397 4.5031 4.5183 4.5025 4.3579 4.4055 0.2688 -0.0583 -0.3139 0.8397 2.1031 2.8183 3.9025 3.3579 3.2055
5.5000 5.4780 5.5350 5.5820 5.4280 5.5150 5.6250 5.7390 5.6310 1.4000 1.0780 0.8350 1.9820 3.0280 3.8150 5.0250 4.7390 4.4310
Bangko Sentral Rates
N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T.
N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T.
3.5000 3.5000 3.7500 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 -0.6000 -0.9000 -0.9500 0.4000 1.6000 2.3000 3.4000 3.0000 2.8000
3.5000 3.5000 3.7500 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 -0.6000 -0.9000 -0.9500 0.4000 1.6000 2.3000 3.4000 3.0000 2.8000
3.5608 3.5460 3.7390 4.0515 4.0810 4.0926 4.0352 4.1087 5.1642 -0.5392 -0.8540 -0.9610 0.4515 1.6810 2.3926 3.4352 3.1087 3.9642
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 -2.8120 -2.9000 -3.2000 -2.0280 -0.7090 0.3780 1.3980 0.7440 0.4130
1.0650 1.2740 1.2580 1.2860 1.4690 1.9400 1.8610 1.7100 1.5550 -3.0350 -3.1260 -3.4420 -2.3140 -0.9310 0.2400 1.2610 0.7100 0.3550
1.4000 1.5890 1.5820 1.7000 1.7290 2.2070 2.0140 1.6970 1.5800 -2.7000 -2.8110 -3.1180 -1.9000 -0.6710 0.5070 1.4140 0.6970 0.3800
1.5400 1.8630 1.8090 1.8250 1.9480 2.2630 2.2000 1.8970 1.7230 -2.5600 -2.5370 -2.8910 -1.7750 -0.4520 0.5630 1.6000 0.8970 0.5230
Government Securities in the Secondary Market 5
3.9 4.4 4.4 2.7 2.4 1.2 0.4 1.5 1.1
3 Months 1.6917 1.3229 1.7104 2.5409 2.2714 2.0765 1.6817 2.6667 1.7650 -2.2083 -3.0771 -2.6896 -0.1591 -0.1286 0.8765 1.2817 1.1667 0.6650
6 Months 2.0367 1.4938 1.9479 2.6432 2.5795 2.1980 1.7967 2.9183 1.8950 -1.8633 -2.9062 -2.4521 -0.0568 0.1795 0.9980 1.3967 1.4183 0.7950
1-Year 2.3125 1.8917 2.1729 2.6955 2.6886 2.4297 2.5467 2.3710 1.7313 -1.5875 -2.5083 -2.2271 -0.0045 0.2886 1.2297 2.1467 0.8710 0.6313
2-Years 2.7563 2.8542 2.9813 3.0568 3.1959 2.6999 2.6143 3.9847 3.4700 -1.1437 -1.5458 -1.4187 0.3568 0.7959 1.4999 2.2143 2.4847 2.3700
3-Years 3.1650 2.8917 3.3833 3.4500 3.4136 3.0281 3.1016 3.6625 3.6900 -0.7350 -1.5083 -1.0167 0.7500 1.0136 1.8281 2.7016 2.1625 2.5900
4-Years 3.3917 3.1750 3.5083 3.5705 3.5864 3.7717 3.7263 3.8750 3.2332 -0.5083 -1.2250 -0.8917 0.8705 1.1864 2.5717 3.3263 2.3750 2.1332
5-Years 3.7479 3.9812 4.2146 3.6795 3.8273 3.8900 3.4923 3.9250 3.4583 -0.1521 -0.4188 -0.1854 0.9795 1.4273 2.6900 3.0923 2.4250 2.3583
7-Years 3.8615 4.0292 4.1229 4.1475 3.8932 3.7189 4.1617 4.5853 4.2283 -0.0385 -0.3708 -0.2771 1.4475 1.4932 2.5189 3.7617 3.0853 3.1283
10-Years 4.4562 4.1667 4.3475 4.3705 4.0614 4.3550 3.7995 4.1000 4.6900 0.5562 -0.2333 -0.0525 1.6705 1.6614 3.1550 3.3995 2.6000 3.5900
20-Years 5.3938 5.3750 5.3125 5.1727 4.9850 4.6511 5.1350 5.5217 5.2317 1.4938 0.9750 0.9125 2.4727 2.5850 3.4511 4.7350 4.0217 4.1317
25-Years 5.6354 5.4329 5.3750 4.9500 4.7659 N.T 4.7280 4.8916 N.T 1.7354 1.0329 0.9750 2.2500 2.3659 N.T. 4.3280 3.3916 N.T.
1Nominal interest rate less inflation rate
2Refers to the New Manila Reference Rates based on combined transactions on time deposits and promissory notes of reporting commercial banks. Per BSP Circular No. 846, the generation and publication of MRR rates will be discontinued effective 17 September 2014. September data covers bank reports prior to the said date.
3Refers to the weighted average interest rate of reporting commercial banks' interest incomes on their outstanding peso-denominated loans
4Weighted average of transacted rates
5End of Period; (For Q1 2013 to Q1 2015, data refers to PDST-F while for Q2 2015 to present, it refers to PDST-R2)
pPreliminary
rRevised
N.T. - No transactions
Source: Bangko Sentral ng Pilipinas
NOMINAL INTEREST RATES REAL INTEREST RATES 1
182-Days
Low
All Maturities 3
R/P (Overnight) 4
High
364-Days
R/P (Term) 4
RR/P (Overnight) 4
RR/P (Term) 4
Rediscounting
91-Days
7 NUMBER OF FINANCIAL INSTITUTIONS 1
as of periods indicated
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
T o t a l 28,065 28,094 28,128 28,243 28,342 28,330 28,327 28,482
Head Offices 6,943 6,888 6,840 6,747 6,733 6,697 6,638 6,588
Branches/Agencies 21,122 21,206 21,288 21,496 21,609 21,633 21,689 21,894
Banks 10,020 10,120 10,207 10,361 10,456 10,528 10,561 10,756
Head Offices 667 664 652 648 646 638 635 632
Branches/Agencies 9,353 9,456 9,555 9,713 9,810 9,890 9,926 10,124
Universal and Commercial Banks 5,514 5,583 5,738 5,833 5,901 5,946 5,969 6,060
Head Offices 36 36 36 36 36 36 37 40
Branches/Agencies 5,478 5,547 5,702 5,797 5,865 5,910 5,932 6,020
Thrift Banks 1,856 1,878 1,873 1,920 1,927 2,013 1,999 2,086
Head Offices 70 70 69 69 69 70 69 68
Branches/Agencies 1,786 1,808 1,804 1,851 1,858 1,943 1,930 2,018
Savings and Mortgage Banks 1,219 1,242 1,248 1,280 1,317 1,386 1,356 1,517
Head Offices 28 28 28 28 28 29 28 28
Branches/Agencies 1,191 1,214 1,220 1,252 1,289 1,357 1,328 1,489
Private Development Banks 437 432 440 444 408 416 417 338
Head Offices 19 19 19 19 19 19 19 18
Branches/Agencies 418 413 421 425 389 397 398 320
Stock Savings and Loan Assns. 171 175 154 165 171 180 195 200
Head Offices 19 19 18 18 18 18 18 18
Branches/Agencies 152 156 136 147 153 162 177 182
Microfinance Banks 29 29 31 31 31 31 31 31
Head Offices 4 4 4 4 4 4 4 4
Branches/Agencies 25 25 27 27 27 27 27 27
Rural Banks 2,650 2,659 2,596 2,608 2,628 2,569 2,593 2,610
Head Offices 561 558 547 543 541 532 529 524
Branches/Agencies 2,089 2,101 2,049 2,065 2,087 2,037 2,064 2,086
Non-Banks 18,045 17,974 17,921 17,882 17,886 17,802 17,766 17,726
Head Offices 6,276 6,224 6,188 6,099 6,087 6,059 6,003 5,956
Branches/Agencies 11,769 11,750 11,733 11,783 11,799 11,743 11,763 11,770
Investment Houses 26 25 25 25 25 25 25 25
Head Offices 16 15 15 15 15 15 15 15
Branches/Agencies 10 10 10 10 10 10 10 10
Finance Companies 88 88 88 88 88 88 110 110
Head Offices 20 20 20 20 20 20 22 22
Branches/Agencies 68 68 68 68 68 68 88 88
ABB Forex Corporations - - - - - - 5 5
Head Offices - - - - - - 5 5
Branches/Agencies - - - - - - - -
Investment Companies 3 3 2 2 2 2 2 2
Head Offices 3 3 2 2 2 2 2 2
Branches/Agencies - - - - - - - -
Securities Dealers/Brokers 13 13 13 13 13 13 13 13
Head Offices 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
Head Offices 6,022 5,971 5,936 5,847 5,835 5,807 5,745 5,698
Branches/Agencies 11,562 11,542 11,525 11,575 11,591 11,533 11,533 11,540
Lending Investors 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - -
Non-Stock Savings and Loan Assns. 198 199 199 199 199 201 200 200
Head Offices 71 71 71 71 71 71 70 70
Branches/Agencies 127 128 128 128 128 130 130 130
Private Insurance Companies 2
110 110 110 110 110 110 110 110
Head Offices 108 108 108 108 108 108 108 108
Branches/Agencies 2 2 2 2 2 2 2 2
Government Non-Banks 4 4 4 4 4 4 4 4
Head Offices 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
Head Offices 3 3 3 3 3 3 3 3
Branches/Agencies - - - - - - - -
Other Non-Bank with QBF 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - -
Electronic Money Issuer 4 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4 4
Branches/Agencies - - - - - - - -
Remittance Agent 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - -
Credit Granting Entities 9 9 9 9 9 9 9 9
Head Offices 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._
zero or nil
Source: Bangko Sentral ng Pilipinas
20152014
8 TOTAL RESOURCES OF THE PHILIPPINE FINANCIAL SYSTEM 1
as of periods indicated
in billion pesos
2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 r
Q1 p
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 13,342.1 13,488.3 14,446.6 14,322.0 14,453.5 14,784.1 15,356.0 15,472.7
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 10,614.6 10,751.0 11,546.2 11,374.2 11,502.7 11,863.2 12,406.3 12,522.9
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
Thrift Banks
608.6 606.2 622.4 681.5 679.3 739.8 764.6 809.1 825.0 851.1 866.6 916.2 899.3 964.7 979.6 1,034.1 1,055.1
Rural Banks 179.4 179.4 200.8 200.8 207.9 189.8 184.8 183.3 227.7 217.9 226.4 231.6 236.0 210.1 212.8 213.0 213.0a
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 2,920.9 2,949.8 2,949.8a
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-December 2015p
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
(3)
201420132012 2015
Institutions
(1)
(2)
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 3
Total 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
2015p
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
2016p
Mar 97.112 34.346 13.706a
145.164 29.065 16.288 5.513a
50.866 5659.766 728.258 118.711a
6506.735 129.193 25.001 9.381a
163.575
1Data include banks under liquidation, foreign office transactions and interbank loans
2Starting Sept. 2002, for supervisory purposes, computation of NPL was based on BSP Circular No. 351 which defines total loans as gross of allowance for probable losses and interbank loans less loans classified as loss. This has been discontinued in 2013.
For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772). 3
Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing gross NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio,
Under Circular No. 772, there are no available data for Gross NPLs and Net NPLs earlier than 2012.a
As of December 2015p
Preliminaryr
Revised
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
2015p
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
2016p
Mar 1.716 4.716 11.546a
2.231 0.514 2.237 4.644a
0.782 2.283 3.433 7.902a
2.514
1Data include banks under liquidation, foreign office transactions and interbank loans
2Starting Sept. 2002, for supervisory purposes, computation of NPL was based on BSP Circular No. 351 which defines total loans as gross of allowance for probable losses and interbank loans less loans classified as loss. This has been discontinued in 2013.
For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772). 3
Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing gross NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio,
Under Circular No. 772, there are no available data for Gross NPLs and Net NPLs earlier than 2012.a
As of December 2015p
Preliminaryr
Revised
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 Q1
Volume 165,036 170,243 106,453 73,403 113,135 122,113 155,537 424,409 150,587 68,804 191,792 82,078 97,625
Financials 1,816 1,374 986 3,439 992 1,341 1,558 1,090 978 1,238 1,154 725 741
Industrial 18,622 35,931 15,350 10,863 12,328 13,115 13,644 25,346 10,913 6,133 11,872 5,550 6,153
Holding Firms 33,659 36,290 5,254 5,250 5,728 6,984 12,527 12,142 10,844 6,076 25,300 13,115 8,600
Property 22,018 16,991 19,350 10,129 12,053 22,136 20,366 15,629 12,138 8,586 7,757 16,680 10,446
Services 23,394 21,728 10,167 13,676 7,058 12,923 17,377 32,885 21,263 9,370 8,628 10,202 17,038
Mining & Oil 65,527 57,929 55,346 30,043 74,975 64,492 89,992 336,889 94,056 37,160 136,929 35,490 54,421
SME (in thousand shares) 322 232 285 302 317 1,120,339 71,577 421,612 393,244 239,362 149,843 315,570 222,462
ETF1/
(in thousand shares) 1,196 426 668 791 4,748 1,893 2,235 1,715 1,220 2,964
Value 623,382 781,005 587,512 554,284 457,085 535,924 548,203 588,908 641,594 553,577 517,832 438,408 407,066
Financials 101,570 98,628 77,285 64,828 65,888 73,681 69,826 68,898 74,595 88,404 66,529 43,993 51,044
Industrial 125,879 228,624 144,382 185,203 104,206 110,557 94,254 119,148 145,948 143,103 150,323 91,553 90,691
Holding Firms 167,320 187,192 135,005 116,194 121,554 120,483 131,683 126,267 174,325 136,336 108,947 119,313 98,158
Property 108,596 100,356 139,774 60,423 67,867 105,044 79,090 108,390 103,447 75,621 77,548 104,550 74,676
Services 91,228 150,765 81,066 119,723 83,835 96,404 143,589 137,725 111,491 85,432 94,494 67,320 74,501
Mining & Oil 28,786 15,438 9,997 7,791 13,688 22,756 29,113 24,360 27,328 21,899 17,914 8,583 15,738
SME (in thousand pesos) 2,677 1,354 3,633 3,452 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
ETF1/
(in thousand pesos) 118,184 42,130 72,183 90,521 539,579 234,748 282,800 200,392 139,155 331,093
Composite Index (end of period) 6847.47 6465.28 6191.80 5889.83 6428.71 6844.31 7283.07 7230.57 7940.49 7564.50 6893.98 6952.08 7262.30
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
20162013 2014 2015
11 PHILIPPINES: BALANCE OF PAYMENTS
in million U.S. dollars
Growth (%)
Q1 Q2 Q3 Q4 Q1 Q1 2016 p
Current Account 2165 2308 104 3819 447 -79.4
(Totals as percent of GNI) 2.6 2.6 0.1 4.0 0.5 ...
(Totals as percent of GDP) 3.2 3.1 0.1 4.8 0.6 ...
Export 25495 26057 26546 27189 25646 0.6
Import 23330 23749 26442 23370 25199 8.0
Goods, Services, and Primary Income -3577 -3643 -5811 -2093 -5934 -65.9
Export 19567 19867 20463 21043 19085 -2.5
Import 23144 23511 26273 23136 25019 8.1
Goods and Services -3842 -4251 -5963 -3399 -6513 -69.5
(Totals as percent of GNI) -4.6 -4.7 -7.1 -3.6 -7.7 ...
(Totals as percent of GDP) -5.6 -5.7 -8.6 -4.2 -9.4 ...
Export 17284 17555 18042 18563 16702 -3.4
Import 21126 21806 24005 21962 23215 9.9
Goods -4799 -4429 -7069 -5401 -8010 -66.9
(Totals as percent of GNI) -5.8 -4.9 -8.4 -5.6 -9.5 ...
(Totals as percent of GDP) -7.0 -6.0 -10.2 -6.7 -11.6 ...
Credit: Exports 10494 10657 10993 11132 9241 -11.9
Debit: Imports 15293 15087 18062 16532 17250 12.8
Services 957 178 1106 2002 1496 56.4
Credit: Exports 6790 6898 7048 7431 7461 9.9
Debit: Imports 5833 6719 5942 5429 5965 2.3
Primary Income 265 608 152 1306 579 118.6
Credit: Receipts 2283 2312 2421 2480 2383 4.4
Debit: Payments 2018 1705 2269 1174 1804 -10.6
Secondary Income 5743 5952 5914 5912 6381 11.1
Credit: Receipts 5928 6190 6083 6146 6561 10.7
Debit: Payments 186 238 169 235 180 -3.0
Capital Account 17 21 21 23 25 50.2
Credit: Receipts 24 25 24 25 28 19.9
Debit: Payments 7 4 2 2 3 -53.7
Financial Account 152 1258 -291 1404 959 530.8
Net Acquisition of Financial Assets -37 1470 2268 2974 2728 7570.1
Net Incurrence of Liabilities -188 212 2559 1570 1769 1038.3
Direct Investment 358 -476 -11 7 -923 -357.7
Net Acquisition of Financial Assets 1209 712 2486 1195 370 -69.4
Net Incurrence of Liabilities 850 1188 2498 1188 1293 52.1
Portfolio Investment -459 3375 2202 -361 522 213.7
Net Acquisition of Financial Assets 873 1127 723 -107 1084 24.2
Net Incurrence of Liabilities 1332 -2248 -1479 254 563 -57.8
Financial Derivatives 2 -31 19 -22 9 427.9
Net Acquisition of Financial Assets -133 -155 -103 -74 -73 44.9
Net Incurrence of Liabilities -135 -124 -122 -52 -82 38.8
Other Investment 251 -1609 -2500 1780 1351 438.4
Net Acquisition of Financial Assets -1985 -213 -838 1960 1347 167.8
Net Incurrence of Liabilities -2236 1396 1663 180 -5 99.8
NET UNCLASSIFIED ITEMS -1153 -264 -292 -1628 277 124.0
OVERALL BOP POSITION 877 807 124 809 -210 -123.9
(Totals as percent of GNI) 1.1 0.9 0.1 0.8 -0.2 ...
(Totals as percent of GDP) 1.3 1.1 0.2 1.0 -0.3 ...
Debit: Change in Reserve Assets 888 796 135 798 -199 -122.4
Credit: Change in Reserve Liabilities 11 -11 11 -11 11 0.1
Details may not add up to total due to rounding.
p Preliminary
... Blank
Technical Notes:
1. Balance of Payments Statistics are based on the IMF's Balance of Payments and International Investment Position Manual, 6th Edition.
2. Financial Account, including Reserve Assets, is calculated as sum of net acquisitions of financial assets less net incurrence of liabilities.
3. Balances in the current and capital accounts are derived by deducting debit entries from credit entries.
4. Balances in the financial account are derived by deducting net incurrence of liabilities from net acquisition of financial assets.
5. Negative values of Net Acquisition of Financial Assets indicate withdrawal/disposal of financial assets; negative values of Net
Incurrence of Liabilities indicate repayment of liabilities.
6. Overall BOP position is calculated as the change in the country's net international reserves (NIR), less non-economic transactions (revaluation
and gold monetization/demonetization). Alternatively, it can be derived by adding the current and capital account balances
less financial account plus net unclassified items.
7. Net unclassified items is an offsetting account to the overstatement or understatement in either receipts or payments of the recorded BOP
components vis-à-vis the overall BOP position.
8. Data on Deposit-taking corporations, except the central bank consist of transactions of commercial and thrift banks and offshore banking
units (OBUs).
Source: Bangko Sentral ng Pilipinas
2015 2016 p
12 INTERNATIONAL RESERVES
as of periods indicated
in million US dollars
Mar Jun Sep Dec Mar
Gross International Reserves 80,459 80,644 80,551 80,667 82,977
Gold 7,437 7,378 7,015 6,703 7,765
SDRs 1,168 1,190 1,188 1,173 1,193
Foreign Investments 70,565 70,647 70,800 71,739 71,379
Foreign Exchange 850 985 1,103 613 2,217
Reserve Position in the Fund 439 445 445 439 424
Net International Reserves 80,446 80,642 80,538 80,665 82,964
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 PESOpesos per unit of foreign currencyperiod 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 11.5567Jan 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 11.0736Mar 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 11.0848Apr 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 11.2020May 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 11.2440Jun 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 11.6823Jul 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 11.8044Aug 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 11.9425Sep 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 11.9338Oct 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 11.7573Nov 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 11.8586Dec 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 12.0872Jan 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 12.2238Mar 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 12.1953Apr 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 12.1542May 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 11.9588Jun 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 11.9300Jul 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 11.8342Aug 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 11.9160Sep 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 12.0001Oct 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 12.1967Nov 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 12.2384Dec 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 12.3892Jan 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 12.1439Feb 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 12.0397Mar 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 12.1011Apr 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 12.0921May 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 12.1456Jun 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 12.2476Jul 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 12.3242Aug 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 12.5633Sep 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 12.7301Oct 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 12.6235Nov 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 12.7995Dec 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 47.2904 0.4099 52.1602 67.7775 34.0756 33.6929 6.0823 11.2646 1.3255 0.0035 1.4296 0.0394 7.2283 12.6109 12.8766Jan 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 12.9370Feb 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 12.9705Mar 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
Source: Bangko Sentral ng Pilipinas
Emirati Dirham
Thai BahtUS DollarJapanese
YenEuro
Pound Sterling
New Taiwan Dollar
South Korean Won
Indonesian Rupiah
Chinese Yuan
Saudi RialSingapore
DollarHongkong
DollarMalaysian
RinggitAustralian
Dollar
13a EXCHANGE RATES OF THE PESOunits of foreign currency per pesoperiod 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 0.0866Jan 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 0.0902Feb 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 0.0903Mar 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 0.0902Apr 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 0.0893May 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 0.0889Jun 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 0.0856Jul 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 0.0847Aug 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 0.0837Sep 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 0.0838Oct 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 0.0851Nov 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 0.0843Dec 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 0.0827Jan 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 0.0818Feb 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 0.0818Mar 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 0.0820Apr 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 0.0823May 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 0.0836Jun 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 0.0838Jul 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 0.0845Aug 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 0.0839Sep 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 0.0833Oct 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 0.0820Nov 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 0.0817Dec 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 0.0808Jan 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 0.0823Feb 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 0.0831Mar 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 0.0826Apr 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 0.0827May 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 0.0823Jun 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 0.0816Jul 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 0.0811Aug 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 0.0796Sep 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 0.0786Oct 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 0.0792Nov 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 0.0781Dec 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 2.4399 0.0192 0.0148 0.0294 0.0297 0.1644 0.0888 0.7545 286.2564 0.6995 25.3918 0.1384 0.0793 0.0777Jan 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 0.0773Feb 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 0.0771Mar 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
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 Dollar
EuroUS DollarJapanese
Yen
13b EFFECTIVE EXCHANGE RATE INDICES OF THE PESO1980 = 100period averages
Overall 1 Advanced 2 Developing 3 Overall Advanced Developing
2013 15.26 12.38 24.45 87.44 81.57 115.85Jan 15.53 12.43 25.14 91.17 84.88 120.98Feb 15.72 12.65 25.35 90.71 84.77 120.01Mar 15.82 12.82 25.37 90.76 84.87 120.03Apr 15.71 12.81 25.07 90.41 84.80 119.30May 15.75 12.96 24.97 90.39 85.15 118.89Jun 15.14 12.27 24.27 87.15 80.87 115.93Jul 15.08 12.29 24.09 85.75 80.37 113.22Aug 14.88 12.02 23.92 84.33 78.11 112.32Sep 14.89 12.07 23.89 84.35 78.23 112.25Oct 14.97 12.11 24.04 85.06 78.90 113.18Nov 14.94 12.15 23.90 85.09 79.45 112.66Dec 14.85 12.10 23.72 84.84 79.26 112.29
2014 14.92 12.24 23.72 87.20 82.50 114.36Jan 14.67 11.95 23.44 87.94 83.88 114.67Feb 14.63 11.86 23.46 86.39 81.79 113.25Mar 14.65 11.85 23.54 85.66 80.46 112.93Apr 14.68 11.90 23.54 85.92 80.23 113.76May 14.89 12.07 23.88 87.16 81.07 115.72Jun 14.96 12.15 23.95 87.81 81.73 116.53Jul 15.03 12.24 24.02 87.64 82.21 115.66Aug 14.97 12.26 23.83 87.20 82.03 114.84Sep 15.06 12.49 23.75 87.29 82.95 114.13Oct 14.94 12.40 23.55 86.88 82.77 113.38Nov 15.18 12.79 23.69 88.19 85.48 113.67Dec 15.46 13.04 24.09 89.30 86.67 114.98
2015 15.70 13.33 24.36 92.24 90.76 117.60Jan 15.66 13.28 24.29 95.10 94.73 120.19Feb 15.88 13.51 24.61 95.00 94.65 120.05Mar 15.97 13.69 24.61 94.48 94.29 119.24Apr 15.89 13.68 24.39 94.24 94.02 118.97May 15.78 13.53 24.29 93.01 91.99 118.15Jun 15.78 13.55 24.28 92.88 91.95 117.89Jul 15.79 13.53 24.33 91.96 91.37 116.44Aug 15.68 13.24 24.42 91.01 88.86 116.69Sep 15.53 12.92 24.45 89.66 86.07 116.37Oct 15.57 13.02 24.42 90.13 87.00 116.51Nov 15.50 13.08 24.14 90.18 88.07 115.60Dec 15.46 12.97 24.19 89.79 87.09 115.68
2016 15.32 12.63 24.27 91.69 89.11 117.95Jan 15.43 12.75 24.40 93.88 91.57 120.45Feb 15.20 12.50 24.13 90.56 88.02 116.48Mar 15.33 12.63 24.28 90.63 87.74 116.92
2 U.S., Japan, Euro Area, and Australia3 Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.r Revised using actual inflation rates
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 2,203 12,896 62,375 77,474a
2,469 11,844 63,326 77,640a
Public Sector 0 899 37,374b
38,273 0 485 38,442b
38,927
Banks 0 899 3,206 4,105 0 485 3,290 3,776
Bangko Sentral ng Pilipinas 0 0 1,337c
1,337 0 0 1,351c
1,351
Others 0 899 1,870 2,768 0 485 1,939 2,425
Non-Banks 0 0 34,168 34,168 0 0 35,152 35,152
CB-BOL 0 0 0 0 0 0 0 0
NG and Others 0 0 34,168 34,168 0 0 35,152 35,152
Private Sector 2,203 11,998 25,001 39,201 2,469 11,359 24,885 38,713
Banks 0 11,392 3,365 14,756 0 10,756 3,211 13,967
Foreign Bank Branches 0 4,542 270 4,812d
0 5,276 206 5,482d
Domestic Banks 0 6,850 3,095 9,944 0 5,480 3,006 8,486
Non-Banks 2,203 606 21,636e
24,445 2,469 602 21,674e
24,745
1Covers debt owed to non-residents, with classification by borrower based on primary obligor per covering loan/rescheduling agreement/document.
Exclusions
aResidents' holdings of Philippine debt papers issued offshore;
Non-residents' holdings of peso-denominated debt securities
Inclusions
bCumulative 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
14,306
1,390
14,522
1,310
3,550 4,211
-52 -31
1,165 1,179
31 December2015 31 March 2016
TotalShort-termShort-term
Total
31 December2015 31 March 2016
17,376
5,213
17,152
4,870
15 SELECTED FOREIGN DEBT SERVICE INDICATORS
for periods indicated
in million US dollars
Q1 Q2 Q3 Q4 Q1
Debt Service Burden (DSB) 1 1734 1246 1184 1105 2235
Principal 989 698 493 561 1538
Interest 745 549 691 544 697
Export Shipments (XS) 2 10494 10657 10993 11132 9241
Exports of Goods and Receipts 23954 24433 24934 25577 23619
from Services and Income (XGSI) 2, 3
Current Account Receipts (CAR) 2 25495 26057 26546 27189 25646
External Debt 75319 74998 75607 77474 77640
Gross Domestic Product (GDP) 68367 74271 69147 80402 69103
Gross National Income (GNI) 83304 89518 84312 96333 84483
Ratios (%) :
DSB to XS 16.52 11.69 10.77 9.93 24.18
DSB to XGSI 7.24 5.10 4.75 4.32 9.46
DSB to CAR 6.80 4.78 4.46 4.07 8.71
DSB to GNI 2.08 1.39 1.40 1.15 2.65
External Debt to GDP 26.06 25.68 25.94 26.49 26.51
External Debt to GNI 21.58 21.28 21.48 21.90 21.89
1 Debt service burden represents principal and interest payments after rescheduling. In accordance with the internationally-accepted
concept, debt service burden consists of (a) Principal and interest payments on fixed MLT credits including IMF credits, loans covered by
the Paris Club and Commercial Banks rescheduling, and New Money Facilities; and (b) Interest payments on fixed and revolving short-term
liabilities of banks and non-banks but excludes (i) Prepayments of future years' maturities of foreign loans and (ii) Principal payments on
fixed and revolving ST liabilities of banks and non-banks.2 Based on the accounting principle under the Balance of Payments and International Investment Position Manual, Sixth edition (BPM6)3 Includes cash remittances of overseas Filipino workers that were coursed through and reported by commercial banks which are reflected
under Compensation of Employees in the Primary Income account and workers' remittances in the Secondary Income account.p/ Preliminary
Source: BSP
2015 p 2016 p
16 SELECTED FOREIGN INTEREST RATESperiod averages; in percent
2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
US Prime Rate 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2841 3.5000
US Discount Rate 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7935 1.0000
US Federal Funds Rate 0.1142 0.1649 0.1570 0.1722 0.1546 0.1140 0.0848 0.0802 0.0767 0.0780 0.0784 0.0930 0.0974 0.1151 0.1323 0.1574 0.3694
LIBOR (90 days) 0.5141 0.4663 0.4239 0.3170 0.2917 0.2750 0.2614 0.2413 0.2358 0.2282 0.2343 0.2363 0.2603 0.2794 0.3142 0.4085 0.6248
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 SIBOR data refers to SIBOR rates (in Singapore $)
Source: Bloomberg, Asian Wall Street Journal, Reuters
2014 2013 2015 2012
17 BALANCE SHEET OF THE BANGKO SENTRAL NG PILIPINASas of periods indicatedin billion pesos
Mar Jun Sep Dec Mar Jun Sep Dec p,u Mar t
Assets 4,040.9 4,028.2 4,062.2 4,087.5 4,134.4 4,180.5 4,296.4 4,309.6 4,403.7
4,040.9 4,028.2 4,062.2 4,087.5 4,134.4 4,180.5 4,296.4 4,309.6 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 Domestic Securities 219.0 222.0 222.0 222.4 223.0 223.1 223.4 222.6 224.0 Loans and Advances 85.6 85.2 85.0 85.3 85.1 85.3 85.7 85.5 163.5 Revaluation of International Reserves 0.0 26.1 7.5 41.7 35.9 36.7 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 Derivative Instruments in a Gain/Loss (-) Position 0.0 -0.1 0.7 0.1 1.3 0.4 0.2 -0.1 -1.8 Other Assets 173.3 177.0 181.8 184.1 190.0 194.9 215.6 200.9 201.3
Liabilities 3,985.3 3,973.5 4,013.3 4,043.2 4,092.5 4,137.3 4,253.9 4,268.9 4,361.0
Currency Issue 708.0 705.0 714.5 929.5 809.7 798.6 817.3 1,005.2 930.5 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 Reserve Deposits of Other Depository Corporations (ODCs) 1
1,116.4 1,251.3 1,285.5 1,386.7 1,277.7 1,324.4 1,373.3 1,456.2 1,427.0 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 Special Deposit Accounts 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 Treasurer of the Philippines 4 333.6 390.1 476.7 415.2 478.6 528.0 544.1 426.8 336.3
Other Foreign Currency Deposits 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5
Foreign Financial Institutions 35.5 39.7 39.5 39.5 43.7 44.4 39.3 39.3 108.7 Other Deposits 5 36.9 35.8 37.4 30.4 33.4 33.9 35.3 32.5 31.7
Foreign Loans Payable 0.1 0.1 0.1 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
Derivative Instruments in a Loss Position 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Derivatives Liability 0.0 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0
Allocation of SDRs 58.0 56.5 55.8 54.3 51.7 53.2 55.1 54.7 54.3
Revaluation of International Reserves 33.6 0.0 0.0 0.0 0.0 0.0 86.2 73.9 96.2 Reverse Repurchase Agreements 3 296.5 296.3 299.1 302.3 304.8 306.3 308.5 311.7 309.8
Other Liabilities 10.9 10.5 11.5 10.0 10.2 10.8 10.1 10.8 10.9
Net Worth 55.6 54.7 48.9 44.4 41.9 43.2 42.5 40.8 42.6
Capital 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Surplus/Reserves 5.6 4.7 -1.1 -5.6 -8.1 -6.8 -7.5 -9.2 -7.4
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 Includes accrued interest payables.4 Includes foreign currency deposits.5 Mostly GOCC deposits.p,u Preliminary and unaudited based on core Financial Accounting System (cFAS) Production Environment.t Tentative and subject to change based on cFAS Development Environment.
Source: Bangko Sentral ng Pilipinas
20162014 2015
18 INCOME POSITION OF THE BANGKO SENTRAL NG PILIPINAS
1 20162 Q1 Q2 1 Q3 1 Q4 FY Q1 Q2 1 Q3 1 Q4 p,u FY p,u Q1 t
Revenues 10.524 12.961 12.690 13.604 49.779 15.299 16.083 11.806 13.559 56.747 13.167
Interest Income 7.656 7.908 8.266 9.173 33.003 8.454 9.735 10.226 10.798 39.213 11.495 International Reserves 5.966 6.045 6.121 6.900 25.032 6.111 7.333 7.639 8.058 29.141 8.824 Domestic Securities 0.297 0.501 0.792 0.856 2.446 0.941 1.021 1.147 1.240 4.349 1.052 Loans and Advances 0.513 0.438 0.426 0.440 1.817 0.424 0.417 0.438 0.424 1.703 0.438 Others 0.880 0.924 0.927 0.977 3.708 0.978 0.964 1.002 1.076 4.020 1.181 Miscellaneous Income 2.724 4.767 4.159 4.312 15.962 6.672 5.584 1.184 2.503 15.943 1.263 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
Expenses 15.097 16.010 19.433 18.327 68.867 17.308 18.538 17.993 18.942 72.781 16.684
Interest Expenses 11.131 10.646 11.982 12.398 46.157 12.022 12.240 12.325 12.015 48.602 11.550 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 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 BSP Debt Instruments 2.605 2.619 2.761 3.073 11.058 3.033 3.083 3.140 3.133 12.389 3.148 Special Deposit Accounts 6.932 6.149 6.637 6.528 26.246 6.291 6.003 6.233 5.803 24.330 6.064 Loans Payable and Other Foreign Currency Deposits 0.505 0.474 0.494 0.482 1.955 0.487 0.494 0.326 0.519 1.826 0.500 Other Liabilities -0.097 0.015 0.012 0.116 0.046 0.006 0.009 0.012 0.016 0.043 0.010 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 Taxes and Licenses 0.241 0.170 1.959 -1.359 1.011 0.355 0.225 0.252 0.282 1.114 0.364 Others 2.801 3.727 4.008 4.400 14.936 2.991 4.362 3.831 3.696 14.880 3.486
Net Income/(Loss) Before Gain/(Loss) on FXR Fluctuations and Income Tax Expense/(Benefit) -4.573 -3.049 -6.743 -4.723 -19.088 -2.009 -2.455 -6.187 -5.383 -16.034 -3.517
Gain/(Loss) on Foreign Exchange Rate Fluctuations 1 8.978 -0.741 0.852 -0.153 8.936 -1.176 3.496 5.333 3.897 11.550 3.673
Income Tax Expense/(Benefit) 0.000 0.000 0.000 -0.037 -0.037 0.000 0.000 0.002 -0.183 -0.181 0.000
Net Income/(Loss) After Tax 4.405 -3.790 -5.891 -4.839 -10.115 -3.185 1.041 -0.856 -1.303 -4.303 0.156
Note: Details may not add up to total due to rounding off.1
This represents realized gains or losses from fluctuations in FX rates arising from foreign currency-denominated transactions of the BSP, including: 1) rollover/re-investments of matured FX investments with foreign financial institutions and FX-denominated government securities; 2) servicing of matured FX obligations of the BSP; and 3) maturity of derivatives instruments.
p,uPreliminary and unaudited based on core Financial Accounting System (cFAS) Production Environment.
tTentative and subject to change based on cFAS Development Environment.
Source: Bangko Sentral ng Pilipinas
for periods indicatedin billion pesos
20152014
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