Report on

Economic and Financial Developments

Fourth Quarter 2019

B A N G KO S E N T R A L N G P I L I P I N A S
Report on Economic and Financial Developments – Fourth Quarter 2019
Table of Contents
Executive Summary...................................................................................................................... 2
Introduction ................................................................................................................................. 4
Real Sector ................................................................................................................................... 5
Aggregate Supply and Demand ................................................................................................... 5
Labor and Employment ............................................................................................................... 7
Fiscal Sector ................................................................................................................................. 8
National Government Cash Operations ...................................................................................... 8
Monetary Sector .......................................................................................................................... 9
Prices ........................................................................................................................................... 9
Domestic Liquidity ..................................................................................................................... 10
Monetary Policy Developments ................................................................................................ 11
Monetary Operations ................................................................................................................ 12
Domestic Interest Rates ............................................................................................................ 12
Financial Sector ...........................................................................................................................13
Banking System ......................................................................................................................... 13
Banking Policies ......................................................................................................................... 17
Capital Market Reforms ............................................................................................................ 17
Stock Market ............................................................................................................................. 17
Bond Market.............................................................................................................................. 19
Credit Risk Assessment.............................................................................................................. 21
Payments and Settlements System ........................................................................................... 22
External Sector............................................................................................................................23
Balance of Payments ................................................................................................................. 23
International Reserves .............................................................................................................. 26
Exchange Rate ........................................................................................................................... 27
External Debt ............................................................................................................................. 28
Foreign Interest Rates ............................................................................................................... 30
Global Economic Developments ............................................................................................... 31
Financial Condition of the BSP ....................................................................................................34
Balance Sheet ............................................................................................................................ 34
Income Statement ..................................................................................................................... 35
Conclusion, Challenges and Policy Directions ..............................................................................35
Annexes ......................................................................................................................................37
List of Acronyms, Abbreviations, and Symbols ............................................................................44
Statistical Tables .........................................................................................................................46

Fourth Quarter 2019 Report on Economic and Financial Developments | i


Executive Summary
The Philippine economy grows at a faster pace in
Q4 2019. The country’s real gross domestic product
(GDP) increased to 6.4 percent year-on-year (y-o-y)
in Q4 2019, from 6.0 percent in the previous
quarter, as government consumption and public
construction accelerated and as the services sector
remained robust. However, the full-year 2019
growth of 5.9 percent fell short of the national
government’s target of 6.0-6.5 percent for the year.
Lower than the 6.2 percent growth in the previous
year, the decline was partly due to the delayed
approval of the 2019 budget, election spending
ban, and prolonged El Niño phenomenon.
Nevertheless, the county’s economic performance
remains at par with Asian emerging economies and
is one of the fastest-growing in the region and the
world.
Labor market conditions improve. The number of
employed persons increased to 43.1 million in
October 2019 from 42.9 million in July 2019.
Meanwhile, the unemployment rate in October
2019 was estimated at 4.5 percent, a record-low,
from 5.1 percent in July 2019. The
underemployment rate also declined to 13.0
percent while the labor force participation
increased slightly to 61.5 percent.
National Government (NG) operations post deficit.
NG cash operations yielded a deficit of P361.2
billion in Q4 2019, equivalent to -6.8 percent of
GDP, driven by accelerated disbursements in
December 2019. Increased expenditures were due
to strong infrastructure spending, personnel
services expenditures, and subsidies to
government-owned and controlled corporations
(GOCCs) and allotment to local government units
(LGUs).
Inflation remains favorable. Headline inflation
inched down to 1.6 percent year-on-year (y-o-y) in
Q4 2019, slightly lower than 1.7 percent in the
previous quarter, as food inflation decreased while
most non-food components eased. Core inflation
likewise slowed to 2.7 percent y-o-y. This brings the
annual average inflation to 2.5 percent, which is
2 | Fourth Quarter 2019 Report on Economic and Financial Developments
well-within the government’s target range of 3.0
percent ± 1.0 percentage points (ppt) for 2019.
Domestic liquidity ample. Money supply (M3) grew
11.3 percent y-o-y as of end-December 2019 to
about P13.0 trillion, faster than the 7.6-percent
expansion as of end-September 2019, driven by
increases in net foreign assets and domestic claims.
The Bangko Sentral ng Pilipinas (BSP) maintains
policy rates in Q4 2019. At its monetary policy
meetings on 14 November and 12 December 2019,
the BSP decided to maintain its key policy interest
rate (overnight reverse repurchase or RRP facility)
at 4.0 percent. The corresponding interest rates on
the overnight lending and deposit facilities were
also kept steady. This is based on an assessment of
a benign inflation environment, within-target
inflation outlook and solid prospects for domestic
growth support.
Domestic interest rate declines. As liquidity in the
financial system remains ample and amid
expectations of future policy rate cuts from the
BSP, Treasury bill (T-bill) rates in the primary market
as well as Government Securities (GS) yields in the
secondary market fell in end-December 2019
compared to the previous quarter. Anticipation of
additional liquidity following the reductions in the
reserve requirement ratios supported the decline in
the yields of all maturities.
Banking system remains sound and stable. The
banking system's total resources reached ₱18.7
trillion as of end-December 2019, equivalent to
100.5 percent of GDP. Asset quality remained
stable, with net non-performing loan (NNPL) ratio
at 1.1 percent and gross NPL ratio at 2.1 percent, as
of end-December 2019. Capital adequacy ratios,
which was around 16.0 percent for universal and
commercial banks (U/KBs) as of end-September
2019, were well above the BSP’s regulatory
threshold of 10.0 percent and the international
standard of 8.0 percent.
Stock market monthly trend mixed. The Philippine
Stock Exchange index (PSEi) went up in October
before dropping in November and then rising anew
in December 2019. On average, it eased to 7,853.9
index points for Q4 2019, about 1.7 percent lower
than the previous quarter, as positive domestic
economic developments were weighed down by Global economic activity shows softer growth.
negative sentiments stemming mostly from Global growth eased in Q4 2019 due to persistent
overseas, such as political unrests and uncertainties slowdown in trade and investment, prolonged trade
and trade tensions. policy uncertainty, geopolitical issues and
idiosyncratic shocks in some economies.
External position sustains surplus. The country’s Nevertheless, recent developments such as stable
overall balance of payments (BOP) position growth in the service sector and continued
registered a surplus of US$2.3 billion in Q4 2019, monetary policy easing provided respite.
lower than the US$2.8 billion surplus posted in the
same quarter in 2018. The lower surplus was
brought about by the decline in net inflows (i.e., net
borrowing by residents from the rest of the world)
in the financial account even as the current account
reversed to a surplus during the quarter.

Reserves increase to record-high. The country’s

gross international reserves (GIR) amounted to
US$87.8 billion as of end-December 2019, higher
than the US$85.6 billion in end-September 2019. At
this level, the GIR remains adequate as it can cover
7.7 months’ worth of imports of goods and
payments of services and primary income. It is also
equivalent to 5.4 times the country’s short-term
external debt based on original maturity and
4.1 times based on residual maturity.

External debt stays manageable. Outstanding

external debt stood at US$83.6 billion as of
end-2019, an increase from US$82.7 billion as of
end-September 2019. The maturity profile
remained predominantly medium- to long-term.
The Debt Service Ratio (DSR) increased to
6.8 percent in end-2019 from 4.1 percent a quarter
ago and the external debt to GNI ratio improved to
19.4 percent from 19.7 percent a quarter ago while
the EDT to GDP ratio slightly decreased to
23.3 percent as of end-December 2019 from
23.7 percent as of end-September 2019.

Philippine peso appreciates against the US dollar.

The peso averaged ₱51.03/US$1 in Q4 2019, from
₱51.74/US$1 in the previous quarter, with the
appreciation due mainly to the benign domestic
inflation environment and sustained inflows from
Overseas Filipinos (OF) remittances, foreign direct
investments (FDI) and business process outsourcing
(BPO) receipts. Likewise, the peso was also buoyed
by the market’s anticipation of interest rate
reduction by the US Federal Reserve.

Fourth Quarter 2019 Report on Economic and Financial Developments | 3

Introduction
Despite rising global uncertainties, the Philippine
economy remained resilient supported by solid
macroeconomic fundamentals. For the last quarter
of 2019 (Q4 2019), growth remained broad-based
and inflation manageable. This position of strength
was buttressed by ample liquidity and credit, sound
banking system, adequate external buffers,
reasonable fiscal space, and better labor market
conditions. Improved inflation dynamics also
enabled the BSP to maintain its monetary policy
settings.
In Q4 2019, real GDP accelerated from the previous
quarter due to robust growth in government
consumption and public construction. On the
supply side, domestic growth was supported by
stronger expansion in the services sector. While the
full-year 2019 growth fell short of the National
Government’s target range, it remains at par with
Asian emerging economies and is one of the fastest-
growing in the region and the world.
sector as well as ramped-up government
infrastructure spending. However, there are also
risks and challenges that need to be managed such
as a fragile global environment exacerbated by
rising geopolitical tensions, trade disputes, and,
more recently, disease outbreaks. Domestic risks
include infrastructure bottlenecks and increased
natural disasters. Meanwhile, inflation is expected
to be target-consistent, with inflation expectations
continuing to be firmly-anchored. Upside risks on
inflation over the near term emanate from lingering
upward pressures on food prices especially on meat
and rice prices.
To uphold the rosy Philippine macroeconomic
narrative, the BSP remains firmly committed in the
effective discharge of its mandates and policy
thrusts. The BSP will continue to promote and
maintain price stability, a strong financial system,
and a safe and efficient payments and settlements
system conducive to a sustainable and inclusive
growth of the economy. At the same time, it aims
to promote its various advocacies and increase
stakeholder engagement to bring central banking
closer the Filipino people.

Inflation eased in the last quarter of the year, due

to lower inflation for food as well as for housing,
energy and transport. The resulting annual average
inflation settled within the government’s target
range of 2.0 – 4.0 percent for the year. Due to
assessments of benign inflation environment and
solid domestic growth, the BSP retained its key
policy rate during its monetary policy meetings in
Q4 2019, after a series of rate cuts in the previous
quarters.

External buffers remained adequate. The overall

balance of payments (BOP) posted a surplus in
2019, a turnaround from the deficit in the previous
year, supported by record-high remittance inflows
from overseas Filipinos, higher net trade receipts,
and sustained net inflows of foreign direct
investments and portfolio investments. The
country’s gross international reserves, which
increased to an all-time record, was highly-
adequate. External debt ratios were prudent.

Looking ahead, the economy is expected to

continue its sterling performance. Domestic growth
fundamentals are expected to remain intact and
will pick up on the back of firm household
consumption and robust growth in the services

4 | Fourth Quarter 2019 Report on Economic and Financial Developments

Real Sector
Aggregate Supply and Demand
The Philippine economy continued to perform
strongly in the last quarter of 2019 with GDP
growing by 6.4 percent from the revised 6.0 percent
in the previous quarter and 6.3 percent in the last
quarter of 2018. This marked the 84th consecutive
quarter of uninterrupted growth for the domestic
economy.
Domestic economy grows at a
faster pace in Q4 2019
The favorable GDP outturn in Q4 2019 continued to
be broad-based with major sectors contributing
positively to growth. On the supply side, growth
was driven by the notable contributions of both the
services and industry sectors particularly public
administration and defense, compulsory social
security; financial intermediation; and construction.
On the demand side, growth was underpinned by
the double-digit performance of government
consumption in addition to the robust expansion of
household spending.
Chart 1. Gross Domestic Product and Gross
National Income
annual growth rate in percent; at constant 2000 prices
While the GDP growth rate in Q4 2019 of
6.4 percent was the fastest pace for 2019, the
full-year 2019 growth of 5.9 percent fell short by
0.1 percentage point (ppt) from the lower end of
the national government growth target of
6.0 percent to 6.5 percent for the year. The
delayed approval of the 2019 budget, along with
the election spending ban and the prolonged El
Fourth Quarter 2019 Report on Economic and Financial Developments | 5
Niño phenomenon, cost the economy an estimated
full percentage point in growth. Nevertheless, the
country continued to be one of the fastest-growing
economies, not only in Asia, but in the world amid
subdued global growth and economic uncertainties.
GDP by industry
On the production side, the services sector
continued to be the principal growth driver of the
domestic economy as it contributed 4.4 percentage
points (ppts) to the fourth quarter growth print
(Table 1). Accounting for 57.1 percent of GDP, the
services sector posted a 7.9 percent expansion in
Q4 2019, higher than its growth rate in the same
period in 2018 of 6.9 percent and in Q3 2019 of 6.7
percent. The Q4 2019 growth of the services sector
was its fastest pace since Q1 2016, which was
supported by the robust performance of its major
subsectors, particularly public administration and
defense, compulsory social security (17.1 percent)
and financial intermediation (10.9 percent).
Chart 2. Gross Domestic Product, by Industry
annual growth rate in percent; at constant 2000 prices
The industry sector expanded by 5.4 percent in
Q4 2019, albeit lower than the year-ago and
quarter-ago rates of 6.9 percent and 6.7 percent,
respectively. The sector continued to be a reliable
source of growth for the economy as it contributed
1.9 ppts to the GDP growth driven mainly by
manufacturing and construction subsectors. The
manufacturing subsector grew by 3.7 percent in
Q4 2019, faster compared with the 3.2 percent
growth recorded in Q4 2018 and 2.6 percent in
Q3 2019. This improvement in the overall
manufacturing performance was attributed to the
sustained positive growth of the food manufactures
(8.0 percent) and chemical products (14.5 percent).
Meanwhile, the construction subsector continued
to post a double-digit growth rate for the second
consecutive quarter at 10.7 percent in Q4 2019 as
public construction rose sharply by 33.8 percent in
line with the government’s catch-up plan of
completing road projects and government buildings
during the review quarter. However, the expansion
of the construction subsector in Q4 2019 was
slower compared to the 20.0 percent and 15.4
percent growth rates in Q4 2018 and Q3 2019,
respectively, attributable to the slower growth in
private construction of 5.5 percent during the
review quarter from 19.3 percent expansion in the
same period in 2018 and 18.1 percent in the
previous quarter. Nonetheless, the solid growth
performance of the construction subsector was an
indication of the sustained bright prospects of the
domestic economy and the accelerated momentum
of the national government’s Build Build Build
infrastructure agenda.
Meanwhile, the agriculture, hunting, forestry and
fishing (AHFF) sector rose by 1.5 percent in
Q4 2019, down from the 1.8 percent growth in
Q4 2018 and 3.1 percent expansion in Q3 2019.
Despite the strong typhoons during the review
quarter, early warning announcements by relevant
government agencies have helped to minimize crop
losses. The agriculture sub-sector, comprising
81.7 percent of the total AHFF sector, grew by
1.0 percent in Q4 2019 as palay production posted
a growth of 4.8 percent, following the six
consecutive quarters of contraction due to the El
Niño phenomenon during the first half of 2019.
While the poultry industry increased production by
5.5 percent, this was offset by the 8.3 percent
decline in livestock due to the spread of African
Swine Fever (ASF) in certain areas in the country. 1
Given these latest developments in the agriculture
sector, the government continues to recognize the
need to re-design its agriculture programs and
projects in favor of crops resilient to weather
shocks and adaptive to climate change. Farmers
have been assisted to shift to high-value, short
maturing, high-yielding crops to increase
production. In light of the ASF outbreak, disease-
control measures must be sustained to control its
spread to other provinces in the country. 2
1 ASF is a fatal animal disease affecting pigs and wild boars with
up to 100 percent case fatality rate. Source: Food and Agriculture
Organization of the United Nations
6 | Fourth Quarter 2019 Report on Economic and Financial Developments
GDP by expenditure
On the expenditure side, the Q4 2019 GDP output
was driven by the double-digit growth in
government spending in line with its catch-up plan
to expedite public construction during the last
quarter of 2019. In addition, robust household
consumption remained one of the main drivers of
domestic demand. While capital formation
registered a small positive growth rate, durable
equipment continued to decline dragged by the
contraction of machinery and equipment during the
review period.
Household spending grew by 5.6 percent in
Q4 2019, higher than its year-ago expansion of
5.3 percent but lower than the previous quarter’s
5.9 percent growth. This enabled household
consumption to account for more than half or
4.0 ppts of the 6.4 percent GDP growth. The
sustained positive performance of private demand
in Q4 2019 could be attributed to increased
spending during the holiday season as well as
ample supply of basic commodities. Food and
non-alcoholic beverages, which hold a 42.2 percent
share of total household expenditure, grew at a
faster pace of 4.7 percent compared with the
4.3 percent growth recorded a quarter ago despite
increased aversion to meat products, particularly
pork, amid the spread of ASF during the review
quarter.
Chart 3. Gross Domestic Product, by Expenditure
annual growth rate in percent; at constant 2000 prices
Government spending expanded by 18.7 percent in
Q4 2019, faster than the 12.6 percent growth in
Q4 2018 and 9.6 percent increase in Q3 2019. This
2 Statement of Socioeconomic Planning Secretary Ernesto M.
Pernia at the Press Conference on The Philippine Economic
Performance for the Fourth Quarter and Full-Year of 2019, dated
23 January 2020.
is the fastest growth rate since Q2 2012 as the
government accelerated spending in the last
quarter of the year on the programs and projects
that were affected by the budget impasse and the
election spending ban during the first half of the
year.
Meanwhile, capital formation rose by 0.4 percent,
an improvement relative to the 2.6 percent
contraction posted in Q3 2019 but still slower than
the 4.9 percent growth in Q4 2018. Despite the
contraction in durable equipment for the third
consecutive quarter (-5.9 percent in Q4 2019),
investments in construction grew by 11.8 percent,
albeit slower from a year ago and a quarter ago
expansions of 17.6 percent and 16.6 percent,
respectively.
While the country’s domestic demand remained
firm in Q4 2019, the exports sector continued to
face a challenging environment. Exports recovered
during the review quarter posting a 2.0 percent
growth, higher than the 0.7 percent growth in
Q3 2019 but much lower than the 14.4 percent
growth it posted in Q4 2018. Meanwhile, imports
posted a minimal growth of 0.3 percent, a reversal
from the 0.2 percent contraction in Q3 2019. The
sluggish external sector performance during the
review quarter was brought about by the persistent
weak global growth, geopolitical conflicts, and the
US-China trade tension.
Overall, amid a challenging global economic
backdrop, the Philippine economy remains in a
position of strength. The 6.4 percent GDP growth
in Q4 2019 implies that the economy continued to
accelerate, despite the spending bottlenecks during
the first half of the year. Moving forward, the
timely passage of the national budget for 2020, the
extended validity of the 2019 national budget, and
the ongoing tax reforms are all seen to spur
sustainable and inclusive growth for the Philippine
economy.
Labor and Employment
The number of employed persons increased to 43.1
million in October 2019 from 42.9 million in July
2019, with employment rate estimated at 95.5
3 Released on 5 December 2019.
Fourth Quarter 2019 Report on Economic and Financial Developments | 7
percent, based on PSA’s preliminary October 2019
Labor Force Survey (LFS) 3 (Table 2).
Labor market conditions
continue to improve
In October 2019, employment in the industry sector
rose by 1.2 percent, brought about by the
expansion in the construction sub-sector absorbing
around 186,000 workers and the additional 8,000
workers in the electricity, gas, steam and air
conditioning supply sub-sector. These outweighed
employment losses in mining and quarrying
(-43,320 workers); manufacturing (-52,000
workers); and water supply, sewerage, waste
management and remediation activities (-15,000
workers) sub-sectors. Employment in the
agriculture sector also grew by 0.2 percent with the
significant employment gains in agriculture,
hunting, and forestry sub-sector (176,600 workers)
offsetting the reduction of workers in the fishing
and aquaculture sub-sector (-152,940 workers).
Likewise, employment in the services sector
increased by 0.3 percent attributed to employment
gains in the following sub-sectors: transportation
and storage (246,080 workers); education (115,920
workers); human health and social work activities
(98,930 workers); financial and insurance activities
(87,210 workers); accommodation and food
services (15,350 workers); and activities of
extraterritorial organizations and bodies
(160 workers). Conversely, employment losses
aggregating to 495,240 workers were registered in
the following sub-sectors: wholesale and retail
trade, repair of motor vehicles and motorcycles;
information and communication; real estate
activities; administrative and support service
activities; public administration and defense,
compulsory social security; arts, entertainment and
recreation; and other services. Of the total
employed persons, the services sector accounted
for the largest share at 57.7 percent, followed by
the agriculture sector at 23.5 percent, and the
industry sector at 18.9 percent.
Employed persons are categorized into: (1) wage
and salary workers; (2) self-employed workers
without any paid employee; (3) employers in own
family-operated farm or business; and (4) unpaid Chart 4. Unemployment and Underemployment
family workers. Among the wage and salary Rates
in percent
workers, employment increments were registered
in those who worked in private establishments
(555,000 workers) and in government/government
corporation (81,000 workers). Those who worked
in own family-operated farm or business also
increased (50,000 workers). Meanwhile,
employment shrank for both self-employed
workers without any paid employee by 0.8 percent
and unpaid family workers by 7.8 percent, which
may be taken as an indication that more are
entering the paid labor force. Of the total
employed, wage and salary workers made up
63.4 percent, self-employed comprised The underemployment 5 rate also decreased to
27.3 percent, unpaid family workers accounted for 13.0 percent in the October 2019 LFS from
6.4 percent, and workers in own family-operated 13.9 percent in July 2019 LFS. By hours worked in a
farm or business accounted for the remaining week, the visibly underemployed persons (part-time
2.8 percent. workers) comprised 60.5 percent of the total
underemployed, while the invisibly underemployed
Workers are also classified as either full-time or persons (full-time workers) comprised 38.0 percent.
part-time workers. Full-time workers were those By sector, underemployed workers in the services
who worked for 40 hours or more during the sector comprised 44.9 percent of the total
reference week, while part-time workers were underemployed, 37.8 percent in the agriculture
those who worked for less than 40 hours. In sector, and 17.3 percent in the industry sector.
October 2019, the number of full-time workers
grew by 2.4 percent while the number of part-time The labor force participation rate (LFPR) 6 rose to
workers dropped by 3.7 percent (October 2019 LFS 61.5 percent in October 2019, 0.9 ppt higher than
versus July 2019 LFS). Full-time workers represent 60.6 percent in July 2019 LFPR.
two-thirds of the total employed, while the
remaining one-third are part-time workers.
Meanwhile, workers with jobs but not at work Fiscal Sector
increased by 3.5 percent. 4

The unemployment rate in October 2019 LFS was
estimated at a record low of 4.5 percent, 0.6 ppts
lower than the 5.1 percent in July 2019 LFS. Most
of the unemployed persons were males
(61.4 percent), with ages between 15 to 24 years
old (46.1 percent), and have graduated from college
(27.9 percent).
National Government Cash
Operations
The cash operations of the NG yielded a deficit of
P361.2 billion in Q4 2019, double than the year-ago
deficit level of P180.0 billion. The NG’s fiscal deficit
for Q4 2019 was equivalent to -6.8 percent of GDP,
almost twice the -3.6 percent deficit ratio
registered in Q4 2018 (Table 3).

4 “With a job but not at work” are those who have a job or
business but are not at work because of temporary illness/injury,
on vacation, or other reasons.
5
Underemployment refers to those employed persons who
express the desire to have additional hours of work in their
longer working hours. Those who work for less than 40 hours in
a week are called visibly underemployed persons, while those
who worked for more than 40 hours in a week are called invisibly
underemployed persons.
6 LFPR refers to the percentage of the total number of persons in

present job, or to have additional job, or to have a new job with the labor force to the total population 15 years old and over.

8 | Fourth Quarter 2019 Report on Economic and Financial Developments


NG cash operations post a
deficit
Total NG revenues for Q4 2019 reached
P809.6 billion, 9.6 percent higher than the Q4 2018
level of P738.7 billion. Total revenues as a share of
GDP was recorded at 15.3 percent in Q4 2019,
higher than the Q4 2018 share of 14.9 percent. The
year-on-year (y-o-y) increase in revenues was due
mainly to improved collections by the Bureau of
Internal Revenue (BIR) and Bureau of Customs
(BOC) by 12.8 percent and 1.1 percent, respectively.
Tax collections, which constituted 91.9 percent of
total revenues, amounted to P737.3 billion,
10.0 percent higher than the comparable figure a
year-ago. Non-tax revenues, which consisted mainly
of collections made by the Bureau of the Treasury
(BTr), likewise increased by 6.0 percent y-o-y to
reach P72.2 billion.
Meanwhile, total NG expenditures in Q4 2019
reached P1,170.8 billion, 27.4 percent higher than
the P918.7 billion expenditures in Q4 2018.
Relative to the size of the economy, total NG
disbursements was recorded at 22.2 percent of GDP
in Q4 2019, an increase from the previous year’s
ratio of 18.6 percent. The y-o-y increase in
expenditures can be attributed mainly to the
increase in personal services, subsidies to
government-owned and controlled corporations
(GOCCs) and allotment to local government units
(LGUs).
Chart 5. Cash Operations of the National
Government
in billion pesos
Fourth Quarter 2019 Report on Economic and Financial Developments | 9
Netting out the interest payments from total
expenditures, the resulting primary deficit
amounted to P294.1 billion, representing
­5.6 percent of GDP during the review quarter. In
terms of financing the deficit, the NG incurred net
borrowings in Q4 2019 of P78.6 billion mostly
coming from domestic sources.
Fiscal discipline has generated sufficient fiscal space
which can be allocated to accelerate infrastructure
development. The need to address infrastructure
gaps is a top priority for the country to increase
productive capacity and competitiveness. The
government is targeting increased infrastructure
spending over the medium term.
Monetary Sector
Prices
Headline inflation. Headline inflation eased to
1.6 percent y-o-y in Q4 2019, which is slightly lower
than the 1.7 percent in the previous quarter (Table
4). The resulting annual average inflation is
2.5 percent, which is well within the Government’s
announced target range of 3.0 percent ± 1.0 ppt for
the year.
Average headline inflation falls
within target in 2019
Core inflation. Likewise, core inflation—which
excludes selected volatile food and energy items to
measure underlying price pressures—has slowed
down to 2.7 percent y-o-y in Q4 2019 from
2.9 percent in the previous quarter. Similarly, most
of the BSP-computed alternative measures for core
inflation were also lower in Q4 2019 relative to the
previous quarter.
Table A. Alternative Core Inflation Measures In terms of geographical location, inflation rate in
(2012=100) the National Capital Region (NCR) increased to
in percent
1.8 percent y-o-y in Q4 2019 from 1.5 percent in the
Official Trimmed Weighted Net of previous quarter (Table 4a) due largely to higher
Core Mean Median Volatile price increases of key food items, particularly meat,
Period Inflation Items
(1) (2) (3) fish, milk, cheese, and eggs, as well as vegetables.
Q4 2018 4.9 5.2 5.2 4.9 By contrast, non-food inflation in NCR eased further
Q3 2019 2.9 1.9 2.8 3.3 in Q4 2019 due to lower y-o-y inflation for housing
Q4 2019 2.7 1.7 2.6 3.3 and water supply while y-o-y electricity and gas
Sources: PSA and BSP-DER staff calculations inflation continued to decline. Transport inflation
(1) Trimmed mean represents the average inflation rate of the (weighted) middle
70 percent in a lowest-to-highest ranking of year-on-year inflation rates for all CPI
also remained negative during the quarter owing to
components.
(2) Weighted median represents the middle inflation rate (corresponding to a cumulative
lower prices of domestic petroleum products.
CPI weight of 50 percent) in a lowest-to-highest ranking of year-on-year inflation
rates.
(3) The net of volatile items method excludes the following items: bread and cereals, Chart 7. Inflation Rate (2012=100)
vegetables, sugar, jam, honey, chocolate, and confectionery, electricity, gas, fuel and
lubricants for personal transport equipment, a.nd passenger transport by road, which
in percent
represents 29.5 percent of all items.

Lower food inflation due to ample domestic supply

of key food items contributed to lower inflation for
the quarter. Year-on-year food inflation was nil in
Q4 2019 from 0.2 percent in the previous quarter.
Domestic rice prices have been relatively stable or
declining during the quarter with the main harvest
season and the continued arrival of rice imports by
the private sector.

Meanwhile, inflation in areas outside NCR (AONCR)

Chart 6. Food and Non-Food Inflation in the
slowed down to 1.4 percent y-o-y in Q4 2019, which
Philippines (2012=100)
in percent is lower than quarter- and year-ago rates. Food
inflation decreased in Q4 2019 as y-o-y inflation for
rice, corn, sugar, jam, honey, chocolate, and
confectionery remained negative during the quarter.
At the same time, easing y-o-y inflation of non-food
items also contributed to lower overall inflation in
AONCR.

Domestic Liquidity 7

Money supply or M3 grew by 11.3 percent y-o-y as

of end-December 2019 to about P13.0 trillion,
Likewise, non-food inflation decelerated to faster than the 7.6-percent expansion as of
1.8 percent y-o-y in Q4 2019 from 2.1 percent in the end-September 2019 (Table 5). The expansion in
previous quarter. Inflation for actual rentals for M3 was driven by the 8.9-percent y-o-y growth in
housing went down while inflation for electricity, net foreign assets and the 10.6-percent growth in
gas, and other fuels also eased during the quarter. domestic claims in December 2019. Credit
At the same time, y-o-y transport inflation also extended to the private sector rose by 7.7 percent,
continued to decline in Q4 2019 partially driven by supported by the sustained increase in bank
lower inflation for air transport. lending. Net claims on the central government

7
The indicators used for money supply are: M1 (or narrow (quasi-money); M3, consisting of M2 plus deposit substitutes; and
money), comprised of currency in circulation and demand M4, consisting of M3 plus foreign currency deposits.
deposits; M2, composed of M1 plus savings and time deposits

10 | Fourth Quarter 2019 Report on Economic and Financial Developments

grew by 23.8 percent from a 5.4-percent expansion inflation expectations. Equally important, the
as of end-September 2019. balance of risks to the inflation outlook continue to
lean slightly toward the upside in 2020 and toward
the downside in 2021. Upside risks to inflation over
Domestic liquidity remains the near term emanate mainly from potential
volatility in international oil prices amid geopolitical
ample
tensions in the Middle East as well as from the
potential impact of the African Swine Fever
Table B. Domestic Liquidity (M3)
Levels Growth Rates outbreak and recent weather disturbances on
(in billion pesos) (in percent)

Particulars Dec-2019 Sep-2019 Dec-2018

Quarter-on-
Year-on-Year
domestic food prices. However, uncertainty over
Quarter
Domestic Liquidity (M3), 12,963.4 12,027.9 11,643.0 7.8 11.3 trade policies in major economies continue to
of which:
Net Foreign Assets 4,857.9 4,831.1 4,460.9 0.6 8.9
weigh down on global economic activity and
Domestic Claims 13,311.3 12,414.8 12,035.0 7.2 10.6
demand and could thus mitigate upward pressures
of which:

Net Claims on Central Government 2,366.2 1,923.7 1,911.1 23.0 23.8

on commodity prices.
Claims on the Private Sector 9,354.1 8,979.4 8,687.4 4.2 7.7

Source: BSP Chart 8. BSP Policy Rates

in percent
Net foreign assets (NFA) in peso terms grew by
8.9 percent y-o-y in December 2019. The BSP’s NFA
position continued to expand during the quarter,
supported by foreign exchange inflows coming
mainly from overseas Filipinos’ remittances and
business process outsourcing receipts. Similarly,
the NFA of banks increased due to the sustained
expansion in banks’ foreign assets resulting from
the growth in loans and investments in marketable
debt securities. Meanwhile, the growth of M4, a
broader concept of domestic liquidity comprising
broad money liabilities and foreign currency
deposits of residents, rose to 9.7 percent y-o-y in Notwithstanding the weak global growth outlook,
December 2019 from 6.8-percent in September prospects for the Philippine economy continue to
2019. be robust on the back of firm domestic demand.
Sustained policy support from increased fiscal
Monetary Policy Developments spending, and improved domestic liquidity
conditions owing to recent monetary adjustments
At its monetary policy meetings on 14 November as well as the cut in reserve requirement, are
and 12 December, the BSP decided to maintain the expected to support growth in the coming months.
key policy interest rate at 4.0 percent for the
overnight reverse repurchase or RRP facility. The Given these considerations, the BSP is of the view
corresponding interest rates on the overnight that the within-target inflation outlook and solid
lending and deposit facilities were also kept steady. prospects for domestic growth support keeping
monetary policy settings steady. Going forward, the
BSP will continue to monitor developments
BSP maintains monetary policy
affecting the inflation outlook and demand
settings conditions to ensure that the monetary policy
stance remains consistent with its price and
The BSP’s decision is based on its assessment of a financial stability objectives.
benign inflation environment. Latest baseline
forecasts indicate that the future inflation path
remains within the target range of 3.0 ± 1.0
percentage point in 2020-2021, with well-anchored

Fourth Quarter 2019 Report on Economic and Financial Developments | 11

Monetary Operations reserve requirement ratios supported the decline in
the yields of all maturities, ranging from 2.10 bps
(6-month) to 42.00 bps (5-year). Meanwhile, the
As of end-Q4 2019, majority of the BSP’s liquidity-
yields of 3-month, 20-year and 25-year GS rose by
absorbing monetary operations had been through
10.20 bps, 13.70 bps and 22.80 bps, respectively.
the overnight reverse repurchase (RRP) facility,
comprising about 35.7 percent of total outstanding
Chart 9. Treasury Bill Rates
amount of liquidity absorbed in BSP liquidity
in percent
facilities. Meanwhile, the combined placements in
the overnight deposit facility (ODF) and the term
deposit facility (TDF) made up the remaining 64.3
percent.

Consistent with the BSP’s assessment of prevailing

liquidity conditions and taking into account lower
national government (NG) deposits with the BSP as
well as the 200-bp cumulative reserve requirement
reduction effective in November and December
2019, the average weekly total offer volumes for
the TDF auctions was higher at about P126.9 billion
The interbank call loan, lending, savings deposit and
in Q4 2019 relative to the P74.6 billion average
time deposit rates were also lower in Q4 2019 by
weekly volume offered in the previous quarter. The
45.67 bps, 36.30 bps, 28.90 bps and 39.90 bps,
average bid-to-cover ratios for the 7-day, 14-day,
respectively, compared to their Q3 2019 levels.
and 28-day tenors were recorded at 1.1, 1.1, and
1.1 compared to 1.4, 1.3, and 1.3, respectively, in
the previous quarter. Meanwhile, the average bid- Yields in the secondary market
to-cover ratio for the daily RRP offerings was higher generally fall
at around 1.3 during the quarter from 1.1 in Q3
2019.
Interest rates on the 7-day, 14-day and 28-day term
deposit facilities (TDFs) declined in Q4 2019 by 24.06
Domestic Interest Rates bps, 22.47 bps and 21.86 bps to settle at 4.25
percent, 4.30 percent and 4.32 percent, respectively.
Amid expectations of further policy rate cuts from This reflected the announced 200-bp reduction in
the BSP, Treasury bill (T-bill) rates in the primary the reserve requirement ratio in Q4 2019 along with
market in Q4 2019 reflected strong demand for the maturity of the 7-year T-bond in end-Nov 2019.
government securities (GS) as liquidity in the
financial system remains ample. The 91-day, 182- Chart 10. Yield Curve of Government Securities
day and 364-day Treasury bill (T-bill) rates in the in percent
primary market fell to 3.12 percent, 3.23 percent
and 3.53 percent from the Q3 2019 rates of 3.42
percent, 3.72 percent and 4.04 percent,
respectively (Table 6).

Primary market interest rates

decline

Consequently, the secondary market yields of GS

mostly fell in end-December 2019 relative to
end-September 2019 levels. Anticipation of
additional liquidity following the reductions in the

12 | Fourth Quarter 2019 Report on Economic and Financial Developments

 Chart 12. BSP RRP Rate and US Federal Funds
Rates in the BSP’s term deposit Target Rate
facility decline in percent

The differentials (gross and net of tax) between the

domestic and US interest rates generally widened in
Q4 2019 relative to Q3 2019. The RP average
91-day T-bill rate declined by 29.67 bps to 3.12
percent in Q4 2019. Similarly, the average US
90-day LIBOR and the US 90-day T-bill rate fell by
26.46 bps to 1.93 percent and 31.90 bps to 1.59
percent, respectively. Reductions in BSP’s reserve
requirement of banks and the US federal funds
target rate led to the decline in interest rates during
the quarter. Chart 13. Risk-Adjusted Differentials
in basis points

Other market interest rates fall

The positive differential between the BSP's policy

interest rate (overnight borrowing or RRP rate) and
the US Federal Funds target rate increased to 225
bps as of end-December 2019, given the 25-bp
decline in the US Federal Funds rate against the
unchanged BSP policy rate. Meanwhile, compared
to its September 2019 level, the risk-adjusted
spread between the two policy rates widened to
167 bps in December 2019, with a 7-bp decline in
risk premium (measured as the difference between
the 10-year ROP and the 10-year US note). The risk Financial Sector
premium declined following the 13-bp decline in
the yield of 10-year ROP note relative to the larger
decline (20 bps) in the yield of the 10-year US Banking System
Treasury note.
The Philippine banking system continued to lend
Chart 11. Interest Rate Differentials support to the country’s long-term economic
quarterly averages; in basis points growth and stability of its financial condition.

Banking system assets post

steady growth

In Q4 2019, banks’ balance sheets exhibited steady

growth in assets and deposits. At the same time,
asset quality remained steady while capital
adequacy ratios stayed above international
standards. Banks maintained dominance in the
financial sector, with U/KBs accounting for about
92 percent of total banks’ resources. In terms of the
number of head offices and branches/agencies,
non-bank financial intermediaries have the widest
physical network, consisting mainly of pawnshops.

Fourth Quarter 2019 Report on Economic and Financial Developments | 13

Performance of the Banking System Chart 15. Total Resources of the Banking System
levels in trillion pesos; share in percent
Market Size

The number of banking institutions (head offices) as

of end-September 2019 decreased to 552 offices
from 574 a year ago and 554 a quarter ago.

Banks’ operating network

sustains growth

The banks’ head offices are comprised of 46 U/KBs,

51 TBs, and 455 RBs. This indicated continued
consolidation of banks.
Savings Mobilization
Chart 14. Number of Banking Institutions
As of end-December 2019, banks’ total deposits
reached P10.9 trillion, higher than the year- and
quarter-ago level by 10.6 percent and 6.5 percent,
respectively. 9

Bank deposits continue to

grow

For the same period, time, demand and savings

During the same period, the operating network
(head offices and branches/agencies) of the
banking system expanded to 12,688 offices from
12,148 offices a year ago and 12,543 offices a
quarter ago. The expansion is due mainly to the
increase in the branches/agencies by UKBs
and RBs (Table 7).
deposits increased, quarter-on-quarter (q-o-q), by
6.8 percent, 6.4 percent and 6.4 percent,
respectively. On the other hand, foreign-currency
deposits (FCDs) owned by residents declined
marginally, q-o-q, by 1.2 percent to ₱2.0 trillion. 10
Chart 16. Deposit Liabilities of Banks
in trillion pesos

The total resources of the banking system reached

₱18.7 trillion as of end-December 2019. This is
8.4 percent and 3.8 percent higher relative to the
year- and quarter-ago levels (Table 8). As a percent
of GDP, total resources stood at 100.5 percent. 8

8 GDP as of the fourth quarter of 2019.
9
This refers to the total peso-denominated deposits of the
banking system.
10 FCD-Residents, along with M3, forms part of a money supply
measure called M4. Meanwhile, M3 consists of savings deposits,
time deposits, demand deposits, currency in circulation, and
deposit substitutes.

14 | Fourth Quarter 2019 Report on Economic and Financial Developments

Bank Lending Operations Credit Card Receivables

Outstanding loans of universal and commercial The credit card receivables (CCRs) of the
banks, net of RRP placements with the BSP, grew, banking system as of end-December 2019 increased
y-o-y, by 10.9 percent in December 2019. by 28.1 percent to ₱369.9 billion, y-o-y, and by
9.9 percent, q-o-q.
Bank lending sustains growth
Credit card receivables remain
Loans for production activities—which comprised on the uptrend
87.4 percent of banks’ aggregate loan portfolio, net
of RRPs—expanded at a rate of 9.1 percent in
The ratio of CCRs to the total loan portfolio (TLP)
December. The increase in production loans was
increased to 3.5 percent as of December 2019
driven primarily by lending to the following sectors:
relative to the previous quarter’s and year’s ratios
real estate activities (19.7 percent); financial and
of 3.3 percent and 3.0 percent, respectively. In
insurance activities (17.2 percent); electricity, gas,
terms of loan quality, the ratio of non-performing
steam and air conditioning supply (8.3 percent);
CCRs to total CCRs improved slightly to 5.3 percent
construction (23.4 percent); and information and
from 5.6 percent a quarter ago and 5.4 percent a
communication (12.9 percent).
year ago.

Bank lending to other sectors also increased during

Motor Vehicle Loans 11
the month, except those to manufacturing (-
1.9 percent), mining and quarrying (-11.0 percent),
As of end-December 2019, the banking system’s
professional, scientific and technical activities
motor vehicle loans (MVLs) increased to
(-4.6 percent), and other community, social and
₱583.7 billion, registering a y-o-y growth of
personal activities (-21.7 percent).
11.9 percent and a q-o-q growth of 2.5 percent.

Chart 17. Loans Outstanding of Commercial Banks

(Gross of RRPs) Motor vehicle loans sustain
in trillion pesos
growth

Demand for passenger cars and commercial

vehicles continued its growth despite the
implementation of the higher excise tax following
the passage of the Tax Reform for Acceleration and
Inclusion (TRAIN) Law in 2018. Further, introduction
of new and refreshed models, appropriate product
mix, as well as flexible financing schemes from
banks and other financing firms helped sustain the
rise in vehicle purchases.

Meanwhile, loans from universal and commercial

The share of total MVLs to TLP increased slightly to
banks for household consumption grew by
5.5 percent relative to the year-ago ratio of
27.5 percent in December due to faster growth in
5.4 percent but decreased marginally compared to
credit card and salary-based consumption loans
the quarter ago ratio of 5.6 percent. In terms of
during the month.
loan quality, the ratio of non-performing MVLs to
total MVLs was unchanged at 4.0 percent against
the registered quarter-ago ratio but increased
slightly from the 3.8 percent posted a year ago.

11 Formerly “Auto Loans”, renamed effective September 2015.

Fourth Quarter 2019 Report on Economic and Financial Developments | 15

Salary-Based General-Purpose Consumption
Loans 12
The banking system’s Salary-Based General-Purpose
Consumption Loans (SBGPCL) rose to ₱155.6 billion
as of end-December 2019, 5.5 percent higher than
the year-ago level but 2.4 percent lower than the
quarter-ago level.
Salary loans increase
moderately
The share of total SBGPCLs to TLP was unchanged
at 1.5 percent relative to the year-ago ratio but
decreased slightly from the quarter-ago ratio of 1.6
percent. In terms of loan quality, the ratio of non-
performing SBGPCLs to total SBGPCLs improved to
5.7 percent relative to the previous year’s and
quarter’s ratios of 6.3 percent and 5.9 percent,
respectively.
Residential Real Estate Loans
Asset Quality and Capital Adequacy
The Philippine banking system’s GNPL ratio grew
to 2.1 percent as of end-December 2019 from the
year-ago ratio of 1.8 percent but declined slightly
from the previous quarter ratio of 2.2 percent
(Table 9). 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. 13
Banks maintain asset quality;
remain well-capitalized
Likewise, the net non-performing loan (NNPL) ratio
increased to 1.1 percent as of end-December 2019
relative to the year-ago ratio of 0.9 percent but
remained unchanged from the quarter-ago ratio.
Chart 18. Ratio of Gross NPLs and Net NPLs to
Total Loans of the Banking System

As of end-December 2019, the total residential real

estate loans (RRELs) of the banking system reached
₱759.4 billion, growing by 12.2 percent, y-o-y, and
by 4.6 percent, q-o-q.

Real estate loans continue to

expand
In computing for the NNPLs, specific allowances
Sustained household investments in residential
for credit losses on TLP are deducted from the
properties and the increase in the number of
GNPLs. Said allowances increased to ₱109.0 billion
projects unveiled by real estate developers
as of end-December 2019 from ₱90.0 billion
supported the growth in real estate purchases
a year ago but marginally declined from the
during the review period. Total RRELs to TLP was
quarter-ago level of P109.4 billion. 14
unchanged at 7.2 percent relative to the
quarter-ago ratio but increased from the year-ago
The Philippine banking system’s GNPL ratio of
ratio of 7.0 percent. In terms of loan quality,
2.1 percent was higher with respect to those of
non-performing RRELs to total RRELs increased
Malaysia (1.0 percent) and South Korea
slightly to 3.1 percent from 2.7 percent a year ago
(0.8 percent) but lower than those of Indonesia
but remained unchanged relative to the ratio
(2.4 percent) and Thailand (3.0 percent). 15
recorded a quarter-ago.

12 Formerly “Salary Loans” loans considered as loss accounts.

13 The 3.5 percent NPL ratio was based on the pre-2013 15 Sources: Malaysia (Banking System’s Ratio of Net Impaired

definition. Loan/Financing to Net Total Loan/Financing, December 2019);

14
This type of provisioning applies to loan accounts classified South Korea (Domestic Banks’ Substandard or Below Loans
under loans especially mentioned (LEM), substandard-secured [SBLs] ratio, December 2019); Indonesia, IMF and financial
loans, substandard-unsecured loans, doubtful accounts and stability reports (Banks’ Nonperforming Loans to Gross Loans

16 | Fourth Quarter 2019 Report on Economic and Financial Developments

The loan exposures of banks remain adequately
covered even as the NPL coverage ratio of the
banking system declined to 92.3 percent as of
end-December 2019 from 105.2 percent a year ago
and 91.9 percent a quarter ago.
The CAR of U/KBs, on solo basis, at end-September
2019 increased to 15.6 percent from the
15.3 percent posted in the previous quarter.
Meanwhile, on a consolidated basis, CAR of U/KBs
was unchanged at 16.0 percent relative to the level
a quarter ago. These figures remained well above
the BSP’s regulatory threshold of 10.0 percent and
the international standard of 8.0 percent.
Banks’ CAR remains well
above BIS and BSP standards
The CAR of Philippine U/KBs, on a consolidated
basis, was higher than that of South Korea
(15.4 percent) but lower than those of Malaysia
(17.9 percent), Thailand (19.6 percent) and
Indonesia (23.3 percent). 16
Chart 19. Capital Adequacy Ratio of Universal and
Commercial Banks
in percent
Banking Policies
Banking policies implemented during the quarter
were aimed at enhancing/providing
guidelines/regulations on the following:
(1) establishment of Islamic banks and Islamic
banking units; (2) extension of the period for
registration/notification of operators of payment
Ratio, December 2019); and Thailand (Total Financial
Institutions’ Gross NPLs ratio, December 2019).
16
Sources: South Korea (Capital Ratios of Banks and Bank
Holding Companies, September 2019); Malaysia (Banking
System’s Total Capital Ratio, December 2019); Thailand
Fourth Quarter 2019 Report on Economic and Financial Developments | 17
systems; (3) disclosure requirement on interest rate
risk in the banking book; (4) report on intraday
liquidity of Universal and Commercial Banks
(UBs/KBs) and their Subsidiary Banks/Quasi-Banks
(QBs); (5) reduction in reserve requirements;
(6) requirements on the issuance of Long-Term
Negotiable Certificates of Time Deposit (LTNCTDs),
Bonds and Commercial Papers; (7) definition of a
deposit substitute (8) prudential requirements and
guidelines on the public offering and listing of bank
shares for universal banks; (9) policy on peso
consumer loans to overseas Filipino workers, non-
immigrants, and embassy officials and employees;
(10) rationalization of prudential reporting
requirements; (11) adoption of a national quick
response (QR) code standard; and
(12) dissemination of relevant information relative
to "Truth in Lending Act" disclosure requirement
(Annex A).
Capital Market Reforms
Capital market policy reforms continued to gain
ground in the third quarter of 2019 as landmark
institutional measures were adopted by the BSP
together with the Philippine Stock Exchange (PSE)
and the Securities and Exchange Commission (SEC).
During the period, implementation of reforms
focused on developing the necessary market
infrastructure, improving ease of doing business,
and broadening investor base (see Annex B).
Stock Market
The Philippine Stock Exchange index (PSEi)
averaged 7,853.9 index points in the last three
months of 2019, about 1.7 percent lower than the
average posted in the preceding quarter. Positive
domestic economic developments were weighed
down by negative sentiments stemming mostly
from overseas: the pro-democracy unrest in Hong
Kong; conflicting signals about the US-China trade
talks; fears that China’s economic slowdown will
spillover to its neighboring countries; and the
impeachment case against US President Trump.
(Commercial Banks’ Capital Funds Percentage of Risk Assets,
December 2019); and Indonesia, IMF and financial stability
reports (Commercial Banks, Regulatory Capital to Risk-Weighted
Assets Ratio, December 2019).
Domestically, heightened regulatory risks arise from
the revocation of the extension of Manila Water
and Maynilad’s water concession from 2022 to
2037 also dampened trading.
The average PSEi is lower in Q4
2019
Month-on-month, however, the PSEi’s trend was
mixed. The main index went up in October from the
closing index in September, before dropping in
November and then rising anew in December.
Chart 20. Average PSEi
in index points
In October, benchmark index rose amid renewed
optimism over new US-China trade talks and the
positive outlook on the Philippine economy. During
the month, the benchmark index posted some gains
after domestic inflation continued to ease in
September, the increase in the country’s Gross
international Reserves to US$86.16 billion in
September and the successful maiden listing of
ALLHOME Corp. 17 In addition, the local bourse
picked up pace following the preliminary trade deal
reached by the US and China on 11 October, 18
reports of a tentative BREXIT deal 19 and news of
17 ALLHOME Corp., a one-stop-shop home improvement store had
its shares gaining 0.52 percent at the end of trading to P11.56 a
share on 10 October. It raised almost P13 billion as it sold 1.125
billion shares.
18 On 11 October, at the conclusion of the two-day trade talks, the
US and China reached the following agreements: for the Trump
administration to suspend the planned tariff hike from 25 percent
to 30 percent on US$250 billion worth of Chinese imports that was
originally set to take effect 15 October and for China to start
buying US$40 billion to US$50 billion worth of US farm products.
19 In the third week of October, British Prime Minister Boris
Johnson reached a new deal with the EU for the UK’s exit from the
EU. However, the UK Parliament still needs to approve the
Johnson’s Brexit deal into law.
20 In particular, the Institute of Supply Management (ISM)
manufacturing index declined to a decade-low in September, the
18 | Fourth Quarter 2019 Report on Economic and Financial Developments
positive Q3 domestic corporate earnings.
Moreover, the improved outlook on the Philippine
economy amid a tame inflation, the BSP’s
accommodative monetary policy stance and the
positive economic effects of the government’s
infrastructure program drew positive sentiments
from both foreign and domestic investors. Partly
tempering the rally were: weak US economic
data, 20 which triggered concerns that the US
economy was slowing down; the decline in China’s
economic growth to 6.0 percent in Q3; 21 and the US
Fed’s third rate cut for the year on 30 October. On
31 October, the PSEi closed at 7,977.12 index
points, 3.1 percent higher than the end-September
index.
In November, the local bourse saw pressures
coming from negative sentiments from overseas.
Initially, the PSEi was buoyed by encouraging
domestic corporate earnings reports for Q3, the
deceleration of domestic inflation in October and
the release of the better-than-expected Philippine
economic growth in Q3. In addition, the stronger-
than-expected US jobs data in October and
optimism about a possible near-term US-China
trade resolution 22 also supported the initial
increase in the main index. However, the index’s
rally was soon weighed down by: the latest MSCI
rebalancing, which excluded conglomerates AGI
Alliance Global Group, Inc. and DMCI (D.M.
Consunji, Holdings, Inc.) from the MSCI Philippine
index; the spike in violence in Hong Kong’s
pro-democracy unrest; conflicting signals about the
US-China trade talks; fears that China’s economic
slowdown will spill over to its neighboring countries
(including the Philippines); and the ongoing public
hearing on US President Donald Trump’s
impeachment case. On 29 November, the PSEi
non-manufacturing index fell to a three-year low and the US jobs
growth slow down. More recently, the US released the following
negative economic data for September: a 0.3 percent drop in US
retail sales; 0.4 percent fall in US industrial output; and 9.4
percent decline in housing starts.
21 China's economy grew at 6.0 percent in July-September from
6.2 percent in the second quarter due to weaker investments and
factory output. It marks the worst quarterly figure since 1992,
although still within Beijing's target range of 6.0-6.5 percent for
2019.
22 Investors welcomed a statement from US Commerce Secretary
Wilbur Ross on 3 November that a phase one trade deal with
China could be sealed during the month. Reuters further reported
that both countries are looking at reducing more tariffs as part of
the first phase of a trade deal that is expected to be signed later
in November.
closed at 7,738.96 index points, about 3.0 percent
lower than the closing index in October.
In December, the trends were mixed amidst
renewed tariff trade tensions and the cancellation
of local water concession contracts. The main index
went up following the unexpected increase in
China’s PMI in November 23 and positive news over
the US-China trade deal 24, the (US) Fed’s hints that
it will not raise interest rates next year, and the
BSP’s decision to keep policy rates unchanged.
However, the rally was partly tempered by
concerns over: the US’ imposition of tariffs on
Brazil’s and Argentina’s metal products; the US’
threat to impose tariffs on $2.4 billion French
products over a dispute concerning how large tech
companies are taxed; the continued impeachment
case against President Trump; 25 and the sell-off in
listed water concessionaires’ (Maynilad Water
Services. Inc. and Manila Water Co., Inc.) shares. 26
Nonetheless, on the last trading day of the year, the
PSEi closed 1.0 percent higher than the closing
index in the previous month at 7,815.26 index
points on 27 December 2019 (Table 10).
Reflecting the mixed month-on-month trend of the
benchmark index, trends of other stock market
indicators were similarly a combination of highs and
lows. Total market capitalization fell by 0.3 percent
quarter-on-quarter to close at P16.7 trillion on
27 December. Foreign investors continued to post
net outflows during the quarter with net sales of
P18.6 billion, higher than the P16.9 net outflows
registered in Q3. The price-earnings ratio for listed
firms rose slightly from 16.86x in end-September to
16.94x in end-December.
Meanwhile, on the external front, most Asian
equity markets weakened during the quarter-in-
review relative to the preceding quarter. The
23 China’s factory activity unexpectedly expanded at the quickest
pace in almost three years in November, with solid increases in
output and new orders. The Caixin/Markit manufacturing PMI
index rose to 51.8 in November from 51.7 in the previous month.
That marked the fastest expansion since December 2016, when it
was 51.9.
24
On 12 December, several foreign news outlets reported that US
President Trump has agreed to a trade agreement with China in
principle, ahead of the December 15 deadline for imposing tariffs
on Chinese imports.
25
In December, President Trump was impeached in the US House
of Representatives on the grounds of abuse of power and
obstructing Congress. On 15 January, the US House of
Fourth Quarter 2019 Report on Economic and Financial Developments | 19
deterioration was led by Thailand’s SET index,
which fell by 4.6 percent quarter-on-quarter in Q4.
This was followed by: Malaysia’s FBMKLSI index
(down by 2.5 percent); Indonesia’s JCI index (down
by 2.1 percent); the Philippine’s PCOMP index
(down by 1.7 percent); Singapore’s FSSTI index
(down by 1.0 percent); and, Hong Kong’s HSI index
(down by 0.4 percent). In contrast, the stock indices
of New Zealand, Australia and China posted
quarter-on-quarter gains of 2.8 percent, 1.4 percent
and 0.6 percent, respectively.
Chart 21. Quarter-on-Quarter Growth of Selected
Asian Stock Exchange Indices
in percent, end-December 2019 vs end-September 2019
Bond Market
Local Currency Bond Market
Size and Composition 27
Local currency (LCY) bonds issued by both the
public and private sectors amounted to P346.4
billion in the fourth quarter of 2019. This was more
than the P310.2 billion registered in the previous
quarter albeit 26.9 percent lower than the
P473.6 billion recorded in the same period last year.
Representative passed a resolution to submit articles of
impeachment against President Trump to the Senate for a trial.
The case was sent to the Senate on 15 January, where a trial is set
to be held.
26 Shares prices of water firms declined following the revocation
of the extension of the governments’ agreement with the
country’s largest water concessionaires beyond 2022.
27 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 government-owned and
controlled corporations (GOCCs). This excludes issuances by the
central bank.

LCY bond issuances of the
public sector increase from its
previous quarter level
The NG-issued Treasury bills (T-bills) and Fixed-rate
Treasury bonds (T-bonds) reached a total of P214.7
billion to increase by 7.9 percent from its Q3 2019
level. The increase in government issuances can be
attributed to the accelerated pace of NG
disbursements to compensate for the delay in the
approval of the national budget in the first half of
the year.
Meanwhile, the private sector issuance of LCY
bonds amounted to P131.7 billion, an increase from
the previous quarter’s level by 18.4 percent but
lower by 0.1 percent than that in the same period
in 2018.
Chart 22. LCY Bond Issuances
in billion pesos
In terms of market share, issuances from the public
sector comprised 62.0 percent share of the total
bond issuances while the private sector took the
remaining 38.0 percent. Bonds issued by the BTr
accounted for the entire public sector issuance
while issuers from the private sector came from
banks, real estate firms and holding companies.
Primary Market 28
In the primary auctions conducted for both T-bills
and T-bonds, the NG offered a total of P218.0
billion short- and long-term debt securities.
Demand was robust as tenders were
oversubscribed by about 2.4 times. The market
showed preference for both the short-term dated
debt securities as tenders for T-bills reached P234.5
28 The discussion includes primary market for government
20 | Fourth Quarter 2019 Report on Economic and Financial Developments
billion, twice more than the NG’s total offering of
P98.0 billion for the quarter. Meanwhile, tenders
for T-bonds reached P287.8 billion against the
P120.0 billion offering.
Chart 23. LCY Bond Issuances
as percent of market share; Q4 2019
The NG partially awarded the P218.0 billion offering
of GS in Q4 2019, accepting a total of P192.1 billion
of T-bills and T-bonds during the quarter. The
higher rates demanded by investors led the NG to
reject bids that amounted to P330.3 billion, for
both T-bills and T-bonds.
The NG partially awards
auction offerings to reject
relatively high yields
Secondary Market
Trading of both government and private corporate
bonds in the secondary market decreased by 46.4
percent to P953.0 billion from P1,777.4 billion
registered in the previous quarter. Meanwhile, on a
y-o-y basis, trading in the secondary market
increased by 81.2 percent.
Trading was dominated mostly by Fixed Income
Treasury Notes (FXTNs) which accounted for 51.9
percent of the total trading. Meanwhile, the share
of corporate bonds traded at the Philippine Dealing
and Exchange Corporation (PDEx) remained
marginal at 1.3 percent. The lackluster trading
activity partly reflected the unfavorable base
issuances only.
effects due to fewer supply of liquid and long-dated
papers in the market.
Secondary market trading
decreases relative to its
volume in the previous quarter
Chart 24. Secondary Market Volume
in billion pesos
Foreign Currency Bond Market
During the quarter, the government issued the first
insurance-linked security (ILS) or catastrophe bonds
(CAT bonds) in partnership with World Bank. The
bonds were issued in two tranches particularly
involving (1) a $75-million allotment for losses from
earthquakes; and (2) a $150 million for losses from
tropical cyclones. The high demand for the bonds
reflects strong investor confidence and support for
the disaster resilience agenda of the NG.
The NG and the private sector
tap the international bond
market in sourcing funds
Firms from the private sector likewise tapped the
offshore debt market, issuing about US$500.0
billion worth of international bonds.
Credit Risk Assessment
As of the fourth quarter 2019, the last credit rating
was on 30 April 2019. The S&P Global upgraded
the country’s credit rating from “BBB” to “BBB+”
with a stable outlook.
Fourth Quarter 2019 Report on Economic and Financial Developments | 21
S&P upgrades credit rating to
“BBB+ stable,” while Fitch
affirms “BBB” rating stable
The “BBB+ stable” is a notch away from ‘A’ territory
rating.
S&P recognized the following in its latest rating:
1) the Philippines’ above-average economic
growth, a healthy external position, and sustainable
public finance; 2) continued exercise of fiscal
discipline as the government invests more in much
needed infrastructure and human capital
development; 3) the major reforms that included
laws on tax reform, liberalization of the rice sector,
and strengthening of the Bangko Sentral ng
Pilipinas’ charter as well as initiatives to increase
the ease of doing business and relax the foreign
investment negative list.
Meanwhile, on 26 April 2019, Japan Credit Rating
Agency (JCRA), raised its outlook of the Philippines
from BBB+ stable to BBB+ positive rating outlook
citing the government’s twin efforts to accelerate
infrastructure development, and boost revenue
through tax reform.
On 31 May 2019, Fitch Ratings affirms Philippines’
“BBB” rating, with a ‘stable’ outlook. The rating is
a notch above the minimum investment grade, and
the stable outlook indicates the absence of factors
that can change the rating within the short term.
Fitch cited the following: 1) sustainability of the
economy’s robust growth; 2) decisive monetary and
non-monetary measures that the government
implemented to bring back inflation to
within-target range; and 3) stable banking sector,
4) adequate FX reserves supported by sustained
inflows in the form of remittances and business
process outsourcing (BPO) revenues, and
5) manageable debt situation.
Bond spreads
In October, debt spreads widened due to the
concerns on a possible US-EU trade war as the
World Trade Organization (WTO) cleared the US for
its imposition of tariffs on up to $7.5 billion worth
of goods from the EU. The tariffs were intended to
make up for illegal subsidies given by the EU bloc to Chart 26. 5-Year CDS Spreads of Selected
plane-maker Airbus. ASEAN Countries
in basis points

Debt spreads narrowed

In November, debt spreads narrowed as the

uncertainty in the global market was overshadowed
by the positive developments locally. In particular,
inflation rate continued to decrease and the
economy grew better-than-expected at 6.2 percent
in the third quarter of 2019.

In December, debt spreads further narrowed due to

positive external developments such as the initial
trade deals between the US and China.
Chart 25. Emerging Market Bond Index Global
Spreads of Selected ASEAN Countries
in basis points
Payments and Settlements System29
In Q4 2019, the total number of transactions settled
and processed in the Philippine Payments and
Settlements System (PhilPaSS) reached 305,546
transactions, 5.4 percent lower than the previous
quarter’s level of 323,125 transactions. The lower
number of transactions was due mainly to the q-o-q
decline in GS trades (29.5 percent), peso leg of
peso/US trades (9.4 percent), and interbank
transactions (1.5 percent).

The volume of PhilPaSS

transactions decreases while
the value of transactions
increases on a q-o-q basis
As of 31 December 2019, the extra yield investors
demanded to own Philippine sovereign debt over Meanwhile, the total value of transactions rose in
U.S. Treasuries or the Emerging Market Bond Index Q4 2019 by 5.5 percent to reach ₱84.3 trillion from
Global (EMBIG) Philippines spread stood at 67 bps the quarter-ago level of ₱79.9 trillion. The increase
from the end-September level of 78 bps. in the value of transactions was brought about by
Meanwhile, the country’s 5-year sovereign credit the higher ATM transactions (34.7 percent),
default swap (CDS) decreased to 34 bps from its monetary operations transactions (15.7 percent),
end-September level of 48 bps. Against other and check transactions (10.0 percent).
neighboring economies, the Philippine CDS traded
closely with Malaysia’s 35 bps, but narrower than
Indonesia’s 62 bps and wider than Thailand’s 23 bps Table C. PhilPaSS Transactions
and Korea’s 22 bps spreads. 2019 2018
Growth rates
(in percent)
Q3 Q4 Q4 Q-o-Q Y-o-Y
Volume 323,125 305,546 289,730 -5.4 5.5
Value
79.92 84.30 63.18 5.5 33.4
(in Trillion PhP)

Source: Payment System Overshight Department, BSP

Note: Data on PhilPaSS revenues is not available

29 Starting
1 April 2014, the volume and value of transactions
exclude payment transfers to BSP Payments Unit.

22 | Fourth Quarter 2019 Report on Economic and Financial Developments

During the quarter, most of the transactions were Table D. Balance of Payments
interbank transactions, Philippine peso/US dollar in million US$
trades (peso leg) transactions, monetary operations
transactions, and GS trades which accounted for
81.4 percent of the total volume of transactions. In
terms of value, placements/maturities in MOS
facilities, interbank dealings, and Philippine
peso/US dollar trades (peso leg) made up 91.8
percent of the total value of transactions.
On a y-o-y basis, both the volume and value of
transactions increased by 5.5 percent and 33.4
percent, respectively.

External Sector
Balance of Payments
The country’s overall balance of payments position
registered a surplus of US$2.3 billion in Q4 2019,
lower than the US$2.8 billion surplus posted in the
same quarter in 2018 (Table 11).
Q4 2019 BOP position registers
a lower surplus
The lower surplus was brought about by the decline
in net inflows (i.e., net borrowing by residents from
the rest of the world) in the financial account even
as the current account reversed to a surplus during
the quarter. The reversal of the current account to
a surplus from a deficit in the same quarter a year
ago was attributed mainly to the narrowing of the
deficit in the trade in goods account, following the
increase in exports and decline in imports of goods.
Meanwhile, the net inflows in the financial account
declined as a result of the lower net inflows of
other investments coupled with the turnaround in
the portfolio investment account to net outflows
from net inflows. These partly tempered the
increase in net inflows in the direct investment
account during the quarter. The subdued pace of
global economic activity amid trade policy
uncertainties and increased geopolitical tensions
reflected a broadly volatile investment climate.
Current Account. The current account recorded a
surplus of US$748 million in Q4 2019, a reversal of
the US$2.7 billion deficit posted in Q4 2018.
Current account reverses to a
surplus
This development stemmed primarily from the
reduced deficit in the trade in goods account along
with increased net receipts of primary and
secondary income, and trade in services during the
quarter. 30

Trade-in-Goods. The trade-in-goods account deficit

narrowed to US$11.4 billion in Q4 2019 from
US$14.2 billion in Q4 2018.

30 Primary Income account (formerly the Income account) shows transfers, in cash or in kind, for nothing in return, between
the flows for the use of labor and financial resources between residents and non-residents, e.g., overseas Filipino workers’
resident and non-resident institutional units. Secondary Income remittances.
account (formerly the Current Transfers account) shows current

Fourth Quarter 2019 Report on Economic and Financial Developments | 23

 Chart 27. Exports by Major Commodity Group
Trade-in-goods account percent share, Q4 2019
registers a lower deficit

The 19.7 percent decline in the trade in goods

deficit was the result of the 8.8 percent growth in
exports of goods coupled with the 6.3 percent
contraction in imports of goods.

Exports of Goods. Exports of goods expanded by

8.8 percent to US$13.6 billion in Q4 2019 from
US$12.5 billion in Q3 2018, driven by improved
demand from the country’s major trading partners,
(i.e., Hong Kong, China, United States, Japan, and
South Korea). By commodity, increased export
shipments were recorded mainly in manufactures
(9.4 percent) as well as mineral products (26.9
percent), and fruits and vegetables (34.9 percent).
Exports of goods increase
The increase in exports of manufactures was
boosted by shipments of electronic products, which
grew by 21.7 percent during the quarter attributed
primarily to components/devices of semiconductors
following increased hardware demand for emerging
and new technologies. Exports of mineral products
expanded by 26.9 percent, buoyed by higher
shipments of copper metal (67.3 percent) on
account of increased export volume, even as the
world market price of copper dropped during the
quarter. Exports of fruits and vegetables, and sugar
products likewise posted increases in shipments
which more than offset the sluggish export
performance of other commodity groups such as
coconut products, petroleum products and other
agro-based products.
In terms of share to total exports of goods,
electronics accounted for the highest share at 51.8
percent, followed by mineral products at 7.1
percent and machinery and transport equipment at
6.7 percent.
Imports of Goods. Imports of goods declined by
6.3 percent to US$25 billion in Q4 2019, from
US$26.6 billion recorded in Q4 2018. This was due
mainly to the decrease in imports of raw materials
and intermediate goods, particularly manufactured
goods, notably iron & steel (33 percent); and
inedible crude materials, particularly metalliferous
ores (74.3 percent). Imports of mineral fuels and
lubricant also posted a contraction (14.4 percent) to
US$3.2 billion during the quarter on account of the
decline in both import volume and world market
price of petroleum crude. Imports of capital goods
decreased by 2 percent to US$7.5 billion owing to
lower purchases of power generating and
specialized machines (10.3 percent), and
telecommunication equipment and electrical
machines (5.9 percent).
Imports of goods register a
slowdown
In contrast, imports of consumer goods totaled
US$4.8 billion in Q4 2019, posting a modest
increase of 2.4 percent buoyed by the increased
purchases of durable goods, specifically passenger
cars and motorized cycle. In terms of share to total
imports of goods, raw materials and intermediate
goods accounted for the highest share at 34.4
percent, followed by capital goods at 30.2 percent,
and consumer goods at 19.2 percent.

24 | Fourth Quarter 2019 Report on Economic and Financial Developments

Chart 28. Imports by Major Commodity Group
percent share, Q4 2019
Trade-in-Services. Net receipts of trade-in-services
rose by 5.4 percent to almost US$3.2 billion in
Q4 2019 from US$3.1 billion in the same quarter in
2018.
Net receipts of trade-in-
services expand
The expansion was supported largely by lower net
payments of travel and transport services along
with higher net receipts of manufacturing services.
Net payments of travel services decreased by
15.7 percent to US$749 million on account of
increased receipts boosted by the growth in visitor
arrivals (i.e., Korea, China, US, Japan, among
others). Net payments of transport services
dropped by 51.1 percent to US$422 million due to
lower payments for freight, arising from the decline
in imports of goods during the quarter.
Primary Income. The primary income account
posted net receipts of US$1.5 billion in Q4 2019,
higher than the US$1.3 billion net receipts in the
same quarter a year ago.
Net receipts of primary
income rise
This was mainly on account of lower net payments
on investment income (22.4 percent), arising from
increased dividend receipts from direct investors
abroad (269.3 percent) as well as decreased
interest payments on intercompany borrowings
(36.3 percent), and lower interest payments on
bonds issued by the National Government (NG)
Fourth Quarter 2019 Report on Economic and Financial Developments | 25
(50 percent). Moreover, sustained inflows from
compensation of resident overseas Filipino (OF)
workers amounting to US$2.3 billion or a growth of
2.4 percent from US$2.2 billion a year ago likewise
boosted the growth registered in the primary
income account.
Secondary Income. Net receipts in the secondary
income account grew by 3.6 percent to
US$7.4 billion in Q4 2019, attributed primarily to
the 4.3 percent improvement in non-resident OF
workers' remittances totaling US$6.8 billion .
Net receipts of secondary
income improve
Capital Account. Net receipts in the capital account
decreased by 48.8 percent to US$15 million in
Q4 2019 from US$28 million recorded during the
same quarter in 2018.
Capital account net receipts
drop
This development can be attributed mainly to the
39.2 percent reduction in other capital transfers to
the NG (from US$28 million to US$17 million).
Financial Account. The financial account posted net
inflows (or net borrowing by residents from the rest
of the world) of US$2.4 billion in Q4 2019, albeit
lower than the US$5 billion net inflows in Q4 2018.
Financial account records
lower net inflows
The decline in net inflows during the period was
due primarily to the significant drop in net inflows
in the other investment account and the reversal to
net outflows of the portfolio investment account.
These developments tempered the increase in net
inflows in the direct investment account.
Direct Investments. The direct investment account
recorded higher net inflows amounting to
US$1.8 billion in Q4 2019 from US$837 million in Q4
2018. This reflects mainly the expansion in foreign
direct investments (FDI) and the decline in
residents’ direct investments abroad. FDI during the
period grew by 37.6 percent to US$2.4 billion.
Direct investments’ net inflows
increase
The increase in FDI inflows resulted from the gains
registered in all its components. In particular, net
equity capital investments grew by 98.2 percent to
US$803 million as equity capital placements rose to
US$881 million (from US$459 million), which more
than offset the increase in withdrawals to
US$79 million (from US$54 million). Equity capital
placements during the period originated mainly
from Singapore, the United States, Japan, the
Netherlands, and South Korea. These were
channeled mostly to 1) financial and insurance,
2) electricity, gas, steam and air-conditioning
supply, and 3) real estate activities.
Likewise, net investments in debt instruments
(consisting mainly of intercompany borrowing/
lending between foreign direct investors and their
subsidiaries/affiliates in the Philippines) grew by
20.4 percent to US$1.4 billion. Meanwhile,
reinvestment of earnings rose by 15.5 percent to
US$241 million during the period.
Residents’ direct investments abroad decreased by
34.1 percent to US$618 million during the quarter,
mainly on account of the drop in residents’ net
investments in debt instruments to US$325 million
(from US$716 million).
Portfolio Investments. The portfolio investments
account reversed to net outflows (or net lending by
residents to the rest of the world) of US$497 million
from net inflows of US$983 million in Q4 2018.
Portfolio investments reverse
to net outflows
This developed mainly on account of the reversal to
net outflows of foreign portfolio investments (FPI),
as a result of the net redemption by the NG of debt
securities which were held by non-residents
amounting to US$125 million during the period.
Meanwhile, residents’ investments abroad dropped
26 | Fourth Quarter 2019 Report on Economic and Financial Developments
significantly to US$36 million from US$1.5 billion,
which stemmed mainly from the non-residents’ net
redemption of debt securities held by local banks
and other corporates.
Financial Derivatives. Trading in financial
derivatives resulted in a lower net gain of
US$30 million in Q4 2019 from US$34 million in Q4
2018.
Trading in financial derivatives
results in lower net gains
Other Investments. Net inflows in the other
investment account moderated by 68.1 percent
to US$1 billion. This was on account of the 82.3
percent drop in non-residents’ investments to
US$592 million from US$3.4 billion in Q4 2018.
Net inflows in the other
investment account decline
Contributing to this decline were net loan
repayments made by local banks (US$400 million)
and other corporates (US$176 million) from net
availments a year ago. This tempered the net
increases recorded in trade credit and advances
extended by non-residents amounting to
US$829 million (from net repayments
US$495 million) and their net placements in
currency and deposits of US$207 million
(from US$182 million).
Meanwhile, residents’ investments abroad
recorded net inflows of US$426 million (from net
outflows of US$164 million), which stemmed mainly
from non-residents’ repayment of their loan
obligations to local banks.
International Reserves
The country’s gross international reserves (GIR)
amounted to US$87.8 billion as of end-December
2019, higher than the US$85.6 billion in
end-September 2019. At this level, the GIR remains
adequate as it can cover 7.7 months’ worth of
imports of goods and payments of services and
primary income. It is also equivalent to 5.4 times
the country’s short-term external debt based on
original maturity and 4.1 times based on residual
maturity.
Reserves increase to record
high
The increase in reserves was due mainly to inflows
arising from the BSP’s income from its investments
abroad, higher BSP reserve position and holdings of
Special Drawing Rights (SDRs) in the International
Monetary Fund (IMF). However, the increase in
reserves was tempered by lower BSP’s foreign
exchange operations as well as payments made by
the NG for servicing its foreign exchange
obligations.
Chart 29. Gross International Reserves
in billion US dollars
The bulk of the country’s total reserves or
85.7 percent was held in foreign investments.
Meanwhile, 9.1 percent were in gold and the
remaining 5.2 percent were in holdings of SDRs, the
BSP’s reserve position in the IMF, as well as foreign
exchange.
Net international reserves (NIR), which refer to the
difference between the BSP’s GIR and total
short-term liabilities, amounted to US$87.8 billion
as of end-December 2019, an increase of
US$2.3 billion from end-September 2019.
Exchange Rate
Exchange Rate
The peso averaged ₱51.03/US$1 in Q4 2019,
appreciating by 1.39 percent from the previous
quarter’s average of ₱51.74/US$1.
Fourth Quarter 2019 Report on Economic and Financial Developments | 27
Peso appreciates against the
US dollar
The peso’s appreciation during the review period
was due mainly to the benign domestic inflation
environment, sustained inflows from OF
remittances, foreign direct investments (FDI) and
business process outsourcing (BPO) receipts.
Likewise, the peso was also buoyed by the market’s
anticipation of interest rate reduction by the US
Federal Reserve. On a y-o-y basis, the peso likewise
appreciated by 4.36 percent relative to the
₱53.26/US$1 average in Q4 2018.
Chart 30. Quarterly Peso-Dollar Rate
Php/US$
In October, the peso recovered to an average of
₱51.50/US$1, appreciating by 1.17 percent from
the ₱52.11/US$1 average in September. The peso
appreciated amid market expectation of another
rate cut in the US and positive developments in
Brexit negotiations as well as the US-China trade
talks. Meanwhile, on the domestic side, market
optimism on the high level of GIR (gross
international reserves); slower domestic inflation
for the month of September; robust overseas
Filipino workers (OFW) remittance growth data for
the month of August; and the narrowing of
Philippine trade deficit to US$2.4 billion in August
from US$3.6 billion in the same period a year ago,
likewise contributed to the appreciation of the
peso.
The peso continued to appreciate against the
US dollar in November 2019, as it averaged
₱50.73/US$1, 1.53 percent higher than its average
the previous month. The peso was supported by
the release of domestic inflation data for October
which eased to a three-year low; the rebound in the
country’s economic growth in Q3 2019; and the US
Federal Reserve rate cut.
The peso meanwhile depreciated marginally against
the US dollar in December by 0.08 percent to an
average of ₱50.77/US$1, relative to its average in
the previous month. The peso’s slight depreciation
was due partly to lingering uncertainty in the US-
China trade negotiation.
Chart 31. Year-to-Date Appreciation (+)/
Depreciation (-) of Asian Currencies against US
dollar
in percent, as of end-December 2019
On a y-t-d basis, the peso appreciated against the
US dollar by 3.84 percent to close at ₱50.64/US$1
on 27 December 2019 from the end-December
2018 closing rate of ₱52.58/US$1. 31
Sustained inflows of foreign exchange from
overseas Filipino remittances, foreign direct
investments, BPO receipts, ample level of the
country’s Gross International Reserve (GIR) and the
country’s robust economic growth continued to
provide support to the peso.
Meanwhile, the volatility of the peso’s daily closing
rates (as measured by the coefficient of variation)
stood at 0.80 percent during the review quarter.
This was lower than the 1.01 percent volatility
registered in the previous quarter. 32 The volatility of
the peso in Q4 2019 was slightly higher than the
volatility of some currencies in the region.
31 Based on the last done deal transaction in the afternoon.
32 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.
33 The TPI measures the nominal and real effective exchange rates
of the peso across the currencies of 14 major trading partners
(MTP:s) 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-A 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-D
28 | Fourth Quarter 2019 Report on Economic and Financial Developments
On a real trade-weighted basis, the peso lost
external price competitiveness in Q4 2019 against
the basket of currencies of all trading partners (TPI)
and trading partners in advanced (TPI-A) and
developing (TPI-D) countries relative to Q3 2019.
This was indicated by the increase in the real
effective exchange rate (REER) index of the peso by
1.36 percent, 1.78 percent, and 1.12 percent,
against the TPI, TPI-A and TPI-D baskets,
respectively. 33,34
Relative to Q4 2018, the peso likewise lost external
price competitiveness across currency baskets
during the review period. This development
followed the nominal appreciation of the peso and
the widening inflation differential, resulting in the
increase in the REER index of the peso by 3.83
percent, 4.29 percent and 3.57 percent against the
TPI, TPI-A and TPI-D baskets, respectively.
External Debt
Outstanding external debt stood at US$83.6 billion
as of end-2019, up by US$944 million (or
1.1 percent) from the US$82.7 billion level as of
end-September 2019.
External debt stays
manageable
The rise in the debt stock in Q4 was brought about
by the increase in non-residents’ investments in
Philippine debt papers issued offshore of
US$507 million. The upbeat investor sentiment was
reflected in the generally narrower bond spreads
due to positive external developments such as the
initial trade deals between the US and China during
the latter part of the year. Net availments of
US$317 million (largely attributed to oil
importation) and prior periods’ adjustments of
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.
34 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.
US$150 million further contributed to the increase Chart 33. Philippine External Debt by Maturity
of the debt stock. These were partially offset by as of end-December 2019
foreign exchange (FX) revaluation of US$29 million.

Y-o-y, the debt stock increased by US$4.7 billion (or

by 5.9 percent) brought about by: (a) net
availments (US$3.7 billion); (b) prior periods’
adjustments (US$954 million); and (c) FX
revaluation adjustments (US$170 million). This
upward impact on the debt stock was partially
offset by the transfer of Philippine debt papers
from non-residents to residents (US$197 million).

Chart 32. Philippine External Debt By Borrower

in billion US dollars
Public sector external debt increased to
US$42.8 billion in end-2019 from US$42.5 billion in
the previous quarter, although its share to total
external debt slightly declined from 51.4 percent to
51.2 percent. About US$36.0 billion (84.2 percent)
of public sector obligations were NG borrowings
while the remaining US$6.7 billion pertained to
loans of government-owned and
controlled-corporations, government financial
institutions and the BSP.

By Maturity Private sector debt grew from US$40.2 billion in

As of year-end 2019, the maturity profile of the
country’s external debt remained predominantly
medium- to long-term (MLT) in nature [i.e., those
with original maturities longer than one (1) year],
with share to total external debt at 79.4 percent
(US$66.4 billion). This means that FX requirements
for debt payments are well spread out and more
manageable.
end-September 2019 to US$40.8 billion in
end-2019, with its share to total external debt
slightly increased from 48.6 percent to 48.8
percent. The rise in private sector external debt
was due largely to net availments of
US$372 million.
Chart 34. Philippine External Debt by Borrower
as of end-December 2019

The weighted average maturity for all MLT accounts

decreased to 16.7 years from 17.1 years during the
previous quarter, with public sector borrowings
having a longer average term of 20.9 years
compared to 7.4 years for the private sector.
Short-term (ST) liabilities comprised the
20.6 percent balance of debt stock and consisted of
bank liabilities, trade credits and others.

Fourth Quarter 2019 Report on Economic and Financial Developments | 29

By Creditor
Major creditor countries were: Japan (US$14.6
billion), United States of America (US$4.2 billion),
United Kingdom (US$3.5 billion), and The
Netherlands (US$3.3 billion).
Obligations to foreign banks and other financial
institutions had the largest share at 31.7 percent of
total outstanding debt, followed by loans from
official sources [multilateral creditors (17.3 percent)
and bilateral creditors (13.1 percent)]. Bilateral
sources of credit (amounting to US$11.0 billion)
were Japan – US$8.1 billion; China – US$685
million; and Singapore – US$439 million, among
others. Meanwhile, foreign holders of bonds and
notes partake 30.4 percent of the total creditor
claims; and the rest (7.5 percent) were owed to
other creditor types (mainly suppliers/exporters).
In terms of currency mix, the country’s debt stock
remained largely denominated in US Dollar (59.0
percent) and Japanese Yen (13.9 percent). US
dollar-denominated multi-currency loans from the
World Bank and ADB represented 14.8 percent.
The 12.3 percent balance pertained to 15 other
currencies, including the Philippine Peso, Euro and
SDR.
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
adequacy of the country’s FX earnings to meet
maturing obligations. The ratio increased to 6.8
percent in end-2019 from 4.1 percent a quarter
ago.
The external debt ratio, or total outstanding debt
(EDT) expressed as a percentage of annual
aggregate output (GNI or GDP), is a solvency
indicator. The EDT to GNI ratio improved to 19.4
percent in the review period from 19.7 percent a
quarter ago. The same trend was observed using
GDP as denominator, as the EDT to GDP ratio
slightly decreased to 23.3 percent as of end-2019
from 23.7 percent as of end-September 2019. The
ratio indicates the country's sustained strong
35
Press Release, “Decisions Regarding Monetary Policy
Implementation”, 30 October 2019 and 11 December 2019,
https://www.federalreserve.gov/newsevents/pressreleases/mon
30 | Fourth Quarter 2019 Report on Economic and Financial Developments
position to service foreign obligations in the
medium to long-term.
Foreign Interest Rates
Some advanced economies (AEs) reduced policy
rates, reflecting more cautious views on the
strength of the global economy.
The US Fed implemented a dovish stance in
monetary policy in Q3 and Q4 2019 after
maintaining a neutral stance in Q1 and Q2 2019.
Meanwhile, accommodative monetary policy is
expected to continue in countries where risk of a
low inflation persists and recovery remains fragile.
In these countries, there were observed
weaknesses in labor market conditions, slowdown
in spending, and modest bank lending growth.
The US Fed reduces policy
rates
The US Fed lowered the target range for the Federal
funds rate by 25 bps to 1.50-1.75 percent during its
October meeting. Meanwhile, during its December
meeting, the US Fed decided to maintain the
Federal funds rate at 1.50-1.75 percent. The
decision to cut the policy rates was due to
persistent weakness in global growth and elevated
uncertainty regarding trade developments. As part
of its monetary policy decision, the Fed continued
to roll over at auction the amount of principal
payments from its holdings of Treasury securities.
The Fed also continued reinvesting in agency
mortgage-backed securities (MBS) the amount of
principal payments from its holdings of agency debt
and MBS. 35 As a result of the US Fed rate cut, both
the average US prime rate and discount rate
decreased to 4.830 percent and 1.989 percent from
the previous quarter’s 5.302 percent and 2.802
percent, respectively. Similarly, the US Fed funds
rate declined to 1.675 percent from the 2.171-
percent average reported in the previous quarter
(Table 16).
etary20191030a1.htm &
https://www.federalreserve.gov/newsevents/pressreleases/mon
etary20191211a1.htm
The Bank of England (BOE) maintained the official
bank rate paid on commercial banks’ reserves at
0.75 percent during its November and December
meetings. It also continued the purchase of up to
£10 billion of corporate bonds, financed by the
issuance of central bank reserves. In addition, it
also maintained the stock of UK government bond
purchases at £435 billion. 36
The Bank of Japan (BOJ) decided to continue its
“Quantitative and Qualitative Monetary Easing
(QQE) with Yield Curve Control,” in view of
achieving the price stability target of 2 percent. The
BOJ indicated to continue such policy until the
target becomes stable. During its July and
September meetings, the BOJ decided to apply a
negative interest rate of 0.1 percent to current
accounts that financial institutions hold at the Bank.
For the long-term interest rate, the BOJ decided to
buy Japanese government bonds (JGBs) at a rate of
¥80 trillion per year in order for the 10-year JGB
yields to remain at around zero percent. In terms
of asset purchases, the BOJ has doubled the
purchase of exchange-traded funds (ETFs) at an
annual pace of ¥6 trillion from ¥3.3 trillion while the
purchase of Japanese real estate investment trusts
(J-REITs) has been maintained at ¥90 billion
annually. Likewise, the BOJ continued its purchases
of commercial papers and corporate bonds until
their outstanding amounts reach ¥2.2 trillion and
¥3.2 trillion, respectively. 37
The European Central Bank (ECB) decided to
maintain the interest rates on the deposit facility,
main refinancing operation, and marginal lending
facility at -0.50 percent, 0.0 percent, and 0.25
percent during its October and December
meetings. 38
As some AEs reduced their policy rates, benchmark
global interest rates recorded downward trends
during the review period. The 90-day LIBOR
decreased to 1.930 percent in Q4 2019 from
36 Press Release, “Monetary Policy Summary and minutes of the
Monetary Policy Committee (MPC) meeting”, 7 November 2019
and 19 December 2019,
https://www.bankofengland.co.uk/monetary-policy-summary-
and-minutes/2019/december-2019 &
https://www.bankofengland.co.uk/monetary-policy-summary-
and-minutes/2019/november-2019
37
Press Release “Statement on Monetary Policy” 31 October
2019 and 19 December 2019,
https://www.boj.or.jp/en/mopo/mpmdeci/state_2019/k191031
Fourth Quarter 2019 Report on Economic and Financial Developments | 31
2.195 percent in the previous quarter. Similarly, the
90-day Singapore Interbank Offered Rate (SIBOR)
declined to 1.801 percent from 1.919 percent in the
previous quarter.
Chart 35. Selected Foreign Interest Rates
in percent
Global Economic Developments
Global economic activity softened in Q4 2019 due
to persistent slowdown in trade and investment.
According to the IMF (2020), the effects of
prolonged trade policy uncertainty, geopolitical
issues and idiosyncratic shocks in some economies
weighed down global growth. However, stable
growth in the services sector alongside continued
broad-based shift towards monetary policy easing
mitigated the slowdown in economic activity during
the period. Modest recovery is expected in the
medium term as domestic demand and investment
improve. The shift to neutral fiscal stance in the US,
partial resolution of the US-China trade war, and
tempered worries over Brexit are seen to yield
firmer growth in advanced economies (AEs). For
emerging markets (EMs) and developing
economies, pick-up in growth will be driven by
improved trade relations (China) and monetary
policy and fiscal stimulus (India), among others. 39
In the US, growth in Q4 2019 was recorded at
2.3 percent, higher than the 2.1 percent revised
a.htm/ &
https://www.boj.or.jp/en/mopo/mpmdeci/state_2019/k191219
a.htm/
38
Press Release, “Monetary policy decisions” 24 October 2019
and 12 December 2019,
https://www.ecb.europa.eu/press/pr/date/2019/html/ecb.mp1
91024~438769bd4f.en.html&
https://www.ecb.europa.eu/press/pr/date/2019/html/ecb.mp1
91212~06d84240ae.en.html
39 IMF World Economic Update, 20 January 2020
growth in Q3 2019. The improvement reflected
positive contributions in personal consumption,
exports, and government spending, which were
offset by declines in private inventory investments
and nonresidential fixed investments. 40 Meanwhile,
GDP in the Euro area 41 grew by 0.9 percent in Q4
2019, slightly below the 1.2 percent growth
registered in the previous quarter. 42 The general
slowdown in the Euro area was attributed to
sluggish growth in its member economies,
structural changes in Germany’s car industry
affecting exports and regulatory reforms in France
resulting in lower consumption.
In Japan, the economy contracted by 0.4 percent in
Q4 2019, a reversal from the 1.7 percent expansion
in the previous quarter. 43 The negative growth was
the first time in five quarters and the steepest
decline in GDP since Q2 2014. The slowdown in the
Japanese economy was attributed to the
contraction in private consumption led by
unfavorable weather conditions and
implementation of tax hikes in the early part of the
quarter, in addition to softer growth in public
investment and government spending.
Chart 36. Real GDP of G3 Countries
year-on-year growth; in percent
Source: Bloomberg; Country websites
40 Gross Domestic Product, Fourth Quarter and Year 2019 (Second
Estimate), U.S. Bureau of Economic Analysis (BEA), 27 February
2020
41 The Euro area (EA19) includes Belgium, Germany, Estonia,
Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia,
Slovakia and Finland. Source: Eurostat
42 Eurostat News Release and Euro Indicators, “GDP and
employment flash estimates for the fourth quarter of 2019”, 14
February 2020
43 Quarterly Estimates of GDP for October-December 2019 (First
Preliminary Estimates), Economic and Social Research Institute,
Cabinet Office, Government of Japan, 17 February 2020
44 Quarterly Estimates of GDP for October-December 2019 (First
Preliminary Estimates), Economic and Social Research Inst
32 | Fourth Quarter 2019 Report on Economic and Financial Developments
Growth of Asian economies have mostly remained
on track, albeit at a slower pace. The South Korean
economy grew by 2.3 percent in Q4 2019, higher
than the 2.0 percent growth registered in the
previous quarter, driven mainly by increased
consumption and investments with softer fall in
exports. 44 In Singapore, the economy grew at a
faster pace of 1.0 percent y-o-y in Q4 2019. The
combined growth in both public and private
construction activities; transportation and storage;
and accommodation and food service sectors
partially offset the contraction in manufacturing
and wholesale and trade sectors. 45
The Chinese economy advanced by 6.0 percent in
Q4 2019, unchanged from the registered growth in
the previous quarter. This can be attributed to
slower growth in construction; wholesale and retail
trades; transport, storage, and post;
accommodation and restaurants; real estate; and
information transmission, software and information
technology sectors. 46 Meanwhile, the Hong Kong
economy contracted by 2.9 percent during the
review quarter, lower than the 2.8 percent decline
in the previous quarter. The contraction was due to
the slump in tourism-related activities combined
with retreat in domestic private consumption
brought about by the series of social unrest during
the period. 47 In India, the economy grew by
4.7 percent in Q4 2019, 48 slower than the
5.1 percent expansion in the previous quarter,
driven mainly by weaker exports and investments.
The Philippine economy posted a 6.4-percent
growth in Q4 2019 from 6.0 percent in the previous
quarter, 49 driven mainly by robust supply side
growth from both the services and industry sectors.
In Thailand, the economy grew by 1.6 percent in
Q4 2019, down from the 2.6 percent expansion in
the previous period. The subdued growth was
itute, Cabinet Office, Government of Japan, 17 February 2020
o -0.5 to 1.0 Per Cent”, Ministry of Trade and Industry Singapore,
17 February 2020
46 National Bureau of Statistics of China, “Preliminary Accounting
Results of GDP for the Fourth Quarter of 2019”, 20 January 2020
47 “2019 Economic Background and 2020 Prospects “, Census and
Statistics Department, Hong Kong, 26 February 2020
48 Government of India, Ministry of Statistics and Programmed
Implementation, Press Note on “Second Advance Estimates of
National Income, 2019-20 and Quarterly Estimates of GDP for
the Third Quarter (Oct-Dec), 2019-20,” dated 28 February 2020
49 “GDP grows by 6.4 percent in the fourth quarter of 2019;5.9
percent for the full-year 2019,” Philippine Statistics Authority
Press Release, 23 January 2020
attributed mainly to decreases in exports,
government consumption and public investment. 50
Meanwhile, stable growth was recorded in
Indonesia at 5.0 percent, driven mostly by
sustained domestic demand and favorable external
sector performance. 51
In Vietnam, GDP grew by 7.0 percent in Q4 2019,
lower than the 7.5 percent expansion in the
previous quarter. 52 The strong growth in the
manufacturing and services sectors were offset by
the negative impact of the ASF in the agricultural
sector. In Malaysia, the economy advanced by 3.6
percent in Q4 2019 following a 4.4 percent
expansion in the previous quarter, primarily
attributed to decline in exports and supply
disruptions in the commodities sector. 53
Average headline inflation in the US leveled to
2.1 percent in Q4 2019 from the previous quarter’s
1.7 percent following rebound in energy prices.
Similarly, inflation in Japan rose to 0.5 percent,
above the 0.3 percent recorded in the previous
quarter due to hikes in the prices of food, housing,
transportation, and culture and recreation. Inflation
in the Euro area also climbed to 1.0 percent from
0.9 percent in the previous quarter amid rebounds
in energy costs and hikes in the prices of non-
energy industrial goods and unprocessed food.
Chart 37. Inflation of G3 Countries
quarterly average, in percent
Source: Bloomberg; Country websites
Prices in most emerging Asian economies rose in
Q4 2019. In South Korea, higher prices of housing
and utilities resulted in an average inflation rate of
0.3 percent. Singapore's average inflation stood at
0.6 percent during the review period on the back of
50“Gross Domestic Product: Q4 2019,” Office of the National
Economic and Social Development Council (NESDC), 17 February
2020
51 Bank Indonesia, “Resilient National Economic Growth
Maintained 2019,” 5 February 2020
Fourth Quarter 2019 Report on Economic and Financial Developments | 33
higher transport and food prices, which were offset
by softer decline in housing costs. In China, the
prolonged ASF outbreak caused inflation to advance
by 4.3 percent from the previous quarter’s
3.0 percent. In India, inflation surged to 8.6 percent
from the previous quarter’s 6.4 percent due to
sharp increases in food prices and non-food
products such as housing and fuel costs.
Meanwhile, Hong Kong’s average inflation was
recorded at 3.0 percent, lower than the previous
quarter’s 3.3 percent, driven mainly by slower price
movement in food, transportation and utilities.
In the ASEAN-5 region, average inflation rates were
generally lower in Q4 2019. In Indonesia, inflation
slowed down slightly to 3.0 percent from
3.4 percent a quarter ago. In Malaysia, decline in
food and transportation costs resulted in lower
inflation rate of 1.0 percent in Q4 2019 from the
1.3 percent posted in Q3 2019. Philippine inflation
rate further declined to 1.5 percent in Q4 2019
from 1.7 percent in the previous quarter. In
Thailand, inflation fell to 0.4 percent from
0.6 percent in the previous quarter on the account
of food, transportation and communication price
downgrade. Meanwhile, rebound in transportation
costs combined with price hike in housing and
construction materials contributed to Vietnam’s
increased inflation of 3.7 percent from the previous
quarter’s 2.2 percent.
Global labor market conditions were generally
smooth during the review quarter. The
unemployment rate in Japan was unchanged from
the previous quarter’s 2.3 percent. Meanwhile,
unemployment in US and Euro area eased at
3.5 percent and 7.4 percent, respectively, during
the review period.
52 “Socioeconomic Situation in 2019”, General Statistics Office of
Vietnam,
53
Press Release on “Economic and Financial Developments in
Malaysia in the Fourth Quarter of 2019, “Department of Statistics,
Malaysia, 12 February 2020
Chart 38. Unemployment Rates of G3 Countries
in percent
Source: Bloomberg; Country websites
In Asia, unemployment rates were slightly
above the previous quarter’s level particularly
in Hong Kong (3.2 percent) and South Korea
(3.6 percent). Meanwhile, marginal
improvement in unemployment rates in the
Philippines and Thailand were posted at 4.5
percent and 1.0 percent, respectively.
Table E. Macroeconomic Indicators in Selected
Economies
in percent
Financial Condition
of the BSP
Balance Sheet
As of end-December 2019, the BSP’s total assets
amounted to ₱5,082.9 billion, lower by 0.3 percent
from the quarter-ago level of ₱5,096.0 billion.
Against its year-ago balance, total assets was
notably higher as it grew by 4.8 percent or by
₱231.6 billion (Table 17).
54 Also due to the gradual appreciation of the Philippine peso
34 | Fourth Quarter 2019 Report on Economic and Financial Developments
During the same review period, the BSP’s liabilities
decreased by 0.4 percent to ₱4,938.6 billion from
the previous quarter’s balance of ₱4,959.9 billion.
Relative to the end-December 2018 level of
₱4,734.9 billion, total liabilities for the period was
higher by 4.3 percent or ₱203.8 billion.
BSP’s net worth remains strong
Consequently, the BSP’s net worth as of end-
December 2019 reached ₱144.2 billion or 23.9
percent above the year-ago level of ₱116.4 billion.
Likewise, the end-December 2019 net worth was
higher by 6.0 percent relative to the ₱136.0 billion
figure posted last quarter.
The BSP’s financial condition remains strong with
total assets dominated by international reserves
amounting to ₱4,434.1 billion as of end-December
2019. As compared to the quarter-ago balance of
₱4,405.8 billion, the end-December 2019 balance
was higher by 0.6 percent or ₱28.2 billion. The
quarterly rise in the reported peso equivalent of
international reserves was largely due to the
combined impact of the inflows arising from the
BSP’s foreign exchange (FX) operations and income
from its investments abroad, and the National
Government’s (NG) net foreign currency deposits.
However, these were partially offset by NG
payments of FX obligations. 54
Meanwhile, the BSP’s liabilities of ₱4,938.6 billion
during the review period were comprised mostly of
deposits and currency issues. The deposits were
largely supported by placements in reserve deposits
of Other Depository Corporations (ODCs), and
deposits from term and overnight facilities.
Table F. Balance Sheet of the BSP
in billion pesos
p
2019 2018
Dec Sept Dec
Assets 5,082.9 5,096.0 4,851.3
Liabilities 4,938.6 4,959.9 4,734.9
Net Worth 144.2 136.0 116.4
Note: Details may not add up to total due to rounding.
p Based on the preliminary and unaudited BSP Financial
Statements (FS) prepared by the Financial Accounting
Department (FAD) of the BSP.
Source: BSP
against the US dollar during the quarter.
Income Statement
Based on preliminary and unaudited data, the BSP
registered a net income of ₱8.5 billion for the
quarter ending December 2019. The lower
quarterly net income was primarily the result of
decreased interest income coupled with increased
expenditures (Table 18).
BSP’s Q4 2019 profit eases but
remains positive
Total revenues for the review quarter amounted to
₱26.4 billion or 12.0 percent lower than the ₱30.0
billion posted in the previous quarter. Total
revenues were mostly comprised of interest income
on foreign investments and domestic securities, and
miscellaneous income.
Table G. Income Position of the BSP
in billion pesos
Revenues
Less: Expenses
Net Inc ome/(Loss) Before Gain/(Loss) on FX R
Fluc tuations and Inc ome Tax Expense/(Benefit)
Net Gain/(Loss) on FX Rates Fluctuations
Income Tax Expense/(Benefit)
Net Inc ome/(Loss) After Tax
Note: Details may not add up to total due to rounding.
p Based on the preliminary and unaudited BSP Financial Statements (FS) prepared by the
Financial Accounting Department (FAD) of the BSP.
Source: BSP
Total expenditures, as compared to the previous
quarter, grew by ₱3.5 billion or 16.7 percent to
reach ₱24.3 billion. The q-o-q rise in expenditures
was due to higher bank note production and coin
minting cost, as well as increased taxes and licenses
fees.
Conclusion,
Challenges and
Policy Directions
The Philippine economy sustained its growth
momentum and resilience in 2019 amid significant
headwinds. It marked its 84th quarter of
uninterrupted growth in Q4 2019, a feat that has
Fourth Quarter 2019 Report on Economic and Financial Developments | 35
been built upon decades of policy and structural
reforms. After bouncing strongly in the last quarter
of 2019 with a 6.4 percent GDP growth outturn, the
country has remained one of the fastest-growing
economies in the region, registering a full year
growth of 5.9 percent. This outturn was close to the
lower end of the National Government’s growth
target range of 6.0 percent – 6.5 percent in 2019,
and continues to be reflective of the country’s
robust macroeconomic fundamentals,
characterized by favorable inflation environment;
ample liquidity and credit; manageable external
payments position; sound and stable banking
system; and modest fiscal deficit.
Moreover, the domestic economy continues to be
supported by sustained household consumption
and pick-up in public spending during the second
semester of 2019. On the supply side, growth was
driven still by broad-based expansion of services
and industry sectors supported largely by firm
numbers coming from financial intermediation;
p
2019 2018
Q4 Q3 Q4 public administration and defense, compulsory
26.404 30.005 18.361
24.338 20.851 21.139
social security; trade and repair of motor vehicles;
and construction. Despite the El Niño phenomenon
2.066 9.154 (2.778)
0.360
0.360 5.365 4.305
and the impact of African Swine Fever (ASF), the
(6.024) 5.753 6.910 agriculture sector managed to grow by 1.5 percent
8 .4 5 0 8 .7 6 6 (5 .3 8 3 )
during the year.
A key factor supporting domestic demand in 2019
was the favorable inflation environment, upheld by
well-calibrated monetary policy actions. Headline
inflation in 2019 settled at an average of 2.5
percent, brought about mainly by decelerating food
inflation. This outturn was lower than the 2018
inflation average of 5.2 percent, and was well
within the government’s target range of 2.0-
4.0 percent for the year.
The much-improved inflation dynamics, alongside
the benign inflation outlook, have given the BSP
space to pursue pre-emptive policy actions against
the risks associated with weak global growth. The
BSP reduced its policy rate by 25 bps each in May,
August, and September 2019. In its most recent
monetary policy stance meeting on 6 February
2020, the Monetary Board concluded that the
manageable inflation environment allowed room
for a further pre-emptive reduction in the policy
rate to support market confidence. While recent
demand indicators still point to a firm outlook for
the domestic economy, the Monetary Board
believes that a rate cut would provide additional
policy support to ward off the potential spillovers
associated with increased external headwinds. One
of which was the concern over the spread of the
coronavirus disease (COVID-19) that could have an
adverse impact on economic activity and market
sentiment in the coming months.
Looking ahead, the BSP expects inflation to
gradually rise but remain on a target-consistent
path for 2020 and 2021. Inflation expectations also
continue to be firmly anchored within the target
over the policy horizon. Meanwhile, the risks to the
inflation outlook continue to tilt slightly toward the
upside in 2020 and toward the downside in 2021.
Upside risks to inflation over the near term
emanate mainly from potential upward pressures
on food prices owing in part to the lingering impact
of the ASF on meat prices and tighter international
supply of rice. However, uncertainty over trade and
economic policies in major economies continue to
weigh down on global demand, thus mitigating
upward pressures on commodity prices.
While we emphasize the strength of the country’s
macroeconomic fundamentals, we also recognize
that there are risks and challenges to both growth
and inflation outlook that need to be managed. For
one, the global economic environment remains
fragile as downside risks to growth remain
prominent. The IMF, in its World Economic Outlook
(WEO) Update released on 20 January 2020, revised
downwards its October 2019 WEO forecasts on
global economic growth by 0.1 percentage point
and 0.2 percentage point for 2020 and 2021,
respectively. This reflects negative surprises to
economic activity in a few emerging market
economies, as well as the impact of increased social
unrest in a few cases, which led to a reassessment
of growth prospects over the next two years.
Further on the external front, major risks include:
1) rising geopolitical tensions, notably between the
US and Iran, as well as intensifying social unrest in
some countries (e.g., Hong Kong, Argentina, Chile,
Iran, Iraq, Turkey, and Venezuela), which could
disrupt activity and hurt an already tepid business
sentiment; 2) still high trade barriers between US
and China amid the Phase One trade deal could
continue to cause reconfiguration of global supply
36 | Fourth Quarter 2019 Report on Economic and Financial Developments
chains, erode sentiment, and undermine global
manufacturing and trade; and 3) recent COVID-19
outbreak, which has been declared as a “global
pandemic” by the World Health Organization
(WHO), is seen to weigh down significantly on the
growth prospects not only in China but in other
severely affected areas.
On the domestic front, the Luzon-wide enhanced
community quarantine to avert the further spread
of COVID-19; the increased intensity and frequency
of natural hazards; and infrastructure bottlenecks,
are among the key challenges confronting the
economy.
As we anticipate and prepare to overcome these
challenges in the horizon, the BSP remains
committed to stay the course through the effective
discharge of its mandates and policy thrusts.
Maintaining price and financial stability that will
minimize systemic risks as well as provide resilience
against economic shocks will help foster an
enabling macroeconomic environment that is
conducive to a sustainable and inclusive economic
growth. The BSP will continue to vigilantly monitor
domestic and external developments, and will
stand ready to deploy appropriate measures to
ensure that the monetary policy stance remains
appropriate in keeping inflation within target.
Amid the uncertainties in the COVID-19 in
particular, the 25-basis point policy interest rate cut
by the BSP on 6 February 2020 was intended as a
preemptive move to support market confidence
and ward off the possible spillover effects of the
outbreak on domestic demand. Moreover,
cognizant of the impact of the disruption caused by
the COVID-19 in the financial system and the
domestic economy, the BSP has also decided to
grant temporary regulatory relief measures to BSP
supervised financial institutions (BSFIs), as well as
encourage these BSFIs to extend the same relief
measures to their clients, borrowers, and
employees.Meanwhile, the BSP remains in pursuit
of its own reform agenda. The amendments to the
BSP Charter, or Republic Act (R.A.) No. 11211,
embodies a package of reforms that will further
align its operations with global best practices,
improve the BSP’s corporate viability, and enhance
its capacity for crafting proactive policies amid
rising interlinkages in the financial markets and the
broader economy. Specifically, the law restored the
central bank’s authority to issue its own debt
papers as part of its regular monetary operations,
establishes a stronger prudential regulatory
framework to promote a safe and sound financial
system through the expansion of supervisory
coverage and authority to prescribe metrics
attuned to international standards and practices.
The amendment likewise empowers further the BSP
to oversee the country’s payment and settlement
systems (PSS) including critical financial market
infrastructures that are vital components of the
PSS. Moreover, the amended charter strengthens
the central bank’s ability to obtain data from any
person or entity from the private and public
sectors, for policy making and statistical purposes,
in line with the pursuit of its mandates.
Moreover, the BSP’s policy and reform agenda
involve strategic, complementary and reinforcing
efforts in developing deeper money, debt, and
foreign exchange markets that systematically build
the country’s resilience by reducing reliance on
external funding and insulating the domestic
economy from external shocks. At the same time,
the BSP is pursuing initiatives together with the
National Government to deepen the local debt
market. This is expected to go a long way in funding
infrastructure and other big-ticket investments.
To support our financial inclusion agenda, we are
championing an enabling environment for the
digitalization of the payments system, with our
flagship project - the National Retail Payments
System (NRPS). The NRPS is expected to boost
economic activities by making available an inter-
operable, safe, and efficient real-time digital
payments system.
The BSP has also identified its legislative priorities
for the current Congress. This includes the:
1) amendments to the Bank Deposit Secrecy Law,
which are aimed to make financial institutions
comply with international standards on
transparency and combat both domestic and global
tax evasion, money laundering, and other financial
crimes; 2) enactment of a Financial Consumer
Protection Bill that will provide a comprehensive
financial consumer protection regime that
consolidates financial inclusion, financial education,
Fourth Quarter 2019 Report on Economic and Financial Developments | 37
good governance, and effective supervision for the
purpose of consumer protection; and the
3) amendments to R.A. No. 10000 or the Agri-Agra
Law, which are intended to institute agricultural
financing reforms, including the expansion of the
list of projects and activities that may be financed
through bank loans or investments, and broadening
of the modes of alternative compliance.
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
Annex A. Banking Policies
Guidelines on the Establishment of Islamic Banks
and Islamic Banking Units (BSP Circular No. 1069
and 1070 dated 27 December 2019)
The Monetary Board (MB) approved the
preliminary policy initiatives of the Bangko Sentral
ng Pilipinas (BSP) to jumpstart the ensuing
implementation of Republic Act (R.A.) No. 11439 or
An Act Providing for the Regulation and
Organization of Islamic Banks and the relevant
provisions on Islamic banking under R.A. No. 11054,
otherwise known as the Organic Law for the
Bangsamoro Autonomous Region in Muslim
Mindanao. R.A. No. 11439 which was signed into
law on 22 August 2019 and became effective on
15 September 2019 provides the BSP with the legal
authority to issue a broader set of rules and
regulations on Islamic banking.
The BSP aims to create an enabling environment
that will allow Islamic banks to operate alongside
the conventional banks under the same regulatory
and supervisory approach, taking into consideration
the unique features of the Islamic banking
operations. The goal is to provide a coherent,
consistent, and comprehensive set of regulations
and standards to encourage wider investor and
consumer participation on Islamic banking and
finance without any regulatory arbitrage.
The regulations which resounded the BSP’s
promotion of strong corporate governance and
consumer protection cover the licensing framework
on the establishment of Islamic Banks (IBs) and
Islamic Banking Units (IBUs) and the BSP’s
expectations on the Shari’ah Governance
Framework (SGF) for IBs and IBUs. The BSP’s
existing licensing framework on the establishment
of conventional banks and branches is adopted, as
appropriate, with supplementary requirements
relevant to Islamic banking operations and Shari’ah
compliance.
The regulations will implement the legal provisions
on the following:
a. Establishment of Other Islamic Banks. R.A. No.
11439 allows other Islamic banking players,
either full-fledged Islamic banks or Islamic
banking windows, to operate in the Philippines.
Subject to the approval of the Monetary Board,
conventional banks, whether domestic or
foreign banks, will be allowed to open Islamic
banking unit or to establish a subsidiary Islamic
bank. Foreign banks can operate in the
Philippines under any of the modes of entry
provided under R.A. No. 7721, as amended, or
An Act Liberalizing the Entry and Scope of
Operations of Foreign Banks in the Philippines
and for Other Purposes; and
b. Shari’ah Compliance. R.A. No. 11439 provides
that it shall be the responsibility of an Islamic
bank to ensure its compliance with Shari'ah
principles. The Islamic bank shall constitute its
Shari'ah Advisory Council (SAC) composed of
persons who are qualified and have knowledge
or experience in Shari’ah and in banking,
finance, law or such other related disciplines.
Extension of the Period for
Registration/Notification of Operators of Payment
Systems (BSP Circular No. 1068 dated 26 December
2019)
The MB extended the registration deadline for
operators of payment systems (OPS) until 01 April
2020. The extension is intended to give OPS more
time to register and address various concerns that
they may have concerning registration.
38 | Fourth Quarter 2019 Report on Economic and Financial Developments
Under BSP Circular No. 1049, OPS that are
operating at the time of the effectivity of R.A. No.
11127 are required to register with the BSP not
later than three (3) months from the effectivity of
the said Circular or on or before 1 January 2020.
R.A. No. 11127 or the National Payment Systems
Act endows the BSP with the power to oversee the
payment systems in the Philippines and exercise
supervisory and regulatory powers over these
payment systems for the purpose of ensuring the
stability and effectiveness of the monetary and
financial system.
Amendments to the Disclosure Requirement on
Interest Rate Risk in the Banking Book (BSP Circular
No. 1067 dated 13 December 2019)
The BSP in its Circular No.1067 laid out additional
disclosures required under the Risk-Based Capital
Adequacy Framework for the Philippine Banking
System on interest rate risk in the banking book
(IRRBB).
Besides the general disclosure requirement, bank's
management and mitigation strategies should also
be disclosed in banks' annual report. Strategies
cited include the monitoring of risk measures in
relation to established limits, hedging practices,
conduct of stress testing, outcomes analysis, the
role of independent audit, the role and practices of
the asset and liability committee (ALCO), the bank’s
practices to ensure appropriate model validation,
and timely updates in response to changing market
conditions.
Aside from a description of their overall IRRBB
management and mitigation strategies, banks are
also required to disclose the period of the
calculation of their IRRBB measures as well as to
describe the interest rate shock and stress
scenarios they utilized to estimate changes in the
economic value and/or in earnings.
Banks should also present a high-level description
of how the bank hedges its IRRBB and a high-level
description of key modelling and parametric
assumptions used in IRRBB measurement as part of
their disclosure.
Report on Intraday Liquidity of Universal and
Commercial Banks (UBs/KBs) and their Subsidiary
Banks/Quasi-Banks (QBs) (BSP Circular No. 1064
dated 03 December 2019)
The BSP issued a circular on the adoption of the
report on intraday liquidity to facilitate monitoring
of the BSP-supervised institutions' intraday liquidity
position. The monitoring of intraday liquidity
position provides a tool to gauge the ability of
covered banks and quasi banks (QBs) to meet their
intraday obligations on a timely basis, ultimately
contributing to the smooth and efficient functioning
of the payment and settlement systems.
The report on intraday liquidity will be applied to
universal and commercial banks (UBs/KBs), and
their subsidiary thrift banks/QBs. The report
requires the presentation of intraday liquidity
metrics consistent with those proposed under
international standards such as daily maximum
intraday liquidity usage, intraday throughput, gross
payments sent and received, and available intraday
liquidity position, among other metrics.
Meanwhile, stand-alone thrift banks/QBs and all
rural/cooperative banks will not be required to
submit the report on intraday liquidity in
recognition of the lower volume of payments and
settlements entered into by these financial
institutions. Instead, they are expected to maintain
an adequate and reliable management information
system that is able to measure and monitor
selected intraday metrics.
Moreover, the submission of the report is expected
to encourage covered banks/QBs to adopt a
systematic and disciplined approach in managing
their intraday liquidity. It will also enable the BSP to
conduct a detailed analysis of the resilience of the
covered banks/QBs to intraday liquidity shocks and
monitor how intraday liquidity risk evolves over
time. Covered banks/QBs are required to submit
the report by end-June 2021.
The guidelines complete the BSP’s four-phased
package of reforms on liquidity standards. These
include the issuance of Guidelines on Liquidity Risk
Management (first phase), the adoption of Liquidity
Coverage Ratio and the Net Stable Funding Ratio for
universal and commercial banks (UBs/KBs) and their
subsidiary banks/QBs (second phase) as well as the
Fourth Quarter 2019 Report on Economic and Financial Developments | 39
Minimum Liquidity Ratio (MLR) for stand-alone
thrift, rural and cooperative banks (third phase).
The sequencing of these liquidity standards was
deliberate and cognizant of domestic conditions
and the potential impact on the banking system.
Reduction in Reserve Requirements (BSP Circular
No. 1063 and 1056 dated 03 December 2019 and
22 October 2019 respectively)
At its meeting on 27 September 2019, the BSP
decided to reduce the reserve requirements for
universal/commercial banks (U/KBs), thrift banks
(TBs), and rural banks (RBs) by 100 basis points (or
one percentage point) effective on the first day of
the first reserve week of November 2019.
The reduction in reserve requirements will apply to
the deposits and deposit substitute liabilities in
local currency of banks:
From To
(Effectivity date:
November 2019)
Universal/Commercial
16% 15%
Banks
Thrift Banks 6% 5%
Rural Banks 4% 3%
On 24 October 2019 the BSP announced the
reduction in the reserve requirement ratio by 100
basis points (or one percentage point) for U/KBs
and TBs. Further, this was complemented with a
reduction in the RRs for non-bank financial
institutions with quasi-banking functions (NBQBs).
The reduction became effective on the first day of
the first reserve week of December 2019.
The reduction in reserve requirements will apply to
the deposits and deposit substitute liabilities in
local currency of banks and NBQBs:
Effectivity date:
December 2019
Universal/Commercial Banks 14%
Non-Bank Financial Institutions
14%
with Quasi-Banking Functions
Thrift Banks 4%
The reserve requirement reduction is in line with
the BSP’s broad financial sector reform agenda to
promote a more efficient financial system by
lowering financial intermediation costs.
At the same time, the adjustment in reserve
requirement ratios is aimed to ensure sufficient
domestic liquidity to support economic activity.
Amendment of the requirements on the issuance
of Long-Term Negotiable Certificates of Time
Deposit (LTNCTDs), Bonds and Commercial Papers
(BSP Circular No. 1062 and 1059 dated
26 November 2019 and 15 November 2019,
respectively)
The BSP issued a circular on the enhancements to
the rules on the issuance of long-term negotiable
certificates of time deposit (LTNCTDs), bonds and
commercial papers (CPs) that allow related
companies of the issuing universal/commercial
banks (U/KBs) and quasi-banks (QBs) to underwrite
or arrange the said financial instruments subject to
certain conditions. Said enhancement is aimed at
contributing to the development of the capital
market.
The amended rules require that there are other
third party underwriters/arrangers that are not
related in any manner to the issuing U/KB or QB.
The parties shall ensure that an objective conduct
of the due diligence review is not undermined and
that appropriate safeguards and controls on related
party transactions shall be instituted to prevent
conflict of interest on the arrangement. These
prudential reforms are aimed to promote efficiency
in the issuance of the said instruments by U/KBs
and QBs and at the same time protect the interest
of the investing public.
Meanwhile, the BSP approved an indefinite
moratorium on the issuance of LTNCTDs which will
commence on 1 January 2021. Banks are given until
30 September 2020 to submit their request for
authority to issue LTNCTD. The moratorium is seen
to shift the banks’ funding channel from LTNCTDs to
bond issuances to further deepen the local debt
market.
Amendment to the Definition of a Deposit
Substitute (BSP Circular No. 1061 dated
25 November 2019)
The BSP issued a revised definition of a deposit
substitute to align the same with the provisions of
the BSP Charter which was amended under
40 | Fourth Quarter 2019 Report on Economic and Financial Developments
Republic Act No. 11211.
Under Section 95 the new BSP Charter, a deposit
substitute refers to a form of obtaining funds from
the public, other than deposits, through the
issuance, endorsement or acceptance of debt
instruments for the purpose of relending or
purchase of other receivables and
obligations. The provisions of Section 95 clarify that
the term “obtaining funds from the public” refers to
borrowing from 20 or more lenders that are
individuals or corporate entities which are not
financial intermediaries.
This means that borrowings from banks, quasi-
banks and other financial intermediaries are no
longer considered as deposit substitutes which are
subject to reserve requirements. Examples of these
borrowings include interbank borrowings,
repurchase agreements with financial
counterparties as well as bonds issued to financial
intermediaries. The exclusion of these types of
borrowings from the reserve base of banks and
quasi-banks will result in freed-up liquidity for
lending or investment activities.
This amendment is in line with the BSP’s
commitment to implement legislation and ensure
that the BSP’s regulatory framework is consistent
with prevailing laws. It also facilitates the flow of
funds within the financial system which may help
reduce intermediation costs and, in turn, support
economic activity.
Amendments to the Prudential Requirements and
Guidelines on the Public Offering and Listing of
Bank Shares for Universal Banks (BSP Circular No.
1060 dated 15 November 2019)
The BSP issued a circular on the amendments to the
prudential requirements on the public offering and
listing of bank shares for universal banks (UBs) as
provided under Section 102 and Appendix 1 of the
Manual of Regulations for Banks (MORB).
The amendments are aimed at supplementing the
enhanced corporate governance framework of the
BSP by encouraging dispersed shareholdings in
banks.
BSP Circular 1060 states that a domestic bank
applying for a UB authority shall, as a condition to
the approval of its application, conduct a public
offering of its shares in accordance with the rules of
the Securities and Exchange Commission (SEC) on
minimum public ownership (MPO) and the listing
rules of the Philippine Stock Exchange (PSE).
A bank whose shares of stock are already listed in
the PSE at the time of filing of its application for UB
authority must submit to the appropriate
supervising department of the BSP a certification
signed by the president or officer of equivalent rank
and the chief compliance officer that the bank has
complied with the MPO requirement of the SEC.
Domestic banks granted a UB authority must list
their shares in the PSE within one (1) year from the
date the authority to operate as a UB was granted.
The requirements of public offering and listing shall
be complied with by all applicant banks including
those that are able to meet the prescribed
minimum capital requirement on their own or
through merger/consolidation with other banks or
nonbank financial intermediaries.
Amendment to the Policy on Peso Consumer Loans
to Overseas Filipino Workers (OFWs), Non-
immigrants, and Embassy Officials and Employees
(BSP Circular No. 1058 dated 15 November 2019)
In order to facilitate the access of OFWs to bank
credit, the MB has approved the enhanced policy
expressly allowing banks to grant peso consumer
loans for OFWs without prior BSP approval. This is
in line with the BSP’s financial inclusion and
empowerment agenda.
The revised guidelines likewise liberalize the rules
limiting the grant of peso consumer loans to certain
types of visa holders. In particular, peso consumer
loans, except residential real estate and housing
loans, may also be extended to all eligible foreign
nationals with valid visa issued by relevant
Philippine authorities. Likewise, embassy officials
and employees based in the Philippines are allowed
to avail any type of peso consumer loans.
The enhancements are premised on the banks’
continued adherence to sound credit underwriting
practices and effective control measures in
managing risks involved in granting peso consumer
loans to OFWs and eligible foreign nationals. The
new guidelines promote greater access to bank
financing for these borrowers, while expanding and
broadening market segment for banks.
Fourth Quarter 2019 Report on Economic and Financial Developments | 41
Rationalization of Prudential Reporting
Requirements (BSP Circular No. 1057 dated
28 October 2019)
The BSP issued Circular No. 1057 on the
Rationalization of Prudential Reporting
Requirements approving the deletion of the 21
reports previously required from banks as part of its
report rationalization initiative.
Cognizant of the significant developments in the
regulatory and business environment, the BSP is
continuously reviewing the prudential reports
required from BSP supervised financial institutions
(BSFls) to ensure that information being gathered
remain relevant to the surveillance and supervisory
functions of the BSP. The report rationalization
initiative aims to contribute to continuing
adherence to internationally recognized standards
and practices on data aggregation and governance
as well as promote ease of doing business in BSFls.
Appendix 7 is hereby amended by deleting the
reports required to be submitted by banks listed in
"Annex A" of the said circular.
Adoption of a National Quick Response (QR) Code
Standard (BSP Circular No. 1055 dated 17 October
2019)
In line with its thrust of ensuring the efficiency of
payment systems in support of inclusive economic
development, the BSP has approved a policy
requiring the adoption of a National QR Code
Standard for payments. This Standard is necessary
for ensuring interoperability of QR-enabled
payment and financial services.
The QR technology has emerged as the most
convenient and cost-efficient means of moving
funds from one account to another. Hence, the use
of interoperable QR Codes has been gaining
traction as an alternative to the traditional debit
and credit cards. A QR code contains most if not all
of the critical information such as account name
and account number which are required to be
specified in a payment instruction. As such, the use
of this code minimizes encoding errors. Moreover,
it is faster and easier to just scan the code than to
dip or swipe a card and sign a charge slip.
The adoption of a QR Code Standard on a national
scale is expected to bring more Filipinos as well as
micro and small enterprises onboard the financial
system. The merchants simply need to print out
the code on a piece of paper and display the code
for their clients to scan using a smartphone. This
operational requirement entails much lower cost
than investing in electronic data capture equipment
like point-of-sale terminals which are usually
needed for card-based payment transactions.
The newly-approved policy prescribing a National
QR Code Standard provides that the country’s
Payment System Management Body, that is, the
Philippine Payments Management, Inc. (PPMI),
determine the National QR Code Standard in
coordination with key stakeholders particularly the
payment service providers (PSPs), both banks and
non-banks. To ensure that the country’s QR-
enabled payment and financial services are
interoperable not only on domestic but also on a
wider regional or global scope, the policy requires
that the National QR Code Standard be aligned with
international standards.
In addition, the policy provides that the PSPs shall
give utmost priority to the safety of the payers and
the payees to build public trust in the QR
technology. This means that the PSPs shall have
the necessary measures to manage the threats and
vulnerabilities associated with this
technology. Moreover, the PSPs are required to
establish an appropriate pricing mechanism for QR-
enabled payment and financial services to
encourage their clients to use these services.
For a smooth implementation of the standard, the
policy sets out a period within which the PPMI shall
inform the BSP of the standard approved by the
PPMI Board. The PSPs shall adopt the standard
within thirty (30) calendar days from the date of
said notification. Nevertheless, considering that a
number of PSPs have been offering QR-enabled
payment services, the policy allows these PSPs to
fully comply with the standard up to 30 June 2020.
The adoption of the National QR Code Standard is
another collaborative initiative between the BSP
and the PPMI under the National Retail Payment
System (NRPS) regulatory framework. With this
initiative, the BSP is optimistic that all Filipinos can
enjoy the benefits of a safe, efficient, and inclusive
retail payment system regardless of social status.
55 Source: Media releases from the Bangko Sentral ng Pilipinas,
and Philippine Stock Exchange, Inc for the period October to
42 | Fourth Quarter 2019 Report on Economic and Financial Developments
Dissemination of Relevant Information Relative to
Truth in Lending Act (TLA) Disclosure Requirement
(BSP Circular No. 1052 dated 02 October 2019)
The BSP has expanded the mode of disclosing
relevant information required under the Republic
Act No. 3765, also known as the TLA.
The enhanced law now allows disclosure through
various channels of communication, including
educational videos and social media and is meant to
encourage BSP-supervised financial institutions
(BSFIs) to be more creative, efficient, and effective
in disseminating the salient TLA information, while
adhering to consumer protection standards and
social media risk management guidelines.
It also emphasizes full disclosure and utmost
transparency, particularly on the cost of credit
granted by the BSFIs, as critical elements that
empower consumers to make objective comparison
of banking products and informed financial
decisions.
The enhanced disclosure requirement now applies
to banks, quasi-banks, non-stock savings and loan
associations, pawnshops, non-bank financial
institutions, as well as banks/non-banks operating
as credit card issuers.
Annex B. Capital Market Reforms55
On developing the necessary market infrastructure
The Philippine Stock Exchange (PSE) has launched
the MOBILE application of its initial public offering
(IPO) subscription platform for local small investors
(LSIs) called PSE Electronic Allocation System (PSE
EASy). This facility provides investors a more
accessible way to subscribe to IPOs.
Previously, only investors based in Metro Manila
have access to LSI kiosks. The shift to an online
platform enabled investors from over 60 provinces
and close to 20 countries to subscribe to the IPOs.
On improving ease of doing business
The BSP enhanced the rules on the issuance of long-
term negotiable certificates of time deposit
(LTNCTDs), bonds and commercial papers (CPs)
allowing related companies of the issuing
December 2019.
universal/commercial banks (U/KBs) and quasi-
banks (QBs) to underwrite or arrange the said
financial instruments subject to certain conditions.

The amended rules require that there are other

third party underwriters/arrangers that are not
related in any manner to the issuing U/KB or QB.
The parties shall ensure that an objective conduct
of the due diligence review is not undermined and
that appropriate safeguards and controls on related
party transactions shall be instituted to prevent
conflict of interest on the arrangement. These
prudential reforms are aimed at promoting
efficiency in the issuance of the said instruments by
U/KBs and QBs and at the same time protecting the
interest of the investing public.

On broadening investor base

The Securities and Exchange Commission (SEC)
released amendments to the implementing rules
and regulations (IRR) of Republic Act No. 9856, or
the Real Estate Investment Trust (REIT) Act of 2009.
Among the amendments include the reduction of
the minimum public ownership requirement to 33
percent from the previous 40 percent on the first
year of the implementation of the amendments and
67 percent on the third year. The amendment
likewise includes a requirement that proceeds
realized from the sale of REIT shares or other
securities should be reinvested in the Philippines.
The amendments are expected to attract more
investments into REIT as an asset class and
contribute in the broadening of investor base in the
country’s domestic capital markets.

Fourth Quarter 2019 Report on Economic and Financial Developments | 43

 List of Acronyms, Abbreviations, and Symbols

AE Advanced Economies FDI Foreign Direct Investment

Agriculture, Hunting, Forestry and FSSTI FTSE Straits Times Index
AHFF
Fishing
FX Foreign Exchange
Areas Outside National Capital
AONCR
Region FXTN Fixed-Income Treasury Note
Australian Stock Exchange All GDP Gross Domestic Product
AS30
Ordinaries Index
GIR Gross International Reserves
Association of Southeast Asian
ASEAN
Nations GNI Gross National Income
BIR Bureau of Internal Revenue GNPL Gross Non-Performing Loan
BOC Bureau of Customs Government-Owned and
GOCC
BOE Bank of England -Controlled Corporations

BOJ Bank of Japan GS Government Securities

BOP Balance of Payments HLA Higher Loss Absorbency

BPI Bank of the Philippine Islands HSI Hong Kong Hang Seng Index

BPO Business Process Outsourcing IMF International Monetary Fund

BPS Basis Points Interest Rate Risk in the Banking
IRRBB
Book
Bangko Sentral-Supervised
BSFI Jakarta Stock Exchange Composite
Financial Institutions JCI
Index
BSP Bangko Sentral ng Pilipinas
JCRA Japan Credit Rating Agency
BTr Bureau of the Treasury
JGB Japanese Government Bond
CAR Capital Adequacy Ratio
J-REIT Japanese Real Estate Investment
CCR Credit Card Receivable Trust
CDS Credit Default Swap LCY Local Currency
CET1 Common Equity Tier 1
LEM Loans Especially Mentioned
CPI Consumer Price Index LFPR Labor Force Participation Rate
Department of Labor and LFS Labor Force Survey
DOLE
Employment
LGU Local Government Unit
Domestic Systemically Important
DSIB LIBOR London Interbank Offered Rate
Bank
LTR Labor Turnover Rate
DSR Debt Service Ratio
LTS Labor Turnover Survey
ECB European Central Bank
MB Monetary Board
EFT Electronic Fund Transfer
MBS Mortgage-Backed Securities
Emerging Market Bond Index
EMBIG MLT Medium- to Long-Term
Global
ETF Exchange-Traded Funds Manual of Regulations for
MORPS
Payment System
EU European Union
MOS Monetary Operations System
FTSE Bursa Malaysia Kuala Lumpur
FBMKLCI MPC Monetary Policy Committee
Composite Index
FCD Foreign Currency Deposit MVL Motor Vehicle Loan

44 | Fourth Quarter 2019 Report on Economic and Financial Developments

NCR National Capital Region Securities and Exchange
SEC
National Economic and Commission
NEDA
Development Authority SET Stock Exchange of Thailand Index
NEER Nominal Effective Exchange Rate Shanghai Stock Exchange
SHCOMP
Composite Index
National Economic and Social
NESDB SIBOR Singapore Interbank Offered Rate
Development Board
NFA Net Foreign Assets SME Small- and Medium-Enterprises
NG National Government
SRC Securities Regulation Code
NIR Net International Reserves
ST Short Term
NNPL Net Non-Performing Loan
TB Thrift Bank
NPSA National Payment Systems Act
T-bill Treasury Bill
New Zealand Stock Exchange 50
NZSE50FG T-bond Treasury Bond
Gross Index
ODC Other Depository Corporation TDF Term Deposit Facility

ODF Overnight Deposit Facility TLP Total Loan Portfolio

OF Overseas Filipinos TNK Trabaho, Negosyo, Kabuhayan
OPS Operators of Payment System TPI Trading Partners Index
Philippine Dealing and Exchange Trading Partners Index-Advanced
PDEx TPI-A
Corporation Countries
Philippine Payments and Trading Partners Index-Developing
PhilPass TPI-D
Settlements System Countries
ppts percentage points Tax Reform for Acceleration and
TRAIN
PSA Philippine Statistics Authority Inclusion
UK United Kingdom
PSE Philippine Stock Exchange
U/KB Universal and Commercial Bank
PSEi Philippine Stock Exchange Index
QB Quasi-Bank y-o-y year-on-year
q-o-q quarter-on-quarter y-t-d year-to-date
Quantitative and Qualitative
QQE
Monetary Easing
RB Rural Bank

Rizal Commercial Banking

RCBC
Corporation

REER Real Effective Exchange Rate

ROP Republic of the Philippines

RREL Residential Real Estate Loan

RRP Reverse Repurchase

RRR Reserve Requirement Ratio
Salary-Based General-Purpose
SBGPCL
Consumption Loans
SDR Special Drawing Rights

Fourth Quarter 2019 Report on Economic and Financial Developments | 45

 Report on Economic and Financial Developments Fourth Quarter 2019
Statistical Tables

1 Gross National Income and Gross Domestic Product by Industrial Origin

1a Gross National Income and Gross Domestic Product by Expenditure Shares

2 Selected Labor, Employment and Wage Indicators

3 Cash Operations of the National Government

4 Consumer Price Index in the Philippines

4a Consumer Price Index in the National Capital Region

4b Consumer Price Index in Areas Outside the National Capital Region

5 Monetary Indicators

6 Selected Domestic Interest Rates

7 Number of Financial Institutions

8 Total Resources of the Philippine Financial System

9 Ratios of Non-Performing Loans and Loan Loss Provisions to Total Loans of the Banking System

10 Stock Market Transactions

11 Balance of Payments

12 International Reserves of the Bangko Sentral ng Pilipinas

13 Exchange Rates of the Peso (Peso per Unit of Foreign Currency)

13a Exchange Rates of the Peso (Unit of Foreign Currency per Peso)

13b Effective Exchange Rate Indices of the Peso

14 Total External Debt

15 Selected Foreign Debt Service Indicators

16 Selected Foreign Interest Rates

17 Balance Sheet of the Bangko Sentral ng Pilipinas

18 Income Statement of the Bangko Sentral ng Pilipinas

46 | Fourth Quarter 2019 Report on Economic and Financial Developments

 1 GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN
for periods indicated

LEVELS (in billion pesos; at constant 2000 prices)

2015 2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Agriculture, Hunting, Forestry and Fishing 181.4 166.9 155.6 215.8 173.6 163.6 160.3 213.4 182.1 173.9 164.5 218.6 184.2 174.5 164.4 222.6 185.6 176.0 169.5 226.0
Industry 592.4 654.6 594.7 703.8 645.0 702.4 645.5 757.7 684.8 750.1 697.8 812.9 737.4 799.2 739.4 866.8 772.9 828.7 780.8 913.4
Mining and Quarrying 21.1 27.7 16.4 15.2 23.7 26.9 16.0 17.0 19.9 30.3 16.7 17.9 21.4 28.6 16.5 19.3 22.4 32.8 16.0 19.7
Manufacturing 425.0 434.2 400.7 501.2 459.0 461.1 428.0 537.4 494.4 497.9 470.6 581.3 530.5 526.2 488.5 599.8 556.4 546.5 501.1 622.0
Construction 91.8 129.5 108.0 127.7 102.1 144.7 125.2 140.0 109.3 150.2 131.6 147.0 120.4 169.7 151.7 176.5 127.0 168.9 175.0 195.3
Electricity, Gas and Water Supply 54.4 63.2 69.6 59.7 60.2 69.6 76.2 63.3 61.2 71.7 78.8 66.7 65.1 74.6 82.8 71.2 67.1 80.4 88.7 76.4
Services 993.6 1,123.2 1,074.1 1,144.1 1,068.2 1,215.5 1,147.8 1,230.3 1,139.7 1,294.1 1,231.7 1,315.6 1,216.4 1,381.0 1,316.2 1,404.6 1,299.1 1,479.7 1,404.0 1,515.1
Transportation, Storage and Communication 141.0 153.6 128.7 158.1 148.4 164.4 134.6 164.6 154.6 169.9 139.3 172.7 164.8 180.0 146.8 179.2 177.2 190.6 158.8 189.2
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 270.3 307.6 338.3 354.3 290.7 334.9 359.7 382.2 311.9 354.5 385.9 414.7 331.0 375.7 405.8 442.4 355.0 407.3 437.3 480.4
Financial Intermediation 130.9 144.6 130.7 140.4 143.7 154.6 141.8 150.1 153.7 169.1 154.4 158.0 165.6 181.9 165.5 168.0 182.6 198.7 184.0 186.3
Real Estate, Renting and Busines Activities 192.6 222.3 220.5 219.3 209.4 241.7 240.1 239.5 224.1 261.4 258.8 255.1 234.4 273.3 273.6 265.4 243.0 283.6 284.8 274.1
Public Administration and Defense;
Compulsory Social Security 66.2 82.8 73.1 75.4 69.6 88.0 75.6 85.3 74.1 96.2 82.6 93.4 83.8 110.6 97.3 107.1 92.0 120.1 102.5 125.4
Other Services 192.5 212.3 183.0 196.5 206.5 231.9 196.0 208.7 221.3 243.1 210.6 221.7 236.8 259.5 227.2 242.5 249.2 279.5 236.7 259.6

Gross Domestic Product 1,767.4 1,944.7 1,824.4 2,063.7 1,886.8 2,081.5 1,953.5 2,201.5 2,006.6 2,218.1 2,094.0 2,347.1 2,138.0 2,354.8 2,220.1 2,494.0 2,257.5 2,484.3 2,354.3 2,654.4
Net Primary Income 381.3 372.7 377.5 411.4 417.8 396.4 395.9 422.3 441.0 423.3 428.7 435.5 462.7 442.5 451.0 447.1 477.4 452.7 468.5 467.8

Gross National Income 2,148.7 2,317.4 2,201.9 2,475.1 2,304.6 2,477.9 2,349.5 2,623.8 2,447.6 2,641.4 2,522.7 2,782.7 2,600.7 2,797.3 2,671.1 2,941.2 2,734.9 2,937.0 2,822.8 3,122.3

ANNUAL CHANGE (in percent)

2015 2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Agriculture, Hunting, Forestry and Fishing 1.0 -0.1 -0.1 -0.2 -4.3 -1.9 3.0 -1.1 4.9 6.3 2.6 2.4 1.1 0.3 0.0 1.8 0.7 0.8 3.1 1.5
Industry 5.5 6.5 6.5 7.1 8.9 7.3 8.5 7.7 6.2 6.8 8.1 7.3 7.7 6.5 6.0 6.6 4.8 3.7 5.6 5.4
Mining and Quarrying -2.5 -8.6 0.5 14.0 12.1 -3.0 -2.5 12.1 -16.0 12.7 4.3 4.9 7.4 -5.4 -1.3 8.1 4.7 14.6 -3.2 2.1
Manufacturing 6.0 4.7 5.8 6.1 8.0 6.2 6.8 7.2 7.7 8.0 10.0 8.2 7.3 5.7 3.8 3.2 4.9 3.9 2.6 3.7
Construction 5.1 18.8 9.6 11.6 11.2 11.8 16.0 9.7 7.0 3.8 5.1 5.0 10.2 13.0 15.2 20.0 5.4 -0.5 15.4 10.7
Electricity, Gas and Water Supply 5.8 4.4 7.7 4.5 10.5 10.1 9.6 6.0 1.7 3.0 3.4 5.5 6.4 4.1 5.0 6.7 3.1 7.8 7.2 7.3

Services 5.6 6.7 7.3 7.9 7.5 8.2 6.9 7.5 6.7 6.5 7.3 6.9 6.7 6.7 6.9 6.8 6.8 7.1 6.7 7.9
Transportation, Storage and Communication 8.4 6.6 8.0 9.1 5.3 7.0 4.6 4.1 4.2 3.3 3.6 5.0 6.6 6.0 5.4 3.7 7.6 5.9 8.2 5.6
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 5.9 6.7 8.4 7.3 7.5 8.9 6.3 7.9 7.3 5.8 7.3 8.5 6.1 6.0 5.1 6.7 7.3 8.4 7.8 8.6
Financial Intermediation 4.3 5.8 5.4 8.7 9.7 6.9 8.5 6.9 7.0 9.4 8.9 5.3 7.8 7.6 7.2 6.3 10.2 9.2 11.2 10.9
Real Estate, Renting and Busines Activities 6.3 6.5 7.8 7.7 8.7 8.8 8.9 9.2 7.0 8.1 7.8 6.5 4.6 4.5 5.7 4.1 3.7 3.8 4.1 3.3
Public Administration and Defense;
Compulsory Social Security -4.0 -0.7 2.6 7.3 5.1 6.3 3.5 13.2 6.4 9.3 9.2 9.5 13.2 15.0 17.8 14.7 9.7 8.6 5.3 17.1
Other Services 6.9 11.1 7.3 7.7 7.2 9.2 7.1 6.2 7.2 4.8 7.4 6.2 7.0 6.8 7.9 9.4 5.3 7.7 4.2 7.0

Gross Domestic Product 5.1 6.0 6.4 6.7 6.8 7.0 7.1 6.7 6.4 6.6 7.2 6.6 6.5 6.2 6.0 6.3 5.6 5.5 6.0 6.4
Net Primary Income 2.5 2.1 5.3 8.5 9.5 6.3 4.9 2.6 5.6 6.8 8.3 3.1 4.9 4.5 5.2 2.7 3.2 2.3 3.9 4.6

Gross National Income 4.6 5.4 6.2 7.0 7.3 6.9 6.7 6.0 6.2 6.6 7.4 6.1 6.3 5.9 5.9 5.7 5.2 5.0 5.7 6.2

CONTRIBUTION TO GDP GROWTH (in percent)

2015 2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Agriculture, Hunting, Forestry and Fishing 0.1 0.0 0.0 0.0 -0.4 -0.2 0.3 -0.1 0.5 0.5 0.2 0.2 0.1 0.0 . 0.2 0.1 0.1 0.2 0.1
Industry 1.8 2.2 2.1 2.4 3.0 2.5 2.8 2.6 2.1 2.3 2.7 2.5 2.6 2.2 2.0 2.3 1.7 1.3 1.9 1.9
Mining and Quarrying 0.0 -0.1 . 0.1 0.1 0.0 0.0 0.1 -0.2 0.2 0.0 0.0 0.1 -0.1 0.0 0.1 0.0 0.2 0.0 0.0
Manufacturing 1.4 1.1 1.3 1.5 1.9 1.4 1.5 1.8 1.9 1.8 2.2 2.0 1.8 1.3 0.9 0.8 1.2 0.9 0.6 0.9
Construction 0.3 1.1 0.5 0.7 0.6 0.8 0.9 0.6 0.4 0.3 0.3 0.3 0.6 0.9 1.0 1.3 0.3 0.0 1.0 0.8
Electricity, Gas and Water Supply 0.2 0.1 0.3 0.1 0.3 0.3 0.4 0.2 0.1 0.1 0.1 0.2 0.2 0.1 0.2 0.2 0.1 0.2 0.3 0.2
Services 3.1 3.9 4.2 4.3 4.2 4.7 4.0 4.2 3.8 3.8 4.3 3.9 3.8 3.9 4.0 3.8 3.9 4.2 4.0 4.4
Transportation, Storage and Communication 0.6 0.5 0.6 0.7 0.4 0.6 0.3 0.3 0.3 0.3 0.2 0.4 0.5 0.5 0.4 0.3 0.6 0.4 0.5 0.4
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 0.9 1.0 1.5 1.2 1.2 1.4 1.2 1.4 1.1 0.9 1.3 1.5 1.0 1.0 0.9 1.2 1.1 1.3 1.4 1.5
Financial Intermediation 0.3 0.4 0.4 0.6 0.7 0.5 0.6 0.5 0.5 0.7 0.6 0.4 0.6 0.6 0.5 0.4 0.8 0.7 0.8 0.7
Real Estate, Renting and Busines Activities 0.7 0.7 0.9 0.8 0.9 1.0 1.1 1.0 0.8 0.9 1.0 0.7 0.5 0.5 0.7 0.4 0.4 0.4 0.5 0.3
Public Administration and Defense;
Compulsory Social Security -0.2 0.0 0.1 0.3 0.2 0.3 0.1 0.5 0.2 0.4 0.4 0.4 0.5 0.6 0.7 0.6 0.4 0.4 0.2 0.7
Other Services 0.7 1.2 0.7 0.7 0.8 1.0 0.7 0.6 0.8 0.5 0.7 0.6 0.8 0.7 0.8 0.9 0.6 0.8 0.4 0.7
Gross Domestic Product 5.1 6.0 6.4 6.7 6.8 7.0 7.1 6.7 6.4 6.6 7.2 6.6 6.5 6.2 6.0 6.3 5.6 5.5 6.0 6.4

. Rounds off to zero

Note: Total may not add up due to rounding.
Data on real GDP and its components are based on 2000 prices. The use of the terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System of National Accounts (PSNA) in accordance with the 1993/1998 System of National Accounts prescribed by the United Nations.
Source of basic data: Philippine Statistics Authority (PSA)
 1a GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES
for periods indicated

LEVELS (in billion pesos; at constant 2000 prices)

2015 2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Household Final Consumption Expenditure 1,231.6 1,289.8 1,245.1 1,500.1 1,319.7 1,387.1 1,335.5 1,600.1 1,397.3 1,470.8 1,407.0 1,699.2 1,476.3 1,559.3 1,482.0 1,789.1 1,566.8 1,644.6 1,570.2 1,888.7
Government Final Consumption Expenditure 185.2 224.3 195.0 179.5 208.2 255.8 202.1 188.5 207.0 273.3 217.4 210.0 235.0 305.8 248.4 236.5 252.4 328.0 272.1 280.6
Capital Formation 428.2 405.7 445.5 559.0 562.5 530.0 545.8 651.9 631.2 567.7 595.1 711.4 696.5 681.4 711.8 746.2 752.2 623.1 693.0 749.1
Fixed Capital 425.3 406.4 442.6 526.2 547.5 536.3 560.8 626.0 618.1 573.1 607.4 685.7 669.0 683.5 708.1 744.3 711.8 651.8 721.3 762.3
Construction 142.2 190.4 167.6 201.6 159.7 220.4 197.3 216.1 173.1 230.0 205.8 230.3 191.8 257.4 233.2 270.7 204.0 264.7 271.8 302.8
Durable Equipment 244.2 183.1 237.2 274.2 341.4 278.5 319.2 353.9 391.9 295.9 350.3 393.0 420.2 372.0 414.9 401.9 445.7 324.2 376.8 378.1
Breeding Stock & Orchard Dev't 26.1 23.0 19.0 31.2 27.1 23.8 19.6 32.3 27.9 24.9 20.3 33.1 29.1 25.8 21.5 34.9 30.2 26.7 22.3 36.1
Intellectual Property Products 12.7 9.9 18.8 19.2 19.3 13.7 24.6 23.7 25.1 22.2 31.0 29.3 27.9 28.2 38.5 36.7 31.8 36.2 50.4 45.3
Changes in Inventories 3.0 -0.7 2.9 32.7 15.1 -6.3 -14.9 25.9 13.1 -5.3 -12.3 25.7 27.6 -2.1 3.6 2.0 40.5 -28.7 -28.3 -13.2

Exports 899.5 937.0 1,054.1 804.9 1,006.8 1,039.6 1,164.5 913.9 1,181.8 1,260.3 1,389.1 1,104.4 1,303.9 1,445.5 1,586.5 1,263.4 1,377.6 1,514.7 1,597.4 1,288.1

Less: Imports 968.4 909.5 1,106.1 1,000.2 1,193.5 1,142.2 1,279.9 1,173.2 1,417.2 1,351.2 1,500.9 1,387.9 1,578.0 1,635.0 1,787.5 1,560.0 1,713.8 1,633.8 1,783.0 1,564.8

Statistical Discrepancy -8.7 -2.7 -9.1 20.5 -17.0 11.1 -14.5 20.4 6.5 -2.9 -13.7 10.1 4.3 -2.1 -21.0 18.9 22.3 7.7 4.6 12.8

Gross Domestic Product 1,767.4 1,944.7 1,824.4 2,063.7 1,886.8 2,081.5 1,953.5 2,201.5 2,006.6 2,218.1 2,094.0 2,347.1 2,138.0 2,354.8 2,220.1 2,494.0 2,257.5 2,484.3 2,354.3 2,654.4
Net Primary Income 381.3 372.7 377.5 411.4 417.8 396.4 395.9 422.3 441.0 423.3 428.7 435.5 462.7 442.5 451.0 447.1 477.4 452.7 468.5 467.8
Gross National Income 2,148.7 2,317.4 2,201.9 2,475.1 2,304.6 2,477.9 2,349.5 2,623.8 2,447.6 2,641.4 2,522.7 2,782.7 2,600.7 2,797.3 2,671.1 2,941.2 2,734.9 2,937.0 2,822.8 3,122.3

ANNUAL CHANGE (in percent)

2015 2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Household Final Consumption Expenditure 6.0 6.4 6.2 6.6 7.2 7.5 7.3 6.7 5.9 6.0 5.4 6.2 5.6 6.0 5.3 5.3 6.1 5.5 5.9 5.6

Government Final Consumption Expenditure 0.0 2.2 15.5 15.5 12.4 14.0 3.6 5.0 -0.6 6.8 7.6 11.4 13.6 11.9 14.3 12.6 7.4 7.3 9.6 18.7

Capital Formation 15.7 28.6 15.3 16.2 31.4 30.6 22.5 16.6 12.2 7.1 9.0 9.1 10.3 20.0 19.6 4.9 8.0 -8.5 -2.6 0.4
Fixed Capital 13.8 13.2 16.5 23.0 28.7 32.0 26.7 19.0 12.9 6.8 8.3 9.5 8.2 19.3 16.6 8.5 6.4 -4.6 1.9 2.4
Construction 5.3 16.2 9.9 11.6 12.3 15.7 17.7 7.2 8.4 4.4 4.3 6.6 10.8 11.9 13.3 17.6 6.4 2.8 16.6 11.8
Durable Equipment 20.5 12.3 22.0 35.1 39.8 52.1 34.6 29.1 14.8 6.3 9.7 11.0 7.2 25.7 18.5 2.3 6.1 -12.8 -9.2 -5.9
Breeding Stock & Orchard Dev't 0.1 2.3 3.6 2.6 3.8 3.6 3.1 3.7 3.1 4.6 3.5 2.5 4.1 3.6 6.2 5.2 3.8 3.6 3.4 3.6
Intellectual Property Products 28.3 4.7 29.6 40.7 51.7 38.0 30.8 23.2 30.1 62.4 25.9 23.8 11.1 26.7 24.0 25.2 14.0 28.4 31.1 23.5
Changes in Inventories 178.4 98.5 -57.5 -38.6 409.0 -839.1 -619.3 -20.9 -12.7 15.5 17.7 -0.8 109.7 60.5 129.6 -92.4 46.8 -1,260.4 -877.6 -779.1

Exports 10.8 3.3 9.3 11.3 11.9 11.0 10.5 13.6 17.4 21.2 19.3 20.8 10.3 14.7 14.2 14.4 5.7 4.8 0.7 2.0

Less: Imports 12.7 13.3 14.4 18.0 23.2 25.6 15.7 17.3 18.8 18.3 17.3 18.3 11.3 21.0 19.1 12.4 8.6 -0.1 -0.2 0.3

Statistical Discrepancy -167.1 84.7 16.3 31.8 -96.4 516.0 -58.9 -0.3 138.2 -125.6 5.5 -50.7 -34.2 25.5 -53.6 87.9 421.3 462.0 122.0 -32.2

Gross Domestic Product 5.1 6.0 6.4 6.7 6.8 7.0 7.1 6.7 6.4 6.6 7.2 6.6 6.5 6.2 6.0 6.3 5.6 5.5 6.0 6.4
Net Primary Income 2.5 2.1 5.3 8.5 9.5 6.3 4.9 2.6 5.6 6.8 8.3 3.1 4.9 4.5 5.2 2.7 3.2 2.3 3.9 4.6
Gross National Income 4.6 5.4 6.2 7.0 7.3 6.9 6.7 6.0 6.2 6.6 7.4 6.1 6.3 5.9 5.9 5.7 5.2 5.0 5.7 6.2

CONTRIBUTION TO GDP GROWTH (in percent)

2015 2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Household Final Consumption Expenditure 4.2 4.2 4.2 4.8 5.0 5.0 5.0 4.8 4.1 4.0 3.7 4.5 3.9 4.0 3.6 3.8 4.2 3.6 4.0 4.0

Government Final Consumption Expenditure . 0.3 1.5 1.2 1.3 1.6 0.4 0.4 -0.1 0.8 0.8 1.0 1.4 1.5 1.5 1.1 0.8 0.9 1.1 1.8

Capital Formation 3.5 4.9 3.4 4.0 7.6 6.4 5.5 4.5 3.6 1.8 2.5 2.7 3.3 5.1 5.6 1.5 2.6 -2.5 -0.8 0.1
Fixed Capital 3.1 2.6 3.7 5.1 6.9 6.7 6.5 4.8 3.7 1.8 2.4 2.7 2.5 5.0 4.8 2.5 2.0 -1.3 0.6 0.7
Construction 0.4 1.4 0.9 1.1 1.0 1.5 1.6 0.7 0.7 0.5 0.4 0.6 0.9 1.2 1.3 1.7 0.6 0.3 1.7 1.3
Durable Equipment 2.5 1.1 2.5 3.7 5.5 4.9 4.5 3.9 2.7 0.8 1.6 1.8 1.4 3.4 3.1 0.4 1.2 -2.0 -1.7 -1.0
Breeding Stock & Orchard Dev't . 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.0 0.1 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.0 0.0 0.1
Intellectual Property Products 0.2 0.0 0.3 0.3 0.4 0.2 0.3 0.2 0.3 0.4 0.3 0.3 0.1 0.3 0.4 0.3 0.2 0.3 0.5 0.3
Changes in Inventories 0.4 2.3 -0.2 -1.1 0.7 -0.3 -1.0 -0.3 -0.1 0.0 0.1 0.0 0.7 0.1 0.8 -1.0 0.6 -1.1 -1.4 -0.6

Exports 5.2 1.6 5.2 4.2 6.1 5.3 6.1 5.3 9.3 10.6 11.5 8.7 6.1 8.3 9.4 6.8 3.4 2.9 0.5 1.0

Less: Imports 6.5 5.8 8.1 7.9 12.7 12.0 9.5 8.4 11.9 10.0 11.3 9.8 8.0 12.8 13.7 7.3 6.4 -0.1 -0.2 0.2

Statistical Discrepancy -1.3 0.8 0.1 0.3 -0.5 0.7 -0.3 . 1.2 -0.7 0.0 -0.5 -0.1 0.0 -0.4 0.4 0.8 0.4 1.2 -0.2

Gross Domestic Product 5.1 6.0 6.4 6.7 6.8 7.0 7.1 6.7 6.4 6.6 7.2 6.6 6.5 6.2 6.0 6.3 5.6 5.5 6.0 6.4

. Rounds off to zero

Note: Total may not add up due to rounding.
Data on real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System of National Accounts (PSNA) in accordance with the 1993/1998 System of National Accounts prescribed by the United Nations.
Source of basic data: Philippine Statistics Authority (PSA)
2 SELECTED LABOR, EMPLOYMENT AND WAGE INDICATORS
for periods indicated

2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4P
1
Employment Status
Labor Force (in thousands) 43,144 43,289 43,286 43,724 42,109 42,714 42,544 43,732 44,075 43,257 42,979 43,528 43,313 44,529 45,385 45,196
Employed 40,689 40,664 40,954 41,685 39,347 40,271 40,171 41,547 41,755 40,896 40,650 41,325 41,030 42,242 42,953 43,146
Employment Created 1,777 1,910 (1,342) (393) (783) (138) 2,408 625 479 (221) (726) 1,346 2,303 1,821
Agriculture 186 40 (881) 125 (1,027) (1,428) 841 (723) (750) (419) (2,023) (376) 716 165
Industry 812 785 (1) 41 434 368 716 606 176 406 616 70 153 237
Services 779 1,085 (460) (559) (189) 922 850 742 1,052 (208) 681 1,651 1,435 1,420
Unemployed 2,455 2,625 2,332 2,040 2,761 2,443 2,373 2,185 2,320 2,361 2,329 2,203 2,283 2,286 2,432 2,050
Underemployed 7,975 7,431 7,134 7,510 6,398 6,468 6,541 6,616 7,498 6,935 7,003 5,502 6,326 5,709 5,955 5,615
Labor Force Participation Rate (%) 63.6 63.5 63.2 63.6 60.7 61.4 60.6 62.1 62.2 60.9 60.1 60.6 60.3 61.4 62.1 61.5
Employment Rate (%) 94.3 93.9 94.6 95.3 93.4 94.3 94.4 95.0 94.7 94.5 94.6 94.9 94.7 94.9 94.6 95.5
Unemployment Rate (%) 5.7 6.1 5.4 4.7 6.6 5.7 5.6 5.0 5.3 5.5 5.4 5.1 5.3 5.1 5.4 4.5
Underemployment Rate (%) 19.6 18.3 17.4 18.0 16.3 16.1 16.3 15.9 18.0 17.0 17.2 13.3 15.4 13.5 13.9 13.0
NCR Labor Turnover Rate (%) 1.0 2.3 3.7 3.4 1.3 2.1 1.1 1.4 0.5 0.7
2
Philippines Labor Turnover Rate (%) 1.6 1.7 0.8 0.8

Overseas Employment (Deployed, in thousands) 643 666 508 295 609 611 472 301
Land-based 522 552 410 185 488 493 388 245
Sea-based 121 115 98 110 121 118 84 56

Strikes
a a
Number of New Strikes 0 3 5 7 2 4 3 0 2 2 7 3 6 3 4 5
a
Number of Workers Involved 0 650 283 2173 352 693 434 0 510 1533 1131 4928 835 498 a 1108 1104

3
Nominal Daily Wage Rates (in pesos)
Non-Agricultural
a b
NCR 481.0 491.0 491.0 491.0 491.0 491.0 491.0 512.0 512.0 512.0 512.0 537.0 537.0 537.0 537.0 537.0
a b
Regions Outside NCR 362.5 364.0 378.5 378.5 378.5 380.0 380.0 380.0 380.0 400.0 400.0 400.0 400.0 400.0 400.0 400.0
Agricultural
NCR
Plantation 444.0 454.0 454.0 454.0 454.0 454.0 454.0 475.0 475.0 475.0 475.0 500.0 500.0 a 500.0 b 500.0 500.0
a b
Non-Plantation 444.0 454.0 454.0 454.0 454.0 454.0 454.0 475.0 475.0 475.0 475.0 500.0 500.0 500.0 500.0 500.0
Regions Outside NCR
a b
Plantation 337.5 337.5 353.5 353.5 353.5 353.5 353.5 353.5 353.5 370.0 370.0 370.0 391.0 391.0 391.0 391.0
a
Non-Plantation 335.0 335.0 335.0 335.0 348.0 348.0 348.0 348.0 348.0 356.0 368.0 368.0 391.0 391.0 b 391.0 391.0
4
Real Daily Wage Rates (in pesos), 2006=100
Non-Agricultural
NCR 364.7 369.2 366.1 361.6 357.9 358.1 349.7 360.3 449.9 447.2 437.6 460.9 457.4 a 455.5 b 455.1 448.3
a b
Regions Outside NCR 259.1 250.7 268.3 265.2 262.1 254.4 253.2 251.2 333.6 348.7 341.9 342.5 340.7 340.1 337.3 332.2
Agricultural
NCR
a b
Plantation 336.6 341.4 338.6 334.3 330.9 331.2 323.4 334.3 417.4 414.9 406.0 429.2 425.9 424.1 423.7 417.4
Non-Plantation 336.6 341.4 338.6 334.3 330.9 331.2 323.4 334.3 417.4 414.9 406.0 429.2 425.9 a 424.1 b 423.7 417.4
Regions Outside NCR
a b
Plantation 241.2 240.0 250.5 247.7 244.8 245.5 243.3 240.6 310.9 322.6 316.2 316.8 325.3 322.9 321.6 319.7
Non-Plantation 228.5 225.9 225.1 223.5 230.0 228.2 227.0 224.7 290.0 310.4 297.3 300.4 325.3 a 322.9 b 321.6 319.7

Notes:
1
Starting April 2016 round, the Labor Force Survey (LFS) adopted the 2013 Master Sample Design, with a sample size of approximately 44,000 households as well as the population projections based on the 2010 Census of Population and Housing (2010 CPH). Meanwhile, previous
survey rounds were derived using 2000 CPH population projection. Starting January 2017 round, Computer Aided Personal Interviewing (CAPI) using Tablet was utilized in the LFS enumeration.
2
Starting Q1 2018, the Labor Turnover Survey covered establishments based within and outside the NCR. Meanwhile, previous survey rounds covered enterprises located at the NCR only.
3 Source of data for both nominal and real wage rates is the National Wages and Productivity Commission. It includes basic minimum wage and cost of living allowance (COLA). Starting 2006, annual figures reflects December data. Figures outside NCR represent the highest nominal
regional rates in a given category and its corresponding value in real terms.
4

Starting 10 November 1990, adjustments in the minimum legislated wage rates are being determined by the Regional Tripartite Wages Productiviity Board. Starting 2018, real terms is computed using 2012 as base year while previous data were computed using 2006 as base year.
P
Preliminary
Details may not add up to totals due to rounding.

Sources: Philippine Overseas Employment Administration (POEA), National Wages and Productivity Commission (NWPC), National Conciliation and Mediation Board (NCMB), Department of Labor and Employment (DOLE) - Bureau of Local Employment (BLE)
and Philippine Statistics Authority (PSA)
3 CASH OPERATIONS OF THE NATIONAL GOVERNMENT
for periods indicated
in billion pesos

2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

Revenues 532.4 644.0 625.1 671.7 619.8 790.7 701.0 738.7 687.7 859.8 780.4 809.6
r
Ratio to GDP (%) 14.9 16.3 16.4 15.0 15.8 18.2 16.6 14.9 16.4 18.6 17.4 15.3
r r
Tax 480.0 589.0 570.0 611.8 558.7 696.1 640.6 670.6 616.0 765.0 709.5 737.3
r
Non-tax 52.4 55.0 55.1 59.9 61.1 94.7 60.4 68.1 71.7 94.8 70.9 72.2

Expenditures 615.4 715.5 683.7 809.2 772.0 831.6 886.2 918.7 778.0 812.2 1,036.7 1,170.8
Ratio to GDP (%) 17.3 18.1 17.9 18.1 19.7 19.2 21.0 18.6 18.5 17.6 23.0 22.2
Interest Payments 97.9 53.7 97.4 61.6 97.2 68.3 105.8 77.9 107.8 72.3 113.7 67.1
Equity 0.0 3.2 . 2.1 2.0 0.6 1.3 0.1 . 0.5 1.1 1.6
Net Lending -1.7 0.4 -4.1 1.2 -0.2 1.6 5.5 -2.0 3.5 15.3 -2.9 1.2
r
Subsidy 19.7 38.6 25.4 47.5 45.3 22.5 57.1 11.8 9.3 17.4 130.4 44.5
Allotment to LGUs 122.4 151.3 128.3 128.2 148.7 153.9 140.2 132.8 149.5 146.2 162.6 159.6
Tax Expenditures 1 0.2 1.4 0.7 1.2 1.6 2.5 2.7 5.8 0.4 3.3 8.1 3.7
r
Others - NG Disbursements 377.0 466.9 436.1 567.5 477.4 582.2 573.7 692.2 507.5 557.1 623.7 893.1

Surplus/Deficit (-) -83.0 -71.5 -58.6 -137.6 -152.2 -40.8 -185.2 -180.0 -90.2 47.6 -256.3 -361.2
Ratio to GDP (%) -2.3 -1.8 -1.5 -3.1 -3.9 -0.9 -4.4 -3.6 -2.1 1.0 -5.7 -6.8
Primary Balance 2 14.9 -17.8 38.8 -76.0 -55.0 27.5 -79.4 -102.1 17.5 119.9 -142.7 -294.1
Ratio to GDP (%) 0.4 -0.5 1.0 -1.7 -1.4 0.6 -1.9 -2.1 0.4 2.6 -3.2 -5.6
3
Financing 117.4 276.4 106.0 259.1 144.1 235.8 209.7 193.6 582.0 150.1 65.5 78.6
113.0 86.5 58.6 187.6 152.2 40.8 185.2 180.0 582.0 150.1 65.5 78.6
Foreign Borrowings 29.8 -1.6 9.3 -9.9 82.8 -7.0 116.3 -0.3 91.8 25.7 55.0 12.4
Domestic Borrowings 87.7 278.0 96.6 269.0 61.3 242.9 93.4 193.9 490.3 124.4 10.5 66.2

Total Change in Cash: Deposit/Withdrawal (-) 50.5 126.3 -24.0 102.7 -61.9 36.4 -26.6 -0.6 355.0 156.5 -269.6 -466.5

1
Excludes documentary stamps
2
Primary balance is the government fiscal balance excluding interest payments.
3
Based on the revised data on financing, which are sourced from the National Government Cash Operations of the Bureau of the Treasury (BTr) to conform with the Government Finance
Statistics Manual (GFSM) 2014 concept where reporting of debt amortization reflects the actual principal repayments to creditor including those serviced by the Bond Sinking Fund (BSF), while
financing includes gross proceeds of liability management transactions such as bond exchange.
r
revised
. rounds off to zero
Note: Details may not add up to total due to rounding
Source: Bureau of the Treasury

H:\MFSG\FOF_FA\@PERMANENT - FOF_FA\templates\ltp\[t03cor_prog_q3GDP_2019_prog_sql_Ver2Financing.xls]t3ngcash
 4 CONSUMER PRICE INDEX IN THE PHILIPPINES
2012=100
period averages

2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 107.5 108.0 108.6 109.4 110.6 111.0 111.5 112.7 114.8 116.3 118.4 119.4 119.2 119.8 120.4 121.3
FOOD AND NON-ALCHOLIC BEVERAGES 111.5 111.4 112.4 113.7 114.7 114.9 115.7 117.4 120.4 121.7 125.5 126.8 125.9 125.4 126.1 127.2
FOOD ITEMS 111.9 111.9 112.8 114.3 115.3 115.6 116.4 118.2 121.1 122.0 125.9 127.3 126.1 125.6 126.2 127.3
ALCOHOLIC BEVERAGES AND TOBACCO 143.5 145.3 147.5 149.7 153.6 155.8 157.5 159.5 178.0 187.7 191.6 194.1 201.1 205.6 212.8 228.1
NON-FOOD 103.9 104.7 105.2 105.6 106.8 107.4 107.6 108.5 109.6 111.0 112.0 112.7 112.9 113.9 114.3 114.7
CLOTHING AND FOOTWEAR 110.7 111.3 112.2 113.0 113.8 114.3 114.8 115.2 116.1 116.8 117.6 118.2 118.9 119.6 120.7 121.4
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 102.7 103.4 103.9 104.2 105.7 106.4 106.0 107.5 108.6 110.1 111.5 112.1 112.6 113.6 113.3 113.5
ELECTRICITY, GAS AND OTHER FUELS 90.8 91.5 91.6 91.8 95.5 96.9 94.9 98.4 99.6 102.9 105.0 105.1 104.5 106.0 102.6 102.5
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTINE MAINTENANCE OF THE HOUSE 109.3 109.8 110.6 111.2 111.9 112.4 113.0 113.5 114.6 115.7 116.9 117.8 118.8 119.4 120.3 121.2
HEALTH 108.3 109.0 109.9 110.8 111.8 112.2 112.6 112.9 114.3 115.2 117.1 118.0 119.0 119.4 120.7 121.5
TRANSPORT 92.7 93.9 93.6 95.1 97.4 98.2 98.5 100.0 102.2 104.1 106.3 107.2 104.6 107.2 106.1 106.5
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 70.8 75.6 75.1 77.6 82.2 80.7 82.2 87.0 92.9 98.5 101.6 99.6 94.4 100.6 97.6 97.8
COMMUNICATION 100.3 100.4 100.5 100.6 100.7 100.7 100.8 100.9 100.9 101.0 101.2 101.3 101.3 101.4 101.5 101.6
RECREATION AND CULTURE 108.6 108.9 109.3 109.5 109.7 110.0 111.0 110.9 111.2 111.5 113.3 114.4 114.7 115.0 115.7 116.0
EDUCATION 114.3 115.3 117.5 117.8 117.9 118.5 120.0 120.0 120.0 121.5 115.4 115.5 115.4 116.6 120.5 120.8
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 106.6 107.4 107.7 108.1 108.6 108.9 109.6 110.1 111.4 112.8 113.9 114.9 115.8 116.5 117.5 118.1

Quarter-on-Quarter Change (in percent)

2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 0.2 0.5 0.6 0.7 1.1 0.4 0.5 1.1 1.9 1.3 1.8 0.8 -0.2 0.5 0.5 0.7
FOOD AND NON-ALCHOLIC BEVERAGES 0.3 -0.1 0.9 1.2 0.9 0.2 0.7 1.5 2.6 1.1 3.1 1.0 -0.7 -0.4 0.6 0.9
FOOD ITEMS 0.3 0.0 0.8 1.3 0.9 0.3 0.7 1.5 2.5 0.7 3.2 1.1 -0.9 -0.4 0.5 0.9
ALCOHOLIC BEVERAGES AND TOBACCO 1.6 1.3 1.5 1.5 2.6 1.4 1.1 1.3 11.6 5.4 2.1 1.3 3.6 2.2 3.5 7.2
NON-FOOD 0.0 0.8 0.5 0.4 1.1 0.6 0.2 0.8 1.0 1.3 0.9 0.6 0.2 0.9 0.4 0.3
CLOTHING AND FOOTWEAR 0.5 0.5 0.8 0.7 0.7 0.4 0.4 0.3 0.8 0.6 0.7 0.5 0.6 0.6 0.9 0.6
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 0.4 0.7 0.5 0.3 1.4 0.7 -0.4 1.4 1.0 1.4 1.3 0.5 0.4 0.9 -0.3 0.2
ELECTRICITY, GAS AND OTHER FUELS -1.2 0.8 0.1 0.2 4.0 1.5 -2.1 3.7 1.2 3.3 2.0 0.1 -0.6 1.4 -3.2 -0.1
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTINE MAINTENANCE OF THE HOUSE 0.6 0.5 0.7 0.5 0.6 0.4 0.5 0.4 1.0 1.0 1.0 0.8 0.8 0.5 0.8 0.7
HEALTH 0.5 0.6 0.8 0.8 0.9 0.4 0.4 0.3 1.2 0.8 1.6 0.8 0.8 0.3 1.1 0.7
TRANSPORT -2.2 1.3 -0.3 1.6 2.4 0.8 0.3 1.5 2.2 1.9 2.1 0.8 -2.4 2.5 -1.0 0.4
OPERATION OF PERSONAL TRANSPORT EQUIPMENT -7.6 6.8 -0.7 3.3 5.9 -1.8 1.9 5.8 6.8 6.0 3.1 -2.0 -5.2 6.6 -3.0 0.2
COMMUNICATION 0.1 0.1 0.1 0.1 0.1 0.0 0.1 0.1 0.0 0.1 0.2 0.1 0.0 0.1 0.1 0.1
RECREATION AND CULTURE 0.2 0.3 0.4 0.2 0.2 0.3 0.9 -0.1 0.3 0.3 1.6 1.0 0.3 0.3 0.6 0.3
EDUCATION 0.0 0.9 1.9 0.3 0.1 0.5 1.3 0.0 0.0 1.3 -5.0 0.1 -0.1 1.0 3.3 0.2
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 0.3 0.8 0.3 0.4 0.5 0.3 0.6 0.5 1.2 1.3 1.0 0.9 0.8 0.6 0.9 0.5

Year-on-Year Change (in percent)

2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 0.7 1.0 1.5 2.0 2.9 2.8 2.7 3.0 3.8 4.8 6.2 5.9 3.8 3.0 1.7 1.6
FOOD AND NON-ALCHOLIC BEVERAGES 0.9 1.4 1.7 2.2 2.9 3.1 2.9 3.3 5.0 5.9 8.5 8.0 4.6 3.0 0.5 0.3
FOOD ITEMS 0.8 1.5 1.7 2.4 3.0 3.3 3.2 3.4 5.0 5.5 8.2 7.7 4.1 3.0 0.2 0.0
ALCOHOLIC BEVERAGES AND TOBACCO 3.5 4.1 5.1 5.9 7.0 7.2 6.8 6.5 15.9 20.5 21.7 21.7 13.0 9.5 11.1 17.5
NON-FOOD 0.3 0.5 1.3 1.6 2.8 2.6 2.3 2.7 2.6 3.4 4.1 3.9 3.0 2.6 2.1 1.8
CLOTHING AND FOOTWEAR 1.7 1.8 2.3 2.6 2.8 2.7 2.3 1.9 2.0 2.2 2.4 2.6 2.4 2.4 2.6 2.7
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS -0.8 -0.6 1.1 1.9 2.9 2.9 2.0 3.2 2.7 3.5 5.2 4.3 3.7 3.2 1.6 1.2
ELECTRICITY, GAS AND OTHER FUELS -7.0 -6.7 -2.7 -0.1 5.2 5.9 3.6 7.2 4.3 6.2 10.6 6.8 4.9 3.0 -2.3 -2.5
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTINE MAINTENANCE OF THE HOUSE 1.5 1.5 2.0 2.3 2.4 2.4 2.2 2.1 2.4 2.9 3.5 3.8 3.7 3.2 2.9 2.9
HEALTH 1.6 2.0 2.3 2.8 3.2 2.9 2.5 1.9 2.2 2.7 4.0 4.5 4.1 3.6 3.1 3.0
TRANSPORT -1.9 -2.2 -1.5 0.3 5.1 4.6 5.2 5.2 4.9 6.0 7.9 7.2 2.3 3.0 -0.2 -0.7
OPERATION OF PERSONAL TRANSPORT EQUIPMENT -9.9 -8.7 -5.1 1.3 16.1 6.7 9.5 12.1 13.0 22.1 23.6 14.5 1.6 2.1 -3.9 -1.8
COMMUNICATION 0.1 0.3 0.4 0.4 0.4 0.3 0.3 0.3 0.2 0.3 0.4 0.4 0.4 0.4 0.3 0.3
RECREATION AND CULTURE 0.6 0.8 1.0 1.0 1.0 1.0 1.6 1.3 1.4 1.4 2.1 3.2 3.1 3.1 2.1 1.4
EDUCATION 3.2 3.0 2.9 3.1 3.1 2.8 2.1 1.9 1.8 2.5 -3.8 -3.8 -3.8 -4.0 4.4 4.6
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 1.3 1.9 1.9 1.7 1.9 1.4 1.8 1.9 2.6 3.6 3.9 4.4 3.9 3.3 3.2 2.8

Source of Basic Data: Philippine Statistics Authority (PSA)

 4a CONSUMER PRICE INDEX IN NATIONAL CAPITAL REGION (NCR)
2012=100
period averages

2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 104.2 104.6 105.3 106.2 107.6 108.5 109.0 110.8 112.8 114.2 116.2 116.9 117.1 117.8 118.0 119.0
FOOD AND NON-ALCHOLIC BEVERAGES 111.4 111.9 113.5 116.2 117.5 118.7 119.6 122.1 125.2 125.7 129.6 130.1 130.2 130.3 131.4 133.8
FOOD ITEMS 112.1 112.6 114.4 117.4 118.8 120.1 121.0 123.7 126.8 126.5 130.6 130.9 131.0 131.0 132.1 134.8
ALCOHOLIC BEVERAGES AND TOBACCO 132.7 134.4 137.0 138.2 143.0 147.2 149.0 150.3 172.0 180.3 181.4 182.1 184.2 185.9 190.0 203.2
NON-FOOD 100.7 101.1 101.4 101.6 103.0 103.6 104.1 105.6 106.8 108.4 109.6 110.4 110.7 111.6 111.3 111.6
CLOTHING AND FOOTWEAR 112.0 112.7 113.5 113.9 114.7 115.7 116.3 116.7 117.4 118.4 118.8 119.5 120.3 120.4 120.8 121.1
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 98.0 98.0 98.0 97.8 99.5 100.2 99.7 102.3 103.8 105.7 106.4 106.8 107.7 108.6 107.2 107.3
ELECTRICITY, GAS AND OTHER FUELS 77.4 76.8 76.3 75.6 81.8 83.7 79.5 86.2 87.3 91.9 93.4 93.0 93.3 94.4 88.1 88.3
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTINE MAINTENANCE OF THE HOUSE 109.0 109.3 110.2 110.7 111.1 112.1 112.6 113.0 113.8 115.5 116.1 116.6 117.1 117.3 117.7 118.0
HEALTH 110.0 110.3 110.7 111.1 112.2 113.2 114.5 114.5 115.3 115.9 119.7 120.1 121.1 121.2 122.2 122.4
TRANSPORT 89.2 89.9 89.8 91.3 95.0 96.0 97.7 99.5 101.3 102.7 107.3 109.1 106.5 107.9 106.4 106.7
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 69.8 74.9 74.6 78.2 83.4 81.6 85.0 90.8 95.5 99.8 102.8 100.2 96.3 101.3 96.7 97.1
COMMUNICATION 100.3 100.5 100.5 100.5 100.6 100.7 100.8 100.8 100.9 101.1 101.3 101.4 101.4 101.4 101.6 101.6
RECREATION AND CULTURE 107.5 108.1 108.8 108.9 109.2 109.7 110.1 110.2 110.4 111.0 112.2 113.0 113.3 113.5 113.7 113.9
EDUCATION 115.7 116.9 119.2 119.2 119.2 119.8 121.1 121.1 121.1 123.3 123.0 123.0 122.8 124.8 129.3 129.7
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 102.6 103.4 103.5 103.8 104.3 104.8 105.9 106.7 108.0 109.9 110.7 111.9 112.7 113.6 114.3 115.0

Quarter-on-Quarter Change (in percent)

2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS -0.1 0.4 0.7 0.9 1.3 0.8 0.5 1.7 1.8 1.2 1.8 0.6 0.2 0.6 0.2 0.8
FOOD AND NON-ALCHOLIC BEVERAGES 0.1 0.4 1.4 2.4 1.1 1.0 0.8 2.1 2.5 0.4 3.1 0.4 0.1 0.1 0.8 1.8
FOOD ITEMS 0.1 0.4 1.6 2.6 1.2 1.1 0.7 2.2 2.5 -0.2 3.2 0.2 0.1 0.0 0.8 2.0
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 1.2 1.3 1.9 0.9 3.5 2.9 1.2 0.9 14.4 4.8 0.6 0.4 1.2 0.9 2.2 6.9
NON-FOOD -0.4 0.4 0.3 0.2 1.4 0.6 0.5 1.4 1.1 1.5 1.1 0.7 0.3 0.8 -0.3 0.3
CLOTHING AND FOOTWEAR 0.3 0.6 0.7 0.4 0.7 0.9 0.5 0.3 0.6 0.9 0.3 0.6 0.7 0.1 0.3 0.2
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS -0.2 0.0 0.0 -0.2 1.7 0.7 -0.5 2.6 1.5 1.8 0.7 0.4 0.8 0.8 -1.3 0.1
ELECTRICITY, GAS AND OTHER FUELS -0.8 -0.8 -0.7 -0.9 8.2 2.3 -5.0 8.4 1.3 5.3 1.6 -0.4 0.3 1.2 -6.7 0.2
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.1 0.3 0.8 0.5 0.4 0.9 0.4 0.4 0.7 1.5 0.5 0.4 0.4 0.2 0.3 0.3
HEALTH 0.2 0.3 0.4 0.4 1.0 0.9 1.1 0.0 0.7 0.5 3.3 0.3 0.8 0.1 0.8 0.2
TRANSPORT -2.8 0.8 -0.1 1.7 4.1 1.1 1.8 1.8 1.8 1.4 4.5 1.7 -2.4 1.3 -1.4 0.3
OPERATION OF PERSONAL TRANSPORT EQUIPMENT -7.1 7.3 -0.4 4.8 6.6 -2.2 4.2 6.8 5.2 4.5 3.0 -2.5 -3.9 5.2 -4.5 0.4
COMMUNICATION 0.0 0.2 0.0 0.0 0.1 0.1 0.1 0.0 0.1 0.2 0.2 0.1 0.0 0.0 0.2 0.0
RECREATION AND CULTURE 0.1 0.6 0.6 0.1 0.3 0.5 0.4 0.1 0.2 0.5 1.1 0.7 0.3 0.2 0.2 0.2
EDUCATION 0.0 1.0 2.0 0.0 0.0 0.5 1.1 0.0 0.0 1.8 -0.2 0.0 -0.2 1.6 3.6 0.3
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 0.2 0.8 0.1 0.3 0.5 0.5 1.0 0.8 1.2 1.8 0.7 1.1 0.7 0.8 0.6 0.6

Year-on-Year Change (in percent)

2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS -0.3 0.2 0.9 1.8 3.3 3.7 3.5 4.3 4.8 5.3 6.6 5.5 3.8 3.2 1.5 1.8
FOOD AND NON-ALCHOLIC BEVERAGES 1.3 2.7 2.7 4.4 5.5 6.1 5.4 5.1 6.6 5.9 8.4 6.6 4.0 3.7 1.4 2.8
FOOD ITEMS 1.4 2.9 3.0 4.8 6.0 6.7 5.8 5.4 6.7 5.3 7.9 5.8 3.3 3.6 1.1 3.0
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.2 2.9 4.5 5.4 7.8 9.5 8.8 8.8 20.3 22.5 21.7 21.2 7.1 3.1 4.7 11.6
NON-FOOD -1.1 -1.0 -0.1 0.5 2.3 2.5 2.7 3.9 3.7 4.6 5.3 4.5 3.7 3.0 1.6 1.1
CLOTHING AND FOOTWEAR 1.3 1.4 1.8 2.0 2.4 2.7 2.5 2.5 2.4 2.3 2.1 2.4 2.5 1.7 1.7 1.3
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS -2.8 -2.9 -1.2 -0.4 1.5 2.2 1.7 4.6 4.3 5.5 6.7 4.4 3.8 2.7 0.8 0.5
ELECTRICITY, GAS AND OTHER FUELS -14.8 -14.1 -6.5 -3.1 5.7 9.0 4.2 14.0 6.7 9.8 17.5 7.9 6.9 2.7 -5.7 -5.1
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.4 0.6 1.2 1.7 1.9 2.6 2.2 2.1 2.4 3.0 3.1 3.2 2.9 1.6 1.4 1.2
HEALTH 0.8 1.1 0.9 1.2 2.0 2.6 3.4 3.1 2.8 2.4 4.5 4.9 5.0 4.6 2.1 1.9
TRANSPORT -3.5 -3.7 -2.5 -0.5 6.5 6.8 8.8 9.0 6.6 7.0 9.8 9.6 5.1 5.1 -0.8 -2.2
OPERATION OF PERSONAL TRANSPORT EQUIPMENT -9.7 -7.8 -3.1 4.1 19.5 8.9 13.9 16.1 14.5 22.3 20.9 10.4 0.8 1.5 -5.9 -3.1
COMMUNICATION 0.0 0.2 0.2 0.2 0.3 0.2 0.3 0.3 0.3 0.4 0.5 0.6 0.5 0.3 0.3 0.2
RECREATION AND CULTURE 0.8 1.1 1.4 1.4 1.6 1.5 1.2 1.2 1.1 1.2 1.9 2.5 2.6 2.3 1.3 0.8
EDUCATION 4.0 3.6 3.0 3.0 3.0 2.5 1.6 1.6 1.6 2.9 1.6 1.6 1.4 1.2 5.1 5.4
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 0.5 1.2 1.2 1.4 1.7 1.4 2.3 2.8 3.5 4.9 4.5 4.9 4.4 3.4 3.3 2.8

Source of Basic Data: Philippine Statistics Authority (PSA)

 4b CONSUMER PRICE INDEX IN AREAS OUTSIDE NATIONAL CAPITAL REGION (AONCR)
2012=100
period averages

2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 108.4 108.9 109.5 110.4 111.4 111.8 112.2 113.3 115.4 117.0 119.1 120.2 119.9 120.3 121.1 121.9
FOOD AND NON-ALCHOLIC BEVERAGES 111.5 111.4 112.1 113.2 114.1 114.2 114.9 116.4 119.4 120.9 124.6 126.2 125.0 124.4 125.0 125.9
FOOD ITEMS 111.9 111.7 112.5 113.7 114.6 114.7 115.4 117.1 120.0 121.2 125.0 126.6 125.2 124.5 125.0 125.9
ALCOHOLIC BEVERAGES AND TOBACCO 145.7 147.5 149.7 152.1 155.8 157.6 159.3 161.4 179.2 189.2 193.7 196.6 204.6 209.6 217.5 233.3
NON-FOOD 105.0 106.0 106.5 107.1 108.2 108.7 108.8 109.5 110.7 112.0 112.8 113.5 113.7 114.7 115.4 115.8
CLOTHING AND FOOTWEAR 110.4 110.9 111.9 112.7 113.6 113.9 114.4 114.8 115.7 116.4 117.3 117.9 118.6 119.4 120.7 121.5
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 104.7 105.7 106.4 106.8 108.3 109.0 108.6 109.6 110.6 112.0 113.6 114.3 114.7 115.7 115.9 116.1
ELECTRICITY, GAS AND OTHER FUELS 95.2 96.3 96.5 97.0 100.0 101.3 99.9 102.3 103.6 106.5 108.7 109.0 108.1 109.9 107.3 107.0
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTINE MAINTENANCE OF THE HOUSE 109.4 110.0 110.8 111.4 112.1 112.5 113.1 113.6 114.8 115.8 117.1 118.2 119.3 120.0 121.1 122.2
HEALTH 108.0 108.7 109.7 110.7 111.7 111.9 112.2 112.5 114.0 115.1 116.5 117.5 118.5 119.0 120.4 121.2
TRANSPORT 93.7 95.2 94.8 96.3 98.1 98.8 98.7 100.1 102.5 104.5 105.9 106.6 104.0 107.0 106.0 106.5
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 71.1 75.8 75.2 77.4 81.7 80.4 81.3 85.8 92.1 98.0 101.3 99.4 93.8 100.4 97.9 98.1
COMMUNICATION 100.3 100.4 100.5 100.7 100.7 100.7 100.8 100.9 100.9 101.0 101.2 101.3 101.3 101.4 101.5 101.6
RECREATION AND CULTURE 109.0 109.2 109.4 109.7 109.8 110.0 111.2 111.1 111.4 111.7 113.7 114.8 115.1 115.5 116.3 116.7
EDUCATION 113.8 114.8 117.0 117.3 117.5 118.1 119.7 119.7 119.7 120.9 112.9 113.0 113.0 113.9 117.6 117.8
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 108.2 108.9 109.4 109.8 110.3 110.5 111.0 111.5 112.7 113.9 115.1 116.1 117.1 117.6 118.7 119.3

Quarter-on-Quarter Change (in percent)

2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 0.3 0.5 0.6 0.8 0.9 0.4 0.4 1.0 1.9 1.4 1.8 0.9 -0.2 0.3 0.7 0.7
FOOD AND NON-ALCHOLIC BEVERAGES 0.4 -0.1 0.6 1.0 0.8 0.1 0.6 1.3 2.6 1.3 3.1 1.3 -1.0 -0.5 0.5 0.7
FOOD ITEMS 0.4 -0.2 0.7 1.1 0.8 0.1 0.6 1.5 2.5 1.0 3.1 1.3 -1.1 -0.6 0.4 0.7
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 1.6 1.2 1.5 1.6 2.4 1.2 1.1 1.3 11.0 5.6 2.4 1.5 4.1 2.4 3.8 7.3
NON-FOOD 0.1 1.0 0.5 0.6 1.0 0.5 0.1 0.6 1.1 1.2 0.7 0.6 0.2 0.9 0.6 0.3
CLOTHING AND FOOTWEAR 0.6 0.5 0.9 0.7 0.8 0.3 0.4 0.3 0.8 0.6 0.8 0.5 0.6 0.7 1.1 0.7
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 0.6 1.0 0.7 0.4 1.4 0.6 -0.4 0.9 0.9 1.3 1.4 0.6 0.3 0.9 0.2 0.2
ELECTRICITY, GAS AND OTHER FUELS -1.2 1.2 0.2 0.5 3.1 1.3 -1.4 2.4 1.3 2.8 2.1 0.3 -0.8 1.7 -2.4 -0.3
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.7 0.5 0.7 0.5 0.6 0.4 0.5 0.4 1.1 0.9 1.1 0.9 0.9 0.6 0.9 0.9
HEALTH 0.6 0.6 0.9 0.9 0.9 0.2 0.3 0.3 1.3 1.0 1.2 0.9 0.9 0.4 1.2 0.7
TRANSPORT -2.1 1.6 -0.4 1.6 1.9 0.7 -0.1 1.4 2.4 2.0 1.3 0.7 -2.4 2.9 -0.9 0.5
OPERATION OF PERSONAL TRANSPORT EQUIPMENT -7.7 6.6 -0.8 2.9 5.6 -1.6 1.1 5.5 7.3 6.4 3.4 -1.9 -5.6 7.0 -2.5 0.2
COMMUNICATION 0.1 0.1 0.1 0.2 0.0 0.0 0.1 0.1 0.0 0.1 0.2 0.1 0.0 0.1 0.1 0.1
RECREATION AND CULTURE 0.3 0.2 0.2 0.3 0.1 0.2 1.1 -0.1 0.3 0.3 1.8 1.0 0.3 0.3 0.8 0.3
EDUCATION 0.0 0.9 1.9 0.3 0.2 0.5 1.4 0.0 0.0 1.0 -6.6 0.1 0.0 0.8 3.2 0.2
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 0.4 0.6 0.5 0.4 0.5 0.2 0.5 0.5 1.1 1.1 1.1 0.9 0.9 0.4 0.9 0.5

Year-on-Year Change (in percent)

2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ALL ITEMS 0.8 1.1 1.6 2.1 2.8 2.7 2.5 2.6 3.6 4.7 6.1 6.1 3.9 2.8 1.7 1.4
FOOD AND NON-ALCHOLIC BEVERAGES 0.8 1.2 1.4 1.9 2.3 2.5 2.5 2.8 4.6 5.9 8.4 8.4 4.7 2.9 0.3 -0.2
FOOD ITEMS 0.8 1.1 1.4 2.0 2.4 2.7 2.6 3.0 4.7 5.7 8.3 8.1 4.3 2.7 0.0 -0.6
ALCOHOLIC BEVERAGES AND TOBACCO 3.7 4.2 5.3 6.1 6.9 6.8 6.4 6.1 15.0 20.1 21.6 21.8 14.2 10.8 12.3 18.7
NON-FOOD 0.7 1.0 1.6 2.1 3.0 2.5 2.2 2.2 2.3 3.0 3.7 3.7 2.7 2.4 2.3 2.0
CLOTHING AND FOOTWEAR 1.8 1.9 2.5 2.7 2.9 2.7 2.2 1.9 1.8 2.2 2.5 2.7 2.5 2.6 2.9 3.1
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 0.1 0.5 2.0 2.6 3.4 3.1 2.1 2.6 2.1 2.8 4.6 4.3 3.7 3.3 2.0 1.6
ELECTRICITY, GAS AND OTHER FUELS -4.6 -4.7 -1.7 0.6 5.0 5.2 3.5 5.5 3.6 5.1 8.8 6.5 4.3 3.2 -1.3 -1.8
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 1.9 1.9 2.3 2.6 2.5 2.3 2.1 2.0 2.4 2.9 3.5 4.0 3.9 3.6 3.4 3.4
HEALTH 1.8 2.2 2.6 3.1 3.4 2.9 2.3 1.6 2.1 2.9 3.8 4.4 3.9 3.4 3.3 3.1
TRANSPORT -1.5 -1.6 -1.1 0.6 4.7 3.8 4.1 3.9 4.5 5.8 7.3 6.5 1.5 2.4 0.1 -0.1
OPERATION OF PERSONAL TRANSPORT EQUIPMENT -10.0 -8.9 -5.8 0.5 14.9 6.1 8.1 10.9 12.7 21.9 24.6 15.9 1.8 2.4 -3.4 -1.3
COMMUNICATION 0.2 0.4 0.5 0.5 0.4 0.3 0.3 0.2 0.2 0.3 0.4 0.4 0.4 0.4 0.3 0.3
RECREATION AND CULTURE 0.6 0.7 0.8 0.9 0.7 0.7 1.6 1.3 1.5 1.5 2.2 3.3 3.3 3.4 2.4 1.7
EDUCATION 2.9 2.9 2.9 3.1 3.3 2.9 2.3 2.0 1.9 2.4 -5.7 -5.6 -5.6 -5.8 4.2 4.2
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 1.8 2.1 2.1 1.9 1.9 1.5 1.5 1.5 2.2 3.1 3.7 4.1 3.9 3.2 3.1 2.8

Source of Basic Data: Philippine Statistics Authority (PSA)

 5 MONETARY INDICATORS (DCS CONCEPT: SRF-Based) 1
as of end-periods indicated
in billion pesos

2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 r Q4 r

A. Liquidity

1. M4 (2+7) 12,795.5 12,961.6 13,133.5 13,610.3 13,565.4 13,786.9 14,025.5 14,937.2

2. M3 : Broad Money Liabilities (3+6) 10,919.1 11,067.5 11,179.4 11,643.0 11,583.6 11,801.6 12,027.9 12,963.4
% to GDP 67.6 66.9 65.9 66.8 65.4 65.6 65.8 69.6

3. M2 (4+5) 10,480.8 10,616.5 10,707.1 11,080.2 10,977.1 11,181.0 11,408.1 12,286.7

% to GDP 64.9 64.1 63.1 63.6 62.0 62.1 62.4 66.0

4. M1: Currency Outside Depository Corporations and Transferable Deposits (Narrow Money ) 3,666.2 3,735.1 3,716.0 3,889.0 3,889.5 3,940.1 4,096.8 4,500.0
% to GDP 22.7 22.6 21.9 22.3 22.0 21.9 22.4 24.2

Currency Outside Depository Corporations (Currency in Circulation) 1,056.7 1,050.5 1,065.9 1,231.8 1,189.0 1,181.7 1,180.6 1,395.8
Transferable Deposits (Demand Deposits) 2,609.5 2,684.6 2,650.0 2,657.2 2,700.5 2,758.4 2,916.2 3,104.2

5. Other deposits included in broad money 6,814.6 6,881.4 6,991.2 7,191.1 7,087.6 7,240.9 7,311.3 7,786.7
Savings Deposits 4,477.1 4,580.4 4,691.9 4,672.5 4,570.6 4,576.2 4,667.4 4,962.7
Time Deposits 2,337.5 2,301.1 2,299.3 2,518.6 2,517.0 2,664.6 2,643.9 2,824.0

6. Securities Other Than Shares Included in Broad Money (Deposit Substitutes) 438.3 451.0 472.3 562.8 606.5 620.6 619.8 676.6

7. Transferable & Other Deposits in Foreign Currency (FCDU Deposits-Residents) 1,876.4 1,894.1 1,954.0 1,967.3 1,981.8 1,985.2 1,997.6 1,973.8

8. Liabilities Excluded from Broad-Money (Other Liabilities) 2,619.0 2,781.7 2,866.6 2,885.6 2,941.7 2,958.7 3,220.4 3,232.0

B. Domestic Claims 10,792.7 11,204.0 11,540.1 12,035.0 11,789.0 12,006.7 12,414.8 13,311.3
1. Net Claims on Central Government 1,778.0 1,816.2 1,825.7 1,911.1 1,782.1 1,750.6 1,923.7 2,366.2
Claims on Central Government 2,485.8 2,555.1 2,591.2 2,690.4 2,940.1 3,038.7 2,990.6 2,955.6
Less: Liabilities to Central Government 707.7 738.9 765.5 779.3 1,158.0 1,288.1 1,066.9 589.4

2. Claims on Other Sectors 9,014.7 9,387.8 9,714.3 10,123.9 10,006.8 10,256.1 10,491.2 10,945.1
Claims on Other Financial Corporations 879.4 957.1 1,041.5 1,088.3 1,110.8 1,124.9 1,175.1 1,232.4
Claims on State and Local Government 81.9 81.6 83.7 87.5 91.9 95.3 97.1 99.1
Claims on Public Nonfinancial Corporations 280.7 272.4 248.4 260.7 261.1 242.8 239.5 259.6
Claims on Private Sector 7,772.8 8,076.7 8,340.6 8,687.4 8,543.0 8,793.1 8,979.4 9,354.1

C. Net Foreign Assets 4,621.7 4,539.3 4,460.0 4,460.9 4,718.1 4,738.9 4,831.1 4,857.9
1. Bangko Sentral ng Pilipinas 4,130.1 4,064.2 3,977.3 4,088.9 4,326.2 4,280.0 4,364.0 4,399.1
Claims on Non-residents 4,216.7 4,149.6 4,064.1 4,172.4 4,410.6 4,361.3 4,445.6 4,479.4
Less: Liabilities to Non-residents 86.6 85.4 86.8 83.5 84.4 81.3 81.6 80.3

2. Other Depository Corporations 491.7 475.1 482.7 372.1 391.9 458.9 467.1 458.8
Claims on Non-residents 1,367.4 1,374.3 1,448.9 1,501.7 1,512.7 1,583.5 1,693.6 1,654.6
Less: Liabilities to Non-residents 875.7 899.2 966.2 1,129.7 1,120.8 1,124.6 1,226.6 1,195.8

1
Based on the Standardized Report Forms (SRFs), a unified framework for reporting monetary and financial statistics to the International Monetary Fund.
r
Revised
Note : Details may not add up to totals due to rounding.
Source : Bangko Sentral ng Pilipinas
5 MONETARY INDICATORS (DCS CONCEPT: SRF-Based) 1
for the periods indicated
percentage points contribution to year-on-year M3 growth

2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 r Q4 r

M3 : Broad Money Liabilities 14.4 11.8 9.9 9.5 6.1 6.6 7.6 11.3

1. M2 (2+3) 13.5 11.0 9.2 8.3 4.5 5.1 6.3 10.4

2. M1: Currency Outside Depository Corporations and Transferable Deposits (Narrow Money ) 5.8 5.0 3.7 3.2 2.0 1.9 3.4 5.2
Currency Outside Depository Corporations (Currency in Circulation) 1.8 1.5 1.4 1.7 1.2 1.2 1.0 1.4
Transferable Deposits (Demand Deposits) 4.0 3.5 2.4 1.4 0.8 0.7 2.4 3.8

3. Other deposits included in broad money 7.7 6.0 5.4 5.1 2.5 3.2 2.9 5.1
Savings Deposits 4.1 4.0 4.2 2.5 0.9 0.0 -0.2 2.5
Time Deposits 3.6 2.0 1.3 2.6 1.6 3.3 3.1 2.6

4. Securities Other Than Shares Included in Broad Money (Deposit Substitutes) 0.9 0.9 0.7 1.2 1.5 1.5 1.3 1.0

M3 : Broad Money Liabilities 14.4 11.8 9.9 9.5 6.1 6.6 7.6 11.3

1. Domestic Claims 14.5 16.0 14.8 14.6 9.1 7.3 7.8 11.0
a. Net Claims on Central Government 1.2 2.0 1.8 2.6 0.0 -0.6 0.9 3.9
Claims on Central Government 2.9 2.4 2.8 2.7 4.2 4.4 3.6 2.3
Less: Liabilities to Central Government 1.7 0.4 0.9 0.1 4.1 5.0 2.7 -1.6

b. Claims on Other Sectors 13.4 13.9 12.9 12.1 9.1 7.8 6.9 7.1
Claims on Other Financial Corporations 0.9 1.8 2.0 1.5 2.1 1.5 1.2 1.2
Claims on State and Local Government . . . 0.1 0.1 0.1 0.1 0.1
Claims on Public Nonfinancial Corporations 0.2 0.1 -0.5 -0.2 -0.2 -0.3 -0.1 .
Claims on Private Sector 12.2 12.1 11.4 10.7 7.1 6.5 5.7 5.7

2. Net Foreign Assets 2.6 1.2 -0.4 0.5 0.9 1.8 3.3 3.4
a. Bangko Sentral ng Pilipinas 1.4 0.3 -0.6 0.8 1.8 1.9 3.5 2.7
Claims on Non-residents 1.5 0.4 -0.6 0.8 1.8 1.9 3.4 2.6
Less: Liabilities to Non-residents 0.1 0.1 . . . . . .

b. Other Depository Corporations 1.1 0.9 0.2 -0.3 -0.9 -0.1 -0.1 0.7
Claims on Non-residents 1.4 1.3 1.4 1.9 1.3 1.9 2.2 1.3
Less: Liabilities to Non-residents 0.3 0.4 1.2 2.2 2.2 2.0 2.3 0.6

3. Transferable & Other Deposits in Foreign Currency (FCDU Deposits-Residents) 1.4 1.4 0.7 1.1 1.0 0.8 0.4 0.1

4. Liabilities Excluded from Broad-Money (Other Liabilities) 1.3 4.1 3.8 4.6 3.0 1.6 3.2 3.0
1
Based on the Standardized Report Forms (SRFs), a unified framework for reporting monetary and financial statistics to the International Monetary Fund.
r
Revised
.
Rounds off to zero
Note : Details may not add up to totals due to rounding.
Source : Bangko Sentral ng Pilipinas
6 SELECTED DOMESTIC INTEREST RATES
in percent per annum
for periods indicated

NOMINAL INTEREST RATES REAL INTEREST RATES

1

2016 2017 2018 2019 2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Interbank Call Loans 2.5289 2.5293 2.5247 2.5074 2.5354 2.5851 2.5824 2.9203 3.0794 3.2855 4.0293 4.7553 5.1365 5.0769 4.5025 4.0458 1.8289 1.5293 1.0247 0.5074 -0.3646 -0.2149 -0.1176 -0.0797 -0.7206 -1.5145 -2.1707 -1.1447 1.3365 2.0769 2.8025 2.4458
Savings Deposits 0.7370 0.7140 0.7290 0.6990 0.6890 0.6650 0.6980 0.6880 0.7420 0.7840 0.9190 1.1350 1.3480 1.3090 1.2780 0.9890 0.0370 -0.2860 -0.7710 -1.3010 -2.2110 -2.1350 -2.0020 -2.3120 -3.0580 -4.0160 -5.2810 -4.7650 -2.4520 -1.6910 -0.4220 -0.6110
Time Deposits (All Maturities) 1.6120 1.5210 1.4450 1.5770 1.6880 1.7530 1.7890 1.9720 2.5260 2.6300 3.1940 4.0610 4.7470 4.5340 3.5270 3.1280 0.9120 0.5210 -0.0550 -0.4230 -1.2120 -1.0470 -0.9110 -1.0280 -1.2740 -2.1700 -3.0060 -1.8390 0.9470 1.5340 1.8270 1.5280
Lending Rates
High 6.8407 6.7760 6.6280 6.4397 6.5050 6.4571 6.4772 6.5299 6.6208 6.9164 7.0562 7.8424 8.3720 8.5076 7.8361 7.3549 6.1407 5.7760 5.1280 4.4397 3.6050 3.6571 3.7772 3.5299 2.8208 2.1164 0.8562 1.9424 4.5720 5.5076 6.1361 5.7549
Low 4.4055 4.4067 4.2788 4.1097 4.2013 4.1736 4.0875 4.0874 4.1654 4.3067 4.5897 5.2283 5.6607 5.8173 5.4369 5.0724 3.7055 3.4067 2.7788 2.1097 1.3013 1.3736 1.3875 1.0874 0.3654 -0.4933 -1.6103 -0.6717 1.8607 2.8173 3.7369 3.4724
2
All Maturities 5.6310 5.6240 5.6840 5.6290 5.5410 5.6220 5.6560 5.6920 5.6410 5.8930 6.1860 6.7580 7.1230 7.2950 7.1590 6.7960 4.9310 4.6240 4.1840 3.6290 2.6410 2.8220 2.9560 2.6920 1.8410 1.0930 -0.0140 0.8580 3.3230 4.2950 5.4590 5.1960
3
Bangko Sentral Rates

Overnight Lending Facility (OLF) … 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.7930 4.2920 5.1880 5.2500 5.1273 4.8062 4.5000 … 2.5000 2.0000 1.5000 0.6000 0.7000 0.8000 0.5000 -0.3000 -1.0070 -1.9080 -0.7120 1.4500 2.1273 3.1062 2.9000
Overnight RRP 4.0000 3.4280 3.0000 3.0000 3.0000 3.0000 3.0000 3.0000 3.0000 3.1770 3.7840 4.6270 4.7500 4.6139 4.3480 4.0000 3.3000 2.4280 1.5000 1.0000 0.1000 0.2000 0.3000 0.0000 -0.8000 -1.6230 -2.4160 -1.2730 0.9500 1.6139 2.6480 2.4000
Overnight Deposit Facility (ODF) … 2.5000 2.5000 2.5000 2.5000 2.5000 2.5000 2.5000 2.5000 2.6840 3.2680 4.1440 4.2500 4.1529 3.8555 3.5000 … 1.5000 1.0000 0.5000 -0.4000 -0.3000 -0.2000 -0.5000 -1.3000 -2.1160 -2.9320 -1.7560 0.4500 1.1529 2.1555 1.9000
Term Deposit Auction Facility (TDF) … 2.5000 2.5090 2.8910 3.3790 3.4270 3.4770 3.4800 3.1070 3.5170 4.0920 4.8880 5.1420 4.7347 4.5432 4.3119 … 1.5000 1.0090 0.8910 0.4790 0.6270 0.7770 0.4800 -0.6930 -1.2830 -2.1080 -1.0120 1.3420 1.7347 2.8432 2.7119
7-Day … 2.5000 2.5000 2.7882 3.0160 3.1759 3.3057 3.3881 3.0341 3.5258 4.0512 4.8597 5.0663 4.7143 4.4909 4.2503 … 1.5000 1.0000 0.7882 0.1160 0.3759 0.6057 0.3881 -0.7659 -1.2742 -2.1488 -1.0403 1.2663 1.7143 2.7909 2.6503
14-Day … … … … … … … … 3.1386 3.5774 4.1368 4.9276 5.1445 4.7282 4.5274 4.3027 … … … … … … … … -0.6614 -1.2226 -2.0632 -0.9724 1.3445 1.7282 2.8274 2.7027
28-Day … 2.5000 2.5129 2.9071 3.3812 3.4639 3.4935 3.4929 3.1758 3.5560 4.1664 4.9766 5.1613 4.7465 4.5422 4.3236 … 1.5000 1.0129 0.9071 0.4812 0.6639 0.7935 0.4929 -0.6242 -1.2440 -2.0336 -0.9234 1.3613 1.7465 2.8422 2.7236
Rate on Government Securities
Treasury Bills, All Maturities 1.6130 1.6990 1.5050 1.5630 2.3640 2.5000 2.4770 2.4040 2.7720 3.7560 4.2340 5.9730 5.9415 5.4743 3.7611 3.3083 0.9130 0.6990 0.0050 -0.4370 -0.5360 -0.3000 -0.2230 -0.5960 -1.0280 -1.0440 -1.9660 0.0730 2.1415 2.4743 2.0611 1.7083
91-Day 1.5550 1.5970 1.4160 1.4400 2.1790 2.2060 2.1280 2.0340 2.6370 3.4080 3.2830 5.1050 5.5836 5.2038 3.4150 3.1183 0.8550 0.5970 -0.0840 -0.5600 -0.7210 -0.5940 -0.5720 -0.9660 -1.1630 -1.3920 -2.9170 -0.7950 1.7836 2.2038 1.7150 1.5183
182-Day 1.5800 1.6540 1.4520 1.6890 2.3800 2.5370 2.5480 2.4970 2.8130 3.8290 4.1900 6.1060 5.9998 5.5521 3.7227 3.2289 0.8800 0.6540 -0.0480 -0.3110 -0.5200 -0.2630 -0.1520 -0.5030 -0.9870 -0.9710 -2.0100 0.2060 2.1998 2.5521 2.0227 1.6289
364-Day 1.7230 1.8570 1.6790 1.8800 2.7100 2.9090 2.9360 2.8780 3.0880 4.2620 4.8920 6.3570 6.0978 5.6268 4.0402 3.5284 1.0230 0.8570 0.1790 -0.1200 -0.1900 0.1090 0.2360 -0.1220 -0.7120 -0.5380 -1.3080 0.4570 2.2978 2.6268 2.3402 1.9284

Government Securities in the Secondary Market4

3-Month 1.7650 1.7567 1.5857 2.0755 2.9696 2.8139 2.0251 2.4316 3.0723 3.9071 4.3094 5.7760 5.7990 4.4600 3.1020 3.2040 1.1650 0.4567 -0.1143 -0.1245 -0.1304 0.3139 -0.9749 -0.4684 -1.2277 -1.2929 -2.3906 0.6760 2.4990 1.7600 2.2020 0.7040
6-Month 1.8950 1.5949 1.2931 2.9464 2.4222 2.4615 2.4988 3.3075 3.2063 3.8453 4.6491 6.5140 5.9400 4.7600 3.3940 3.3730 1.2950 0.2949 -0.4069 0.7464 -0.6778 -0.0385 -0.5012 0.4075 -1.0937 -1.3547 -2.0509 1.4140 2.6400 2.0600 2.4940 0.8730
1-Year 1.7313 2.1671 2.0107 2.4520 2.6708 3.2257 2.8674 3.0320 3.0750 4.4742 5.2760 6.7830 6.0970 4.9690 3.7040 3.4150 1.1313 0.8671 0.3107 0.2520 -0.4292 0.7257 -0.1326 0.1320 -1.2250 -0.7258 -1.4240 1.6830 2.7970 2.2690 2.8040 0.9150
2-Year 3.4700 2.3877 2.2855 3.8676 3.2500 3.8718 3.7821 3.9864 4.1613 4.7842 6.1990 6.8850 5.8220 4.9490 4.0410 3.7380 2.8700 1.0877 0.5855 1.6676 0.1500 1.3718 0.7821 1.0864 -0.1387 -0.4158 -0.5010 1.7850 2.5220 2.2490 3.1410 1.2380
3-Year 3.6900 3.0660 3.2925 3.5170 4.0988 3.8916 3.6651 4.2977 4.6098 5.0223 7.0339 6.9760 5.7480 4.9590 4.1920 3.8300 3.0900 1.7660 1.5925 1.3170 0.9988 1.3916 0.6651 1.3977 0.3098 -0.1777 0.3339 1.8760 2.4480 2.2590 3.2920 1.3300
4-Year 3.2332 3.3067 2.8798 3.8814 4.2500 4.0321 4.5768 4.9211 5.0179 5.6768 7.4464 7.0160 5.6790 4.9750 4.3400 3.9400 2.6332 2.0067 1.1798 1.6814 1.1500 1.5321 1.5768 2.0211 0.7179 0.4768 0.7464 1.9160 2.3790 2.2750 3.4400 1.4400
5-Year 3.4583 2.8997 3.6321 4.7426 4.2577 4.0336 4.6375 4.7437 5.2403 5.7620 7.0395 7.0370 5.6270 4.9970 4.4810 4.0610 2.8583 1.5997 1.9321 2.5426 1.1577 1.5336 1.6375 1.8437 0.9403 0.5620 0.3395 1.9370 2.3270 2.2970 3.5810 1.5610
7-Year 4.2283 2.9197 3.4483 4.8857 5.0625 4.9171 4.3206 5.3279 6.7375 6.2482 7.1101 7.0610 5.5990 5.0370 4.6700 4.2790 3.6283 1.6197 1.7483 2.6857 1.9625 2.4171 1.3206 2.4279 2.4375 1.0482 0.4101 1.9610 2.2990 2.3370 3.7700 1.7790
10-Year 4.6900 4.2183 3.6455 4.6281 5.0554 4.6691 4.6085 5.6986 6.0000 6.4217 7.2348 7.0650 5.6050 5.0720 4.8010 4.4610 4.0900 2.9183 1.9455 2.4281 1.9554 2.1691 1.6085 2.7986 1.7000 1.2217 0.5348 1.9650 2.3050 2.3720 3.9010 1.9610
20-Year 5.2317 4.2415 4.6482 5.3771 5.0302 5.0844 5.1479 5.7038 7.1625 7.3607 8.2969 7.4910 5.8190 5.1770 5.0220 5.1590 4.6317 2.9415 2.9482 3.1771 1.9302 2.5844 2.1479 2.8038 2.8625 2.1607 1.5969 2.3910 2.5190 2.4770 4.1220 2.6590
25-Year .. .. .. .. .. .. .. .. .. .. .. 7.5280 6.0950 5.1250 4.9900 5.2180 .. .. .. .. .. .. .. .. .. .. .. 2.4280 2.7950 2.4250 4.0900 2.7180

1
Nominal interest rate less inflation rate with base year 2012
2
Refers 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.
2
Refers to the weighted average interest rate of reporting commercial banks' interest incomes on their outstanding peso-denominated loans
3
Beginning 3 June 2016, the BSP shifted its monetary operations to an interest rate corridor (IRC) system. The repurchase (RP) and Special Deposit Account (SDA) windows were replaced by standing overnight lending and overnight deposit facilities, respectively.
The reverse repurchase (RRP) facility was modified to a purely overnight RRP. In addition, the term deposit facility (TDF) will serve as the main tool for absorbing liquidity. The OLF and ODF will serve as the upper bound and lower bound, respectively, of the IRC system.
The weighted average interest rates (WAIR) of BSP rates are based on outstanding balance as of month-end.
4
End-of-Period; beginning 29 October 2018, data refer to the Philippine Peso Bloomberg Valuation Service (PHP BVAL) Reference Rates while those for earlier periods refer to the Philippine Dealing System Treasury Reference Rates 2 (PDST-R2).
- Not Available
.. No Transaction/No Quotation/No Issue
... Blank
Source: Bangko Sentral ng Pilipinas
 7 NUMBER OF FINANCIAL INSTITUTIONS 1
as of periods indicated

2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3

Total 29,044 20,924 24,237 24,998 25,845 26,283 26,743

Head Offices 6,173 1,451 1,736 1,827 1,864 1,862 1,877
Branches/Agencies 22,871 19,473 22,501 23,171 23,981 24,421 24,866

Banks 11,936 12,066 12,148 12,364 12,427 12,543 12,688

Head Offices 585 581 574 571 569 554 552
Branches/Agencies 11,351 11,485 11,574 11,793 11,858 11,989 12,136

Universal and Commercial Banks 6,527 6,569 6,610 6,642 6,660 6,676 6,865
Head Offices 43 43 44 45 46 46 46
Branches/Agencies 6,484 6,526 6,566 6,597 6,614 6,630 6,819
Thrift Banks 2,453 2,525 2,562 2,657 2,666 2,720 2,616
Head Offices 55 55 54 54 53 51 51
Branches/Agencies 2,398 2,470 2,508 2,603 2,613 2,669 2,565
Savings and Mortgage Banks 1,849 1,920 1,944 2,029 1,921 1,988 1,879
Head Offices 24 24 24 24 23 23 22
Branches/Agencies 1,825 1,896 1,920 2,005 1,898 1,965 1,857
Private Development Banks 420 421 426 435 435 422 426
Head Offices 17 17 17 17 17 15 16
Branches/Agencies 403 404 409 418 418 407 410
Stock Savings and Loan Assns. 179 179 187 188 305 305 306
Head Offices 13 13 12 12 12 12 12
Branches/Agencies 166 166 175 176 293 293 294
Microfinance Banks 5 5 5 5 5 5 5
Head Offices 1 1 1 1 1 1 1
Branches/Agencies 4 4 4 4 4 4 4
Rural Banks 2,956 2,972 2,976 3,065 3,101 3,147 3,207
Head Offices 487 483 476 472 470 457 455
Branches/Agencies 2,469 2,489 2,500 2,593 2,631 2,690 2,752

Non-Banks 2 17,106 8,856 12,087 12,632 13,416 13,738 14,054

Head Offices 5,586 868 1,160 1,254 1,293 1,306 1,324
Branches/Agencies 11,520 7,988 10,927 11,378 12,123 12,432 12,730
Investment Houses 24 24 24 24 24 24 24
Head Offices 14 14 14 14 14 14 14
Branches/Agencies 10 10 10 10 10 10 10
Finance Companies 163 163 163 163 171 174 180
Head Offices 23 23 23 23 23 23 24
Branches/Agencies 140 140 140 140 148 151 156
AAB Forex Corporations 5 5 5 5 4 4 4
Head Offices 5 5 5 5 4 4 4
Branches/Agencies - - - - - - -
Investment Companies 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1
Branches/Agencies - - - - - - -
Securities Dealers/Brokers 13 13 13 13 13 13 13
Head Offices 13 13 13 13 13 13 13
Branches/Agencies - - - - - - -
Pawnshops 16,582 8,331 11,563 12,107 12,879 13,190 13,497
Head Offices 5,346 627 920 1,013 1,051 1,062 1,076
Branches/Agencies 11,236 7,704 10,643 11,094 11,828 12,128 12,421
Lending Investors 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1
Branches/Agencies - - - - - - -
Non-Stock Savings and Loan Assns. 198 198 197 196 200 200 200
Head Offices 64 64 63 62 63 63 63
Branches/Agencies 134 134 134 134 137 137 137
Government Non-Banks 3 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4
Branches/Agencies - - - - - - -
Venture Capital Corporations - - - - - - -
Head Offices - - - - - - -
Branches/Agencies - - - - - - -
Credit Card Companies 4 4 4 5 5 5 5
Head Offices 4 4 4 5 5 5 5
Branches/Agencies - - - - - - -
Other Non-Bank with QBF 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1
Branches/Agencies - - - - - - -
Electronic Money Issuer 7 8 8 9 10 18 21
Head Offices 7 8 8 9 10 12 15
Branches/Agencies - - - - - 6 6
Remittance Agent 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1
Branches/Agencies - - - - - - -
Credit Granting Entities 9 9 9 9 9 9 9
Head Offices 9 9 9 9 9 9 9
Branches/Agencies - - - - - - -
Trust Corporations 4 3 3 3 3 3 3 3
Head Offices 3 3 3 3 3 3 3
Branches/Agencies - - - - - - -
Private Insurance Companies 5 90 90 90 90 90 90 90
Head Offices 90 90 90 90 90 90 90
Branches/Agencies - - - - - - -

Offshore banking Units 2 2 2 2 2 2 1

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. In 2017, per Circular 987 dated 28 December 2017, the term "Other banking units" was replaced by branch/ branch-lite
units. A branch shall refer to any permanent office or place of business in the Philippines other than the head office where a bank may perform activities and provide products
and services that are within the scope of its authority and relevant licenses. In this respect, a complete set of books and records shall be maintained in each branch.
A branch-lite unit shall refer to any permanent office or place of business of a bank, other than its head office or a branch. A branch-lite unit performs limited banking activities
and records its transactions in the books of the head office or the branch to which it is annexed.
2
Includes Private Insurance Companies
3
Includes Government Service Insurance System (GSIS) and Social Security System (SSS)
4
Trust Corporations started only on December 2016.
5
Covers only the head offices and their foreign branches.
_
zero or nil
r
Revised
p
Preliminary
Source: Bangko Sentral ng Pilipinas, Insurance Commission
 1
8 TOTAL RESOURCES OF THE PHILIPPINE FINANCIAL SYSTEM
as of periods indicated
in billion pesos

2018 2019
Institutions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 p

r
Total 19,442.5 19,810.2 20,245.3 21,062.3 21,085.7 21,599.9 22,154.7 22,830.0

Banks 15,676.0 16,052.7 16,463.2 17,258.6 17,387.0 17,589.4 18,029.8 18,705.0

Universal and Commercial Banks 14,202.8 14,554.5 14,940.0 15,691.5 15,813.9 16,018.9 16,568.1 17,216.1
Thrift Banks 1,214.4 1,236.6 1,254.0 1,293.2 1,297.9 1,287.8 1,176.7 1,203.9
a
Rural Banks 258.8 261.5 269.2 273.9 275.2 282.6 285.0 285.0
Non-Banks 2 3,766.5 3,757.6 3,782.1 3,803.7 3,698.7 4,010.5 4,124.9 r
4,124.9 a

1
Excludes the Bangko Sentral ng Pilipinas; amount includes allowance for probable losses.
2
Includes Investment Houses, Finance Companies, Investment Companies, Securities Dealers/Brokers, Pawnshops, Lending Investors, Non Stocks Savings
and Loan Associations, Credit Card Companies (which are under BSP supervision), and Private and Government Insurance Companies (i.e., SSS and GSIS).
a
As of end-September 2019
p
Preliminary
r
Revised

Notes: (1) Data on Non-Banks are based on Consolidated Statement of Condition (CSOC).
(2) Data on Rural Banks are based on Financial Reporting Package (FRP).
(3) Details may not add up to total due to rounding off.
Source: Bangko Sentral ng Pilipinas
9 NON-PERFORMING LOANS (NPL), TOTAL LOANS AND LOAN LOSS PROVISIONS OF THE BANKING SYSTEM 1/
end-of-period
in billion pesos
3 3
Gross Non-Performing Loans Net Non-Performing Loans 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

2015 91.598 31.199 13.706 136.503 21.672 14.692 5.513 41.877 5719.665 689.019 118.711 6527.395 129.220 23.045 9.381 161.646
2016 93.801 36.654 13.703 144.158 21.264 17.340 4.679 43.283 6706.311 778.133 127.674 7612.118 135.699 26.775 10.353 172.827
2017 97.531 40.449 15.006 152.986 36.919 24.795 6.326 68.040 7867.078 860.303 138.219 8865.600 145.835 26.929 11.487 184.251

2018
Mar 104.400 44.633 16.790 165.823 40.841 30.151 7.355 78.348 7996.321 865.484 135.299 8997.103 159.597 26.654 12.225 198.475
Jun 110.606 46.664 17.514 174.784 45.425 30.691 7.741 83.857 8331.360 885.685 135.944 9352.989 158.846 27.995 12.668 199.509
Sep 112.762 47.095 16.754 176.611 48.373 31.466 6.876 86.715 8658.774 907.083 140.962 9706.820 155.904 27.114 12.747 195.766
Dec 113.518 48.261 16.066 177.845 48.459 33.086 6.315 87.860 9017.780 916.874 143.275 10077.929 148.339 26.256 12.530 187.124

p
2019
Mar 134.564 54.458 16.836 205.858 60.169 39.912 6.663 106.745 8918.522 925.944 144.697 9989.163 158.379 25.801 12.794 196.974
Jun 143.793 55.187 16.927 215.907 68.377 41.034 7.008 116.419 9204.615 935.267 148.674 10288.556 162.826 25.852 12.744 201.421
Sep 158.671 51.723 17.210 227.604 73.308 37.397 7.473 118.178 9552.943 860.726 150.563 10564.232 171.386 25.049 12.634 209.069
Dec 156.527 51.670 17.210 225.407 71.552 37.347 7.473 116.372 9953.964 860.307 150.563 10964.834 170.518 24.831 12.634 207.983

1
Data include banks under liquidation, foreign office transactions and interbank loans
2
Starting Sept. 2002, for supervisory purposes, computation of NPL was based on BSP Circular No. 351 which defines total loans as gross of allowance for probable losses and interbank loans less loans classified as loss.
This has been discontinued in 2013. For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772).
3
Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing gross NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio,
Under Circular No. 772, there are no available data for Gross NPLs and Net NPLs earlier than 2012.
p
Preliminary

Details may not add up due to rounding off.

Source: Bangko Sentral ng Pilipinas
 10 STOCK MARKET TRANSACTIONS
volume in million shares, value in million pesos
for periods indicated
2016 2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Volume 97,625.31 135,027.58 118,016.90 91,600.70 140,555.10 109,228.07 106,922.13 83,842.10 176,368.76 77,403.69 73,147.70 76,927.02 118,437.27 68,292.75 94,723.73 50,850.46
Financials 741.11 1,012.40 1,905.97 1,449.51 1,494.89 1,855.35 1,153.34 983.32 1,691.30 918.73 866.73 878.91 988.08 849.69 948.76 707.92
Industrial 6,153.47 6,409.56 11,121.62 5,344.90 9,603.84 8,540.72 16,458.74 6,357.53 6,709.75 7,032.50 5,558.32 9,259.84 8,503.59 11,244.40 6,961.13 6,795.33
Holding Firms 8,600.39 11,583.96 9,080.60 7,749.47 29,925.79 12,966.29 6,082.04 5,942.57 9,900.75 8,262.96 12,040.93 7,305.76 15,166.19 8,336.65 8,209.33 8,993.59
Property 10,445.61 11,770.44 20,014.93 12,974.29 22,112.95 26,846.85 23,254.68 13,481.64 29,646.66 16,290.35 13,057.13 9,918.88 10,488.32 10,661.23 11,569.70 8,124.49
Services 17,038.11 17,875.55 31,138.63 20,533.43 29,620.77 21,897.34 13,572.51 14,093.07 26,533.78 9,909.69 15,136.08 12,894.89 22,320.22 10,736.35 12,499.88 5,679.05
Mining & Oil 54,421.19 85,693.07 44,045.74 42,982.43 47,548.56 36,877.26 46,142.53 42,548.76 101,365.44 34,755.01 26,028.00 36,146.06 59,639.12 25,970.92 53,799.51 20,170.32
SME (in thousand shares) 222,461.91 681,589.21 708,472.66 565,684.51 247,653.15 243,479.20 257,034.11 433,789.64 518,403.30 232,923.99 459,872.31 521,981.35 1,331.14 493.01 734.73 379.17
ETF (in thousand pesos) 2,963.88 1,008.14 943.11 987.38 656.00 775.47 1,251.54 1,405.90 2,669.01 1,518.76 648.07 705.98 0.62 0.50 0.69 0.59

Value 407,066.36 524,668.89 576,328.98 421,435.00 436,165.38 557,721.60 509,396.60 455,080.53 520,924.61 394,543.07 361,275.84 460,078.84 488,944.71 443,994.24 442,192.02 397,447.97
Financials 51,044.39 81,395.61 78,796.41 64,291.23 62,313.96 97,068.69 68,693.92 65,769.55 85,980.22 61,896.89 60,084.23 63,110.03 71,699.61 69,698.97 67,156.74 61,878.65
Industrial 90,690.81 88,096.51 130,478.61 92,712.81 95,489.04 124,385.03 160,294.25 106,937.03 82,559.19 77,427.38 61,868.59 133,338.65 83,951.13 88,542.93 84,172.39 60,437.96
Holding Firms 98,157.99 141,839.96 145,256.10 106,019.47 107,783.53 117,476.74 92,603.00 110,077.77 124,682.97 95,230.78 92,800.99 87,756.71 127,680.38 97,898.87 103,251.91 134,980.92
Property 74,675.94 93,800.83 103,546.23 75,656.41 73,842.80 91,340.89 79,276.90 73,557.35 95,940.50 80,284.39 72,660.22 70,210.07 95,409.31 101,224.12 98,445.18 68,185.02
Services 74,500.79 94,777.36 96,593.36 64,267.94 76,891.34 109,908.80 86,867.92 76,297.12 109,823.19 68,917.92 61,026.58 93,142.16 101,331.64 77,768.03 70,051.23 63,291.93
Mining & Oil 15,737.55 17,146.45 16,669.00 15,622.36 17,704.20 15,512.58 19,889.11 18,925.90 18,827.94 9,660.99 10,797.85 11,561.69 6,453.15 8,090.87 14,772.38 7,280.99
SME (in thousand pesos) 1,927,800.34 7,488,170.35 4,868,616.50 2,748,376.11 2,061,917.61 1,931,746.40 1,621,229.93 3,338,478.72 2,760,867.64 949,655.45 1,964,591.75 883,959.02 2,347.07 710.91 4,259.33 1,323.14
ETF (in thousand pesos) 331,093.34 123,995.73 120,653.95 116,416.07 78,598.62 97,128.21 150,269.19 177,322.51 349,733.29 175,059.50 72,778.74 75,578.02 72.41 59.55 82.85 69.35

Composite Index (end of period) 7,262.30 7,796.25 7,629.73 6,840.64 7,311.72 7,843.16 8,171.43 8,558.42 7,979.83 7,193.68 7,276.82 7,466.02 7,920.93 7,999.71 7,779.07 7,815.26

Sum of details may not add up to totals due to rounding.

Source : Philippine Stock Exchange (PSE)
11 PHILIPPINES: BALANCE OF PAYMENTS
in million US dollars

Growth
2018r 2019 p Rates
(in %)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 2019 p

Current Account -709 -3,297 -2,066 -2,701 -1,688 144 333 747.611 127.7
(Totals as percent of GNI) -0.8 -3.3 -2.2 -2.5 -1.7 0.1 0.3 0.6
(Totals as percent of GDP) -0.9 -4.0 -2.6 -2.9 -2.1 0.2 0.4 0.7
Export 31,094 32,000 33,712 33,250 31,768 33,713 35,024 35,618 7.1
Import 31,802 35,297 35,778 35,951 33,456 33,569 34,692 34,871 -3.0

Goods, Services, and Primary Income -7,295 -9,901 -8,596 -9,799 -8,326 -6,519 -6,635 -6604.9 32.6
Export 24,319 25,202 26,967 25,960 24,914 26,836 27,893 28,072 8.1
Import 31,615 35,103 35,563 35,759 33,240 33,355 34,528 34,677 -3.0

Goods and Services -8,048 -10,613 -9,610 -11,093 -9,653 -7,728 -7,895 -8,145 26.6
(Totals as percent of GNI) -8.7 -10.7 -10.1 -10.1 -9.9 -7.3 -7.5 -6.7
(Totals as percent of GDP) -10.6 -12.8 -12.2 -11.9 -12.0 -8.7 -9.1 -7.9
Export 21,666 22,292 23,778 22,646 21,693 23,501 24,627 24,534 8.3
Import 29,714 32,905 33,388 33,739 31,346 31,229 32,522 32,680 -3.1

Goods -10,548 -12,785 -13,482 -14,157 -12,238 -11,140 -11,713 -11,375 19.7
(Totals as percent of GNI) -11.4 -12.9 -14.1 -12.9 -12.5 -10.5 -11.1 -9.3
(Totals as percent of GDP) -13.9 -15.4 -17.1 -15.2 -15.2 -12.5 -13.5 -11.0
Credit: Exports 12,605 13,366 13,534 12,480 12,197 13,740 13,861 13,584 8.8
Debit: Imports 23,154 26,151 27,015 26,637 24,434 24,880 25,575 24,959 -6.3

Services 2,500 2,172 3,872 3,064 2,585 3,412 3,819 3,229 5.4
Credit: Exports 9,061 8,926 10,244 10,166 9,497 9,761 10,766 10,950 7.7
Debit: Imports 6,561 6,754 6,373 7,101 6,912 6,349 6,947 7,721 8.7

Primary Income 753 712 1,014 1,294 1,327 1,209 1,260 1,540 19.0
Credit: Receipts 2,653 2,910 3,189 3,315 3,221 3,335 3,266 3,538 6.7
Debit: Payments 1,901 2,197 2,174 2,020 1,894 2,126 2,006 1,998 -1.1

Secondary Income 6,587 6,604 6,530 7,098 6,638 6,662 6,968 7352.47 3.6
Credit: Receipts 6,774 6,798 6,745 7,290 6,854 6,876 7,131 7,546 3.5
Debit: Payments 188 194 215 192 216 214 164 194 0.9

Capital Account 6 16 15 28 21 18 16 14.5409 -48.8

Credit: Receipts 19 23 27 33 27 22 20 21 -36.2
Debit: Payments 13 8 13 5 6 4 4 7 34.6

Financial Account -606 -1,769 -1,914 -5,044 -4,584 572 121 -2373.8 52.9
Net Acquisition of Financial Assets 1,040 653 3,489 2,341 1,638 3,429 3,375 35 -98.5
Net Incurrence of Liabilities 1,645 2,422 5,403 7,384 6,222 2,857 3,254 2,409 -67.4

Direct Investment -781 -2,789 -1,426 -837 -1,053 -692 -769 -1,824 -117.8
Net Acquisition of Financial Assets 1,426 878 874 937 892 1,005 795 618 -34.1
Net Incurrence of Liabilities 2,207 3,667 2,300 1,774 1,945 1,697 1,564 2,442 37.6

Portfolio Investment 1,600 1,037 -206 -983 -2,043 -1,071 890 497 150.6
Net Acquisition of Financial Assets 1,482 443 1,322 1,492 1,257 481 2,074 36 -97.6
Net Incurrence of Liabilities -117 -594 1,528 2,475 3,301 1,552 1,184 -462 -118.7

Financial Derivatives -69 16 33 -34 -40 -42 -60 -30 13.3

Net Acquisition of Financial Assets -192 -79 -155 -253 -235 -233 -235 -193 23.7
Net Incurrence of Liabilities -123 -95 -189 -219 -195 -192 -175 -163 25.4

Other Investment -1,356 -33 -316 -3,189 -1,447 2,377 60 -1,018 68.1
Net Acquisition of Financial Assets -1,677 -590 1,448 164 -277 2,177 742 -426 -359.2
Net Incurrence of Liabilities -322 -557 1,765 3,353 1,171 -200 682 592 -82.3

Net Unclassified Items -1,130 -518 -1,742 459 880 1,402 551 -859 -287.2

Overall BOP Position -1,227 -2,030 -1,879 2,830 3,797 991 778 2276.54 -19.6
(Totals as percent of GNI) -1.3 -2.0 -2.0 2.6 3.9 0.9 0.7 1.9
(Totals as percent of GDP) -1.6 -2.5 -2.4 3.0 4.7 1.1 0.9 2.2

Debit: Change in Reserve Assets -1,216 -2,041 -1,868 2,820 3,808 980 789 2,266 -19.7
Credit: Change in Reserve Liabilities 11 -11 11 -11 11 -11 10 -11 -3.8

Details may not add up to total due to rounding

p
Preliminary
. Rounds off to zero
Technical Notes:
1. Balance of Payments Statistics are based on the IMF's Balance of Payments and International Investment Position Manual, 6th edition.
2. Financial Account, including Reserve Assets, is calculated as sum of net acquisitions of financial assets less net incurrence of liabilities.
3. Balances in the current and capital accounts are derived by deducting debit entries from credit entries.
4. Balances in the financial account are derived by deducting net incurrence of liabilities from net acquisition of financial assets.
5. Negative values of Net Acquisition of Financial Assets indicate withdrawal/disposal of financial assets; negative values of Net Incurrence of Liabilities
indicate repayment of liabilities.
6. Overall BOP position is calculated as the change in the country's net international reserves (NIR), less non-economic transactions (revaluation and gold
monetization/demonetization). Alternatively, it can be derived by adding the current and capital account balances less financial account plus net unclassified items.
7. Net unclassified items is an offsetting account to the overstatement or understatement in either receipts or payments of the recorded BOP
components vis-à-vis the overall BOP position.
8. Data on deposit-taking corporations, except the central bank, consist of transactions of commercial and thrift banks and offshore banking units (OBUs).
Source: Bangko Sentral ng Pilipinas
12 INTERNATIONAL RESERVES
as of periods indicated
in million US dollars

2017 2018 2019

Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec

Gross International Reserves 80,894 81,321 80,962 81,570 80,511 77,525 74,939 79,193 83,613 84,932 85,582 87,840

Gold 7,888 7,835 8,065 8,337 8,375 7,913 7,577 8,153 8,214 8,016 8,016 8,016
SDRs 1,149 1,178 1,198 1,211 1,233 1,194 1,186 1,184 1,183 1,186 1,164 1,182
Foreign Investments 67,677 68,160 65,371 65,815 64,931 62,356 59,850 66,733 71,409 72,541 72,971 75,304
Foreign Exchange 3,735 3,695 5,880 5,783 5,542 5,573 5,842 2,649 2,283 2,665 2,870 2,747
Reserve Position in the Fund 446 453 448 424 430 489 483 474 525 524 561 590

Net International Reserves 80,881 81,318 80,948 81,567 80,497 77,521 74,924 79,189 83,598 84,927 85,567 87,836

Details may not add up to total due to rounding

Source: Bangko Sentral ng Pilipinas
 13 EXCHANGE RATES OF THE PESO
pesos per unit of foreign currency
period averages

Japanese Pound Australian Singapore Hongkong Malaysian Indonesian New Taiwan South Chinese Emirati
US Dollar Euro Thai Baht Saudi Rial
Yen Sterling Dollar Dollar Dollar Ringgit Rupiah Dollar Korean Won Yuan Dirham

2015 45.5028 0.3760 50.5291 69.5888 34.2412 33.1266 5.8697 11.7236 1.3308 0.0034 1.4340 0.0403 7.2423 12.1317 12.3892
Jan 44.6044 0.3764 51.8185 67.5228 36.1260 33.3326 5.7531 12.4698 1.3627 0.0035 1.4109 0.0410 7.1705 11.8776 12.1439
Feb 44.2214 0.3728 50.2159 67.7105 34.4404 32.6549 5.7028 12.2812 1.3575 0.0035 1.4017 0.0402 7.0756 11.7850 12.0397
Mar 44.4457 0.3695 48.2323 66.6675 34.4120 32.3068 5.7290 12.1122 1.3638 0.0034 1.4139 0.0400 7.1198 11.8512 12.1011
Apr 44.4136 0.3717 47.9446 66.4142 34.3952 32.9291 5.7303 12.2206 1.3660 0.0034 1.4340 0.0409 7.1605 11.8431 12.0921
May 44.6106 0.3697 49.8209 68.9978 35.2446 33.4497 5.7545 12.4089 1.3334 0.0034 1.4578 0.0409 7.1904 11.8964 12.1456
Jun 44.9831 0.3635 50.4958 70.0355 34.6977 33.4578 5.8023 12.0537 1.3345 0.0034 1.4560 0.0404 7.2488 11.9957 12.2476
Jul 45.2649 0.3674 49.8437 70.4481 33.6277 33.2927 5.8396 11.9158 1.3212 0.0034 1.4535 0.0396 7.2911 12.0702 12.3242
Aug 46.1420 0.3746 51.3555 71.9861 33.7471 33.0760 5.9513 11.4516 1.3053 0.0034 1.4373 0.0393 7.2960 12.3033 12.5633
Sep 46.7504 0.3891 52.5457 71.7659 33.0060 33.0510 6.0323 10.8822 1.2991 0.0033 1.4330 0.0395 7.3395 12.4684 12.7301
Oct 46.3609 0.3860 52.0504 71.0269 33.4019 33.0814 5.9821 10.8995 1.2978 0.0034 1.4287 0.0405 7.2971 12.3660 12.6235
Nov 47.0067 0.3844 50.6537 71.5190 33.5722 33.3169 6.0650 10.9313 1.3159 0.0034 1.4422 0.0409 7.3878 12.5325 12.7995
Dec 47.2303 0.3874 51.3725 70.9713 34.2240 33.5709 6.0936 11.0560 1.3129 0.0034 1.4392 0.0403 7.3302 12.5910 12.8606

2016 47.4925 0.4375 52.5568 64.3793 35.3147 34.4082 6.1185 11.4772 1.3461 0.0036 1.4741 0.0410 7.1506 12.6651 12.9315
Jan 47.5111 0.4021 51.6548 68.4806 33.3269 33.1651 6.1066 10.9323 1.3139 0.0034 1.4228 0.0395 7.2323 12.6654 12.9370
Feb 47.6361 0.4141 52.9010 68.3006 33.9669 33.9074 6.1201 11.4192 1.3378 0.0035 1.4337 0.0393 7.2749 12.7053 12.9705
Mar 46.7240 0.4135 51.9247 66.5513 34.9329 34.0062 6.0204 11.4424 1.3248 0.0036 1.4323 0.0394 7.1776 12.4619 12.7224
Apr 46.2845 0.4215 52.4798 66.2094 35.4511 34.2935 5.9679 11.8771 1.3192 0.0035 1.4320 0.0404 7.1471 12.3449 12.6025
May 46.8023 0.4300 52.9396 68.0290 34.2659 34.1821 6.0285 11.6100 1.3226 0.0035 1.4382 0.0399 7.1690 12.4809 12.7435
Jun 46.4645 0.4396 52.2377 66.2371 34.3588 34.3220 5.9861 11.3847 1.3159 0.0035 1.4375 0.0398 7.0512 12.3922 12.6515
Jul 47.0581 0.4514 52.0597 61.9364 35.3963 34.8462 6.0671 11.7313 1.3431 0.0036 1.4656 0.0412 7.0452 12.5482 12.8131
Aug 46.6809 0.4611 52.3221 61.2008 35.5976 34.6821 6.0190 11.6032 1.3442 0.0035 1.4804 0.0421 7.0226 12.4492 12.7105
Sep 47.4294 0.4657 53.1722 62.3769 35.9735 34.9092 6.1151 11.5624 1.3668 0.0036 1.5073 0.0428 7.1076 12.6480 12.9144
Oct 48.3482 0.4666 53.3734 59.8314 36.8331 34.9908 6.2329 11.5970 1.3798 0.0037 1.5323 0.0430 7.1919 12.8925 13.1645
Nov 49.1550 0.4546 53.0779 61.1309 37.0383 34.8767 6.3375 11.3852 1.3921 0.0037 1.5486 0.0423 7.1866 13.1085 13.3840
Dec 49.8156 0.4300 52.5389 62.2673 36.6355 34.7173 6.4203 11.1822 1.3932 0.0037 1.5589 0.0422 7.2017 13.2843 13.5645

2017 50.4037 0.4495 56.9491 64.9706 38.6418 36.5254 6.4686 11.7326 1.4866 0.0038 1.6574 0.0446 7.4593 13.4412 13.7244
Jan 49.7363 0.4328 52.8348 61.3425 37.0610 34.8096 6.4125 11.1581 1.4021 0.0037 1.5693 0.0421 7.2117 13.2644 13.5425
Feb 49.9614 0.4422 53.2346 62.4591 38.2766 35.3290 6.4388 11.2515 1.4269 0.0037 1.6190 0.0438 7.2688 13.3243 13.6044
Mar 50.2752 0.4454 53.7365 62.0548 38.3291 35.7930 6.4745 11.3337 1.4412 0.0038 1.6411 0.0444 7.2903 13.4083 13.6901
Apr 49.8626 0.4527 53.4359 62.9429 37.6260 35.6614 6.4150 11.3077 1.4486 0.0037 1.6408 0.0440 7.2370 13.2969 13.5768
May 49.8603 0.4441 55.0972 64.4409 37.0608 35.7474 6.4036 11.5529 1.4464 0.0037 1.6553 0.0443 7.2366 13.2961 13.5763
Jun 49.8501 0.4496 56.0089 63.8775 37.6132 36.0349 6.3929 11.6598 1.4662 0.0037 1.6481 0.0441 7.3202 13.2932 13.5737
Jul 50.6382 0.4504 58.3076 65.7851 39.4279 36.9210 6.4850 11.8081 1.4999 0.0038 1.6654 0.0447 7.4743 13.5038 13.7876
Aug 50.8747 0.4630 60.1073 66.0288 40.2627 37.3927 6.5053 11.8792 1.5297 0.0038 1.6824 0.0450 7.6207 13.5665 13.8522
Sep 51.0094 0.4605 60.7373 67.9427 40.6448 37.7881 6.5280 12.1101 1.5394 0.0038 1.6937 0.0451 7.7670 13.6023 13.8886
Oct 51.3433 0.4546 60.4006 67.7973 40.0215 37.7631 6.5774 12.1457 1.5445 0.0038 1.6962 0.0453 7.7439 13.6911 13.9800
Nov 51.0384 0.4523 59.8798 67.4082 38.9300 37.6411 6.5395 12.2261 1.5497 0.0038 1.6965 0.0463 7.7068 13.6096 13.8972
Dec 50.3947 0.4464 59.6090 67.5675 38.4483 37.4232 6.4511 12.3581 1.5442 0.0037 1.6815 0.0464 7.6346 13.4382 13.7234

2018 52.6614 0.4769 62.1943 70.3179 39.3810 39.0471 6.7197 13.0642 1.6302 0.0037 1.7481 0.0479 7.9713 14.0414 14.3387 #
Jan 50.5087 0.4554 61.6042 69.7775 40.1687 38.2266 6.4597 12.7761 1.5826 0.0038 1.7169 0.0474 7.8520 13.4684 13.7533
Feb 51.7856 0.4793 63.9431 72.3817 40.7824 39.2487 6.6208 13.2477 1.6455 0.0038 1.7712 0.0480 8.1960 13.8093 14.1008
Mar 52.0676 0.4911 64.2312 72.6846 40.4661 39.5816 6.6418 13.3246 1.6651 0.0038 1.7828 0.0486 8.2337 13.8843 14.1775
Apr 52.0986 0.4847 64.0093 73.3727 40.0608 39.6189 6.6385 13.4156 1.6652 0.0038 1.7759 0.0488 8.2785 13.8928 14.1857
May 52.1948 0.4755 61.6634 70.2903 39.2764 38.9705 6.6502 13.1832 1.6337 0.0037 1.7483 0.0485 8.1916 13.9179 14.2113
Jun 53.0476 0.4823 61.9226 70.4818 39.7350 39.3527 6.7604 13.2767 1.6349 0.0038 1.7641 0.0485 8.2111 14.1454 14.4437
Jul 53.4329 0.4797 62.4512 70.4068 39.5527 39.2070 6.8090 13.2045 1.6061 0.0037 1.7501 0.0477 7.9649 14.2479 14.5484
Aug 53.2735 0.4796 61.5363 68.6848 39.0671 38.9335 6.7871 13.0300 1.6119 0.0037 1.7358 0.0476 7.7797 14.2051 14.5050
Sep 53.9419 0.4821 62.9028 70.4221 38.8373 39.3457 6.8817 13.0397 1.6541 0.0036 1.7557 0.0482 7.8719 14.3829 14.6873
Oct 54.0086 0.4787 62.0820 70.3199 38.3872 39.1714 6.8920 12.9991 1.6494 0.0036 1.7495 0.0477 7.8040 14.3990 14.7057
Nov 52.8083 0.4659 60.0061 68.1667 38.2395 38.4100 6.7454 12.6230 1.6022 0.0036 1.7143 0.0469 7.6111 14.0774 14.3782
Dec 52.7691 0.4680 59.9800 66.8260 37.9983 38.4985 6.7503 12.6503 1.6123 0.0036 1.7128 0.0470 7.6609 14.0668 14.3680

2019 51.7958 0.4752 57.9894 66.1447 36.0008 37.9748 6.6105 12.5106 1.6686 0.0037 1.6767 0.0445 7.5021 13.8112 14.1026
Jan 52.4679 0.4815 59.9146 67.6504 37.4912 38.6803 6.6918 12.7458 1.6468 0.0037 1.7036 0.0468 7.7200 13.9891 14.2856
Feb 52.1901 0.4731 59.2381 67.8673 37.2839 38.5605 6.6504 12.8028 1.6686 0.0037 1.6952 0.0466 7.7551 13.9170 14.2101
Mar 52.4134 0.4716 59.2729 69.1201 37.1236 38.7175 6.6776 12.8583 1.6532 0.0037 1.6992 0.0464 7.8076 13.9770 14.2709
Apr 52.1122 0.4669 58.5161 67.9253 37.0335 38.4343 6.6432 12.6895 1.6375 0.0037 1.6897 0.0457 7.7573 13.8964 14.1889
May 52.2620 0.4750 58.4439 67.1325 36.2680 38.1145 6.6592 12.5403 1.6429 0.0036 1.6739 0.0442 7.6250 13.9369 14.2296
Jun 51.8029 0.4794 58.4650 65.6357 35.9451 38.0164 6.6190 12.4474 1.6622 0.0036 1.6577 0.0442 7.5068 13.8137 14.1046
Jul 51.1429 0.4726 57.4162 63.8713 35.7269 37.5996 6.5470 12.4053 1.6610 0.0036 1.6468 0.0435 7.4359 13.6374 13.9247
Aug 52.0547 0.4892 57.9103 63.2622 35.2430 37.6084 6.6386 12.4467 1.6927 0.0037 1.6597 0.0431 7.3846 13.8791 14.1730
Sep 52.1052 0.4853 57.3875 64.3459 35.4566 37.7580 6.6499 12.4545 1.7051 0.0037 1.6760 0.0436 7.3183 13.8918 14.1869
Oct 51.5042 0.4763 56.8950 65.0427 34.9636 37.5625 6.5677 12.3028 1.6960 0.0036 1.6779 0.0435 7.2591 13.7321 14.0233
Nov 50.7268 0.4660 56.0539 65.3614 34.6386 37.2640 6.4806 12.2109 1.6777 0.0036 1.6651 0.0435 7.2259 13.5272 13.8115
Dec 50.7671 0.4652 56.3589 66.5217 34.8357 37.3811 6.5008 12.2224 1.6790 0.0036 1.6755 0.0432 7.2291 13.5367 13.8223

Source: Bangko Sentral ng Pilipinas

 13a EXCHANGE RATES OF THE PESO
units of foreign currency per peso
period averages

Japanese Pound Australian Singapore Hongkong Malaysian Thailand Indonesian New Taiwan South Chinese Emirati
US Dollar Euro Saudi Rial
Yen Sterling Dollar Dollar Dollar Ringgit Baht Rupiah Dollar Korean Won Yuan Dirham

2015 0.0220 2.6606 0.0198 0.0144 0.0292 0.0302 0.1705 0.0855 0.7517 293.6672 0.6974 24.8330 0.1381 0.0825 0.0808
Jan 0.0224 2.6570 0.0193 0.0148 0.0277 0.0300 0.1738 0.0802 0.7338 282.8619 0.7088 24.3937 0.1395 0.0842 0.0823
Feb 0.0226 2.6821 0.0199 0.0148 0.0290 0.0306 0.1754 0.0814 0.7366 287.0091 0.7134 24.9017 0.1413 0.0849 0.0831
Mar 0.0225 2.7067 0.0207 0.0150 0.0291 0.0310 0.1745 0.0826 0.7332 292.9427 0.7072 25.0114 0.1405 0.0844 0.0826
Apr 0.0225 2.6904 0.0209 0.0151 0.0291 0.0304 0.1745 0.0818 0.7320 292.3077 0.6974 24.4310 0.1397 0.0844 0.0827
May 0.0224 2.7048 0.0201 0.0145 0.0284 0.0299 0.1738 0.0806 0.7499 294.1176 0.6860 24.4738 0.1391 0.0841 0.0823
Jun 0.0222 2.7511 0.0198 0.0143 0.0288 0.0299 0.1723 0.0830 0.7493 294.1176 0.6868 24.7350 0.1380 0.0834 0.0816
Jul 0.0221 2.7217 0.0201 0.0142 0.0297 0.0300 0.1712 0.0839 0.7569 294.1176 0.6880 25.2583 0.1372 0.0828 0.0811
Aug 0.0217 2.6698 0.0195 0.0139 0.0296 0.0302 0.1680 0.0873 0.7661 297.3396 0.6958 25.4726 0.1371 0.0813 0.0796
Sep 0.0214 2.5698 0.0190 0.0139 0.0303 0.0303 0.1658 0.0919 0.7698 307.0175 0.6979 25.3287 0.1362 0.0802 0.0786
Oct 0.0216 2.5906 0.0192 0.0141 0.0299 0.0302 0.1672 0.0917 0.7705 298.5075 0.7000 24.6997 0.1370 0.0809 0.0792
Nov 0.0213 2.6014 0.0197 0.0140 0.0298 0.0300 0.1649 0.0915 0.7600 290.9091 0.6934 24.4574 0.1354 0.0798 0.0781
Dec 0.0212 2.5814 0.0195 0.0141 0.0292 0.0298 0.1641 0.0904 0.7617 292.7581 0.6948 24.8334 0.1364 0.0794 0.0778

2016 0.0211 2.2911 0.0190 0.0156 0.0283 0.0291 0.1635 0.0872 0.7432 280.3539 0.6791 24.4247 0.1399 0.0790 0.0774
Jan 0.0210 2.4867 0.0194 0.0146 0.0300 0.0302 0.1638 0.0915 0.7611 293.6858 0.7029 25.2972 0.1383 0.0790 0.0773
Feb 0.0210 2.4147 0.0189 0.0146 0.0294 0.0295 0.1634 0.0876 0.7475 283.5821 0.6975 25.4760 0.1375 0.0787 0.0771
Mar 0.0214 2.4183 0.0193 0.0150 0.0286 0.0294 0.1661 0.0874 0.7548 281.5013 0.6982 25.4022 0.1393 0.0802 0.0786
Apr 0.0216 2.3723 0.0191 0.0151 0.0282 0.0292 0.1676 0.0842 0.7580 284.5528 0.6983 24.7554 0.1399 0.0810 0.0793
May 0.0214 2.3255 0.0189 0.0147 0.0292 0.0293 0.1659 0.0861 0.7561 284.9389 0.6953 25.0597 0.1395 0.0801 0.0785
Jun 0.0215 2.2750 0.0191 0.0151 0.0291 0.0291 0.1671 0.0878 0.7599 286.8318 0.6956 25.0970 0.1418 0.0807 0.0790
Jul 0.0213 2.2154 0.0192 0.0161 0.0283 0.0287 0.1648 0.0852 0.7446 277.7778 0.6823 24.2748 0.1419 0.0797 0.0780
Aug 0.0214 2.1688 0.0191 0.0163 0.0281 0.0288 0.1661 0.0862 0.7439 282.0513 0.6755 23.7709 0.1424 0.0803 0.0787
Sep 0.0211 2.1475 0.0188 0.0160 0.0278 0.0286 0.1635 0.0865 0.7317 278.5146 0.6634 23.3697 0.1407 0.0791 0.0774
Oct 0.0207 2.1433 0.0187 0.0167 0.0271 0.0286 0.1604 0.0862 0.7247 270.2703 0.6526 23.2477 0.1390 0.0776 0.0760
Nov 0.0203 2.1998 0.0188 0.0164 0.0270 0.0287 0.1578 0.0878 0.7183 270.2703 0.6457 23.6490 0.1391 0.0763 0.0747
Dec 0.0201 2.3255 0.0190 0.0161 0.0273 0.0288 0.1558 0.0894 0.7178 270.2703 0.6415 23.6967 0.1389 0.0753 0.0737

2017 0.0198 2.2254 0.0176 0.0154 0.0259 0.0274 0.1546 0.0853 0.6735 265.9306 0.6036 22.4224 0.1342 0.0744 0.0729
Jan 0.0201 2.3107 0.0189 0.0163 0.0270 0.0287 0.1559 0.0896 0.7132 270.2703 0.6372 23.7449 0.1387 0.0754 0.0738
Feb 0.0200 2.2612 0.0188 0.0160 0.0261 0.0283 0.1553 0.0889 0.7008 268.0965 0.6177 22.8389 0.1376 0.0751 0.0735
Mar 0.0199 2.2454 0.0186 0.0161 0.0261 0.0279 0.1545 0.0882 0.6939 263.1579 0.6093 22.5313 0.1372 0.0746 0.0730
Apr 0.0201 2.2092 0.0187 0.0159 0.0266 0.0280 0.1559 0.0884 0.6903 267.7165 0.6094 22.7121 0.1382 0.0752 0.0737
May 0.0201 2.2517 0.0181 0.0155 0.0270 0.0280 0.1562 0.0866 0.6914 269.9387 0.6041 22.5664 0.1382 0.0752 0.0737
Jun 0.0201 2.2242 0.0179 0.0157 0.0266 0.0278 0.1564 0.0858 0.6820 267.7376 0.6068 22.6578 0.1366 0.0752 0.0737
Jul 0.0197 2.2205 0.0172 0.0152 0.0254 0.0271 0.1542 0.0847 0.6667 263.1579 0.6004 22.3833 0.1338 0.0741 0.0725
Aug 0.0197 2.1600 0.0166 0.0151 0.0248 0.0267 0.1537 0.0842 0.6537 262.1723 0.5944 22.2152 0.1312 0.0737 0.0722
Sep 0.0196 2.1714 0.0165 0.0147 0.0246 0.0265 0.1532 0.0826 0.6496 261.7080 0.5904 22.1963 0.1287 0.0735 0.0720
Oct 0.0195 2.1996 0.0166 0.0147 0.0250 0.0265 0.1520 0.0823 0.6475 263.1579 0.5896 22.0946 0.1291 0.0730 0.0715
Nov 0.0196 2.2109 0.0167 0.0148 0.0257 0.0266 0.1529 0.0818 0.6453 264.5503 0.5894 21.5983 0.1298 0.0735 0.0720
Dec 0.0198 2.2403 0.0168 0.0148 0.0260 0.0267 0.1550 0.0809 0.6476 269.5035 0.5947 21.5297 0.1310 0.0744 0.0729

2018 0.0190 2.0978 0.0161 0.0142 0.0254 0.0256 0.1489 0.0766 0.6136 269.8675 0.5721 20.8772 0.1256 0.0712 0.0698
Jan 0.0198 2.1956 0.0162 0.0143 0.0249 0.0262 0.1548 0.0783 0.6319 265.4867 0.5825 21.0992 0.1274 0.0742 0.0727
Feb 0.0193 2.0866 0.0156 0.0138 0.0245 0.0255 0.1510 0.0755 0.6077 262.4309 0.5646 20.8219 0.1220 0.0724 0.0709
Mar 0.0192 2.0361 0.0156 0.0138 0.0247 0.0253 0.1506 0.0750 0.6006 263.1579 0.5609 20.5846 0.1215 0.0720 0.0705
Apr 0.0192 2.0633 0.0156 0.0136 0.0250 0.0252 0.1506 0.0745 0.6005 263.5046 0.5631 20.4855 0.1208 0.0720 0.0705
May 0.0192 2.1033 0.0162 0.0142 0.0255 0.0257 0.1504 0.0759 0.6121 268.8860 0.5720 20.6186 0.1221 0.0719 0.0704
Jun 0.0189 2.0732 0.0161 0.0142 0.0252 0.0254 0.1479 0.0753 0.6117 263.5229 0.5669 20.6186 0.1218 0.0707 0.0692
Jul 0.0187 2.0845 0.0160 0.0142 0.0253 0.0255 0.1469 0.0757 0.6226 270.2703 0.5714 20.9864 0.1256 0.0702 0.0687
Aug 0.0188 2.0851 0.0163 0.0146 0.0256 0.0257 0.1473 0.0767 0.6204 272.7273 0.5761 21.0294 0.1285 0.0704 0.0689
Sep 0.0185 2.0744 0.0159 0.0142 0.0257 0.0254 0.1453 0.0767 0.6046 277.3925 0.5696 20.7490 0.1270 0.0695 0.0681
Oct 0.0185 2.0889 0.0161 0.0142 0.0261 0.0255 0.1451 0.0769 0.6063 279.4654 0.5716 20.9434 0.1281 0.0694 0.0680
Nov 0.0189 2.1463 0.0167 0.0147 0.0262 0.0260 0.1482 0.0792 0.6242 277.3723 0.5833 21.3244 0.1314 0.0710 0.0695
Dec 0.0190 2.1367 0.0167 0.0150 0.0263 0.0260 0.1481 0.0790 0.6202 274.1935 0.5838 21.2659 0.1305 0.0711 0.0696

2019 0.0193 2.1050 0.0173 0.0151 0.0278 0.0263 0.1513 0.0800 0.5994 273.1755 0.5965 22.4877 0.1334 0.0724 0.0709
Jan 0.0191 2.0770 0.0167 0.0148 0.0267 0.0259 0.1494 0.0785 0.6072 270.9360 0.5870 21.3530 0.1295 0.0715 0.0700
Feb 0.0192 2.1139 0.0169 0.0147 0.0268 0.0259 0.1504 0.0781 0.5993 267.8571 0.5899 21.4772 0.1289 0.0719 0.0704
Mar 0.0191 2.1204 0.0169 0.0145 0.0269 0.0258 0.1498 0.0778 0.6049 269.9229 0.5885 21.5672 0.1281 0.0715 0.0701
Apr 0.0192 2.1417 0.0171 0.0147 0.0270 0.0260 0.1505 0.0788 0.6107 270.6767 0.5918 21.8925 0.1289 0.0720 0.0705
May 0.0191 2.1052 0.0171 0.0149 0.0276 0.0262 0.1502 0.0797 0.6087 276.3158 0.5974 22.6244 0.1311 0.0718 0.0703
Jun 0.0193 2.0861 0.0171 0.0152 0.0278 0.0263 0.1511 0.0803 0.6016 275.6508 0.6032 22.6358 0.1332 0.0724 0.0709
Jul 0.0196 2.1159 0.0174 0.0157 0.0280 0.0266 0.1527 0.0806 0.6021 275.1196 0.6073 22.9793 0.1345 0.0733 0.0718
Aug 0.0192 2.0441 0.0173 0.0158 0.0284 0.0266 0.1506 0.0803 0.5908 272.5968 0.6025 23.2245 0.1354 0.0721 0.0706
Sep 0.0192 2.0607 0.0174 0.0155 0.0282 0.0265 0.1504 0.0803 0.5865 270.6186 0.5967 22.9308 0.1366 0.0720 0.0705
Oct 0.0194 2.0997 0.0176 0.0154 0.0286 0.0266 0.1523 0.0813 0.5896 274.1359 0.5960 22.9862 0.1378 0.0728 0.0713
Nov 0.0197 2.1462 0.0178 0.0153 0.0289 0.0268 0.1543 0.0819 0.5961 277.7778 0.6006 23.0123 0.1384 0.0739 0.0724
Dec 0.0197 2.1494 0.0177 0.0150 0.0287 0.0268 0.1538 0.0818 0.5956 276.4977 0.5968 23.1690 0.1383 0.0739 0.0723

Source: Bangko Sentral ng Pilipinas

 13b EFFECTIVE EXCHANGE RATE INDICES OF THE PESO
1980 = 100
period averages

NOMINAL R E A L

Trading Partners Index Trading Partners Index

Overall 1 Advanced 2 Developing 3 Overall Advanced Developing

2016 15.00 12.15 24.03 86.98 82.15 114.06

Q1 15.30 12.53 24.31 89.58 86.55 115.63
Q2 15.20 12.32 24.33 88.54 83.49 116.23
Q3 14.89 11.94 24.01 85.59 79.86 113.16
Q4 14.65 11.84 23.50 84.30 78.97 111.16

2017 14.13 11.51 22.54 83.05 79.07 108.35

Q1 14.52 11.86 23.13 86.09 83.07 111.40
Q2 14.36 11.69 22.93 84.85 80.53 110.92
Q3 13.86 11.24 22.19 80.67 76.25 105.72
Q4 13.81 11.30 21.97 80.70 76.61 105.48

r
2018 13.29 10.83 21.21 80.80 76.96 105.39
Q1 13.28 10.87 21.15 80.42 77.85 103.96
Q2 13.15 10.80 20.90 80.08 76.64 104.17
Q3 13.28 10.74 21.27 80.60 76.02 105.70
Q4 13.48 10.93 21.57 82.16 77.37 107.86

r r r r
2019 13.76 11.16 22.02 84.49 80.31 110.33
Q1 13.51 11.02 21.54 84.01 81.09 108.78
Q2 13.70 11.12 21.91 84.59 80.25 110.58
r
Q3 13.83 11.13 22.22 84.16 79.27 110.47
r r r
Q4 14.02 11.36 22.45 85.31 80.68 111.71
1
Australia, Euro Area, U.S., Japan, Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.
2
U.S., Japan, Euro Area, and Australia
3
Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia, and U.A.E.
r
Revised
Source: Bangko Sentral ng Pilipinas
 1/
14 TOTAL EXTERNAL DEBT
as of periods indicated
in million US dollars
30 September 2019 31 December 2019
Short-term Medium & Short-term Medium &
Total Total
Trade Non-Trade Long- Term Trade Non-Trade Long- Term

a a
Grand Total 2,673 13,238 66,763 82,674 3,417 13,792 66,410 83,618

b b
Public Sector 529 41,973 42,502 633 42,162 42,794

Banks 529 3,466 3,995 633 3,174 3,807

c c
Bangko Sentral ng Pilipinas 1,287 1,287 1,306 1,306
Others 529 2,179 2,708 633 1,868 2,501

Non-Banks 38,507 38,507 38,987 38,987

NG and Others 38,507 38,507 38,987 38,987

Private Sector 2,673 12,709 24,790 40,172 3,417 13,159 24,248 40,824

Banks 12,303 7,861 20,164 12,557 7,580 20,136

d d
Foreign Bank Branches 5,174 152 5,327 5,078 151 5,228
Domestic Banks 7,129 7,709 14,838 7,479 7,429 14,908
e e
Non-Banks 2,673 406 16,928 20,008 3,417 602 16,669 20,687

1
Covers debt owed to non-residents, with classification by borrower based on primary obligor per covering loan/rescheduling agreement/document.

Exclusions 30 September 2019 31 December 2019

a
Residents' holdings of Philippine debt papers issued offshore; 17,889 17,382
Non-residents' holdings of peso-denominated debt securities 5,190 5,165

Inclusions

b
Cumulative foreign exchange revaluation on US$-denominated
multi-currency loans from Asian Development Bank and World Bank -16 -16
c
Accumulated SDR allocations from the IMF 1,143 1,154
d
"Due to Head Office/Branches Abroad" (DTHOBA) accounts of branches
and offshore banking units of foreign banks operating in the Philippines 3,997 3,802
e
Loans without BSP approval/registration which cannot be serviced
using foreign exchange from the banking system; 5,887 6,395
Obligations under capital lease arrangements 914 869

Source: Bangko Sentral ng Pilipinas

15 SELECTED FOREIGN DEBT SERVICE INDICATORS
for periods indicated
in million US dollars

2018 r 2019 p
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Debt Service Burden (DSB) 1 2638 1843 1997 1637 1726 3071 1344 2302
Principal 1903 1237 1196 843 839 2321 521 1713
Interest 735 606 801 794 887 751 823 589

Export Shipments (XS) 2 12605 13366 13534 12480 12197 13740 13861 13584

Exports of Goods and Receipts 29395 30298 32003 31408 30076 31957 33227 33762
from Services and Income (XGSI) 2, 3

2
Current Account Receipts (CAR) 31094 32000 33712 33250 31768 33713 35024 35618

External Debt 73196 72199 76415 78960 80431 81259 82674 83618

Gross Domestic Product (GDP) 76094 82764 78908 92952 80322 88881 86882 103586

Gross National Income (GNI) 92663 99167 95568 109471 97719 106320 105189 121948

Ratios (%) :

DSB to XS 20.93 13.79 14.76 13.12 14.15 22.35 9.70 16.95

DSB to XGSI 8.97 6.08 6.24 5.21 5.74 9.61 4.05 6.82

DSB to CAR 8.48 5.76 5.92 4.92 5.43 9.11 3.84 6.46

DSB to GNI 2.85 1.86 2.09 1.50 1.77 2.89 1.28 1.89

External Debt to GDP 4 23.00 22.43 23.48 23.86 24.01 23.83 23.68 23.27

External Debt to GNI 4 19.13 18.67 19.54 19.89 20.01 19.87 19.74 19.41

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.
4
GNI and GDP figures were annualized by taking the sum over the past 4 quarters of the GNI and GDP, repsectively.
p
Preliminary
r
Revised to reflect latest data adjustments
Source: BSP
 16 SELECTED FOREIGN INTEREST RATES
period averages; in percent

2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

US Prime Rate 3.5000 3.5000 3.5000 3.5119 3.7935 4.0455 4.2500 4.2976 4.5265 4.7976 5.0083 5.2817 5.5000 5.5000 5.3016 4.8297

US Discount Rate 1.0000 1.0000 1.0000 1.0492 1.2935 1.5455 1.7500 1.7976 2.0265 2.2917 2.5042 2.7778 3.0000 3.0000 2.8016 1.9888

US Federal Funds Rate 0.3695 0.3831 0.3994 0.4491 0.6974 0.9486 1.1551 1.2015 1.4356 1.7289 1.9140 2.2048 2.4002 2.3828 2.1713 1.6332

LIBOR (90 days) 0.6248 0.6433 0.7853 0.9208 1.0684 1.2023 1.3150 1.4656 1.9274 2.3384 2.3373 2.6325 2.6855 2.5062 2.1947 1.9299
SIBOR 1 (90 days) 1.2369 1.0062 0.8807 0.9059 0.9529 0.9961 1.1101 1.1681 1.2800 1.5115 1.6331 1.7326 1.9218 1.9769 1.9188 1.8011

1
SIBOR data refers to SIBOR rates in Singapore dollar
Sources: Bloomberg, Asian Wall Street Journal, Reuters
 17 BALANCE SHEET OF THE BANGKO SENTRAL NG PILIPINAS
as of periods indicated; in billion pesos

2017 2018 2019

Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep p Dec p

Assets 4,612.7 4,664.3 4,678.2 4,666.9 4,781.7 4,726.6 4,646.3 4,851.3 5,145.2 5,064.5 5,096.0 5,082.9
4,6 .7 4,664.3 4,678. 4,666.9 4,78 .7 4,7 6.6 4,646.3 4,85 .3 5, 45. 5,064.5 5,096.0 5,08 .9
International Reserves 4,044.1 4,083.7 4,096.0 4,056.6 4,187.1 4,116.8 4,031.0 4,140.2 4,375.2 4,326.7 4,405.8 4,434.1
Domestic Securities 224.5 224.4 225.1 224.6 224.9 224.6 224.2 223.3 224.2 224.9 226.1 226.1
Loans and Advances 151.2 155.8 156.1 187.4 167.0 170.9 180.2 277.5 329.7 301.5 248.8 200.2
Bank Premises and Other Fixed Assets 18.6 21.8 22.8 23.1 23.0 22.8 22.9 23.7 23.9 24.2 24.3 24.4
Derivative Instruments in a Gain Position 0.2 0.2 0.1 0.1 0.1 0.1 . 0.1 0.0 0.1 . .
Other Assets 174.2 178.5 178.1 175.1 179.6 191.5 188.0 186.5 192.2 187.1 190.9 198.1

Liabilities 4,551.6 4,598.5 4,609.6 4,586.2 4,690.3 4,616.1 4,523.8 4,734.9 5,018.3 4,920.2 4,959.9 4,938.6
Currency Issue 1,046.1 1,071.1 1,090.7 1,267.3 1,250.9 1,232.5 1,247.1 1,490.2 1,382.6 1,383.0 1,386.6 1,679.1
Deposits 2,771.4 2,712.9 2,670.0 2,531.4 2,466.8 2,418.0 2,298.2 2,304.1 2,709.5 2,659.1 2,642.0 2,411.2
Reserve Deposits of Other Depository Corporations (ODCs) 1 1,686.7 1,742.1 1,787.0 1,867.2 1,792.9 1,746.2 1,767.8 1,843.8 1,841.0 1,725.9 1,700.3 1,550.5
Reserve Deposits of Other Financial Corporations (OFCs) 2 2.0 2.0 2.1 2.0 2.0 1.3 1.3 1.3 0.7 0.7 0.4 0.4
Secured Settlement Accounts - - - - - 0.3 1.6 2.7 2.7 4.3 3.5 8.1
Overnight Deposit Facility 3 131.8 64.6 12.9 85.5 24.6 20.1 6.1 58.6 59.9 26.8 82.3 266.2
3
Term Deposit Facility 576.6 376.9 347.9 101.0 182.5 152.2 109.4 69.2 70.1 42.9 174.7 283.2
Treasurer of the Philippines 4 227.6 379.8 346.9 326.8 318.8 338.6 257.5 170.2 575.1 709.7 533.9 159.9
Other Foreign Currency Deposits 0.1 1.1 1.1 1.0 0.8 0.8 1.1 1.1 1.3 1.1 1.1 1.1
Foreign Financial Institutions 111.1 114.4 114.3 115.1 115.1 122.9 122.8 122.8 120.0 115.6 113.2 107.7
Other Deposits 5 35.5 32.0 57.8 32.8 30.2 35.6 30.6 34.4 38.7 32.2 32.7 34.1
Foreign Loans Payable . . . . . . . . . . . 0.0
Net Bonds Payable 25.7 25.2 26.0 25.0 26.7 26.7 27.6 26.3 26.9 25.6 26.5 25.4
Derivative Instruments in a Loss Position 0.1 . 0.1 0.0 . . 0.0 0.0 0.1 0.0 . 0.0
Derivatives Liability 0.1 0.1 0.1 0.1 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Allocation of SDRs 57.1 58.9 60.3 59.9 63.7 63.0 63.4 61.4 61.3 59.8 59.3 58.9
Revaluation of Foreign Currency Accounts 6 389.9 409.5 449.1 381.5 562.5 588.3 575.4 535.0 569.7 471.0 511.7 425.9
Reverse Repurchase Facility 3 249.7 305.0 296.7 305.1 305.1 272.0 299.2 301.0 250.7 305.1 302.1 305.1
Other Liabilities 11.5 15.8 16.8 16.0 14.3 15.5 12.9 16.9 17.5 16.5 31.7 33.0

Net Worth 61.1 65.7 68.5 80.7 91.4 110.5 122.5 116.4 126.8 144.3 136.0 144.2

Capital 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Surplus/Reserves 11.1 15.7 18.5 30.7 41.4 60.5 72.5 66.4 76.8 94.3 86.0 94.2

Note: Details may not add up to total due to rounding.

1
ODCs are deposit generating institutions other than the BSP such as universal and commercial banks (UB/KBs), specialized government banks (SGBs), thrift banks (TBs), rural banks (RBs) and non-banks with quasi-banking functions (NBQBs).
2
OFCs are trust units of banks.
3
Starting 3 June 2016, the Reverse Repurchase Agreement and Special Deposit Account have been replaced by the Reverse Repurchase Facility and Overnight Deposit Facility, respectively, and a Term Deposit Facility was introduced in line with
the implementation of the Interest Rate Corridor (IRC) system. Includes accrued interest payables.
4
Includes foreign currency deposits
5
Mostly GOCC deposits
6
Previously named Revaluation of International Reserves
p
Based on the preliminary and unaudited BSP Financial Statements (FS) prepared by the Financial Accounting Department (FAD) of the BSP
- Not applicable
. Rounds off to zero

Source: Bangko Sentral ng Pilipinas

 18 INCOME POSITION OF THE BANGKO SENTRAL NG PILIPINAS
for periods indicated; in billion pesos

2017 2018 2019

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 p Q4 p FY p

Revenues 12.557 20.091 15.504 27.678 75.830 14.918 22.160 12.556 18.361 67.995 26.410 38.906 30.005 26.404 121.725

Interest Income 13.140 14.346 14.861 15.930 58.277 16.878 19.006 19.914 22.353 78.151 25.675 27.546 25.070 22.134 100.425
International Reserves 10.801 11.753 12.138 13.097 47.789 14.182 15.865 16.387 17.721 64.155 20.195 20.761 19.925 17.822 78.703
Domestic Securities 1.016 1.297 1.402 1.419 5.134 1.461 1.686 2.023 2.346 7.516 3.051 3.232 2.712 2.401 11.396
Loans and Advances 0.407 0.405 0.405 0.465 1.682 0.480 0.524 0.543 1.126 2.673 1.509 2.370 1.510 0.831 6.220
Others 0.916 0.891 0.916 0.949 3.672 0.755 0.931 0.961 1.160 3.807 0.920 1.183 0.923 1.080 4.106
Miscellaneous Income 1 -0.299 5.685 0.493 11.435 17.314 -2.013 3.104 -7.532 -3.879 -10.320 0.711 11.221 4.848 4.215 20.995
Net Income from Branches -0.284 0.060 0.150 0.313 0.239 0.053 0.050 0.174 -0.113 0.164 0.024 0.139 0.087 0.055 0.305

Expenses 15.588 19.811 15.529 15.728 66.656 12.143 16.981 15.641 21.139 65.904 18.950 22.483 20.851 24.338 86.622

Interest Expenses 10.010 9.254 8.746 7.495 35.505 6.431 6.592 7.881 9.023 29.927 10.330 11.162 12.224 10.980 44.696
Legal Reserve Deposits of Banks 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
National Government Deposits 1.221 1.968 1.693 1.886 6.768 1.954 1.879 2.385 3.194 9.412 4.452 6.668 5.822 3.041 19.983
Reverse Repurchase Facility 2 2.060 1.940 2.116 1.959 8.075 2.266 2.179 2.564 3.104 10.113 3.176 2.801 3.241 3.040 12.258
Overnight Deposit Facility 2 0.998 0.636 0.260 0.221 2.115 0.592 0.231 0.172 0.346 1.341 0.601 0.241 0.605 1.101 2.548
Term Deposit Facility 2 5.131 4.073 3.969 2.709 15.882 0.908 1.539 1.876 1.495 5.818 1.153 0.545 1.698 2.976 6.372
Loans Payable and Other
Foreign Currency Deposits 0.587 0.602 0.635 0.640 2.464 0.696 0.724 0.832 0.847 3.099 0.886 0.850 0.837 0.782 3.355
Other Liabilities 0.013 0.035 0.073 0.080 0.201 0.015 0.040 0.052 0.037 0.144 0.062 0.057 0.021 0.040 0.180
Cost of Minting/Printing of Currency 1.523 1.747 2.114 2.677 8.061 1.893 2.329 2.818 4.220 11.260 3.544 3.082 2.611 3.236 12.473
Taxes and Licenses 0.424 3.007 0.289 0.344 4.064 0.397 2.476 0.446 2.215 5.534 0.774 3.868 0.753 3.671 9.066
Others 3.631 5.803 4.380 5.212 19.026 3.422 5.584 4.496 5.681 19.183 4.302 4.371 5.263 6.451 20.387

Net Income/(Loss) Before Net Gain/(Loss) on FX Rate Fluctuations and

Income Tax Expense/(Benefit) -3.031 0.280 -0.025 11.950 9.174 2.775 5.179 -3.085 -2.778 2.091 7.460 16.423 9.154 2.066 35.103

3
Net Gain/(Loss) on Foreign Exchnage Rate Fluctuations 4.695 4.615 3.480 2.713 15.503 7.040 14.471 27.292 4.305 53.108 5.670 3.330 5.365 0.360 14.725

Income Tax Expense/(Benefit) 0.000 0.013 0.033 1.094 1.140 0.000 0.019 8.425 6.910 15.354 0.000 3.000 5.753 -6.024 2.729

Net Income/(Loss) After Tax 1.664 4.882 3.422 13.569 23.537 9.815 19.631 15.782 -5.383 39.845 13.130 16.753 8.766 8.450 47.099

Note: Details may not add up to total due to rounding.

1
This includes trading gains/losses, fees, penalties and other operating income, among others.
2
Starting 3 June 2016, the Reverse Repurchase Agreement and Special Deposit Account have been replaced by the Reverse Repurchase Facility and Overnight Deposit Facility, respectively, and a Term Deposit Facility was introduced in line with
the implementation of the Interest Rate Corridor (IRC) system.
3
This represents realized gains or losses from fluctuations in FX rates arising from foreign currency-denominated transactions of the BSP, including: 1) rollover/re-investments of matured FX investments with foreign financial institutions and
FX-denominated government securities, 2) servicing of matured FX obligations of the BSP, and 3) maturity of derivatives instruments.
p
Based on the preliminary and unaudited BSP Financial Statements (FS) prepared by the Financial Accounting Department (FAD) of the BSP
Source: Bangko Sentral ng Pilipinas