Economics 2009; Deficit & InflationBy Randell Tiongson on January 7th, 2010
Philippines to incur Php 300 Billion in deficit for 2009
· According to the Department of Finance, the Philippines will likely report a budget deficit for 2009 of below PHP300 billion ($6.56 billion).
· One of the reasons for the deficit is that the Bureau of Customs likely collected PHP50 billion less than it targeted last year.
· A smaller shortfall than the PHP57 billion initially estimated.
· The budget deficit data are scheduled to be released later this month.
Inflation jumps to 8-month high in Dec
· For December, The country’s inflation rate went to an 8-month high of 4.4%.
· This is due to higher food and oil prices.
· Bringing the average inflation for 2009 to 3.2%; still with in the Central Bank’s estimate of 2.5% to 4.5%.
· The increase in inflation rate is said to unlikely push the central bank to hike rates soon.
· The Bangko Sentral has set an average inflation target of 3.5% and 5.5% for 2010 and 3% to 5% for 2011.