A Banner Year for the Philippines...

Miss World – Megan Young

Megan Young, our representative to the Miss World beauty pageant held in Indonesia was recently crowned as Miss World 2013. This is the first time that a Filipina won this event. After 62 years of excruciating agony hoping to hold that magic wand, sit in the golden chair, and wear that diamond crusted crown, we can finally say “Yes, we did it!” Or should we say, Megan Young did it for us.  

photo by Murdani Usman, Reuters

Her hard work, sacrifice and passion carried us on to win the event. Once again, we are beaming with pride and honor. Before the pageant, she posted on her official Miss World - Philippines Facebook account, “Sa aking mga kababayan, huwag kayong mawalan ng pag-asa. May bukas pa at may laban pa tayo. Taas noo tayong lalaban pero tayo’y magpakumbaba pag dating sa ating mga salita. Buong puso ko at puso niyo ang lumalaban dito. Itong laban na ito ay para sa ating lahat. Sana makapagbigay inspirasyon ako sa lahat ng Pilipino katulad rin ng aking mga iniidolo na lumaban para sa bansa. Laban, Pilipinas.” Yes, Megan. Your fight is our fight. Your battle is our battle. Together, as one united Filipinos, you as our representative and we as your avid supporters with undying fervor to support you, we can overcome the hurdles and challenges in the international competition.

More importantly, the win mirrors the resiliency of the Filipinos who in spite of their struggles continues to endeavor to be triumphant and victorious in the game of life.

To Megan Young, thank you for bringing honor and pride to our country. You did inspire all of us. Kay sarap maging Pilipino, taas noo kahit kanino.  

Source: Rappler

2^nd Place, FIBA Asia 2013

The victory of Smart Gilas over South Korea is still fresh in my memory. The fearless drives of Jason Castro, the clutch three point shots of Jimmy Alapag and jumpers of Ranidel, the hustle of Marc Pingris and the passion of the Filipinos.

I watched the encounter through streaming videos. It’s a little bit blurred but enough to see the action and recognize the players. Besides, this is a game where we can take off the monkey on our back and reassert ourselves in the world basketball. It’s about damn time that we should beat this pesky and sweet shooting Koreans. With 20,000 plus screaming fans supporting our players inside the Mall of Asia , the family’s moral support, and the 90 million plus rooting and praying to beat the Koreans, this is the best opportunity to finally exorcise the demons against the Koreans.

photo credit: FIBA Asia/Nuki Sabio

Korea was ahead 28-23 when Douthit got injured halfway through the second quarter. Wow, can you believe that? Our main man in the middle was gone! I felt right there that our chances of winning got diminished.

But the players never gave up. Who could forget the daredevil drives of Jason Castro in the opening of third quarter? He is one of the smallest on the court and yet he stands tall amongst them. Ping muscled his way under the rim against taller Koreans to rebound, defend and score. At the end of 3^rd quarter, we’re up by 9 points.

And then it happened. With over four minutes remaining, that Korean player with a tomahawk hairstyle (Lee Seung-Jun) dunked the ball to give the Koreans a one point lead. Oh boy, here we are again! Those demons just won’t go away. Those heartbreaking losses resurfaced again in my head. No, this ain’t happening!

Less than a minute to go, Philippines is up by two.  Jimmy dribbled his way to the left side and shot a three, a form we are too familiar watching in PBA. He nailed it and we’re up by five points. The ensuing play is a blocked of Norwood against a Korean shooter. As the final seconds ticked away, people start hugging one another as tears flows. Coach Chot sobs at the sidelines, some players jumped in joy; others knelt down savoring the liberation of winning against South Korea.

The historical importance of the win cannot be overemphasized. For decades, we are the kings of Asia. From 1936 to 1972, we represented Asia in Olympic basketball except for one. Since then, we’ve never been in the world.

We’ve never beaten South Korea in international competition since 1985, a 28 long years of fruitless endeavor. As a hoops mad nation, getting over the hump is a welcome relief everyone relishes. Heartbreaks includes 2011 FIBA Asia Championship, 2010 Asian Games, 2009 FIBA Asia Championship, 2002 Asian Games, 1998 Asian Games, 1987 Asian Basketball Confederation Championship, and 1986 Asian Games.

Source: Grantland,GMA News and Interaksyon

Miss Supranational – Mutya Datul

Okay, I know this title is not as popular and prominent as the other three beauty pageants, Miss World, Miss Universe and Miss International but then again when you bested 82 other beauties from different nationalities, it’s something to be proud of.

Never heard or seen her? Here is a glimpse of her beauty. Ganda talaga ng lahi natin ano po? :-) 

photos c/o Raymond Saldana.

Source: Rappler

GDP, best in Asia

Philippines 2^nd quarter 2013 GDP grew by 7.5%. Several highlights on this glowing numbers are:

Source:NSCB

a.    It beat the analysts median forecast of 7.2%.

b.    This is the 4^th consecutive quarter that the GDP expanded by at least 7%.

c.    The highest among ASEAN nations.

d.    It matched China’s GDP, highest in Asia.

e.    The composition of the growth points towards the process of rebalancing; from being a consumption led economy to investment-led and industrialized.

It wasn’t too long ago when Philippines was tagged as the “sick man” of Asia. Today, analysts and investors alike are singing a different tune. Philippines is Asia’s newest bright spot. Philippines is Asia’s Rising Economic Star. The strong man of Asia. Philippines is the investors’ darling in Asia, its economy shines amid a backdrop of slower growth in the global economy. 

HSBC predicted Philippines to become the 16^th largest economy by 2050 with an average growth of 7% until 2050.

Source: NEDA, Inquirer

PSE, 3^rd Best Performing Stock Market

Paris-based World Federation of Exchanges (WFE) recognized Philippine Stock Exchange as the 3^rd best performing stock for the year 2012. It follows Turkey and Thailand respectively.

The PSE was recognized after it gained 38.9% in market capitalization. The value turnover increased by 25.3% in 2012, 3^rd best in the world. PSE landed fourth in the expansion of number of trades while it registered fifth highest increase in broader market index.

In 2012, our PSEi recorded 33% gain, enough to land the 10^th spot lead by Venezuela’s Index which increased by a whopping 303%.

In 2013, the PSEi still fairs well among the best performing stock market as it gains 20% as of Apr 2013 to land at fifth spot, this time lead by Japan with a gain of 34% year to date.

Source: GMA News, Business Insider, Rediff

Interest Rates at Historic Low

Current interest rate is at 3.5%, the lowest rate in history since data were compiled.

Recently, Bangko Sentral ng Pilipinas kept the interest rate at 3.5% to support GDP growth.

The interest rate refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate.

Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.

Source: BSP,Trading Economics, Bloomberg

Now, A Lender to IMF

For 45 long years, we are an IMF borrower. In 2006, we were able to pay our obligations. This year, we are extending a $1 billion loan to IMF.

We’ve been the recipient of these IMF loans before, it’s time that we turn back the favor and help struggling countries.

Our GIR is at historic levels as dollars from OFWs and BPOs sector increase the net dollar inflow of our country.

First Ever Investment Grade

Philippines never achieved an Investment Grade from the three major credit agencies. Moody’s and S&P started covering Philippines in 1993 while Fitch in 1999. Since these three major credit agencies started covering Philippines credit, we’d never passed the speculative grade. The highest grade we got was a notch below the investment grade.

Until 2013 came. Last March this year, Fitch gave Philippines its first ever investment grade rating. S&P followed suit in May. Moody’s team is expected to follow suit.

Source:Philstar

An investment grade rating would lower debt interest payments, open more credit avenues, and give the country more foreign investments.

Source:SEPO, PhilStar

GDP and GNP: Gawa Dito sa Pilipinas and Gawa Ng Pilipino?

by Dr. Romulo A. Virola
Secretary General, NSCB




Many of us entertain ourselves and others by inventing and giving ingenious interpretations of acronyms. The older Filipino machos were TAKUSA, for “takot sa asawa”. Now, the yuppies graduate SUMMA for “sumalangit nawa ang grades”; andMAGNA, for “mag na-nine years sa college”. The sweet young lovers, they have something else: JAPAN, for “just always pray at night”; ITALY, for “I trust and love you”; and HOLLAND, for “hope our love lasts and never dies”! You didn’t know these marvels, did you? But if you graduated from the University of Santo Tomas, I bet you knew what UST sordidly stood for!

Okay, GDP is supposed to stand seriously for Gross Domestic Product and GNP, for Gross National Product. But many of us do not seem to understand what they really mean, and Filipino ingenuity came up with Gawa Dito sa Pilipinas and Gawa Ng Pilipino! Very cute, I must say! Are they correct, though?

The National Statistical Coordination Board (NSCB) compiles the national accounts of the Philippines. Yes, NSCB, not NEDA! And in line with best practices in statistical information dissemination, we in the NSCB post on our website our Advance Release Calendar (ARC) for our important products. According to our ARC, we will release on Nov 29, our estimates of the Philippine GDP and GNP for the third quarter of 2004.
The GDP and GNP are two very important aggregates measured in the Philippine System of National Accounts (PSNA). In the estimation of the GDP and GNP, the NSCB adopts international guidelines, the most important of which is the System of National Accounts 1993, (1993 SNA) produced after about 10 years of collaboration among the Commission of the European Communities, the IMF, the Organization for Economic Cooperation and Development, the UN and the World Bank.

In the compilation of the PSNA, two important concepts that we need to understand to be able to tell whether GDP indeed stands for Gawa Dito sa Pilipinas, are economic territory and residency.
The economic territory of a country is differentiated from its geographic territory. According to the 1993 SNA, the economic territory of a country consists of the geographic territory administered by a government within which persons, goods and services circulate freely. It includes (a) the airspace, territorial waters, and continental shelf lying in international waters over which the country enjoys exclusive rights or over which it has, or claims to have, jurisdiction in respect of the right to fish or to exploit fuels or minerals below the sea bed, (b) territorial enclaves in the rest of the world ( clearly demarcated areas of land which are located in other countries and which are used by the government which owns or rents them for diplomatic, military, scientific or other purposes, with the formal political agreement of the government of the country in which they are physically located) and (c) any free zones, or bonded warehouses or factories operated by offshore enterprises under the customs control of the country. Thus, our economic territory excludes certain areas in our geographic territory like foreign embassies and the ADB and UN offices here but includes certain areas outside of our geographic territory, like our embassies abroad.

The residency status of producers of goods and services determines the limits of domestic production and affects the measurement of GDP. In the context of the SNA, residency is not based on nationality. An institutional unit producing goods and services in the economic territory of a country is said to be a resident producer if it has a center of economic interest in that economic territory. Usually, this is interpreted to mean that the institutional unit engages or intends to continue to engage, in economic activities and transactions on a significant scale, either indefinitely or over a finite but long period of time, generally one year or more.

Our GDP accounts for economic activities that happen in the Philippine economic territory regardless of whether these economic activities are undertaken by Filipinos, former Filipinos or foreigners.
On the other hand, our GNP is all of our GDP plus compensation and property income of Philippine residents earned abroad or outside of the Philippine economic territory, less compensation and property income earned in our country by nonresidents of the Philippines.
What do these mean?

First, most economic activities which are Gawa Dito sa Pilipinas form part of our GDP. Examples are the candy production of our favorite tira-tira and choc-nut, the baking of hot pan de sal, the growing of the very healthy saluyot, gold-panning in Mt. Diwalwal in Compostela Valley and the retailing in our neighborhood sari-sari stores.

Second, economic activities like services provided in the processing of decade-old visa applications in the embassy of the US of A do not happen in the economic territory of the Philippines and are therefore not counted in our GDP, even if they can be thought of as Gawa Dito sa Pilipinas. However, Filipinos employed in foreign embassies in the country or in the ADB or in the United Nations, contribute to our GNP since they are Philippine residents receiving compensation for providing services outside of the Philippine economic territory. On the other hand, expenditures of our embassies abroad form part of our GDP, even if not Gawa Dito sa Pilipinas!


Third, economic activities of foreigners who have established residence in the Philippines even if they have not acquired Filipino citizenship, or the production of microchips by Texas Instruments in Baguio occur within our economic territory and therefore are part of our GDP and GNP, even if we think of them as not Gawa Ng Pilipino ( not Gawa Ng kompanyang Pilipino). Thus, some of your favorite PBA basketball players who are considered residents of the country, contribute to our GDP, even if, truly, they are not Filipinos!

And fourth, the value added of our OFWs in their work abroad is not part of our GDP, and of course, is not Gawa Dito sa Pilipinas. However, it is Gawa Ng Pilipino, and indeed, is part of our GNP. But the performances abroad of our talented pianist Cecil Licad, who I suppose is no longer a resident of the Philippines, is not part of our GNP, even if they are, by our common understanding, Gawa Ng Pilipino! In the same light, all those of our countrymen who have migrated to the US of A do not directly contribute to our GDP nor to our GNP. But they help our economy indirectly, when they send their green bucks here. So, our kababayans who are working hard, earning honest money and living abroad would help us if they continued to send and invest their dollars, euros, dinars, yens, etc. in our country. On the other hand, the services provided in construction projects in the Philippines like the Metro Tren, by foreign consultants who do not establish residence here are not part of our GDP or GNP; they are not Gawa Ng Pilipino, although they are Gawa Dito sa Pilipinas! They are part of the GNP of the foreign consultants’ country.

There. Hopefully, we know now who do and who do not contribute to our GDP/GNP. Not everything that isGawa Dito sa Pilipinas is part of the Philippine GDP, and not everything that is Gawa Ng Pilipino is part of our GNP. Conversely, there are goods and services that are not Gawa Dito sa Pilipinas but are part of our GDP and there are goods and services that are not Gawa Ng Pilipino but form part of our GDP and GNP. Basically, GDP is production by resident producers in our economic territory,which is different from our geographic territory, while GNP is income by residents of our country, regardless of where the income is earned. So, next time you need to explain the Philippine GDP or GNP to your friends, you do not need to play cute. Being correct and cute, wouldn’t that be better?

via www.nscb.gov.ph

Our GDP in 2010 is $203 billion by the way.

via Global Finance