Report on

Economic and Financial Developments

First Quarter 2017

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
First Quarter 2017
Table of Contents

Executive Summary 1

Introduction 4
Real Sector
Aggregate Supply and Demand 5
Labor and Employment 7

Fiscal Sector
National Government Cash Operations 8

Monetary Sector
Prices 9
Domestic Liquidity 10
Monetary Policy Developments 11
Domestic Interest Rates 12

Financial Sector
Banking System 13
Banking Policies 16
Capital Market Reforms 16
Stock Market 16
Bond Market 18
Credit Risk Assessment 19
Payments and Settlements System 21

External Sector
Balance of Payments 21
International Reserves 25
Exchange Rate 25
External Debt 27
Foreign Interest Rates 28
Global Economic Developments 30

Financial Condition of the BSP

Balance Sheet 32
Income Statement 33

Conclusion, Challenges and Future Policy Directions 33

Annexes

Statistical Tables

ii
Executive Summary
The Philippine economy continues to grow,
although at a slower pace in Q1 2017. The economy
continued to expand as real gross domestic product
(GDP) grew by 6.4 percent in Q1 2017. While this
growth was lower than the year-ago and quarter-ago
growth rates of 6.9 percent and 6.6 percent,
respectively, it is still considered a strong
performance given the high base effect coming from
the significant rise in spending ahead of the 2016
national election. Growth remained broad-based. On
the supply side, the agriculture sector rebounded
alongside continued expansion in the services and
industry sectors. On the demand side, household
spending and capital formation remained the key
drivers of growth although both grew at a slower
pace compared to previous quarters. This was
compensated in part by the strong performance of
exports which posted gains amid improving external
demand. Overall, the strong and broad-based
Q1 2017 GDP growth print serves as a good
foundation to achieve the growth target for the year
of 6.5 percent to 7.5 percent.
Labor market conditions are softening. Preliminary
estimates of the latest Labor Force Survey conducted
in January 2017 suggested an easing in the country’s
labor and employment conditions. In January 2017,
the number of employed persons reached
39.3 million, 1.8 percent lower than the 40.1 million
in the previous year. The number of jobless persons
grew by 11.9 percent to 2.8 million from 2.5 million
in the previous year, bringing the unemployment rate
to 6.6 percent from 5.7 percent a year ago.
Meanwhile, the underemployment rate dropped to
16.3 percent from 19.7 percent.
National Government (NG) yields a lower deficit.
The cash operations of the NG yielded a deficit of
P83.0 billion in Q1 2017. This was equivalent to
2.3 percent of GDP, lower than the year-ago ratio of
First Quarter 2017 Report on Economic and Financial Developments | 1
3.4 percent. At the current deficit level, total revenue
growth has overtaken total expenditure growth.
Total revenues for Q1 2017 reached 14.9 percent of
GDP, higher than the 14.6 percent ratio from a year-
ago, aided by improved tax collections. Meanwhile,
total government disbursements stood at
17.2 percent of GDP, lower than the year-ago ratio of
18.1 percent. Disbursements continued to be driven
by allotment to local government units as well as
infrastructure and other capital outlays.
Inflation increases. Headline inflation climbed to
3.2 percent in Q1 2017 from the quarter- and year-
ago rates of 2.5 percent and 1.1 percent, respectively.
Nonetheless, inflation remained within the NG’s
announced target range of 3.0 percent ± 1.0 ppt for
2017. The higher headline inflation during the review
quarter was due to an increase in both food and non-
food inflation. Similarly, core inflation, which excludes
certain volatile food and energy items to measure
generalized price pressures, increased to 2.7 percent
in Q1 2017, higher than 2.5 percent in the previous
quarter.
Domestic liquidity remains ample. Money supply
grew by 11.6 percent y-o-y as of end-March 2017 to
P9.5 trillion, slower than the 12.8-percent expansion
as of end-December 2016. The increase in M3 was
driven largely by the 16.4-percent y-o-y growth in
domestic claims or credits to the economy during the
same period. Credits extended to the private sector
grew by 18.3 percent, supported by the sustained
increase in bank lending.
The BSP maintains monetary policy settings in
Q1 2017. The BSP decided to keep the key policy
interest rate at 3.0 percent for the overnight reverse
repurchase or RRP facility. The corresponding
interest rates on the overnight lending and deposit
facilities were also kept steady. The reserve
requirement ratios were likewise left unchanged.
Domestic interest rates are generally higher.
Primary market interest rates in Q1 2017 rose across
all tenors due to heightened uncertainty in the
direction of US fiscal and monetary policies as well as
political developments in the Eurozone.
Similarly, the secondary market yields of actively
traded government securities (GS) generally
increased as of end-March 2017 relative to yields as
of end-December 2016. Meanwhile, other market
interest rates showed mixed trends. The interbank
call loans and time deposit rates were higher in
Q1 2017 while savings deposit and lending rates
were lower.
Philippine banks remain sound and resilient. The
total resources of the banking system grew by
12.6 percent to P14.1 trillion as of end-March 2017
from P12.5 trillion in the same period in 2016.
Bank lending by universal and commercial banks
(U/KBs), net of banks' RRP placements with the BSP,
grew by 20.2 percent as of end March 2017 from the
same period in 2016, of which 88.6 percent went to
production activities. The Philippine banking
system’s gross non-performing loan ratio (NPL)
improved to 2.0 percent relative to the previous
year’s ratio of 2.2 percent, as its non-performing
loan coverage reached 115.2 percent as of
end-March 2017. Similarly, capital adequacy ratios as
of end-September 2016 stood at 15.4 percent and
16.2 percent on solo and consolidated bases,
respectively, and remained well above the
10.0-percent regulatory threshold of the BSP and
8.0-percent minimum by international standards.
Local stocks trend upward. In the first three months
of 2017, the Philippine Stock Exchange index (PSEi)
rose by 1.9 percent, quarter-on-quarter (q-o-q), to
average 7,258.3 index points. Expectations of the
continued robust growth of the Philippine economy
and optimism over the promised tax cuts and
additional spending of newly-inaugurated US
President Donald Trump to lift the US economy
boosted investor sentiments and raised the PSEi
above the 7,300 level during the period-in- review.
However, the uptick was partly tempered by issues
affecting the local mining industry and heightened
2 | First Quarter 2017 Report on Economic and Financial Developments
expectations of continued US Fed rate hikes since
December.
Debt spreads narrow. As of end-March, the
Philippines’ 5-year sovereign credit default swaps
(CDS) stood at 82 basis points (bps), lower than the
111 bps in end-December 2016. Debt spreads
narrowed in January and February due to the upbeat
growth momentum that propelled investors to
sustain their positive sentiment. In March, debt
spreads continued to narrow amidst positive global
developments such as the announcement of the
European Central Bank (ECB) to keep the massive
monetary stimulus in the region. The Philippines’
CDS traded lower than Indonesia’s 128 bps and
Malaysia’s 108 bps. Likewise, the EMBIG Philippines
ended the quarter narrower at 98 bps when
compared to the previous quarter’s closing of 110
bps.
The BOP position registers higher deficit. The
country’s balance of payments position yielded a
deficit of US$994 million in Q1 2017, higher than the
US$210 million deficit recorded in Q1 2016. The
negative overall BOP position was a result of the
deficit in the current account and net outflows (or
net lending by residents to the rest of the world) in
the financial account. The current account reversed
to a deficit of US$318 million in Q1 2017 from a
US$730 million surplus in Q1 2016, as the trade-in-
goods deficit continued to widen. Meanwhile, the
financial account registered lower net outflows of
US$579 million mainly on account of the turnaround
from net outflows to net inflows in other investment
account, along with increased net inflows in direct
investments and financial derivatives. This positive
outcome partly offset the higher net outflows in the
portfolio investment account.
Gross international reserves continue to be ample.
The country’s gross international reserves (GIR)
settled at US$80.9 billion as of end-March 2017,
slightly higher than the US$80.7 billion recorded in
end-December 2016. The GIR remains adequate as it
can cover 8.9 months worth of imports of goods and
payments of services and income. It is also equivalent
to 5.2 times the country’s short-term external debt
based on original maturity and 3.9 times based on
residual maturity. The increase in reserves was due
mainly to the inflows arising from the BSP’s
investment income and revaluation adjustments on residential fixed investments, and personal
its gold holdings. These were partially offset by the consumption expenditure. Eurozone economic
foreign exchange operations of the BSP and activity advanced by 1.7 percent in Q1 2017,
payments made by the NG for its maturing foreign unchanged from the previous quarter while Japan
exchange obligations. registered a 1.6 percent expansion. Meanwhile, most
emerging economies in Asia recorded stronger
External debt remains manageable. The country’s output growth. China grew by 6.9 percent while
outstanding Philippine external debt stood at South Korea and Singapore’s economy both
US$73.8 billion as of end-March 2017, reflecting a registered a 2.7 percent growth for Q1 2017. In the
decline of US$958 million (or 1.3 percent) from the ASEAN-5 region, growth showed mixed trends.
US$74.8 billion end-December 2016 level.
Meanwhile, on a year-on-year (y-o-y) basis, the debt
stock likewise dropped by US$3.8 billion from the
US$77.6 billion level in March 2016 due to net
principal repayments by both the public and private
sectors (US$2.1 billion); previous periods’ audit
adjustments (negative US$1.5 billion) due to late
reporting; and negative FX revaluation adjustments
(US$383 million). The full downward impact of these
factors on the debt stock was slightly offset by a
modest increase in non-residents’ investments in
Philippine debt papers issued offshore (US$126
million) during the period. The maturity profile of the
country’s external debt was comprised mostly of
medium- and long-term obligations implying that
foreign exchange (FX) requirements for debt servicing
remain manageable.

The peso depreciates further in Q1 2017. On a q-o-q

basis, the peso depreciated by 1.79 percent to
average ₱50.00/US$1 in Q1 2017 from the previous
quarter’s average of ₱49.11/US$1. Likewise, on a
y-o-y basis, the peso depreciated by 5.45 percent
relative to the ₱47.28/US$1 average in Q1 2016. The
weakening of the peso during the review quarter was
due mainly to the US Fed rate hike in March 2017,
expectation for further rate increases in 2017, and
strong US dollar requirement by local corporates.

Global growth gains momentum. Global economic

activity gained momentum in Q1 2017. Although
economic performance has remained mixed in some
emerging economies, solid growth in most advanced
economies (AEs) has been attributable to the
continued recovery of manufacturing output and
consumer confidence. Economic activity picked up in
the US economy, resulting in an annual growth of
1.9 percent in Q1 2017 due to positive contributions
from non-residential fixed investment, exports,

First Quarter 2017 Report on Economic and Financial Developments | 3

Introduction
The Philippine economy continued to expand in
Q1 2017, registering a growth of 6.4 percent. On the
supply side, services and industry sectors continued
to drive growth with the agriculture sector making a
positive contribution. On the demand side,
household spending and capital formation remained
the key drivers of growth with exports recording
double-digit growth amid improving external
demand.
The sustained strength of the economy was
accompanied by an increase in inflation to
3.2 percent during the review quarter. The average
headline inflation for the first quarter of 2017 is
within the NG’s announced target range of
3.0 percent ± 1.0 ppt for 2017.
Monetary policy settings were kept steady in
Q1 2017. The BSP’s decision to maintain key policy
interest rates was based on its assessment that the
inflation environment remained manageable.
Moreover, the continued expansion in domestic
liquidity, which grew by 11.6 percent as of
end-March 2017, point to monetary conditions being
supportive of economic activity.
Going forward, the Philippine economy faces
uncertainty and challenges coming mainly from the
external environment. However, the country’s solid
macroeconomic fundamentals as well as the
adequate space for policy levers to pursue
appropriate and timely response to possible shocks
are expected to provide impetus for a sustained
economic growth.

The Philippine banking system remained solid and

resilient in Q1 2017. Bank lending continued to
expand, increasing by 20.2 percent during the review
quarter. This was accompanied by improvements in
bank capitalization and loan exposure coverage.

In terms of external payments position, the country’s

external buffers continued to grow, with reserves
amounting to US$80.9 billion as of end-March 2017.
Remittances and receipts from business process
outsourcing continued to support the country’s
external position. At the same time, external debt
remains manageable, with a debt profile composed
largely of medium- to long-term (MLT) maturities.

4 | First Quarter 2017 Report on Economic and Financial Developments

Real Sector
Aggregate Supply and Demand
The Philippine economy continued to expand as real
Gross Domestic Product (GDP) grew by 6.4 percent in
Q1 2017. While this growth was lower than the year-
ago and quarter-ago growth rates of 6.9 percent and
6.6 percent, respectively, it is still considered a strong
performance given the high base effect amid
significant rise in spending due to the 2016 national
election.
Real GDP continues to grow,
although at a slower pace
Growth remained broad-based. On the supply side,
the agriculture sector rebounded alongside
continued expansion in the services and industry
sectors (Table 1). On the demand side, household
spending and capital formation remained the key
drivers of growth although both grew at a slower
pace compared to previous quarters (Table 1a).
These were compensated in part by the strong
performance of exports which posted gains amid
improving external demand. Overall, the strong and
broad-based Q1 2017 GDP growth print serves as a
good foundation to achieve the growth target for the
year of 6.5 percent to 7.5 percent.
Chart 1. Gross Domestic Product and Gross National
Income
Annual growth rate in percent; at constant 2000 prices
10.0
Real GDP Real GNI
8.0
6.0
4.0
2.0
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
Source: Philippine Statistics Authority (PSA)
First Quarter 2017 Report on Economic and Financial Developments | 5
GDP by industry
Sectoral breakdown of Q1 2017 real GDP growth by
industrial origin showed that services sector
continued to fuel growth as it expanded by
6.8 percent and accounted for more than half of the
Q1 2017 GDP growth at 3.8 percentage points (ppts).
This was helped by the strong showing of the
following sub-sectors: trade and repair of motor
vehicles, motorcycles, personal and household goods
which expanded by 7.1 percent and contributed
1.1 ppts to the growth of the services sector during
the quarter; real estate, renting and business
activities which expanded by 6.9 percent and
contributed 0.8 ppt, and financial intermediation,
which expanded by 7.4 percent and contributed
0.6 ppt during the review quarter. The services sector
continued to benefit from the favorable inflation
environment, sound and stable financial system, as
well as sustained receipts from overseas Filipinos
(OFs) and business process outsourcing (BPO)
activities.
Chart 2. Gross Domestic Product, by Industry
Annual growth rate in percent; at constant 2000 prices
Agriculture, Hunting, Forestry and Fishing
Industry
Services
10.0
5.0
0.0
-5.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016 2017
Source: PSA
The industry sector also provided strong support to
the Q1 2017 growth as it expanded by 6.1 percent
and contributed 2.1 ppts of the aggregate growth
during the quarter. However, the Q1 2017 growth of
the industry sector, which was the lowest since
Q2 2015, was moderated by the following:
deceleration in construction activities, which grew by
2017
8.2 percent from an average of 13.9 percent in the
past four quarters of 2016; slower performance of
the utilities sub-sector which grew by 1.4 percent
from an average of 9.8 percent in the preceding four
quarters; and a contraction in the mining and
quarrying sub-sector by 20.0 percent, a reversal from
the 11.4 percent growth in Q1 2016 and a
10.8 percent growth in Q4 2016. Meanwhile, the
manufacturing sub-sector continued to be a pillar of
strength as it expanded by 7.5 percent and
contributed 1.8 ppts of the 2.1 ppts contribution of
the industrial sector to the Q1 2017 GDP growth.
The agriculture, hunting, forestry, and fishing (AHFF)
sector recovered from its year-ago and quarter-ago
contraction of 4.3 percent and 1.3 percent,
respectively, as it posted a 4.9 percent growth in
Q1 2017. This enabled the sector to contribute
0.4 ppt to the 6.4 percent GDP growth in Q1 2017.
Notably, this is the highest contribution made by the
AHFF sector in the past eight consecutive quarters or
since Q1 2015. The solid rebound of the sector may
be attributed partly to relatively favorable weather
conditions during the first quarter of the year and a
low base effect from the previous year’s decline.
Palay and corn harvests, two of the major crops in
the country, have picked up to post double-digit
growth rates of 12.4 percent and 23.4 percent,
following contractions in Q1, Q2, and Q4 2016. The
fisheries subsector likewise benefited from good
weather conditions and the end of the prolonged dry
spell that hit the country during the same period last
year. Accordingly, the productivity of the fisheries
sub-sector also improved in Q1 2017 as it posted a
0.7 percent growth during the review quarter,
following five consecutive quarters of contraction.
GDP by expenditure
On the demand side, apart from the usual growth
drivers – household spending and capital formation –
the Q1 2017 GDP output was buttressed by the
marked improvement of the exports sector.
Household consumption posted a 5.7 percent growth
in Q1 2017, a deceleration from its year-ago and
quarter-ago growth of 7.1 percent and 6.2 percent,
respectively. This was on the back of the relatively
slower purchases of major consumption items such
as transport which posted a 5.0 percent growth in
Q1 2017, lower than the 12.0 percent average
growth rate of the sub-sector in the preceding three
quarters and 6.9 percent growth in Q1 2016;
recreation and culture (-2.0 percent from 8.8 percent
in Q1 2016); housing and utilities (6.6 percent from
6 | First Quarter 2017 Report on Economic and Financial Developments
10.5 percent); and furnishings and household
maintenance (1.8 percent from 6.9 percent). Despite
the slowdown, household consumption continued to
account for 4.0 ppts of the Q1 2017 real GDP growth.
Capital formation similarly moderated as it registered
a 7.9 percent growth during the review quarter, the
lowest since Q1 2015. This was attributed to the
slump in public construction which grew by
2.0 percent from 38.5 percent in Q1 2016 and
19.2 percent in Q4 2016 on the back of transition-
related adjustments and reorientation of programs in
11
line with the priorities of the new administration.
Nonetheless, capital formation contributed 2.4 ppts
to the Q1 2017 GDP outturn. Meanwhile, the exports
sector made a remarkable comeback after recording
a 20.3 percent growth in Q1 2017, about twice its
year-ago and quarter-ago growth performance of
10.2 percent and 13.4 percent. This could be
attributed to improving external demand and
continued government support for the export sector.
Chart 3. Gross Domestic Product, by Expenditure
Annual growth rate in percent; at constant 2000 prices
Household Final Consumption Expenditure
Government Final Consumption Expenditure
Capital Formation
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
-5.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016 2017
Source: PSA
Overall, the performance of the domestic economy
continues to paint a picture of strength and resilience
in the first quarter of the year. Growth somewhat
moderated as expected given the high base effect
following an election year. Nonetheless, the
underlying growth momentum remains intact with
broad sources of growth. The rebound in both the
agriculture and exports sectors should augur well for
the economy as these sectors have weighed down
11
Source: “Statement of Socioeconomic Planning Secretary on the
2017 Q1 Performance of the Philippine Economy,” National
Economic and Development Authority (NEDA) Press Release, 18
May 2017, accessible online at http://www.neda.gov.ph/
2017/05/18/statement-of-socioeconomic-planning-secretary-
on-the-2017-q1-performance-of-the-philippine-economy/.
the real sector in previous quarters. Moreover, the
implementation of the planned massive
infrastructure program of the government is
expected to further provide a boost to the domestic
economy and generate optimism in the achievement
of the government’s growth targets.
Labor and Employment
The preliminary results of the latest Labor Force
12
Survey (LFS) conducted in January 2017 suggested
an easing in the country’s labor and employment
conditions. In January 2017, the number of
employed persons reached 39.3 million, 1.8 percent
lower than the 40.1 million in the previous year
(Table 2).
Labor market conditions register
a slowdown
Among the three employment sectors, only the
industry sector recorded an increase in the number
of employed persons, driven mainly by the additional
171,000 workers in the construction sub-sector.
Meanwhile, the agriculture sector incurred
employment losses of 786,000 workers due to the
onslaught of typhoons Nina and Auring last
13
December 2016 and January 2017, respectively.
The number of employed persons in the services
sector also decreased due to the employment losses
in sub-sectors such as education (159,000 workers),
accommodation and food services activities (111,000
workers) and the arts, entertainment and recreation
sub-sector (102,000 workers). Of the total employed
persons, 57.1 percent were in the services sector,
25.5 percent in the agriculture sector, and
17.4 percent in the industry sector.
Employment in most classes of workers declined in
January 2017. The number of wage and salary
workers decreased by 2.4 percent or 596,000
workers compared to the year-ago level with the bulk
12
January 2017 LFS released on 14 March 2017 includes Leyte.
13
Press Release of the National Economic Development Authority,
retrieved from http://www.neda.gov.ph/2017/03/14/agri-sector-
loss-leads-to-employment-decline-in-january-2017/
First Quarter 2017 Report on Economic and Financial Developments | 7
of employment losses in those who worked for
private households. On the other hand, self-
employed workers increased by 3.6 percent or
369,000 workers. In terms of employment, those
who worked on a part-time basis rose by 4.9 percent
or 622,500 workers while those who worked full-time
dropped by 5.4 percent or 1.5 million workers.
Meanwhile in January 2017, the number of jobless
persons grew by 11.9 percent to 2.8 million from
2.5 million in the previous year, bringing the
unemployment rate to 6.6 percent from 5.7 percent
a year ago. Most of the unemployed persons were
male (69.6 percent or 1.9 million), 15-24 years of age
(44.1 percent or 1.2 million), and high school
graduates (or 31.1 percent 858,000).
14
During the reference period, the underemployment
rate dropped to 16.3 percent from 19.7 percent.
Chart 4. Unemployment and Underemployment
Rates
In percent
Unemployment Rate (LHS)
Underemployment Rate (RHS)
8.0 24
7.0
22
20
6.0
18
5.0 16
4.0 14
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan
2014 2015 2016 2017
Source: Labor Force Survey (LFS) - PSA
15
The labor force participation rate in January 2017
was at 60.7 percent, lower than previous year’s
63.6 percent, due to the faster growth of the
population 15 years old and above compared to the
growth in the number of persons in the labor force.
14
Underemployment covers all employed persons who desire to
have additional hours of work or additional job, or have a new job
with longer working hours. During the reference period, the
underemployed persons are those who work for less than 40
hours.
15
Labor Force Participation Rate is computed by dividing the total
number of persons in the labor force by the total population 15
years old and above.
 16
Based on the PSA’s Labor Turnover Survey (LTS) for
17
Q4 2016, the labor turnover rate in the National
Capital Region (NCR) rose to 3.4 percent, which is
significantly higher than the 0.6 percent recorded a
quarter ago. The accession rate of 11.1 percent
exceeded the total separation rate of 7.8 percent,
i.e., additional 111 workers per 1,000 were newly
hired to the enterprise workforce due to expansion
or replacement; while 78 workers per 1,000 were
separated from their jobs.
14.9 percent in Q1 2017, slightly higher than the
previous year’s 14.6 percent. The y-o-y increase in
revenues was due mainly to improved collections by
the Bureau of Internal Revenue (BIR) and the Bureau
of Customs (BOC). Tax collections, which constituted
90.1 percent of total revenues, amounted to
P479.6 billion, 12.8 percent higher than the year-ago
level. Non-tax revenues, which consisted mainly of
collections made by the Bureau of the Treasury (BTr),
decreased by 1.5 percent y-o-y.

Meanwhile, total expenditures in Q1 2017 reached

All the major sectors posted employment gains in
Q4 2016. Due to business expansion, high accession
rates were recorded in the wholesale and retail
trade, repair of motor vehicles and motorcycles
(12.6 percent) and administrative and support service
activities (12.5 percent) sub-sectors. High accession
rates due to replacement of separated workers were
recorded in the accommodation and food service
activities sub-sector (9.5 percent). Meanwhile, the
highest separation rate was recorded in the mining
and quarrying sub-sector (14.8 percent).
P615.4 billion, 4.0 percent higher than the
P591.5 billion expenditures in Q1 2016. The y-o-y
increase in expenditures can be attributed mainly to
increased allotment to local government units (LGUs)
18
as well as infrastructure and capital outlays during
the quarter. Total government expenditures stood at
17.2 percent of GDP, lower than the year-ago ratio of
18.1 percent.
Chart 5. Cash Operations of the National
Government
In billion pesos

Fiscal Sector
Revenues Expenditures Surplus/Deficit (-)
800
700
600
500
400
300
National Government Cash 200
100
Operations 0
-100
-200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
The cash operations of the NG yielded a deficit of 2014 2015 2016 2017
P83.0 billion in Q1 2017. This was equivalent to Source: Bureau of the Treasury
2.3 percent of GDP, lower than the year-ago ratio of
3.4 percent (Table 3). Netting out the interest payments from total
expenditures, the resulting primary balance
NG cash operations yield a amounted to P14.9 billion, representing 0.4 percent
of GDP in the review quarter.
lower deficit
The NG made net availments in Q1 2017 amounting
Total revenues for Q1 2017 reached P532.4 billion, to P87.4 billion, an increase from the P86.3 billion
higher than the year-ago level of P479.0 billion. Total made in Q1 2016. The net availments came mainly
revenues as a share of GDP was recorded at from domestic borrowings.

16
The LTS aims to capture the quarterly “job creations” and “job
displacements” in business enterprises in Metro Manila. The Q4
2016 LTS was released in April 2017.
17
Labor turnover rate is the percent difference between accession 18
Personnel services and subsidy also recorded significant
rate and separation rate. increases during the review period.

8 | First Quarter 2017 Report on Economic and Financial Developments

Fiscal discipline has generated sufficient fiscal space Table A. Alternative Core Inflation Measures
which can be allocated to accelerate infrastructure Quarterly averages of year-on-year change
development. The need to address infrastructure Quarter
Official
Headline
Official Core Trimmed Weighted
Net of
Volatile
1 2
Inflation Mean Median
gaps is a top priority for the country to increase Inflation Items
3

2014 4.1 3.0 3.5 2.9 2.6

productive capacity and competitiveness. The Q1 4.1 3.0 3.3 2.6 2.8

government plans to pursue massive buildup in Q2

Q3
4.4
4.7
3.0
3.3
3.6
3.8
3.2
3.1
2.6
2.8
infrastructure and increase infrastructure spending, Q4
2015
3.6
1.4
2.7
2.1
3.3
1.9
2.7
1.9
2.4
1.8
amounting to 5.3 percent of GDP in 2017. Q1 2.5 2.5 3.0 3.0 2.3
Q2 1.7 2.2 2.1 2.2 1.9
Q3 0.6 1.6 1.3 1.2 1.5
Q4 1.0 1.8 1.3 1.3 1.5
2016 1.8 1.9 1.6 1.8 1.6
Q1 1.1 1.6 1.2 1.3 1.3

Monetary Sector
Q2 1.5 1.7 1.5 1.7 1.3
Q3 2.0 2.0 1.8 2.1 1.7
Q4 2.5 2.5 1.9 1.9 2.0
2017 2.6 1.9 2.2 1.9 2.2
Q1 3.2 2.7 2.2 1.9 2.2
1
The tri mmed mea n repres ents the a vera ge i nfl a ti on ra te of the (wei ghted) mi ddl e 70 percent
i n a l owes t-to-hi ghes t ra nki ng of yea r-on-yea r i nfl a ti on ra tes for a l l CPI components .
2
The wei ghted medi a n repres ents the mi ddl e i nfl a ti on ra te (corres pondi ng to a cumul a ti ve CPI

Prices wei ght of 50 percent) i n a l owes t-to-hi ghes t ra nki ng of yea r-on-yea r i nfl a ti on ra tes .
3
The net of vol a ti l e i tems method excl udes the fol l owi ng i tems : brea d a nd cerea l s , mea t, fi s h,
frui t, vegeta bl es , ga s , s ol i d fuel s , fuel s a nd l ubri ca nts for pers ona l tra ns port equi pment, a nd
pa s s enger tra ns port by roa d, whi ch repres ents 39.0 percent of a l l i tems . The s eri es ha s been
recomputed us i ng a new methodol ogy tha t i s a l i gned wi th PSA's method of computi ng the
offi ci a l core i nfl a ti on, whi ch re-wei ghts rema i ni ng i tems to compri s e 100 percent of the core

Headline Inflation. Headline inflation climbed to

3.2 percent in Q1 2017 compared to quarter- and
year-ago rates of 2.5 percent and 1.1 percent
(Table 4), respectively. Nonetheless, inflation remains
within the NG’s announced target range of
3.0 percent ± 1.0 ppt for 2017.
Inflation rate rises given higher
prices of food, oil, and
electricity rates
ba s ket a fter excl udi ng non-core i tems . The previ ous methodol ogy reta i ned the wei ghts of
vol a ti l e i tems i n the CPI ba s ket whi l e keepi ng thei r i ndi ces cons ta nt a t 100.0 from month to month.
Source: PSA, BSP es ti ma tes
Food inflation rose to 4.0 percent in Q1 2017 on
higher prices of major commodity items like meat,
fish, oils and fats, as well as milk, cheese, and eggs.
Similarly, rice prices also went up partly due to lower
supply coming from major rice-producing regions
with the end of the main harvest season. Inflation
rates of fruit, vegetables, and sugar remained
elevated during the quarter, albeit posting lower
inflation readings compared to the previous quarter.

Core Inflation. Likewise, core inflation, which
excludes certain volatile food and energy items to
measure generalized price pressures, increased to
2.7 percent in Q1 2017, higher than 2.5 percent in
the previous quarter and 1.6 percent a year ago.
Meanwhile, two out of the three alternative
measures of core inflation estimated by the BSP
increased in Q1 2017 compared to the rates
registered in the previous quarter. In particular, the
trimmed mean and net of volatile items measures
were both higher at 2.2 percent. Meanwhile, the
weighted median measure remained the same at
1.9 percent relative to the previous quarter’s rate.
Non-food inflation also accelerated to 2.4 percent
from 1.5 percent in Q4 2016 and 0.5 percent in
Q1 2016. This could be attributed to higher
international crude oil prices, which were reflected in
higher inflation outturns for oil-related CPI items
namely, transport services, gas, and other fuels.
Inflation for transport services rose during the
quarter due to approved fare hikes in February 2017,
influenced by upward adjustments in domestic prices
of petroleum products during the quarter. At the
same time, electricity rates went up as a result of the
maintenance shutdown of the Malampaya facility.

First Quarter 2017 Report on Economic and Financial Developments | 9

Chart 6. Food and Non-Food Inflation in the restaurants and other miscellaneous goods and
Philippines (2006=100) services.
In percent

Headline Inflation Chart 7. Inflation Rate (2006=100)

Food Inflation In percent
9.0 Non-Food Inflation
Philippines
8.0
7.0 National Capital Region
6.0 Areas Outside the National Capital Region
5.0
6.0
4.0
3.0 5.0
2.0
4.0
1.0
0.0 3.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2.0
2014 2015 2016 2017
1.0
Source: PSA
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

In terms of geographical location, inflation in the 2014 2015 2016 2017

National Capital Region (NCR) rose to 3.5 percent in Source: PSA

Q1 2017 from 2.3 percent in the previous quarter

(Table 4a). Food inflation increased to 6.7 percent in
Q1 2017 (from 5.7 percent) as most food
commodities posted higher inflation rates during the
quarter namely, rice, fish, meat, and vegetables.
Likewise, non-food inflation continued to increase in
Q1 2017 to 2.0 percent from 0.7 percent in the
previous quarter. Following the upward trend in
global oil prices for the first quarter, prices of
domestic petroleum products were adjusted higher,
which led to faster y-o-y inflation for transport and
fuel items. At the same time, electricity rates also
went up during the quarter on higher generation
charge.
Inflation in the areas outside NCR (AONCR) rose to
3.1 percent in Q1 2017 from 2.5 percent in the
previous quarter (Table 4b). Food inflation increased
to 3.6 percent from 3.1 percent in the previous
quarter on higher prices of key food items namely,
rice, meat, fish, as well as oils and fats.
Domestic Liquidity19
Money supply or M3 grew by 11.6 percent y-o-y as
of end-March 2017 to P9.5 trillion, slower than the
12.8-percent expansion as of end-December 2016
(Table 5). The increase in M3 was driven largely by
the 16.4-percent y-o-y growth in domestic claims or
credits to the economy during the same period.
Credits extended to the private sector grew by
18.3 percent, supported by the sustained increase in
bank lending. Meanwhile, net claims on the central
government rose by 15.0 percent as a result of
increased borrowings and the continued NG
withdrawal from its deposits with the BSP as part of
NG cash operations.
Domestic liquidity remains
ample

Non-food inflation in AONCR accelerated further in

Q1 2017 to 2.6 percent (from 1.9 percent) due mostly
to higher inflation of transport, electricity, gas, and
other fuels. Meanwhile, inflation rates of the
following non-food items were lower relative to the
previous quarter: furnishings and household
19
equipment; health, on higher prices of medical The indicators used for money supply are: M1 (or narrow
money), comprised of currency in circulation and demand
products and outpatient services, as well as deposits; M2, composed of M1 plus savings and time deposits
(quasi-money); M3, consisting of M2 plus deposit substitutes; and
M4, consisting of M3 plus foreign currency deposits.

10 | First Quarter 2017 Report on Economic and Financial Developments

Table B. Domestic Liquidity (M3) horizon. While headline inflation has risen due to the
recent increases in food and oil prices as well as base
Levels (in billion pesos) Growth Rates (in %)

Quarter- Year-
effects, latest forecasts continue to show average
Particulars Mar 2017 Dec 2016 Mar 2016 on-
Quarter
on-
Year inflation firmly settling within the target range of
Domestic Liquidity
9,535.5 9,506.0 8,542.0 0.3 11.6 3.0 percent ± 1 ppt for 2017-2018. The overall
(M3),

of which:
balance of risks surrounding the inflation outlook
also remains tilted to the upside, given possible
Net Foreign Assets 4,377.8 4,309.0 4,100.3 1.6 6.8
adjustments in electricity rates and transportation
Domestic Claims 9,397.8 9,199.9 8,075.9 2.2 16.4
fares as well as the transitory impact of the
of which:
government’s proposed fiscal reform program.
Net Claims on
Central Government
1,663.6 1,603.0 1,447.1 3.8 15.0
Meanwhile, lingering uncertainty over the prospects
Claims on the
Private Sector
6,602.3 6,486.4 5,578.9 1.8 18.3 of the global economy, due in part to possible shifts
Source: BSP
in macroeconomic policies in AEs, continues to pose
a key downside risk to the inflation outlook.
Net foreign assets (NFA) in peso terms rose by Nevertheless, inflation expectations remain anchored
6.8 percent y-o-y in March 2017. The BSP’s NFA to the inflation target over the policy horizon.
position continued to expand during the month on
the back of robust foreign exchange inflows coming At the same time, the BSP stressed that while the
mainly from OFs’ remittances and BPO receipts. global economic environment has become more
Similarly, the NFA of banks expanded due mainly to challenging, domestic economic activity is expected
the growth in banks’ foreign assets resulting from to stay firm, supported by buoyant household
higher loans, deposits with other banks, and consumption and private investment, increased fiscal
investments in marketable debt securities. spending, and ample credit and liquidity.

Meanwhile, the growth of M4, a broader concept of With these considerations, the Monetary Board (MB)
domestic liquidity comprising broad money liabilities believes that prevailing monetary policy settings
and foreign currency deposits of residents, grew by remain appropriate. Going forward, the BSP will
12.4 percent y-o-y in March 2017 compared to the continue to monitor and assess evolving economic
13.4-percent growth in December 2016. developments and will calibrate its policy tools as
appropriate to ensure sustained price and financial
stability.
Monetary Policy Developments
Chart 8. BSP Policy Rates
In percent
During the monetary policy meetings on 9 February Overnight RRP Rate
and 23 March 2017, the BSP decided to maintain the Overnight RP Rate/Overnight Lending Facility
SDA Rate/Overnight Deposit Facility
key policy interest rate at 3.0 percent for the
7
overnight reverse repurchase or RRP facility. The 6
corresponding interest rates on the overnight lending 5

and deposit facilities were also kept steady. The 4

3
reserve requirement ratios were likewise left 2
unchanged. 1
0
Nov

Nov

Nov
Jan 2014

Jan 2015

Jan 2016
Oct

Oct

Oct

Jan 2017
Aug

Aug

Aug
Apr

Apr

Apr
Jun
Jul

Jun
Jul

Jun
Jul
Sep

Sep

Sep
Feb
Mar
May

Feb
Mar
May

Feb
Mar
May

Mar
Dec

Dec

Dec
Feb

Monetary policy settings are

unchanged * On 3 June 2016, Special Deposit Accounts (SDAs) were replaced by the
Overnight Deposit Facility (ODF) in line with the implementation of the
Interest Rate Corridor (IRC) System. Similarly, the RP facility was replaced
by the overnight lending facility (OLF).
The BSP’s decision to keep the policy rate steady is Source: BSP

based on its assessment of inflation dynamics and

the risks to the inflation outlook over the policy

First Quarter 2017 Report on Economic and Financial Developments | 11

Domestic Interest Rates
The primary market rates of the 91-day, 182-day, and
364-day treasury bills (T-bill) increased in Q1 2017 by
73.9 bps, 69.1 bps and 83.0 bps relative to Q4 2016,
to settle at 2.2 percent, 2.4 percent and 2.7 percent,
respectively (Table 6). Investors preferred shorter‐
tenored government securities during the period due
to heightened uncertainty on the direction of US
fiscal and monetary policies as well as political
developments in the Eurozone.
Primary market interest rates rise
sharply across all tenors
Similarly, the secondary market yields of actively
traded government securities (GS) generally
increased as of end-March 2017 relative to yields as
of end-December 2016. The yields climbed by at least
17.7 bps (7-year) to at most 89.4 bps (3-month), after
the US Federal Reserve hiked its policy rate in the
March 2017 Federal Open Market Committee
(FOMC) meeting. Meanwhile, the yields of other
tenors fell by at least 34.7 bps (20-year) to at most
61.8 bps (2-year) GS.
Chart 9. Yield Curve of Government Securities
In percent
Q1 2016 Q4 2016 Q1 2017
7
6
5
4
3
1 Adjusted for risk premium,
0
3 mo 6 mo 1 yr 2 yr 3 yr 4 yr 5 yr 7 yr 10 yr 20 yr
Source: BSP-Department of Economic Statistics (DES)
Domestic market interest rates showed mixed
trends. The interbank call loans and time deposit
rates were higher in Q1 2017 by 2.8 bps and
11.1 bps, respectively. Meanwhile, the savings
deposit and lending rates were lower by 1.0 bp and
8.8 bps, respectively.
12 | First Quarter 2017 Report on Economic and Financial Developments
Other market interest rates
show mixed trends
During its monetary policy meetings on 9 February
and 23 March 2017, the MB kept the interest rate on
the BSP’s RRP facility at 3.0 percent. The
corresponding interest rates on the overnight lending
and deposit facilities were also kept steady at
3.5 percent and 2.5 percent, respectively. The
reserve requirement ratios were likewise left
unchanged. Meanwhile, the interest rates on the
7-day and the 28-day term deposit facilities (TDF)
rose by 22.8 bps and 47.4 bps from Q4 2016 levels to
settle at 3.0 percent and 3.4 percent as of Q1 2017.
This could be attributed to reduced funds available
for placement amid tax remittances and the
settlement of Retail Treasury Bonds (RTBs).
TDF rates increase
Meanwhile, the differentials (gross and net of tax)
between the domestic and US interest rates widened
in Q1 2017 relative to Q4 2016. The higher interest
rate differential can be traced to the 64.4 bps
increase in RP 91-day T-bill rate relative to a much
smaller 14.1 bps gain in 90-day LIBOR, and a
10.3 bps gain in average US 90-day T-bill rate.
Cautious investor sentiment due to heightened
uncertainty on the direction of US fiscal and
monetary policies, as well as political moves in the
Eurozone pushed domestic interest rates up during
the quarter. Meanwhile, the release of stronger-
than-expected US data led to the rise in foreign
interest rates.
interest rate differentials show
mixed trends
The positive differential between the BSP's policy
interest rate (overnight borrowing or RRP rate) and
the US Federal Funds target fell to 200 bps as of end-
March 2017, given the 25 bps increase in the US
Federal Funds rate against the unchanged BSP policy
rate. Compared to its December 2016 value, the risk-
adjusted spread between the two policy rates
narrowed further to 117 bps as of end-March 2017
due to a 3.0 bps increase in risk premium (measured
as the difference between the 10-year ROP and the
10-year US note). The higher risk premium was due
to a 9.9 bps decrease in the yields of the 10-year US
Treasury note relative to a much smaller 7.0 bps
decrease in the yields of 10-year ROP note.
offices reflected the continued consolidation of
banks as well as the exit of weaker players in the
banking system.
Meanwhile, the operating network (head offices and
branches/agencies) of the banking system expanded
to 11,178 offices in end-December 2016 from 10,756

Financial Sector
offices a year ago and 11,024 offices in end-
September 2016, due mainly to the increase in the
branches/agencies of U/KBs and RBs (Table 7).

The total resources of the banking system grew by

Banking System
12.6 percent to P14.1 trillion as of end-March 2017
from P12.5 trillion in the same period in 2016, and by
Financial Sector 1.4 percent from P13.9 trillion in the previous quarter
(Table 8). As a percent of GDP, total resources stood
at 95.5 percent as of end-March 2017 which was
Philippine banking system posts
slightly lower than the previous quarter’s
steady growth in assets and 96.0 percent.
deposits
Chart 10. Total Resources of the Banking System
Levels in trillion pesos; share in percent
The Philippine banking system remained supportive 100
Total Resources (LHS) as % of GDP (RHS)
of economic growth and stable financial condition. In 14
12 80
Q1 2017, banks’ balance sheets exhibited steady
10
growth in assets and deposits. Furthermore, asset 60
8
quality indicators improved while capital adequacy
6 40
ratios remained above international standards. Banks 4
continued to dominate the financial sector, with 20
2
universal and commercial banks (U/KBs) accounting 0 0
for 90 percent of total banks’ assets. In terms of the Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar
2012 2013 2014 2015 2016 2017
number of head offices and branches/agencies, non- Source: BSP
bank financial intermediaries maintained its relatively
widest physical network, consisting mainly of Savings Mobilization
pawnshops.

Demand deposits continue to

Performance of the Banking System
grow; savings and time deposits
Market Size contract slightly

Number of banks declines but
operating network expands
The number of banking institutions (head offices)
decreased to 602 as of end-December 2016 from 632
recorded in the previous year and from 613 in the
previous quarter. The bank head offices are
comprised of 42 U/KBs, 60 thrift banks (TBs), and 500
rural banks (RBs). The lower number of bank head
Savings and demand deposits remained the primary
sources of funds for the banking system. As of end-
20
March 2017, banks’ total deposits amounted to
P8.3 trillion, 11.0 percent and 0.6 percent higher
than the year- and quarter-ago levels, respectively.
Demand deposits grew by 3.6 percent to P2.2 trillion
while both savings and time deposits dropped by
20
This refers to the total peso-denominated deposits of the
banking system.

First Quarter 2017 Report on Economic and Financial Developments | 13

0.4 percent. Meanwhile, foreign currency deposits The growth in production loans was driven primarily
owned by residents (FCD-Residents) increased by by increased lending to the following sectors: real
21
1.4 percent to P1.7 trillion, q-o-q. estate activities (19.0 percent); manufacturing
(17.1 percent); wholesale and retail trade, repair of
Chart 11. Deposit Liabilities of Banks motor vehicles and motorcycles (14.4 percent);
In billion pesos electricity, gas, steam and air-conditioning supply
(15.8 percent); financial and insurance activities
(17.7 percent); and information and communication
(40.0 percent). Bank lending to other sectors also
increased, y-o-y, except in the case of public
administration and defense, compulsory social
security (-10.0 percent).

Loans for household consumption likewise increased

by 24.5 percent due to higher credit card loans, auto
loans, salary-based general-purpose loans, and other
Source: BSP
household loans.

Bank Lending Operations

Credit Card Receivables

Bank lending sustains y-o-y Credit card receivables

growth continue to rise
Outstanding loans of U/KBs, net of banks' RRP
The combined credit card receivables (CCRs) of the
placements with the BSP, grew by 20.2 percent as of
banking system as of end-December 2016, inclusive
end March 2017 from the same period in 2016.
of credit card subsidiaries, increased by 10.3 percent
Similarly, bank lending, inclusive of RRPs, increased
to P197.7 billion, y-o-y, and by 7.9 percent, q-o-q.
by 18.4 percent, y-o-y. Loans for production
Meanwhile, the ratio of CCRs to the total loan
activities, which comprised 88.6 percent of U/KBs’
portfolio (TLP) slightly decreased to 2.7 percent as of
aggregate loan portfolio (net of RRPs), expanded by
end-December, relative to a year-ago ratio of
18.9 percent y-o-y in end-March 2017.
2.9 percent, and unchanged relative to the previous
quarter. In terms of loan quality, the ratio of non-
Chart 12. Loans Outstanding of Commercial Banks
performing CCRs to total CCRs improved, as it fell to
(Gross of RRPs)
In trillion pesos 5.9 percent from 7.6 percent, y-o-y, and 6.2 percent
7 posted, q-o-q.
6
22
5 Motor Vehicle Loans
4

3
Motor vehicle loans maintain
strong growth
2

0
Mar
2012
Sep Mar
2013
Sep Mar Sep Mar
2015
Sep Mar
2016
Sep Mar
As of end-December 2016, the banking system’s
2014 2017

Source: BSP combined motor vehicle loans (MVLs), inclusive of

non-bank subsidiaries, increased to P388.4 billion or
21
by 27.8 percent, y-o-y, and 6.6 percent, q-o-q.
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. 22
Formerly “Auto Loans”, renamed effective September 2015

14 | First Quarter 2017 Report on Economic and Financial Developments

Consumers’ strong demand for passenger cars and
commercial vehicles, the introduction of new and
refreshed models, appropriate product mix, as well
as flexible financing schemes from banks and other
car financing firms helped sustain the rise in vehicle
purchases. The share of total MVLs to TLP increased
to 5.4 percent from the previous year’s ratio of
4.9 percent but decreased slightly from the previous
quarter’s ratio of 5.5 percent. In terms of loan
quality, the ratio of non-performing MVLs to total
MVLs declined to 4.2 percent from the year-ago ratio
of 4.6 percent and the quarter-ago ratio of
4.3 percent
23
Salary-Based General-Purpose Consumption Loans
Salary loans are on the uptrend
The banking system’s Salary-Based General-Purpose
Consumption Loans (SBGPCL), inclusive of non-bank
subsidiaries, increased by 33.7 percent to
P139.5 billion as of end-December 2016 from the
year-ago level of P104.3 billion and by 4.0 percent
24
from the quarter-ago level of P134.1 billion. The
share of total SBGPCLs to TLP increased to
1.9 percent from 1.7 percent registered a year-ago
but decreased slightly from 2.0 percent posted a
quarter-ago. In terms of loan quality, the ratio of
non-performing SBGPCLs to total SBGPCLs improved
to 3.7 percent relative to the previous year and
quarter’s ratio of 3.9 percent and 4.1 percent,
respectively.
Residential Real Estate Loans
Residential real estate loans
sustain growth
As of end-December 2016, the total residential real
estate loans (RRELs) of the banking system grew by
17.1 percent to P519.9 billion from P444.0 billion a
year-ago, and by 4.7 percent from P496.8 billion a
quarter-ago. Sustained household investments in
residential properties, the slow rise in the cost of
construction materials, the increase in the number of
23
Formerly “Salary Loans”
24
Data collection started with June 2014 data.
First Quarter 2017 Report on Economic and Financial Developments | 15
projects unveiled by real estate developers and the
intensified promotional campaigns by banks,
supported the growth in real estate purchases during
the review period. Total RRELs to TLP remained
unchanged at 7.2 percent relative to the ratio posted
last year, but decreased compared to the previous
quarter’s 7.4 percent. In terms of loan quality, the
non-performing RRELs declined to 2.8 percent from
3.1 percent registered a year-ago but remain
unchanged relative to the previous quarter.
Asset Quality and Capital Adequacy
The Philippine banking system’s gross non-
performing loan (GNPL) ratio improved to
2.0 percent, as of end-March 2017, relative to the
previous year’s ratio of 2.2 percent but increased
slightly from the previous quarter’s ratio of
1.9 percent. Banks’ initiatives to improve their asset
quality along with prudent lending regulations helped
maintain the GNPL ratio below its pre-Asian crisis
25
level of 3.5 percent.
Chart 13. Ratio of Gross NPLs and Net NPLs to Total
Loans of the Banking System
In percent
Source: BSP
Similarly, the net non-performing loan (NNPL) ratio of
0.6 percent as of end-March 2017 was unchanged at
previous quarter’s rate but was lower relative to the
previous year’s ratio of 0.8 percent (Table 9). In
computing for the NNPLs, specific allowances for
credit losses on TLP are deducted from the GNPLs.
Said allowances increased to P104.2 million in end-
March 2017 from P94.6 million and P100.9 million
26
posted a year and a quarter ago. The Philippine
25
The 3.5 percent NPL ratio was based on the pre-2013 definition.
26
This type of provisioning applies to loan accounts classified
banking system’s GNPL ratio of 2.0 percent was
higher relative to that of Malaysia (1.2 percent) and
South Korea (1.4 percent) but lower than that of
27
Indonesia (2.9 percent) and Thailand (3.0 percent).
The loan exposures of banks remained adequately
covered as the banking system registered an NPL
coverage ratio of 115.2 percent as of end-March
2017 from 112.5 percent registered a year ago and
119.9 percent a quarter ago.
Banks maintain high levels of
CAR amid tighter capital
requirements
The capital adequacy ratio (CAR) of U/KBs at end-
September 2016 remained unchanged at
15.4 percent on a solo basis, relative to the previous
quarter. Meanwhile, the CAR, on a consolidated
basis, increased slightly to 16.2 percent from the
quarter-ago ratio of 16.1 percent. These figures were
well above the BSP regulatory threshold of
10.0 percent and international minimum of
8.0 percent.
Chart 14. Capital Adequacy Ratio of Universal and
Commercial Banks
In percent
Source: BSP
under loans especially mentioned (LEM), substandard-secured
loans, substandard-unsecured loans, doubtful accounts and loans
considered as loss accounts.
27
Sources: Malaysia (Banking System’s Ratio of net impaired loans
to net total loans, Q1 2017); South Korea (Domestic Banks’
Substandard or Below Loans [SBLs] ratio, Q4 2016); Indonesia, IMF
Financial Soundness Indicators (Banks’ Nonperforming Loans to
Gross Loans Ratio, Q4 2016); and Thailand (Total Financial
Institutions’ Gross NPLs ratio, Q1 2017).
16 | First Quarter 2017 Report on Economic and Financial Developments
The CAR of Philippines’ U/KBs on a consolidated basis
was higher than that of South Korea (14.9 percent)
but lower than that of Malaysia (16.9 percent),
Thailand (17.8 percent) and Indonesia
28
(20.6 percent).
Banking Policies
Banking policies implemented during the quarter
were aimed at enhancing/providing
guidelines/regulations on the following: (1) domestic
remittance charges by all BSP-supervised entities
with domestic remittance transactions; (2) anti-
money laundering regulations; (3) social media risk
management; (4) handling of checks under the new
check image clearing system (CICS); (5) supervisory
policy on the grant of a license/authority; (6) virtual
currency (VC) exchanges; (7) Basel III leverage ratio;
(8) past due and non-performing loans; and (9)
deposit and cash servicing outside bank premises
(Annex A).
Capital Market Reforms
Capital market policy reforms continued to gain
ground during the first quarter of 2017 as landmark
institutional measures were adopted by the
Philippine Stock Exchange (PSE) and the BSP. During
the period, the reforms focused on (i) the launching
of PSE’s electronic system for expanding available
payment channels and allowing easier access to
funding by retail clients and corporations; and ii)
strengthening the regulatory frameworks for VCs and
anti-money laundering (Annex B).
Stock Market
In the first three months of 2017, the Philippine Stock
Exchange index (PSEi) rose by 1.9 percent, q-o-q, to
average 7,258.3 index points. Expectations of the
28
Sources: South Korea (Domestic Banks’ Capital Ratio, Q4 2016);
Malaysia (Banking System’s Total Capital Ratio, Q1 2017); Thailand
(Commercial Banks’ Capital Funds Percentage of Risk Assets, Q1
2017); and Indonesia, IMF Financial Soundness Indicators
(Commercial Banks, Regulatory Capital to Risk-Weighted Assets
Ratio Q4 2016).
continued robust growth of the Philippine economy Chart 16. PSE Market Capitalization by Sector
and optimism over the promised tax cuts and higher Q1 2017, percent share
fiscal spending of newly-inaugurated US President
Donald Trump to lift the US economy boosted
investor sentiments and raised the PSEi above the
7,300 mark during the period-in-review. However,
the uptick was partly tempered by issues affecting
the local mining industry; and heightened
expectations of a US Fed rate hike since December.
Moreover, geopolitical concerns such as heightened
tensions from North Korea’s missile test launches
and the impeachment of South Korean President also
dampened sentiments as the quarter drew to a close.
Nonetheless, the PSEi closed the quarter at
Source: PSE
7,311.72 index points on 31 March 2017, which was
higher q-o-q by 6.9 percent and y-o-y by 0.7 percent
(Table 10). Given the uncertainty in the global environment,
preliminary data from the PSE showed that foreign
Chart 15. Average PSEi investors registered net sales of P18.3 billion during
In index points the review quarter. This was lower than the
P33.8 billion net sales posted in the preceding three
months ending December. Foreign transactions
accounted for 53 percent of the total transactions
during the period-in-review.

Chart 17. PSEi Foreign Transactions

In billion pesos

Source: Philippine Stock Exchange (PSE)

Mirroring the uptick in the benchmark stock index,

total market capitalization rose by 5.9 percent from
the end-December 2016 level to reach P15.3 trillion
in end-March 2017. Almost all sub-indices posted
gains except for the mining and oil sub-index which
ended the quarter in negative territory. Moreover,
value turnover dropped by 3.7 percent q-o-q to Source: PSE
average P6.8 billion during the quarter-in-review.
Meanwhile, data from Bloomberg reflected the
uptick in the PSEi as the domestic price-earnings
(P/E) ratio rose from 19.0x in end-December 2016 to
20.2x in end-March 2017. This makes local shares
one of the most expensive in the region next to
Indonesia’s P/E ratio of 24.0x.

Lastly, the average indices of ASEAN stock exchanges

rose during the quarter in review relative to the

First Quarter 2017 Report on Economic and Financial Developments | 17

preceding quarter. The rally was led by Singapore, Chart 18. LCY Bond Issuances
which rose by 7.5 percent q-o-q. This was followed by In billion pesos
increases in the stock indices of Thailand
(4.7 percent), Malaysia (3.4 percent), the Philippines
(1.9 percent) and Indonesia (1.8 percent).

Bond Market

Local Currency Bond Market

29
Size and Composition
Source: BTr, Bloomberg, Staff calculation

Local currency (LCY) bonds issued by both the public

and private sectors amounted to P200.5 billion in
Q1 2017, 34.0 percent higher than the P149.7 billion
registered in the previous quarter and 42.0 percent
higher than the P141.2 billion recorded in the same
period last year.
LCY bond issuances of public
In terms of market share, issuances from the public
sector comprised 73.9 percent share of the total
bond issuances while the private sector took the
remaining 26.1 percent. Bonds issued by the BTr
accounted for the entire public sector issuances
while private sector issuances came from banks and
real estate companies.

sector increase Chart 19. LCY Bond Issuances

As percent of market share; Q1 2017
The NG issued Treasury bills (T-bills) and Fixed-rate
Treasury bonds (T-bonds) amounting to
P148.2 billion in Q1 2017, higher by 91.1 percent
from Q4 2016. The increase in government issuances
reflected the strong demand and interest of investors
to support the government's priority programs
particularly infrastructure spending. Meanwhile, the
private sector issuance of LCY bonds amounted to
P52.3 billion, 27.4 percent lower than the level
registered in previous quarter but 481.5 percent
higher than that registered Q1 2016. The local firms
continued to tap the bond market to take advantage Source: BTr, Bloomberg, Staff calculation

of relatively lower rates as they anticipated the US

Fed to resume the hike in its policy rate within the Primary Market
30

year.
29
This refers to the peso-denominated bond issuances by both
public and private sectors. Public sector issuances of LCY bonds
include issuances in the primary market and rollovers of maturing
series which were issued by the BTr and GOCCs. This excludes
issuances by the central bank.
In the primary auctions conducted for both T-bills
and T-bonds, the NG offered an aggregate of
P175.0 billion worth of debt securities. Demand was
robust as tenders were oversubscribed by about
1.5 times. Tenders for T-bills reached P47.5 billion as
against the NG’s offering of P45.0 billion while
tenders for T-bonds reached P223.0 billion against
the P130.0 billion offering.
30
The discussion includes primary market for government
issuances only.

18 | First Quarter 2017 Report on Economic and Financial Developments

 Chart 20. Secondary Market Volume
The NG partially awards bids for In billion pesos
T-bills due to higher yields
demanded

The NG partially awarded the P175.0 billion offering

in GS in Q1 2017 as it rejected some bids for T-bills
which were found to be relatively higher than the
NG’s preferred rates. Demand for shorter-term debt
instruments tended to be higher than long-term
instruments given the uncertain external
developments that affected investment decisions in Source: Philippine Dealing and Exchange Corporation (PDEx)

the long-term.
Secondary Market
Trading of both government and private corporate
bonds in the secondary market increased by
133.3 percent to P806.9 billion from P345.9 billion
registered in the previous quarter. Meanwhile, on a
y-o-y basis, trading in the secondary market
decreased by 9.9 percent.
Trading increases at the
secondary market
Trading was dominated mostly by Fixed Income
Treasury Notes (FITNs) which accounted for about
78.7 percent of the total trading while the share of
corporate bonds traded at the Exchange remained
marginal at 1.4 percent. The upbeat trading at the
secondary market reflected improved investor
confidence due to global positive developments such
as the “market-friendly” outcome of the French
presidential election that eliminated the risk of
“Frexit” or French exit from the European Union (EU).
Foreign Currency Bond Market
During the quarter, the government tapped the
offshore market with US$2 billion bond issuance with
25-year tenor. The bond offering had a record-low
yield of 3.7 percent indicating positive market
perception of the country's strong leadership and
economic performance. Meanwhile, the private
sector took advantage of the ample domestic
liquidity and refrained from tapping the foreign
capital market. Sourcing by corporates of their
financing needs from the local capital market reflects
prudent liability management amid rising foreign
interest rates given the planned gradual US Fed rate
hikes.
NG taps the international bond
market in raising funds
Credit Risk Assessment
On 29 March 2017, Fitch Ratings affirmed the
Philippines’ investment grade sovereign credit rating
at “BBB-“ as well as the positive outlook on the
rating.

Fitch Ratings affirms Philippines’

investment grade rating

The Philippines’ rating reflected the following:

1) strong growth momentum; 2) robust net external
creditor position; 3) low and manageable debt
levels; 4) strong banking metrics; and 5) the BSP’s
effective monetary policy stance given the

First Quarter 2017 Report on Economic and Financial Developments | 19


maintenance of a modest inflation level and its
managed floating exchange rate regime which allows
the peso to act as a cushion against external shocks.
Table C. Latest Philippine Sovereign Credit Ratings
As of end-March 2017
33
a US Fed rate hike pushed US interest rates higher.
The tightening of spreads continued in March amidst
positive global developments such as the ECB’s
decision to maintain the massive monetary stimulus
in the region.
As of end-March 2017, the Philippines’ 5-year
sovereign credit default swaps (CDS) stood at 82 bps,
lower than the 111 bps in end-2016. It has remained
lower than Indonesia’s 128 bps and Malaysia’s
108 bps. Likewise, the EMBIG Philippines ended the
quarter narrower at 98 bps when compared to the
previous quarter’s closing of 110 bps.

Source: Report of Credit Rating Agencies

Chart 21. 5-Year CDS Spreads of Selected ASEAN
Countries
In basis points

Bond spreads
300
Philippines Indonesia Thailand Malaysia
250
In January, debt spreads narrowed as global financial
conditions remained favorable despite the 200

protectionist stance of the Trump administration 150

such as the withdrawal of the US from the Trans- 100

31
Pacific Partnership (TPP). Domestically, investor 50

confidence was boosted by the encouraging full year

0
GDP growth data together with the positive growth Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2015 2016 2017
outlook given by Standard and Poor’s (S&P) and
World Bank (WB). S&P raised its growth forecast for Source: Bloomberg

the Philippines by 0.1 percent to 6.4 percent for

2017. WB gave a similar picture for the Philippines by Chart 22. EMBIG Spreads of Selected ASEAN
increasing overall economic prospects by 0.7 percent Countries
32
to 6.9 percent for 2017. In basis points

EMBIG Philippines EMBIG Malaysia

Debt spreads narrow on PHL’s 400
EMBIG Indonesia

positive growth outlook 350

300
250

In February, debt spreads further narrowed falling 200

150
below the 90 bps which was last seen in August 2016. 100
The tighter debt spreads were due to the upbeat 50
0
growth momentum that supported investor appetite Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
for Philippine debt and kept low the premium on 2013 2014 2015 2016

sovereign debt. Meanwhile, the higher probability of

Source: Bloomberg

31
A 12-nation deal that had been negotiated under former
President Barack Obama that would have reduced tariffs for
American imports and exports with the countries in the region.
32 33
Asia-Pacific Sovereign Rating Trends, January 2017 and Global Bloomberg estimates roughly about 86 percent probability of a
Economic Prospects, January 2017. fed rate hike as of 2 March 2017.

20 | First Quarter 2017 Report on Economic and Financial Developments

Payments and Settlements System34
External Sector
In Q1 2017, the total number of transactions settled
and processed in the Philippine Payments and
Settlements System (PhilPaSS) increased by Balance of Payments
3.1 percent to 419,455 from the previous quarter’s
level of 406,791. The increase in volume was due
The country’s balance of payments position yielded a
mainly to the uptick in trades in government
deficit of US$994 million in Q1 2017, higher than the
securities (89.9 percent) and interbank transactions
US$210 million deficit recorded in Q1 2016 (Table
(3.7 percent).
11).

Table D. PhilPaSS Transactions

2017 2016
Q1 Q4
Volume 419,455 406,791 372,734
Value (in Trillion PhP) 78.7 111.5
Transaction Fees (in Million Ph 35.5 32.6
Source: Payments and Settlements Office, Bangko Sentral ng Pilipinas
The total value of transactions declined by
29.5 percent to P78.7 trillion from the previous
quarter level of P111.5 trillion. The drop in the value
of transactions was due to the decline in the level of
overnight deposit facility placements/maturities
(60.5 percent) and interbank transactions
(51.0 percent).
OF remittances coursed through the REMIT system
and interbank dealings continue to dominate the
volume of transactions in the PhilPaSS, comprising
73.6 percent of the total volume for the quarter. In
terms of value, interbank dealings, RRP, TDF, and
ODF placements/maturities make up 87.5 percent of
the total value of transactions for the quarter.
On a y-o-y basis, both the volume and value of
transactions increased by 12.5 percent and
3.0 percent, respectively.
Q1 2017 BOP position registers
Growth rates (%)
higher deficit
Q1 Q-o-Q Y-o-Y
3.1 12.5
76.4 -29.5 3.0 The negative overall BOP position was a result of the
35.2 8.9 0.8 deficit in the current account and net outflows (or
net lending by residents to the rest of the world) in
the financial account. The current account reversed
to a deficit of US$318 million in Q1 2017 from a
US$730 million surplus in Q1 2016, as the trade-in-
goods deficit continued to widen. Meanwhile, the
financial account registered lower net outflows of
US$579 million on account mainly of the turnaround
of the other investment account to net inflows from
net outflows, along with increased net inflows of
direct investments and financial derivatives. This
positive outcome partly offset the higher net
outflows in the portfolio investment account. Global
economic growth remained uneven with slower
expansion in the euro area, India and the ASEAN
region even as economic activity continued to pick up
pace in the US, Japan and China. The lingering
volatility in the external environment continued to
affect the country’s external trade and capital flows.

Following the increase in volume of transactions,

total revenue derived from PhilPaSS operations
(mainly fees from third party and settled debit
instructions) rose to P35.5 million or 8.9 percent
higher than the quarter-ago level of P32.6 million.
On a y-o-y basis, total revenues similarly grew by
0.8 percent.

34
Starting 1 April 2014, the volume and value of transactions exclude
payment transfers to BSP Payments Unit.

First Quarter 2017 Report on Economic and Financial Developments | 21

Table E. Balance of Payments
In million US$
Exports of goods increase

Q1 Stronger export performance was attributed mainly

2016 2017 to increased shipments of manufactures
(by 9.2 percent), particularly machinery and
Current Account 730 -318
Capital Account 24 9 transport equipment (by 26.8 percent) and garments
Financial Account 955 579 (by 90.7 percent). Exports of electronics products
Net Unclassified Items -8 -106
(including other electronics), chemicals, and
Overall BOP* -210 -994 processed food and beverages, and other
*Positive balance in the financial account indicates net outflows manufactures also supported the growth in
while a negative balance indicates net inflows. The overall BOP
position, therefore, is equal to the current account plus the capital manufactured exports. Shipments of other major
account minus the financial account plus net unclassified items.
commodity groups, notably coconut and mineral
Details may not add up to total due to rounding.
Source: Department of Economic Statistics (DES), BSP
products, likewise increased markedly, by
132.3 percent and 55.4 percent, respectively, during
the quarter fueled by a notable rise in world market
Current Account. The current account registered a
prices of coconut oil and copper metal.
deficit of US$318 million (equivalent to 0.4 percent of
GDP) in Q1 2017, a reversal of the US$730 million
Chart 23. Exports by Major Commodity Group
surplus (1.1 percent of GDP) posted in Q1 2016. In percent share, Q1 2017

Current account reverses to

deficit

This development emanated primarily from the

widening of the trade-in-goods deficit as the growth
in imports of goods outpaced that of exports of
goods. Meanwhile, higher net receipts in the
secondary income, services, and primary income
accounts helped offset the increase in the
trade-in-goods deficit. Source: PSA

Trade-in-Goods. The trade-in-goods deficit increased
to US$9.8 billion in Q1 2017 from US$7.8 billion in
Q1 2016 due to the faster expansion in imports of
goods at 19.2 percent relative to the 14.1 percent
growth in exports.
Imports of Goods. Imports of goods amounted to
US$21.5 billion in Q1 2017, posting a 19.2 percent
increment relative to the US$18 billion imports in
Q1 2016. This developed on account of increased
importation across all major commodity groups.

Trade-in-goods deficit widens

Exports of Goods. Exports of goods rose to
US$11.6 billion in Q1 2017, higher than the
US$10.2 billion in Q1 2016, indicating improved
external demand from major trading partners,
notably the US, Asia (i.e., China, Hong Kong,
Singapore, and South Korea) and in the EU during the
quarter.
Imports of goods expand
Growth in total imports was boosted primarily by raw
materials and intermediate goods which grew by
25.7 percent to US$8.3 billion. Imports of semi-
processed raw materials grew by 21.4 percent,
consisting mostly of manufactured goods. Imports of
manufactured goods rose by 33.9 percent to
US$2.8 billion during the quarter fueled by increased
imports of iron and steel (by 72.1 percent). Imports

22 | First Quarter 2017 Report on Economic and Financial Developments

of raw materials for non-consigned electronics, and
chemicals likewise registered double-digit growth of
16 percent and 15.2 percent, respectively. Imports of
consumer goods went up by 15.9 percent, buoyed by
growth in durables (18.3 percent) and non-durables
(13.1 percent). Capital goods imports rose by
6.9 percent to US$5.1 billion, following increased
purchases of power generating and specialized
machines (by 14.9 percent) and land transport
equipment, excluding passenger cars and motorized
cycle.
Meanwhile, imports of petroleum crude oil increased
by 56.4 percent to US$1.1 billion, buoyed by the
35
recent hike in global oil prices. In terms of volume,
however, purchases of petroleum crude fell to
25 million barrels in Q1 2017 from 28 million barrels
in Q1 2016.
Chart 24. Imports by Major Commodity Group
In percent share, Q1 2017
Consumer
Goods,
17.3% Others,
7.4%
Minerals,
12.6%
Raw
Materials, Capital
38.7% Goods,
24.0%
Source: PSA
Trade-in-Services. Net receipts in trade-in-services
rose to US$2.4 billion in Q1 2017, exceeding the
US$2 billion net receipts registered during the same
quarter a year ago.
Net receipts in trade-in-services
increase
The 19-percent expansion was driven largely by
higher net receipts in technical, trade-related and
36
other business services (by 17.0 percent),
35
Based on World Bank Commodities Price data, the average price
of Dubai crude oil in Jan-Mar 2017 increased to US$52.9/barrel
from US$30.6/barrel in Jan-Mar 2016.
36
Include business process outsourcing (BPOs) services pertaining
mostly to contact centers, animation, and medical transcriptions.
First Quarter 2017 Report on Economic and Financial Developments | 23
manufacturing services on physical inputs owned by
others (by 30.9 percent), and computer services (by
37
4.4 percent) combined with the reversal of financial
services from net payments to net receipts during
the quarter. Export revenues in BPO services totaled
US$5.5 billion in Q1 2017, or a growth of
9.9 percent from the US$5 billion earnings in the
same quarter last year.
Primary Income. The primary income account
recorded net receipts of US$678 million in Q1 2017,
5.7 percent higher than the US$642 million net
receipts in Q1 2016.
Net receipts in primary income
post modest growth
The improvement was due mainly to the decline in
net payments of investment income (by 6.3 percent)
brought about by: a) lower dividends paid to foreign
direct investors on their equity and investment fund
shares in resident enterprises (by 33.1 percent); b)
lower net payments of interest on short-term and
long-term investments in debt securities
(by 17.6 percent); and c) lower net payments of
interest on other investments by local corporations.
Increased interest receipts on reserve assets
(by 20.1 percent) also contributed to the growth in
the primary income account. However, these gains
were partially offset by the 1.9 percent decline in
compensation inflows from resident OF workers.
Secondary Income. Net receipts in the secondary
income account reached US$6.5 billion in Q1 2017,
higher by 9.5 percent than the US$5.9 billion net
receipts in Q1 2016.
Net receipts in secondary
income rise
Growth was driven mainly by receipts of personal
transfers, which increased by 10.9 percent to reach
US$6.2 billion during the quarter. The bulk of these
personal transfers (about 98 percent) were
non-resident OF workers' remittances.
37
Include BPOs pertaining to software publishing and
development.
Capital Account. Net receipts in the capital account
declined substantially to US$9 million in Q1 2017
from US$24 million in Q1 2016.
Capital account registers lower
net receipts
This developed following the reversal to
US$10 million net payment of the other capital
transfers of financial corporations, non-financial
corporations, households, and non-profit institutions
serving households (NPISHs) in Q1 2017 from US$1
million net receipts in Q1 2016.
Financial Account. The financial account registered
net outflows of US$579 million during the period in
review, 39.4 percent lower than the US$955 million
net outflows in Q1 2016.
Net outflows in the financial
account decline
This resulted as the other investment account
reversed to net inflows during the quarter from net
outflows in the same period last year, and following
increases in net inflows in the financial derivatives
and direct investment accounts. Meanwhile,
portfolio investments posted higher net outflows
during the quarter.
Direct Investments. Direct investments continued to
record net inflows in Q1 2017 amounting to
US$1.1 billion from US$1 billion in Q1 2016.
Direct investments continue to
post net inflows
This developed as the rise in residents’ net
incurrence of liabilities (foreign direct investments in
the Philippines or FDI) more than compensated for
the increase in their net acquisition of financial
assets. In particular, FDI expanded by 16.6 percent to
US$1.6 billion, reflective of investors’ sustained
confidence in the Philippine economy due to its
strong macroeconomic fundamentals. In particular,
investments in debt instruments (i.e., lending by
24 | First Quarter 2017 Report on Economic and Financial Developments
parent companies abroad to their local affiliates to
fund existing operations and business expansion)
more than doubled to reach US$1.3 billion from
US$606 million in the same quarter last year.
Reinvestment of earnings also increased by
6.7 percent to US$193 million. However, investments
in equity capital registered lower net inflows of
US$101 million compared to last year’s
US$550 million. Gross equity capital placements of
US$191 million during the period came mostly from
Japan, the US, Singapore, Hong Kong, and Germany.
The said investments were channeled mainly in real
estate; wholesale and retail trade; financial and
insurance; information and communication; and
manufacturing activities. Meanwhile, residents’ net
acquisition of financial assets rose by 45.1 percent to
US$417 million driven mainly by the expansion in net
placements of equity capital by more than eightfold
toUS$345 million from the level posted in same
quarter last year. Equity capital placements grew by
52.8 percent to US$397 million, while withdrawals
decreased by 76.3 percent to US$52 million.
Net outflows in portfolio
investment account more than
double
Portfolio Investments. Portfolio investments posted
net outflows of US$3.2 billion in Q1 2017, more than
twice the US$1.4 billion net outflows registered in
Q1 2016. This resulted from residents’ higher net
repayment of liabilities amounting to US$2.6 billion
during the quarter coupled with an increase in their
net acquisition of financial assets, which reached
US$564 million. Residents’ net repayment of
liabilities consisted largely of net redemption of non-
residents’ holdings of debt securities, particularly
those issued by the NG (US$1.5 billion), local banks
(US$472 million), and local corporates
(US$281 million). Non-residents’ net withdrawal of
placements in equity securities reached
US$349 million during the quarter, reversing their
net placements of US$77 million in the same quarter
last year. Meanwhile, residents’ net acquisition of
financial assets consisted mainly of net placements in
non-residents’ debt securities, particularly by local
corporates (US$352 million) and local banks
(US$185 million).
Financial Derivatives. The financial derivatives
account posted a higher net gain of US$183 million
during the review quarter compared to only
US$3 million in Q1 2016.
Trading in financial derivatives
results in net gain
Other Investments. The other investment account
reversed to a net inflow of US$1.3 billion in Q1 2017
from net outflow of US$562 million a year ago.
Other investment account
reverses to net inflows
On the liability side, net inflows increased by more
than threefold due largely to residents’ net availment
of loans from non-residents totalling
US$359 million, a turnaround from the net
repayments of US$1.3 billion recorded during the
comparable quarter last year. Trade credit and
advances extended by non-residents to residents,
which more than doubled to reach US$1.1 billion
during the quarter, likewise contributed to the
increase in net inflows. On the asset side, residents’
other investments abroad dipped by 44.4 percent to
US$592 million on account of their net withdrawal of
currency and deposits held abroad (US$309 million).
International Reserves
The country’s GIR settled at US$80.9 billion as of
end-March 2017, slightly higher than the US$80.7
billion recorded in end-December 2016 (Table 12).
The GIR level remains adequate as it can cover
8.9 months worth of imports of goods and payments
of services and income. It is also equivalent to
5.2 times the country’s short-term external debt
based on original maturity and 3.9 times based on
residual maturity.
Reserves continue to be ample
The increase in reserves was due mainly to the
inflows arising from the BSP’s investment income and
revaluation adjustments on its gold holdings. These
First Quarter 2017 Report on Economic and Financial Developments | 25
were partially offset by the foreign exchange
operations of the BSP and payments made by the NG
for its maturing foreign exchange obligations.
Of the total reserves as of end-March 2017,
83.7 percent were held in foreign investments;
9.8 percent in gold; and 6.5 percent in holdings of
Special Drawing Rights (SDRs), the BSP’s reserve
position in the IMF, and foreign exchange.
Net international reserves (NIR), which refer to the
difference between the BSP’s GIR and total
short-term liabilities, amounted to US$80.9 billion as
of end-March 2017, an increase of US$191 million
from end-December 2016.
Chart 25. Gross International Reserves
In billion US dollars
88
84
80
76
72
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2015 2016 2017
Source: BSP
Exchange Rate
The peso depreciated against the US dollar in
Q1 2017. On a q-o-q basis, the peso is weaker by
1.77 percent as it averaged ₱49.99/US$1 from the
previous quarter’s mean trading level of
₱49.11/US$1 (Table 13). Likewise, on a y-o-y basis,
the peso depreciated by 5.40 percent relative to the
38
₱47.29/US$1 average in Q1 2016. The weakening of
the peso during the review quarter was due mainly
to the following developments: (i) the US Fed rate
hike in March 2017 and the expectation for further
rate increases in 2017; (ii) persisting political noise in
Europe; and (iii) strong US dollar requirement by
local corporates.
38
Dollar rates (per peso) or the reciprocal of the peso-dollar rates
were used to compute for the percentage change.
 month-end demand for the US dollar and safe-haven
Peso depreciates against the
buying on the back of persisting political noise in
US dollar Europe.
42

In January 2017, the peso appreciated against the US On a year-to-date basis, the peso depreciated against
dollar by 0.16 percent to average ₱49.74/US$1 the US dollar by 0.9 percent on 31 March 2017 as it
relative to the ₱49.82/US$1 average in December closed at ₱50.16/US$1. This is in contrast with the
2016 following: (i) the release of the FOMC minutes strengthening of most Asian currencies during the
43
which bared a gradual increase in interest rates by same period.
the US Federal Reserve; (ii) lower-than-expected US
39
GDP growth in the last quarter of 2016 ; (iii) Bank of Chart 26. Year-to-date Appreciation/Depreciation
40
Japan’s move to keep policy rates unchanged ; and of Asian Currencies against US dollar
In percent, as of 31 March 2017
(iv) the release of strong full year 2016 Philippine
GDP data. In February, the trend reversed as the
peso weakened against the US dollar by 0.45 percent
to average ₱49.96/US$1. Markets turned cautious
given the increased probability of an interest rate
hike by the US Federal Reserve in March given
improvement in the US jobs market and as inflation
showed signs of nearing the US Fed’s two percent
goal. In addition, strong corporate demand for US
dollar ahead of the expected rate hike added
pressure on the peso. The depreciation of the peso
continued as it averaged ₱50.28/US$1 in March,
Nonetheless, the sustained inflows of foreign
shedding 0.62 percent in value relative to February
exchange from OF remittances, foreign direct
average. The peso’s depreciation was due mainly to
investments, BPO and tourism receipts, as well as the
hawkish comments from a number of Fed officials
ample level of the country’s GIR and the country’s
prior to the 15 March 2017 FOMC meeting. Their
robust economic growth are expected to continue to
statements bolstered expectation of a policy rate
41 provide stabilizing influence on the peso.
hike in the US and was accompanied by a surge in

Meanwhile, the volatility of the peso’s daily closing

39
US economic growth slowed in the last quarter of 2016 to 1.9
percent from the 3.5 percent recorded in the third quarter. The
fourth quarter’s figure brought full-year GDP growth to 1.6 percent
in 2016, its worst performance since 2011.
40
The Bank of Japan (BoJ) kept monetary policy steady on 31
January 2017 and roughly maintained its upbeat price forecasts.
This signaled that a steady economic recovery will help accelerate
inflation towards its 2 percent target without additional stimulus.
In a widely expected move, the BoJ maintained the 0.1 percent
interest it charges on a portion of the excess reserves that financial
institutions park with the central bank.
41
San Francisco Federal Reserve President John Williams had said
“there are no more reasons to further delay the US central bank’s
plan of hiking interest rates soon with the US economy now at full
employment and with higher chances of inflation spiking on the
back of potential tax cuts from US President Donald J. Trump.”
Similarly, New York Federal Reserve President William Dudley had
said the case for tightening monetary policy “has become a lot
more compelling.” In addition, Federal Reserve Board Governor
Lael Brainard, a known dove at the US central bank, said in an
address at Harvard University that “after being an important
constraint in the past few years, the external environment
currently appears more benign than it has been for some time
even though risks remain. Assuming continued progress, it will
likely be appropriate soon to remove additional accommodation,
continuing on a gradual path”.
rates (as measured by the coefficient of variation)
stood at 0.54 percent during the review quarter,
lower than the 1.43 percent registered in the
44
previous quarter. Relative to other currencies in the
region, the volatility of the peso was in the middle of
45
the pack.
On a real trade-weighted basis, the peso lost external
price competitiveness in Q1 2017, against the basket
42
Britain has formally begun its process of leaving the European
Union (EU) on 29 March 2017 after declaring that the country is
triggering Article 50 of the Lisbon Treaty. Investors believe this
could usher some uncertainty for the British and EU economies
43
Based on the last done deal transaction in the afternoon.
44
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.
45
The volatility of the peso was higher than that of Indonesian
rupiah, Chinese yuan, and Malaysian ringgit but lower than that of
Singapore dollar, Thai baht, Japanese yen, and South Korean won.

26 | First Quarter 2017 Report on Economic and Financial Developments

of currencies of all trading partners (TPI), trading
partners in advanced (TPI-A) and developing
countries (TPI-D). The real effective exchange rate
(REER) index of the peso increased, relative to
Q4 2016, by 2.70 percent, 5.37 percent, and
0.79 percent, respectively, mainly on account of
46,47
widening inflation differential (Table 13b).
On the other hand, the peso gained external price
competitiveness against the TPI, TPI-A, and TPI-D
baskets, relative to Q1 2016. This developed as the
nominal depreciation of the peso offset the impact of
widening inflation differential against these currency
baskets, resulting to a decrease in the REER index of
the peso by 3.52 percent, 3.66 percent, and
3.42 percent against the TPI, TPI-A, and TPI-D
baskets, respectively.
External Debt
Outstanding Philippine external debt stood at
US$73.8 billion as of end-March 2017, reflecting a
decline of US$958 million (or 1.3 percent) from the
US$74.8 billion end-December 2016 level (Table 14).
On a y-o- y basis, the debt stock likewise dropped by
US$3.8 billion from the US$77.6 billion level in March
2016.
External debt remains
manageable
The q-o-q decline in the debt levels resulted mainly
from: (a) prior periods’ adjustments (negative
US$673 million) due to late reporting of principal
46
The Trading Partners Index (TPI) measures the nominal and real
effective exchange rates of the peso across the currencies of 14
major trading partners of the Philippines, which includes US, Euro
Area, Japan, Australia, China, Singapore, South Korea, Hong Kong,
Malaysia, Taiwan, Indonesia, Saudi Arabia, United Arab Emirates,
and Thailand. The TPI-Advanced measures the effective exchange
rates of the peso across currencies of trading partners in advanced
countries comprising of the US, Japan, Euro Area, and Australia.
The TPI-Developing measures the effective exchange rates of the
peso across 10 currencies of partner developing countries which
includes China, Singapore, South Korea, Hong Kong, Malaysia,
Taiwan, Indonesia, Saudi Arabia, United Arab Emirates, and
Thailand.
47
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.
First Quarter 2017 Report on Economic and Financial Developments | 27
payments; (b) transfer of Philippine debt papers from
non-residents to residents (US$497 million); and
(c) net principal repayments of US$255 million. The
downward impact of these developments on the
debt stock was partially offset by the positive FX
revaluation adjustments (US$466 million) as the
Japanese yen strengthened against the US dollar.
The y-o-y drop in debt stock was due to: (a) net
principal repayments by both the public and private
sectors (US$2.1 billion); (b) previous periods’ audit
adjustments (negative US$1.5 billion) due to late
reporting; and (c) negative FX revaluation
adjustments (US$383 million). The full downward
impact of these factors on the debt stock was slightly
offset by a modest increase in non-residents’
investments in Philippine debt papers issued offshore
(US$126 million) during the period.
Chart 27. Philippine External Debt
In billion US dollars
80.0
79.0
78.0
77.0
76.0
75.0
74.0
73.0
72.0
71.0
Source: BSP-International Operations Department (IOD)
By Maturity
Based on original maturity, the profile of the
country’s external debt continued to be largely
medium- to long-term (MLT) in nature [i.e., those
with original maturities longer than one year] with
share to total at 79.6 percent or US$58.7 billion,
lower by US$1.5 billion than the end-2016 level of
US$60.2 billion. This shows that FX requirements for
debt payments are well spread out, and more
manageable. The weighted average maturity for all
MLT loans improved to 17.4 years by end-March
2017, from the 16.9 years in the preceding quarter.
The 20.4 percent balance of debt stock consisted of
short-term (ST) accounts [or those with original
maturities of up to one year] which grew to
US$15.1 billion from US$14.5 billion as of end-2016.
These accounts consisted of: (a) bank liabilities of
US$11.8 billion (domestic banks - US$6.4 billion;
foreign bank branches - US$4.8 billion; and
government financial institutions - US$648 million);
(b) trade credits (US$3.1 billion); and (c) other non-
bank liabilities (US$189 million).
Chart 28. Philippine External Debt by Maturity
As of end-March 2017
MLT US$58.7 Total = US$73.8 billion ST
billion US$15.1
79.6% billion
20.4%
Source: BSP-IOD
By Borrower
Public sector external debt stood at US$37.7 billion
(or 51.0 percent of total debt stock), slightly higher
than the US$37.5 billion (50.1 percent of total) in the
previous quarter due largely to: (a) net availments of
US$637 million, mainly by the NG (US$583 million)
and the Development Bank of the Philippines or DBP
(US$251 million); and (b) upward FX revaluation
adjustments (US$461 million). These were partly
mitigated by the US$917 million decline in non-
residents’ investments in debt papers issued offshore
by the public sector. About US$30.6 billion
(81.3 percent of public sector obligations) were NG
borrowings.
Private sector debt, on the other hand, aggregating
US$36.1 billion (49.0 percent of total) were down by
US$1.1 billion quarter on quarter due to: (a) net
repayments of US$893 million; and (b) previous
periods’ adjustments (negative US$680 million).
Increased non-resident holdings of private sector
debt papers issued offshore (US$420 million) partially
offset the downward pressures on private sector
debt. About US$13.2 billion of these accounts were
borrowings without BSP approval (including capital
leases of US$1.3 billion).
28 | First Quarter 2017 Report on Economic and Financial Developments
Chart 29. Philippine External Debt by Borrower
As of end-March 2017
Private Total = US$73.8 billion
Public
Sector
Sector
US$36.1
US$37.7
billion
billion
49.0%
Source: BSP-IOD
The 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. As of end-
March 2017, the ratio improved to 8.7 percent from
the 9.2 percent recorded for the same period a year
ago but higher compared to the quarter-ago ratio of
7.8 percent as of end-December 2016. Nevertheless,
the DSR has consistently remained at single digit
level, and well below the international benchmark
range of 20.0 to 25.0 percent.
The external debt ratio (a solvency indicator), or total
outstanding debt expressed as a percentage of
annual aggregate output or gross national income
(GNI), continued to improve to 20.0 percent in
Q1 2017 from 20.4 percent in Q4 2016 and
21.9 percent a year ago (Table 15). The same trend
was observed using GDP as denominator, signifying
the country's sustained strong position to service its
foreign obligations in the medium term.
Foreign Interest Rates
The timing of exit from accommodative monetary
policy in AEs has differed across countries depending
on the strength of their economic growth.
Accommodative monetary policy is expected to
continue in countries where risk of low inflation
persists and recovery remains fragile due to
weakness in labor market conditions, slowdown in
spending, and anemic bank lending growth.

Monetary policy in some AEs
continues to be
accommodative, as recovery
remains fragile
In Q1 2017, the US Fed raised the target range for the
federal funds rate at 0.75-1.0 percent. At the same
time, the Fed maintained its existing policy of
reinvesting principal payments from its holdings of
agency debt and agency mortgage-backed securities
and of rolling over maturing Treasury securities at
48
auction. Both the average US prime rate and
discount rate increased to 3.793 percent and
1.293 percent from the previous quarter’s figures of
3.512 percent and 1.049 percent, respectively (Table
16). Moreover, the US Fed funds rate increased to
0.697 percent from the 0.499 percent average
reported in the previous quarter.
The Monetary Policy Committee (MPC) of the Bank of
England (BOE) maintained the official bank rate paid
on commercial banks’ reserves at 0.25 percent. It
also continued the purchase of up to £10 billion of
corporate bonds and £60 billion of government
bonds, increasing the stock of the asset purchases to
49
£435 billion.
The Bank of Japan (BOJ) introduced the “Quantitative
and Qualitative Monetary Easing with Yield Curve
Control” as a new framework to further strengthen
its monetary easing scheme. The framework is
composed of two components: the first component is
the "yield curve control" in which the BOJ controls
short-term and long-term interest rates; and the
second component is an "inflation-overshooting
commitment" in which the BOJ commits itself to
expand the monetary base until inflation exceeds the
target of 2 percent. As for the short-term interest
rate, the BOJ applies 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 buys Japanese government
48
Press Release. (n.d.). Retrieved from
https://www.federalreserve.gov/newsevents/pressreleases/mone
tary20170315a.htm
49
Press Release. (n.d.). Retrieved from
http://www.bankofengland.co.uk/publications/Pages/news/2017/
002.aspx
First Quarter 2017 Report on Economic and Financial Developments | 29
bonds (JGBs) at a rate of 80 trillion yen 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 yen from
3.3 trillion yen while the purchase of Japan real
estate investment trusts (J-REITs) were maintained at
90 billion yen annually. Likewise, the BOJ continues
its purchases of commercial papers and corporate
bonds until their outstanding amounts reach
2.2 trillion yen and 3.2 trillion yen, respectively.
50
Meanwhile, the Governing Council of the ECB
decided to maintain the interest rates on the deposit
facility, main refinancing operation, and marginal
lending facility at -0.40 percent, 0.0 percent, and
0.25 percent, respectively. The Governing Council
also decided to continue its purchases under the
asset purchase program (APP) at a monthly pace of
€80 billion until the end of March 2017 and starting
in April 2017, the net asset purchases are intended to
continue at a monthly pace of €60 billion until the
end of December 2017.
51
Meanwhile, both the 90-day LIBOR and 90-day
Singapore Interbank Offered Rate (SIBOR) increased
in Q1 2017 to 1.068 percent and 0.953 percent from
0.921 percent and 0.906 percent, respectively, as
global financial markets remained generally liquid.
Chart 30. Selected Foreign Interest Rates
In percent
50
Press Release. (n.d.). Retrieved from
https://www.boj.or.jp/en/announcements/release_2017/k170316
a.pdf
51
Press Release. (n.d.). Retrieved from
https://www.ecb.europa.eu/press/pr/date/2017/html/pr170309.e
n.html
Global Economic Developments
Recent developments showed that global economic
activity gained momentum in Q1 2017. Although
economic performance has remained mixed in some
emerging economies, solid growth in most AEs has
been attributable to the continued recovery of
manufacturing output and consumer confidence.
(See Table F. Macroeconomic Indicators for Selected
Economies)
Economic activity picked up in the US economy,
resulting in an annual growth of 1.9 percent in
Q1 2017. The increase in US real GDP was driven
primarily by positive contributions from non-
residential fixed investment, exports, residential
fixed investments, and personal consumption
expenditure which were partly offset by negative
contributions from private inventory, increased
imports, and government spending.
52
Driven by the continued strength in exports and
improved domestic demand, Japan registered a
1.6 percent expansion amid weakened investment
growth and slowdown in private non-residential
investment. A competitive yen and robust global
demand have fueled the expansion in exports of
goods and services in the face of rising cost for raw
materials.
53
The Eurozone economic activity advanced by
1.7 percent in Q1 2017, unchanged from the previous
quarter. The expansion was a result of combined
strong domestic demand in Germany and growth
pick-up in Spain, Belgium and Latvia but slight easing
in France and Lithuania.
54
52
US Bureau of Economic Analysis News Release, 26 May 2017
53
“GDP in Japan,” FocusEconomics,
54
Eurostat News Release and Euro Indicators, 82/2017, 16 May
2017
30 | First Quarter 2017 Report on Economic and Financial Developments
Chart 31. Real GDP of G3 Countries
Year-on-year growth; in percent
Source: Bloomberg, Country Websites
Meanwhile, most emerging economies in Asia
recorded stronger output growth. China’s 6.9 percent
expansion was driven by continued policy support
and expansion in services, renting and leasing
activities, and transportation and storage
55
industries. Growth in Hong Kong’s economy stood
at 4.3 percent underpinned largely by the
acceleration in private consumption expenditure,
government consumption expenditure, gross
56
domestic fixed capital formation and exports.
Meanwhile, South Korea and Singapore’s economy
both registered a 2.7 percent growth for Q1 2017.
Growth in South Korea was helped by robust increase
in exports while facilities investments have been
57
gaining more traction. On the other hand,
Singapore’s growth was primarily driven by the
electronics and precision engineering clusters, even
as the transport engineering and general
58
manufacturing clusters continued to contract.
In the ASEAN-5 region, member countries posted
mixed GDP growth rates. The Indonesian economy
recovered at 5.0 percent growth in the reference
quarter driven by improved export performance due
to better commodity prices of coal and palm oil;
expanded investment performance supported by
structure investment in line with the continuing
government infrastructure project and increasing
constructions by private sector; and moderate
55
“Preliminary Accounting Results of GDP for the First Quarter of
2017,” National Bureau of Statistics of China, 18 April 2017
56
“Gross Domestic Product for the 1st Quarter 2017,“ Census and
Statistics Department, Hong Kong, 12 May 2017
57
Press Release on “Recent Economic Developments, “ The Bank
of Korea, 25 May 2017
58
“Economic Survey of Singapore First Quarter 2017,” Ministry of
Trade and Industry Singapore
 59
domestic consumption growth. The Malaysian
economy remained resilient with 5.6 percent growth
during the review quarter, a modest improvement
from the 4.5 percent growth in the previous quarter.
This was supported by the favorable growth in all
sectors of the production side except for mining and
60
quarrying sector. In Thailand, GDP growth
registered at 3.3 percent brought about by
acceleration in private consumption, exports of
goods and service and the continued expansion of
61
total investment. Meanwhile, Vietnam recorded
slightly weaker growth rate in the review quarter at
5.1 percent. The slowdown in Vietnam’s economic
growth was dragged by sharp contraction industrial
sectors particularly in mining and quarrying, and
manufacturing. Manufacturing was greatly affected
by the cancellation of Samsung Galaxy Phone 7
production as Vietnam accounted for a significant
62
portion of the product’s exports.
Average headline inflation has been picking up in
major AEs due to higher commodity prices. Inflation
in the US edged up to 2.5 percent from 1.8 percent
while Japan’s inflation remained at 0.3 percent, and
Euro area inflation climbed to 1.8 percent from
0.7 percent in the previous quarter.
Chart 32. Inflation of G3 Countries
Quarterly average, in percent
Source: Bloomberg, Country Websites
Most emerging Asian economies also recorded
higher inflation in Q1 2017, except for Hong Kong
59
“Economy during the first Quarter of 2017 Improves
(Indonesia),” Bank Indonesia, 5 May 2017
60
Press Release on “Gross Domestic Product First Quarter 2017,“
Malaysia Department of Statistics Malaysia, 19 May 2017
61
National Economic and Social Development Board (NESDB)
Economic Report on “Thai Economic Performance in Q1 and
Outlook in 2017,” Thailand, 15 May 2017
62
“GDP in Vietnam,” Focus Economics
First Quarter 2017 Report on Economic and Financial Developments | 31
and India. Higher petrol prices, expiration of road tax
rebate as well as rise in parking fees and car prices
contributed significantly to Singapore’s average
inflation rate at 0.7 percent. Meanwhile, higher raw
material prices in China as well as efforts to reduce
excess industrial capacity resulted in an increased
average inflation rate at 2.1 percent. South Korea
recorded a higher inflation rate at 2.0 percent during
the review quarter due to faster increased in prices
of food & non-alcoholic beverages, clothing and
footwear, furnishings and household equipment, and
transport. In contrast, average inflation rates in Hong
Kong and India were lower at 0.6 percent and
2.4 percent during the review quarter as compared
to the 1.2 percent, and 2.7 percent in the previous
quarter, respectively.
In the ASEAN-5 region, average inflation rates
generally inched up in Q1 2017, with Malaysia
recording the highest inflation as prices of food and
non-alcoholic beverages and housing and utilities
increased further while cost of transport surged. The
higher inflation in Indonesia was due to the
adjustments in the prices of gasoline and cigarette
products while the rise in non-food and beverage and
domestic retail fuel prices led to Thailand‘s increased
inflation rate. In Vietnam, the price of eight groups
out of eleven groups of commodities increased as
compared to the previous period. These price
increases included that for medicine and health
services; education; housing and construction
materials; transport; family equipment and
appliances; other commodities and services; culture,
entertainment and tourism; and postal services.
Global labor market conditions moderately
improved. The unemployment rate in the Japan and
Euro area eased to 2.9 percent and 9.5 percent,
respectively, during the review quarter while US
unemployment rate remained steady at 4.7 percent.
Chart 33. Unemployment Rates of G3 Countries relative to the year-ago level of P4,405.5 billion
In percent (Table 17). Similarly, the BSP’s liabilities grew by
P50.9 billion or 1.1 percent, q-o-q, to P4,551.6 billion,
and still higher by P188.7 billion or 4.3 percent
compared to the end-March 2016 level.
Consequently, BSP’s net worth for the review period
was reported at P61.1 billion or 4.6 percent above
the quarter-ago level of P58.4 billion, and
significantly greater by 43.2 percent than the year-
ago net worth of P42.6 billion.

Source: Bloomlberg, Country Websites BSP’s net worth improves

In Asia, the unemployment rates in South Korea and from the previous quarter
Singapore slightly inched up to 3.8 percent and
2.3 percent, respectively, while Hong Kong’s The BSP’s assets were composed largely of
remained at 3.3 percent. Likewise, unemployment international reserves amounting to P4,044.1 billion
rate showed a moderate uptick in Thailand as of end- March 2017, 1.2 percent higher than the
(1.2 percent). quarter-ago balance of P3,998.0 billion. The growth
in the international reserves was brought about by
Table F. Macroeconomic Indicators in Selected inflows arising from net foreign currency deposits by
Economies the NG, revaluation adjustments on the BSP’s gold
In percent holdings resulting from the increase in the price of
Country
Real GDP (y-o-y growth rate) Inflation (quarterly average)1/
Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
Unemployment rate2/
Q1 Q2 Q3 Q4 Q1
gold in the international market, and its income from
2016 2016 2016 2016 2017 2016 2016 2016 2016 2017 2016 2016 2016 2016 2017
G3 investments abroad. These were partially offset by
US 1.6 1.3 1.7 2.0 1.9 1.1 1.0 1.1 1.8 2.5 4.9 4.9 4.9 4.7 4.7
Japan
Euro Area
0.2
1.7
0.6
1.6
0.9
1.6
1.7
1.7
1.6
1.7
0.0 -0.4 -0.5
0.0 -0.1 0.3
0.3
0.7
0.3
1.8
3.2 3.2 3.0
10.3 10.1 10.0
3.1
9.7
2.9
9.5
the payments made by the NG for its maturing
Emerging Asia3/
Hong Kong 0.8 1.7 1.9 3.1 4.3 2.8 2.6 3.1 1.2 0.6 3.3 3.4 3.4 3.3 3.3 foreign exchange obligations and by the BSP’s foreign
South Korea 2.8 3.3 2.6 2.3 2.7 1.0 0.9 0.8 1.4 2.0 3.8 3.7 3.8 3.6 3.8
Singapore 2.0 2.0 1.1 2.9 2.7 -0.8 -0.9 -0.4 0.0 0.7 1.9 2.1 2.1 2.2 2.3 exchange operations.
China 6.7 6.7 6.7 6.8 6.9 1.3 1.0 1.3 1.5 2.1 4.0 4.1 4.0 4.0 n.a.
India 7.9 7.1 7.3 7.0 5.7 6.2 5.3 2.7 2.4 n.a. n.a. n.a. n.a. n.a.
ASEAN-54/
Indonesia
Malaysia
4.9
4.2
5.2
4.0
5.0
4.3
4.9
4.5
5.0
5.6
4.3
3.4
3.5
1.9
3.0
1.4
3.3
1.7
3.6
4.3
5.5
3.4
5.5
3.4
5.6
3.5
n.a.
3.5
n.a.
n.a.
As of end-March 2017, the BSP’s liabilities amounted
Philippines 6.8 7.0 7.1 6.6 6.4 1.1 1.5 2.0 2.5 3.1 5.8 6.1 5.4 4.7 6.6
Thailand 3.2 3.5 3.2 3.0 3.3 -0.5 0.3 0.3 0.7 0.9 0.9 1.1 0.9 1.0 1.2 to P4,551.6 billion, comprised mostly of deposits and
Vietnam 5.5 5.5 5.9 6.2 5.1 1.3 2.2 2.8 4.5 5.0 2.1 2.1 2.1 n.a. n.a.
Sources: Bloomberg, Country Websites
1/ Average inflation rate was around -0.03 percent for the second quarter of 2015
currency issues. This amount was above the quarter-
ago level of P4,500.7 billion due mainly to increases
2/ Unemployment rate is the proportion (in percent) of the total number of unemployed as a percentage of the labor force
3/ Includes Emerging Asia countries classified in the July 2016 IMF World Economic Outlook (WEO) Update , plus Hong Kong,
South Korea, and Singapore.

in the Treasurer of the Philippines (TOP) deposit

4/ ASEAN-5 pertains to those countries in the said WEO Update.

account (P90.7 billion), term deposit facility

(P47.4 billion), reserve deposits of other depository
corporations or ODCs (P55.1 billion) and revaluation
Financial Condition of international reserves account (P90.3 billion).
However, these were subdued by the decline in the

of the BSP levels of currency issue (P78.1 billion), as well as the

overnight deposit (P104.7 billion) and reverse
repurchase (P55.3 billion) facilities.

Balance Sheet

The BSP’s total assets stood at P4,612.7 billion as of

end-March 2017, slightly higher by P53.6 billion or
1.2 percent than the quarter-ago level of P4,559.1
billion, and higher by P207.2 billion or 4.7 percent

32 | First Quarter 2017 Report on Economic and Financial Developments

Table G. Balance Sheet of the BSP Table H. Income Position of the BSP
In billion pesos In billion pesos
2017 2016
2017 2016
p u
Mar Dec Mar p u
Q1 Q4 Q1

Assets 4,612.7 4,559.1 4,405.5 Revenues 12.557 12.085 13.167

Liabilities 4,551.6 4,500.7 4,362.9

Less: Expenses 15.588 19.364 16.684
Net Worth 61.1 58.4 42.6 Net Income/(Loss) Before Gain/(Loss)
on FXR
Note: Details may not add up to total due to rounding off.
Based on the tentative BSP Financial Statements (FS) as of
Fluctuations and Income Tax
p
end-March 2017. Expense/(Benefit) (3.031) (7.279) (3.517)

Based on the unaudited pre-closing BSP FS as of end- Gain/(Loss) on Foreign Exchange

u
December 2016.. Rate Fluctuations 4.695 10.413 3.673
p&u Figures may change once the end-2016 FS become final and
audited. Income Tax Expense/(Benefit) - 0.104 -

Source: BSP Net Income/(Loss) After Tax 1.664 3.030 0.156

Note: Details may not add up to total due to rounding off.
p Based on the tentative BSP Financial Statements (FS) as of end-
March 2017.

Income Statement u Based on the unaudited pre-closing BSP FS as of end-December

Based on preliminary and unaudited data, the BSP
registered a net income of P1.7 billion for Q1 2017,
lower than the previous quarter’s net income of
P3.0 billion. Net income continued to be supported
by foreign exchange gains which amounted to
P4.7 billion for Q1 2017 (Table 18).
BSP registers net income in
Q1 2017
Total revenues for Q1 2017 amounted to
P12.6 billion, 3.9 percent higher than the P12.1
billion posted in the previous quarter, as income on
reserves and domestic securities rose to a combined
P11.8 billion from the previous quarter’s level of
P11.5 billion.
Meanwhile, total expenditures decreased by
P3.8 billion to P15.6 billion. The q-o-q decline in
expenditures was mainly brought about by lower
interest expenses on overnight deposit facility and
cost of minting/ printing of currency.
First Quarter 2017 Report on Economic and Financial Developments | 33
2016.
p&u Figures may change once the end-2016 FS become final and
audited.
Source: BSP
Conclusion,
Challenges and
Future Policy
Directions
On the whole, the Philippine economy is in a position
of strength, characterized by broad-based growth,
within-target inflation environment, ample liquidity
and credit, sound banking system, healthy external
payments position, and adequate level of reserves.
Over the medium term, the Philippines is expected to
sustain its economic growth momentum, supported
by various sectors of the economy. Growth is
expected to settle within the DBCC-approved
medium-term assumption of 6.5 percent to
7.5 percent in 2017 and 7.0 percent to 8.0 percent in
2018-2022. On the demand side, the domestic
economy’s expansion could be driven by solid
household consumption (boosted by strong
consumer confidence, sustained remittance inflows,
and relatively low inflation), step-up in government
spending (supported by expansion of infrastructure
projects and social protection programs), more
investments and exports (supported by recovery in
the global economy, closer ASEAN economic
integration, improving bilateral relations with China,
and good prospects for Business Process
Management or BPM) and improved tourism. On the
supply side, domestic growth could likewise be
sourced from the different sectors of the economy
such as construction and infrastructure development,
resurgence of manufacturing, BPM, tourism, as well
as wholesale and retail trade.
While the country’s progress toward a high growth
trajectory appears to be on track, several external
and domestic developments have posed potential
risks and challenges to the economic outlook.
The IMF expects global economic growth to rise from
3.1 percent in 2016 to 3.5 percent in 2017 and
3.6 percent in 2018. Most of the projected pickup in
global growth will still stem from stronger activity in
emerging markets (EMs) even with the observed
63
stronger-than-expected growth in AEs.
However, the global economic recovery in the near-
term remains fragile, with elevated policy uncertainty
including the Brexit process and inward-looking
agenda in some advanced economies. A possible shift
towards protectionist policies could be disruptive to
trade and financial flows as well as migration. These
policies could have important implications for
Philippine remittances, offshoring/outsourcing
industry, and trade.
The continued normalization in US interest rates
could influence investment strategies and lead to
portfolio rebalancing, resulting in capital outflows
from EMs and exchange rate pressures in these
economies. Data from the Institute of International
Finance (IIF) showed capital flows reversing in EMs
since October 2016, persisting towards the end of
the year as the US Fed raised its policy rate in
December 2016. The Philippines also experienced
similar capital outflows during the same period which
63 IMF (2017). World Economic Outlook, April 2017.
34 | First Quarter 2017 Report on Economic and Financial Developments
continued in the first three months of 2017. After the
increase in the Fed funds rates during the US Federal
Reserve’s FOMC March 2017 meeting, markets
continue to expect two more rate hikes for the rest
of the year.
Another risk to the global economy is the protracted
slowdown of the Chinese economy. The rebalancing
of growth sources in China has continued but
vulnerabilities in the financial system remain due to
the rapid expansion of its credit. Adverse
developments in China have the potential to
generate negative spillovers for the Philippines given
the increasing bilateral relations between the two
economies in recent years.
In the domestic sphere, the impact of severe weather
disturbances and the infrastructure gaps remain as
important challenges.
On the inflation outlook, latest forecasts show that
inflation would likely settle within the target range of
3.0 percent ± 1.0 percentage point in 2017-2018. The
path of inflation is projected to rise close to the high-
end of the target range in the third quarter of 2017,
driven by weaker exchange rate and continued
strength in domestic economic activity before
reverting back to the midpoint of the target range in
2018. On one hand, the upside risks to inflation
forecasts include possible adjustments in electricity
rates as well as the initial impact of the government’s
proposed tax reform program. On the other hand,
uncertainty over global growth prospects continues
to pose a key downside risk to the inflation outlook.
Meanwhile, inflation expectations continue to be
broadly anchored to the inflation target over the
policy horizon.
Amid the uncertainties engulfing the global
environment, the government remains focused on
strengthening anchors and building defenses to
protect the economy from negative surprises and
buoy its sustainable growth momentum. First, on the
fiscal front, there is elbow room for fiscal authorities
to further boost public spending. The narrowing
debt-to-GDP ratio affords the government to
increase the fiscal deficit-to-GDP ratio target to
3.0 percent for 2017-2022. The NG is keen on
implementing its tax-reform agenda by pushing for
the passage of the Tax Reform for Acceleration and
64
Inclusion Act (TRAIN). This allows greater flexibility
to accelerate infrastructure spending and
investments in human capital, and pursue much-
needed structural reform agenda, steering a stronger
and more inclusive Philippine economy.
Second, there is enough leg room for monetary
policy to support economic activity while ensuring
price stability. Future monetary policy decisions will
remain data-dependent. The BSP continues to be
vigilant against any risks to the inflation outlook and
will adjust policy settings as needed to ensure future
inflation remains consistent with the target while
being supportive of sustainable growth.
The BSP adopted operational reforms through the
introduction of interest rate corridor (IRC) system on
3 June 2016 to further enhance monetary policy
transmission. Since its implementation in June 2016,
market reception to the IRC system has been
positive. Market participants have adjusted relatively
quickly to the new framework for the monetary
operations of the BSP. Banks and trust institutions
are participating actively in the open market
operations, specifically, in the TDF auctions. Auctions
for both the 7-day and 28-day term deposits have
been relatively well-subscribed, reflecting the
sustained ample liquidity in the financial system.
Going forward, the BSP will continue to keep a
watchful eye over how domestic and external
developments will evolve to ensure that an enabling
monetary and financial environment is maintained to
achieve the country’s growth objectives, while
safeguarding price and financial stability.
The BSP is also equipped to help mitigate the adverse
impact of capital outflows on the domestic economy
by ensuring adequate level of liquidity in the
economy and the financial markets during periods of
heightened uncertainty and increased risk aversion.
While guarding against speculative flows that could
contribute to the peso’s volatility and undermine the
64
TRAIN contains the first package of the Department of Finance-
proposed comprehensive tax-reform program, which aims to
lower personal income-tax rates and implement offsetting
measures, like broadening the taxpayer base, limiting value-added
tax (VAT) exemptions, and increasing excise taxes on automobiles
and oil and fuel products.
First Quarter 2017 Report on Economic and Financial Developments | 35
inflation target, the BSP will continue to maintain a
market-determined exchange rate and a comfortable
level of international reserves as safeguard against
external shocks.
The BSP also continues to further refine and expand
its crises surveillance and monitoring toolkit as well
as its risk assessment framework in order to guard
against possible formation of financial imbalances
and ensure timely policy response. At the same time,
the BSP coordinates with other government agencies
through the Financial Stability Coordination Council
65
(FSCC) on issues pertaining to financial stability.
The FSCC is tasked to identify, manage, prevent or
address external and internal shocks and pressures
on the Philippine financial system.
The sound and stable condition of the Philippine
banking system has been one of the anchors of the
sustained robust performance of the domestic
economy. The state of the country’s financial system,
at present, is grounded on the structural and
regulatory reforms pursued by the BSP over the
years. This reform momentum will be further
sustained with a view to toughen its resilience
against shocks as well as to boost its role as a catalyst
for durable long-term economic growth. To this end,
the BSP will continue to ensure that a sound
regulatory framework, that would allow Philippine
banks to cope with challenges related to global
financial volatilities, is in place.
The BSP will also continue to pursue reforms
promoting effective risk management, a stronger
capital base and improved corporate governance
standards, which are essential ingredients to
ensuring stability in the financial system. The BSP will
continue to craft banking regulations that are
responsive, consistent with best practices and in line
with the international financial architecture reform
agenda.
In addition, the BSP will continue to actively pursue
initiatives to promote a deeper domestic capital
market that will complement the presence of a
65
The Financial Stability Coordination Council (FSCC) is a voluntary
interagency body created on 4 October 2011 and is composed of
the Securities and Exchange Commission (SEC), the Insurance
Commission (IC), the Philippine Deposit Insurance Corporation
(PDIC), and the BSP.
resilient banking system. The policy thrust is to focus
on enhancing further the infrastructure and the
regulatory framework for capital market transactions
to promote efficiency in trading, settlement and
delivery of securities. At the same time, the BSP will
continue to adopt policies and programs that would
help develop a sound, responsive, and inclusive
financial system that will broaden the access of the
underserved and the unbanked segments of our
population to the financial sector. Among the key
strategies in the BSP’s financial inclusion agenda are
putting in place banking regulations that leverage on
technology to increase access to financial products;
strengthening financial consumer protection; and
raising financial education and awareness to new
financial products and modes of delivery.

The BSP will likewise remain proactive in ensuring the

credibility and promoting a safe, sound and efficient
payments and settlements system with the
continued enhancement of its processes and
provision of necessary infrastructure through the
operation of the Philippines’ real time gross
settlement system or the PhilPaSS.

Finally, amid the increasing interconnectedness of

global financial markets, the BSP will remain an
active participant in regional and international
cooperation programs and fora, in order to reap the
benefits of collaborative engagement.

36 | First Quarter 2017 Report on Economic and Financial Developments

Annexes
system’s safeguards against money laundering (ML)
and terrorist financing (TF) balanced against the
objective of also promoting financial inclusion of the
unbanked.

Annex A. Banking Policies

Primary considerations in effecting the amendments
were the latest Revised Implementing Rules and
Disclosure of Domestic Remittance Charges by All
Regulations of the Anti-Money Laundering Act, as
BSP-Supervised Entities with Domestic Remittance
amended, which took effect on 7 January 2017;
Transactions (BSP Circular No. 952 dated 22 March
lessons learned from recent ML/TF cases; and the
2017)
latest Financial Action Task Force (FATF)
Recommendations and Guidance Papers, particularly
The MB approved a regulation that seeks to level the
on applying a risk-based approach to AML/CFT
playing field between banks and other non-bank BSP-
standards and striking a balance between financial
supervised entities that offer domestic remittance
integrity and financial inclusion.
transactions.
The revised regulations emphasize the importance of
Last year, BSP Circular No. 928 was issued to amend
a sound ML/TF risk assessment, the foundation of a
regulations governing fees on retail bank products
proportionate, risk-based approach, to appropriately
and services, including dormant deposit accounts.
focus greater efforts and resources on areas posing
This Circular also required banks to charge all
higher risks, while reducing these for low-risk
remittance fees upfront so that the sender is aware
transactions. Requirements for group-wide AML
of the full cost of the transaction, and the exact
compliance function and monitoring systems are
amount to be received by the beneficiary. The
incorporated for a holistic management and
intention is to improve the transparency of
prevention of ML/TF risks.
remittance charges and enable consumers to
determine the most cost-efficient means of sending
The amendments feature refinements in the conduct
remittances.
of customer due diligence, more pragmatic definition
of “official document” and the use of other reliable,
The recently approved regulation will make the
independent source documents, data or information
aforementioned provision of BSP Circular No. 928
for customer identification and verification. The new
applicable to all non-bank BSP-supervised entities
rules likewise introduced the concept of a “restricted
that offer domestic remittance transactions.
account” to cater to targeted unbanked sector,
wherein minimal customer information are required
This is in line with the objective of the BSP to foster a
subject to certain conditions, such as constraints in
robust consumer regulatory environment to enable
terms of activity. These will provide much greater
citizens to make wiser financial decisions and to
flexibility in on-boarding unbanked customers,
contribute actively to the promotion of financial
especially in rural areas where official IDs are not
stability.
prevalent.

Amendments to the Anti-Money Laundering

With the advent of new technologies in the financial
Regulations of the Manual of Regulations for Banks
system, the new rules recognize and allow the use of
and Manual of Regulations for Non-Bank Financial
information and communication technology in the
Institutions (BSP Circular No. 950 dated 15 March
conduct of customer identification subject to
2017)
implementation of appropriate measures to manage
attendant risks.
The MB recently approved the amendments to BSP’s
AML/CFT (Anti-Money Laundering-Combating the
Finally, to realize desired change towards effective
Financing of Terrorism) regulations. This is part of
implementation, escalation of supervisory
the BSP’s ongoing efforts to strengthen the financial

First Quarter 2017 Report on Economic and Financial Developments | 37

enforcement action is introduced in cases of
heightened AML/CFT supervisory concerns as
reflected in the overall AML risk rating of the covered
person.
To facilitate transition, covered persons are allowed
six months from effectivity of the revised regulations
to update their AML/CFT policies.
Guidelines on Social Media Risk Management (BSP
Circular No. 949 dated 15 March 2017)
In line with the BSP’s thrust to foster a balanced and
coherent approach to innovation, the MB recently
approved the issuance of pioneering guidelines on
social media risk management that advocate
responsible use of social media by BSP Supervised
Financial Institutions (BSFIs). BSP recognizes that
social media presents vast potential benefits and
opportunities for greater economic advancement
and financial inclusion. The guidelines ensure that
the necessary safeguards, governance structure and
standards are in place to effectively manage the
associated risks.
The issuance is timely and suitable considering that
the Philippines, with over 48 million active social
media accounts (or 47 percent of the entire
population), is currently one of the world’s fastest
growing nations in terms of social media usage and
level of engagement across various social media
platforms. Likewise, BSFIs have been aggressively
leveraging on social media platforms for marketing,
offering of innovative financial products and services
and engaging their customers and stakeholders.
At the back of this evolving and increasingly dynamic
operating environment, the new regulation
underscores the importance of having a well-defined
social media risk management strategy aligned with
BSFIs’ strategic business goals/plans. Depending on
the extent and degree of social media usage, the BSP
Circular requires BSFIs to adopt commensurate risk
management mechanisms and governance structure
to effectively identify, measure, manage, and
monitor risks arising from social media
platforms. Aside from ensuring that the pertinent
legal, reputational, strategic, operational, and
compliance risks are addressed, the new guidelines
38 | First Quarter 2017 Report on Economic and Financial Developments
highlight added dimensions to these traditional risks
which BSFIs need to consider in designing their social
media risk management program. These include the
growing threats on information security and fraud
such as account take over, malware attacks, and
phishing and spoofing schemes, among others.
A BSFI’s social media risk management program
should, at a minimum, be able to address potential
reputational risks as well as provide guidance on
acceptable use of social media by employees,
whether for official or personal purposes. BSFIs, in
formulating and implementing their social media
policies, should see to it that existing rules and
regulations on financial consumer protection, cyber-
security, outsourcing and anti-money laundering,
among others, are complied with.
Amendments to the Manual of Regulations for
Banks (BSP Circular No. 948 dated 1 March 2017)
The Philippine Clearing House Corporation (PCHC)
issued on 24 January 2017 a Memorandum to All
Clearing Banks/Institutions clarifying the advisories
previously issued with regard to the handling of
checks under the new Check Image Clearing System
or CICS.
Memorandum Circular No. 3306 clarifies that the
reminders stated in the Advisories are issued
primarily for the protection of the customers. Non-
conformity with the reminders should not be a
reason for non-acceptance of the checks.
PCHC specifically states that checks which are folded
or have staple holes should be accepted by banks as
long as the image and the information on the check
are still clearly visible upon unfolding or inspection.
Further, checks without the word “only” after the
amount written on the check, with empty spaces not
ruled out, or information not written in dark-colored
ink should not be reasons for non-acceptance by
banks. No standard format on the date on the
checks is required.
The BSP enjoins banks to remain prudent in
implementing the new check clearing process but at
the same time not too rigid in accepting checks.
The BSP upholds consumer protection and promotes
efficient payment systems which are ingredients in
maintaining financial stability.
Supervisory Policy on the Grant of a
License/Authority (BSP Circular No. 947 dated 15
February 2017)
Consistent the with BSP mandate to promote a safe
and sound banking system, the MB approved the
enhanced Supervisory Policy on the Grant of a
License/Authority (Licensing Policy) to strengthen
and align its screening function with international
standards and provide more consistency in how the
risk-focused supervision is applied to the licensing
process. This will also rationalize and streamline the
criteria that BSFI need to comply with to facilitate
ease of doing business. The BSP thereby reaffirmed
its policy of not restricting the scope of risk-taking
activities of BSFIs, provided the licenses and/or
authorities are in line with their business model and
strategic direction, and the BSFIs demonstrate the
capacity to implement these strategies and the ability
to manage attendant risks.
The enhanced Licensing Policy sets forth BSP’s
expectations and criteria in granting licenses and/or
authorities, as well as the right to reject applications
that do not meet the criteria and/or deploy
appropriate enforcement actions against BSFIs that
no longer meet the criteria or standards. To be
eligible, BSFIs are expected to meet three basic
prudential criteria (i.e. CAMELS rating of at least “3”;
governance and independent control functions that
meet what is considered appropriate given the BSFI’s
size, complexity of activities and risk profile; and
compliance with BSP directives). These criteria are
intended to incorporate the licensing process into
BSP’s enforcement regime, anchored on good
governance, sound risk management system and
effective controls system.
The enhanced Licensing Policy features a 3-tier
licensing system to facilitate ease of doing business
and submission of applications. Type A category are
license applications where compliance with the
prudential screening criteria is a pre-condition for the
applicant BSFI to be considered eligible. Type B
category are license applications that do not require
First Quarter 2017 Report on Economic and Financial Developments | 39
compliance with prudential screening criteria. Type C
categories are for activities which no longer require
prior BSP approval but subject to submission of
reports/certification/notification that pre-
qualification requirements are met. Along with the
rationalized and simplified prudential criteria, the 3-
tier licensing system promotes transparency of the
licensing process and facilitates much faster action
on applications.
Guidelines for Virtual Currency (VC) Exchanges (BSP
Circular No. 944 dated 06 February 2017)
Consistent with the policy of the BSP to provide an
environment that encourages financial innovation
while at the same time ensuring that (1) the
Philippines shall not be used for ML or terrorist TF
activities, and (2) the financial system and financial
consumers are adequately protected, the MB
recently approved the regulatory framework for VC
exchanges and similar entities operating in the
Philippines.
The MB decided to move ahead in adopting a formal
regulatory framework and in recognition of the rapid
growth of VC-based payments and remittance
transactions. Such transactions were estimated at
around US$ 5 - 6 million per month for certain major
players.
The new regulation, a pioneer in Asia, seeks to
balance the interests of promoting technological
innovations with the potential to improve the level of
inclusion and efficiency in the financial system, and
to proactively address emerging risks to the system
arising out of these new technologies. Specifically, it
does not cover VC creators but only focuses on
entities facilitating the conversion or exchange of any
VC into fiat currency or vice versa. Such VC exchanges
serve as the crucial link of VCs with the financial
system.
Conceptually, these VC exchanges are considered to
be and are similarly treated as companies offering
money or value transfer services. The latter are
classified as remittance and transfer companies
(RTCs) under the new BSP framework for money
service businesses. Thus, the basic requirements for
RTCs such as, registration, minimum capital, internal
controls, regulatory reports and compliance with the
Anti-Money Laundering Act, as amended, and its
implementing rules and regulations, shall likewise
apply to VC exchanges. The approach is essentially
aligned with the June 2015 Financial Action Task
Force Guidance for a Risk-Based Approach to VCs. It
also promotes a level regulatory playing field for
financial service providers performing similar
services.
VC exchanges are required to execute a Deed of
Undertaking to implement, among others, minimum
standards of consumer protection. Transactional
requirements for large value pay-outs were also
adopted to manage ML/TF risk. Finally, technology
risk management is a minimum requirement for VC
exchanges given the nature of their business.
Major violations of specific provisions of the VC
exchange regulatory framework as well as non-
compliance with the Deed of Undertaking will be
penalized and may result in the cancellation of the
BSP Certificate of Registration or other applicable
sanctions depending on the gravity. BSP-registered
financial institutions, particularly banks, are
prohibited from dealing with unregistered VC
exchanges or similar entities.
Extension of the Basel III Leverage Ratio Monitoring
Period (BSP Circular No. 943 dated 26 January 2017)
The MB deferred by one year the full adoption of the
Basel III leverage ratio standard in view of recent
revisions to the said global standard by the Basel
Committee on Banking Supervision (BCBS). Under
Circular No. 881 dated 9 June 2015, U/KBs and their
subsidiaries had been scheduled to wind-up the
monitoring period and begin adhering to the five
percent minimum leverage ratio by 01 January 2017.
The MB decided on the deferment considering BCBS’
issuance of the consultative document, “Revisions to
the Basel III leverage ratio framework” in April 2016.
The BCBS is set to finalize the said document by end-
2016. In relation to this, the MB also extended the
monitoring period for the leverage ratio until 31
December 2017. The additional year for monitoring
provides more time for banks to calibrate their
exposures in view of the requirements.
40 | First Quarter 2017 Report on Economic and Financial Developments
Under Basel III, the leverage ratio acts as a
supplementary measure to the risk-based CAR. It
serves as a simple, non-risk-based “backstop”
measure that intends to restrict the build-up of
leverage in the banking system. The leverage ratio
relates the level of a bank’s Tier 1 capital against its
total exposures. Effectively, this means that the
maximum exposure that a bank can keep is 20x its
Tier 1 capital.
Basel III reforms are integral to the banking reform
agenda of the BSP which is ultimately aimed at
promoting financial stability.
Amendment to Section 4511N of the Manual of
Regulations for Non-Bank Financial Institutions (BSP
Circular No. 942 dated 20 January 2017)
The MB has approved an updated comprehensive
framework aimed at enhancing BSP oversight over
the operations of Money Service Businesses (MSBs)
[i.e. RTCs, Money Changers (MCs)/Foreign Exchange
Dealers (FXDs)], for the primary purpose of
promoting more effective compliance with the Anti-
Money Laundering Law, as amended, and its
Implementing Rules and Regulations.
As of June 2016, there were more than 18,000 BSP-
registered MSBs (5,300 head offices and 12,700
branches), 6,700 of which are also BSP-authorized
pawnshops. The MSB in the Philippines is
continuously growing and evolving to support the
expanding needs of its customers. It now includes,
among others, the electronic money business
subsidiaries of telecommunication companies.
Under the new rules, the BSP will regulate all RTCs
such as Remittance Agents, Remittance Platform
Providers, and E-money Issuers. RTCs and other MSBs
are now required to notify the BSP in cases of:
commencement of operations, new accreditation of
Remittance Sub-agents (RSAs), change of tie-up
partner/s, transfer of location, and closure of
business. They shall be further required to obtain
prior BSP approval in the event of change in
ownership or control. They shall also submit activity
level reports to the BSP. Finally, the new rules require
MSBs to register with the Anti-Money Laundering
Council Secretariat for purposes of covered and
suspicious transactions reporting.
Since MSBs are numerous but generally
interconnected, BSP will adopt a network-based
regulatory approach. Under this approach, an entity
that operates an MSB especially a remittance
business shall be held responsible for monitoring the
operations of its remittance network for compliance
with rules and regulations as well as for their
accreditation and training. The new framework also
introduces different classifications of MSBs
depending on their average monthly network volume
of transactions. There will be corresponding
minimum capital requirement for each type.
Registration fees and annual service fees shall also be
based on the said classification scheme.
MSBs are required as part of the registration process,
to execute a Deed of Undertaking, which includes,
among others, compliance with all the provisions
of the Anti-Money Laundering Act of 2001 (Republic
Act No. 9160, as amended) and its revised
implementing rules and regulations as well as the
implementing rules issued by the BSP, and adoption
of the minimum standards of consumer protection in
the areas of disclosure and transparency, protection
of client information, fair treatment, effective
recourse, and financial education.
Existing MSB operators are given six months from the
date of the effectivity of the new regulations to
secure BSP registration. Upon the expiration of the
transitory period, all Certificates of Registration
(COR) previously issued by the BSP shall be
considered automatically cancelled. Banks are
prohibited from doing business with unregistered
MSBs.
The BSP is also limiting the ability of MSBs to transact
in cash. Large value pay-outs of more than P500,000
or its foreign currency equivalent, in any single
transaction with customers or counterparties, shall
only be made via check payment or direct credit to
deposit accounts. Also, FXDs/MCs shall be allowed to
sell foreign currencies in the amount not exceeding
US$10,000 or its equivalent and not to exceed
US$50,000, or its equivalent per month per
customer. However, exemption or higher limits may
First Quarter 2017 Report on Economic and Financial Developments | 41
be granted by the BSP upon application if justified by
the business model of the FXDs/MCs.
Major violation/s of specific provisions of the new
regulation and non-compliance with the Deed of
Undertaking may result in the cancellation of the BSP
COR or other sanctions depending on the gravity.
The recently approved MSB oversight framework is
part of the package of reforms being instituted by the
BSP to promote a more responsive regulatory
environment for non-bank financial institutions
under the BSP’s jurisdiction.
Amendments to the Regulations on Past Due and
Non-Performing Loans (BSP Circular No. 941 dated
20 January 2017)
The MB has approved the amendments to the
regulatory definitions of past due and non-
performing exposures, including restructured loans,
to align with predominant global conventions and to
achieve internal consistency of classification across
all types of loan products regardless of payment
schedule. These refined definitions are part of a
series of reforms instituted by the BSFI. The revised
definitions are likewise intended to complement the
BSFIs’ credit risk management as part of their
internal credit rating and classification systems.
Under the new definition, the general rule is that an
account that does not pay on contractual due date is
deemed past due the following day. However, BSFIs
are allowed to provide for a cure period policy on a
credit product-specific basis within which clients may
be allowed to catch up on a late payment without
being considered as past due, provided that the cure
period policy is based on actual collection experience
and reasonable judgment that support tolerance of
occasional payment delays.
On the other hand, an account or exposure is
considered non-performing, even without any missed
contractual payments, when it is deemed impaired
under existing applicable accounting standards,
classified as doubtful or loss, in litigation, and/or
there is evidence that full repayment of principal and
interest is unlikely without foreclosure of collateral,
in the case of secured accounts. All other accounts,
even if not considered impaired, shall be considered relaxed existing regulations on deposit taking
non-performing if any contractual principal and/or activities outside bank premises.
interest are past due for more than ninety (90) days,
or accrued interests for more than 90 days have been Under the new regulations, banks are now allowed,
capitalized, refinanced, or delayed by agreement. with prior BSP authorization, to serve clients through
cash agents contracted by banks to accept and
Shown below is a comparison of the revised against disburse cash in its behalf, facilitating online self-
the existing guidelines based on the mode of service deposits, withdrawals and fund transfers, as
payment: well as bills payment. Cash agents can also perform
Know-Your-Customer procedures as well as collect
COMPARISON WITH THE OLD POLICY BASED ON THE MODE OF PAYMENT and forward application documents for loan and
New Policy Old Policy account opening. They may also sell and service
Mode of Payment Past Due NPL Past Due NPL
insurance as may be authorized by the Insurance
3 Installments unpaid
Monthly
installment for more than 90 Commission. These cash agents are typically cash
Installment
s missed days
1 day after due date Past due for
rich third party entities with many outlets that
Quaterly/ 1
Semestral/
excluding cure more than
installment conduct regular business in fixed locations anywhere
period, if any 90 days Past due for more
Annual missed
than 30 days
in the country, such as convenience stores,
Not paid at
At Maturity
maturity
pharmacies and other highly accessible retail outlets.
Arrears is
Daily/weekly/
10% of O/S Upon past due
semi-monthly
balance
Cash agents enable banks to leverage on innovative
1 day after contractual due
date; 11th day if with cure period 1 digital solutions to serve a wider client base,
Microfinance
(PAR)
installment Upon past due
particularly in the low-income and rural areas where
there is limited commercial incentive to establish a
full branch or even a micro-banking office
The revised policy also provides a clearer basis for a
(MBO). Through this new cost-efficient service
restructured loan as its definition now includes the
channel, serving the currently unbanked and low-
purpose for restructuring, which is to lessen the
income segments can become more viable and
financial difficulty of the borrower and maximize
sustainable for banks. Data from the BSP shows that
collection and realizable economic value on an
more than 36% of all the municipalities in the
obligation within a reasonable period of time.
country have no banking presence although most of
these are served by a variety of non-bank financial
To facilitate transition, BSFIs are given until 31
institutions like pawnshops, cooperatives, and
December 2017 to make the necessary revisions in
lending investors.
their management information and reporting
systems relating to their past due and non-
In addition to these new service delivery models, the
performing exposures. Effective 01 January 2018,
MB also relaxed existing regulations on offsite
past due and non-performing exposures shall be
deposit servicing as well as deposit solicitation, by
mandatorily reported in accordance with the
removing highly prescriptive operational
requirements of the revised policy.
requirements and conditions before banks may
engage and offer these services. The amended
Guidelines on Deposit and Cash Servicing Outside of
regulations provide banks with more flexibility in
Bank Premises (BSP Circular No. 940 dated 20
designing appropriate and cost-efficient ways to
January 2017)
render deposit pick-up and delivery services and as a
result, enhance client experience.
In line with the thrust of the BSP to create an
enabling regulatory environment for innovations and
To ensure the safety and soundness of banks as well
allow banks to exponentially expand reach and serve
as to uphold consumer protection, the guidelines
clients more efficiently, the MB recently approved
emphasize banks’ responsibility for ensuring the
the guidelines for new bank service channels and
adequacy of risk management and internal control

42 | First Quarter 2017 Report on Economic and Financial Developments

systems for these liberalized deposit servicing
activities. The BSP will evaluate the quality and
sufficiency of these risk management and control
systems before granting authorization to perform
banking services outside bank premises.
Annex B. Capital Market Reforms66
Philippine Stock Exchange (PSE) pushes structural
reforms
· In February, the PSE and Dragonpay Corporation
formally launched PSE's e-payment system
aimed to expand available payment channels for
its retail data clients and improve convenience in
purchasing PSE products and services. Under the
agreement, the PSE will utilize Dragonpay’s e-
payment system to process the purchase of
retail data and PSE reports, certification of stock
price for investors and certificate of good
standing for listed companies. The system will
also enable real-time tracking of payment and
generation of electronic report to effectively
monitor transactions.
· In the same month, the PSE inked a
Memorandum of Agreement (MOA) with the
Public-Private Partnership (PPP) Center of the
Philippines that will formalize its partnership for
information sharing to facilitate the processing
of listing applications.
950, Series of 2017 containing the amendments
to Anti-Money Laundering-Combating the
Financing of Terrorism (AML/CFT) regulations.
One of the major changes was aimed at
enhancing BSP oversight over the operations of
MSBs such as RTCs, money changers or foreign
exchange dealers.
· The new rules likewise featured refinements in
the conduct of customer due diligence, more
pragmatic definition of “official document” and
the use of other reliable, independent source
documents, data or information for customer
identification and verification.
· In February, the BSP adopted a formal regulatory
framework for VC in recognition of the rapid
growth of VC-based payments and remittance
transactions. The new regulation seeks to
balance the interests of promoting technological
innovations with the potential to improve the
level of inclusion and efficiency in the financial
system, and to proactively address emerging
risks to the system arising out of these new
technologies.

· In March, the PSE signed an agreement with the

Bankers Association of the Philippines (BAP) to
resume discussions on the purchase of BAP's
28.9 percent stake in the Philippine Dealings
System Holdings Corporation (PDS). The PSE and
BAP intend to sign a new Share Purchase
Agreement that will outline the terms of the
acquisition, including securing the necessary
regulatory approvals.

BSP strengthens regulatory frameworks

· In January, the BSP approved an updated

comprehensive framework under Circular No.

66
Source: Bangko Sentral ng Pilipinas, and Philippine Stock
Exchange Q1 2017 Media Releases.

First Quarter 2017 Report on Economic and Financial Developments | 43

 Report on Economic and Financial Developments – First Quarter 2017
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
1 GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN
for periods indicated

LEVELS (in billion pesos; at constant 2000 prices)

2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Agriculture, Hunting, Forestry and Fishing 179.7 167.0 155.8 216.3 181.4 166.9 155.6 215.8 173.6 163.6 160.2 213.0 182.1
Industry 561.3 614.6 558.1 657.3 592.4 654.6 594.7 703.8 647.4 704.4 646.9 759.6 686.7
Mining and Quarrying 21.7 30.3 16.4 13.3 21.1 27.7 16.4 15.2 23.5 26.6 16.1 16.9 18.8
Manufacturing 400.8 414.7 378.6 472.4 425.0 434.2 400.7 501.2 459.0 461.1 428.0 536.2 493.6
Construction 87.3 109.0 98.5 114.5 91.8 129.5 108.0 127.7 104.8 147.0 126.6 141.4 113.4
Electricity, Gas and Water Supply 51.5 60.6 64.6 57.2 54.4 63.2 69.6 59.7 60.0 69.8 76.2 65.2 60.8
Services 941.0 1,052.3 1,001.4 1,060.6 993.6 1,123.2 1,074.1 1,144.1 1,068.4 1,215.1 1,147.3 1,226.7 1,141.1
Transportation, Storage and Communication 130.0 144.0 119.1 144.9 141.0 153.6 128.7 158.1 148.4 164.4 134.6 168.2 155.6
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 255.2 288.4 312.0 330.2 270.3 307.6 338.3 354.3 290.7 334.9 359.7 377.4 311.4
Financial Intermediation 125.5 136.7 124.0 129.2 130.9 144.6 130.7 140.4 143.7 154.6 141.8 148.1 154.3
Real Estate, Renting and Busines Activities 181.2 208.7 204.5 203.6 192.6 222.3 220.5 219.3 209.4 241.8 240.1 239.2 223.8
Public Administration and Defense;
Compulsory Social Security 69.0 83.4 71.2 70.3 66.2 82.8 73.1 75.4 69.7 88.1 75.7 85.4 73.5
Other Services 180.1 191.1 170.6 182.4 192.5 212.3 183.0 196.5 206.7 231.4 195.4 208.2 222.5
Gross Domestic Product 1,682.0 1,833.8 1,715.4 1,934.3 1,767.4 1,944.7 1,824.4 2,063.7 1,889.4 2,083.2 1,954.5 2,199.3 2,009.9
Net Primary Income 372.0 365.0 358.5 379.3 381.3 372.7 377.5 411.5 417.1 395.3 393.0 425.0 433.5
Gross National Income 2,054.0 2,198.8 2,073.9 2,313.5 2,148.7 2,317.4 2,201.9 2,475.2 2,306.5 2,478.5 2,347.5 2,624.3 2,443.4

ANNUAL CHANGE (in percent)

2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Agriculture, Hunting, Forestry and Fishing 0.9 3.3 -2.3 4.1 1.0 -0.1 -0.1 -0.2 -4.3 -2.0 3.0 -1.3 4.9
Industry 4.8 9.0 7.8 9.2 5.5 6.5 6.5 7.1 9.3 7.6 8.8 7.9 6.1
Mining and Quarrying 17.4 10.8 12.7 6.3 -2.5 -8.6 0.5 14.0 11.4 -4.0 -2.0 10.8 -20.0
Manufacturing 7.0 11.1 7.5 7.7 6.0 4.7 5.8 6.1 8.0 6.2 6.8 7.0 7.5
Construction -4.2 3.9 12.0 17.1 5.1 18.8 9.6 11.6 14.2 13.5 17.2 10.7 8.2
Electricity, Gas and Water Supply 0.5 4.3 2.5 7.4 5.8 4.4 7.7 4.5 10.2 10.3 9.6 9.2 1.4
Services 7.0 6.0 5.7 5.5 5.6 6.7 7.3 7.9 7.5 8.2 6.8 7.2 6.8
Transportation, Storage and Communication 8.2 6.8 5.3 5.5 8.4 6.6 8.0 9.1 5.3 7.0 4.6 6.4 4.9
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 6.3 6.7 7.0 3.4 5.9 6.7 8.4 7.3 7.5 8.9 6.3 6.5 7.1
Financial Intermediation 5.7 6.1 8.4 8.9 4.3 5.8 5.4 8.7 9.7 6.9 8.5 5.5 7.4
Real Estate, Renting and Busines Activities 9.5 7.9 5.9 8.9 6.3 6.5 7.8 7.7 8.7 8.8 8.9 9.1 6.9
Public Administration and Defense;
Compulsory Social Security 7.0 1.8 -2.4 11.5 -4.0 -0.7 2.6 7.3 5.2 6.4 3.7 13.3 5.5
Other Services 5.5 4.3 5.0 1.5 6.9 11.1 7.3 7.7 7.3 9.0 6.8 6.0 7.6
Gross Domestic Product 5.6 6.8 5.6 6.6 5.1 6.0 6.4 6.7 6.9 7.1 7.1 6.6 6.4
Net Primary Income 11.4 9.6 -1.9 2.7 2.5 2.1 5.3 8.5 9.4 6.1 4.1 3.3 3.9
Gross National Income 6.6 7.2 4.2 5.9 4.6 5.4 6.2 7.0 7.3 7.0 6.6 6.0 5.9

CONTRIBUTION TO GDP GROWTH (in percent)

2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Agriculture, Hunting, Forestry and Fishing 0.1 0.3 -0.2 0.5 0.1 . . . -0.4 -0.2 0.3 -0.1 0.5
Industry 1.6 3.0 2.5 3.0 1.8 2.2 2.1 2.4 3.1 2.6 2.9 2.7 2.1
Mining and Quarrying 0.2 0.2 0.1 . . -0.1 . 0.1 0.1 -0.1 . 0.1 -0.2
Manufacturing 1.6 2.4 1.6 1.9 1.4 1.1 1.3 1.5 1.9 1.4 1.5 1.7 1.8
Construction -0.2 0.2 0.6 0.9 0.3 1.1 0.5 0.7 0.7 0.9 1.0 0.7 0.5
Electricity, Gas and Water Supply . 0.1 0.1 0.2 0.2 0.1 0.3 0.1 0.3 0.3 0.4 0.3 .
Services 3.9 3.5 3.3 3.1 3.1 3.9 4.2 4.3 4.2 4.7 4.0 4.0 3.8
Transportation, Storage and Communication 0.6 0.5 0.4 0.4 0.6 0.5 0.6 0.7 0.4 0.6 0.3 0.5 0.4
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 0.9 1.1 1.3 0.6 0.9 1.0 1.5 1.2 1.2 1.4 1.2 1.1 1.1
Financial Intermediation 0.4 0.5 0.6 0.6 0.3 0.4 0.4 0.6 0.7 0.5 0.6 0.4 0.6
Real Estate, Renting and Busines Activities 1.0 0.9 0.7 0.9 0.7 0.7 0.9 0.8 0.9 1.0 1.1 1.0 0.8
Public Administration and Defense;
Compulsory Social Security 0.3 0.1 -0.1 0.4 -0.2 . 0.1 0.3 0.2 0.3 0.1 0.5 0.2
Other Services 0.6 0.5 0.5 0.1 0.7 1.2 0.7 0.7 0.8 1.0 0.7 0.6 0.8
Gross Domestic Product 5.6 6.8 5.6 6.6 5.1 6.0 6.4 6.7 6.9 7.1 7.1 6.6 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)
1a GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES
for periods indicated

LEVELS (in billion pesos; at constant 2000 prices)

2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Household Final Consumption Expenditure 1,161.4 1,212.1 1,172.8 1,406.6 1,231.6 1,289.8 1,245.1 1,500.1 1,319.5 1,386.5 1,334.3 1,592.5 1,394.7
Government Final Consumption Expenditure 185.2 219.5 168.9 155.3 185.2 224.3 195.0 179.5 207.1 254.5 201.1 187.5 207.4
Capital Formation 370.0 315.4 386.6 481.1 428.2 405.7 445.5 559.0 563.0 528.5 542.3 640.9 607.8
Fixed Capital 373.8 358.9 379.8 427.8 425.3 406.4 442.6 526.2 545.6 529.7 555.2 623.8 610.0
Construction 135.0 163.9 152.6 180.7 142.2 190.4 167.6 201.6 163.7 224.4 199.1 220.3 179.9
Durable Equipment 202.7 163.1 194.3 203.0 244.2 183.1 237.2 274.2 335.6 268.2 312.3 346.3 377.7
Breeding Stock & Orchard Dev't 26.1 22.5 18.3 30.4 26.1 23.0 19.0 31.2 27.1 23.8 19.6 32.3 28.0
Intellectual Property Products 9.9 9.5 14.5 13.7 12.7 9.9 18.8 19.2 19.1 13.3 24.3 24.8 24.3
Changes in Inventories -3.8 -43.5 6.8 53.3 3.0 -0.7 2.9 32.7 17.5 -1.3 -12.9 17.2 -2.2

Exports 811.6 906.8 964.8 723.3 899.5 937.0 1,054.1 804.9 991.4 1,036.6 1,149.3 912.9 1,192.9

Less: Imports 859.1 802.4 966.8 847.6 968.4 909.5 1,106.1 1,000.2 1,172.9 1,140.5 1,253.4 1,154.6 1,377.8

Statistical Discrepancy 12.9 -17.5 -10.9 15.5 -8.7 -2.7 -9.1 20.5 -18.8 17.7 -19.0 20.1 -15.2

Gross Domestic Product 1,682.0 1,833.8 1,715.4 1,934.3 1,767.4 1,944.7 1,824.4 2,063.7 1,889.4 2,083.2 1,954.5 2,199.3 2,009.9
Net Primary Income 372.0 365.0 358.5 379.3 381.3 372.7 377.5 411.5 417.1 395.3 393.0 425.0 433.5
Gross National Income 2,054.0 2,198.8 2,073.9 2,313.5 2,148.7 2,317.4 2,201.9 2,475.2 2,306.5 2,478.5 2,347.5 2,624.3 2,443.4

ANNUAL CHANGE (in percent)

2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Household Final Consumption Expenditure 6.3 5.6 5.0 5.3 6.0 6.4 6.2 6.6 7.1 7.5 7.2 6.2 5.7

Government Final Consumption Expenditure 3.4 1.5 -1.1 11.1 . 2.2 15.5 15.5 11.8 13.5 3.1 4.5 0.2

Capital Formation 8.5 2.6 0.7 5.1 15.7 28.6 15.3 16.2 31.5 30.3 21.7 14.7 7.9
Fixed Capital 0.4 5.7 12.2 10.5 13.8 13.2 16.5 23.0 28.3 30.3 25.4 18.5 11.8
Construction -5.5 7.2 12.8 19.0 5.3 16.2 9.9 11.6 15.1 17.9 18.8 9.3 9.9
Durable Equipment 4.8 3.9 11.3 5.2 20.5 12.3 22.0 35.1 37.4 46.5 31.7 26.3 12.5
Breeding Stock & Orchard Dev't -4.4 -2.0 -1.6 2.3 0.1 2.3 3.6 2.6 3.8 3.6 3.1 3.7 3.1
Intellectual Property Products 15.7 38.6 46.4 9.5 28.3 4.7 29.6 40.7 50.4 34.2 28.7 29.0 27.2
Changes in Inventories 87.9 -34.9 -85.2 -24.8 178.4 98.5 -57.5 -38.6 489.7 -88.7 -549.5 -47.6 -112.6

Exports 13.3 10.3 14.6 12.3 10.8 3.3 9.3 11.3 10.2 10.6 9.0 13.4 20.3

Less: Imports 17.9 4.9 8.0 9.5 12.7 13.3 14.4 18.0 21.1 25.4 13.3 15.4 17.5

Statistical Discrepancy 281.2 -66.3 -264.3 40.7 -167.1 84.7 16.3 31.8 -116.4 760.3 -108.6 -1.6 19.1

Gross Domestic Product 5.6 6.8 5.6 6.6 5.1 6.0 6.4 6.7 6.9 7.1 7.1 6.6 6.4
Net Primary Income 11.4 9.6 -1.9 2.7 2.5 2.1 5.3 8.5 9.4 6.1 4.1 3.3 3.9
Gross National Income 6.6 7.2 4.2 5.9 4.6 5.4 6.2 7.0 7.3 7.0 6.6 6.0 5.9

CONTRIBUTION TO GDP GROWTH (in percent)

2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Household Final Consumption Expenditure 4.3 3.8 3.5 3.9 4.2 4.2 4.2 4.8 5.0 5.0 4.9 4.5 4.0

Government Final Consumption Expenditure 0.4 0.2 -0.1 0.9 . 0.3 1.5 1.2 1.2 1.6 0.3 0.4 .
Capital Formation 1.8 0.5 0.2 1.3 3.5 4.9 3.4 4.0 7.6 6.3 5.3 4.0 2.4
Fixed Capital 0.1 1.1 2.5 2.2 3.1 2.6 3.7 5.1 6.8 6.3 6.2 4.7 3.4
Construction -0.5 0.6 1.1 1.6 0.4 1.4 0.9 1.1 1.2 1.7 1.7 0.9 0.9
Durable Equipment 0.6 0.4 1.2 0.6 2.5 1.1 2.5 3.7 5.2 4.4 4.1 3.5 2.2
Breeding Stock & Orchard Dev't -0.1 . . . . . . . 0.1 . . 0.1 .
Intellectual Property Products 0.1 0.2 0.3 0.1 0.2 . 0.3 0.3 0.4 0.2 0.3 0.3 0.3
Changes in Inventories 1.7 -0.7 -2.4 -1.0 0.4 2.3 -0.2 -1.1 0.8 . -0.9 -0.8 -1.0

Exports 6.0 4.9 7.6 4.4 5.2 1.6 5.2 4.2 5.2 5.1 5.2 5.2 10.7

Less: Imports 8.2 2.2 4.4 4.1 6.5 5.8 8.1 7.9 11.6 11.9 8.1 7.5 10.8

Statistical Discrepancy 1.3 -0.4 -1.1 0.2 -1.3 0.8 0.1 0.3 -0.6 1.0 -0.5 . 0.2

Gross Domestic Product 5.6 6.8 5.6 6.6 5.1 6.0 6.4 6.7 6.9 7.1 7.1 6.6 6.4

. Rounds off to zero

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

2014 2015 2016 2016p 2017p

Ave/Total Ave/Total Ave/Total Q1 Q2 Q3 Q4 Q1
w/ Leyte 5 w/ Leyte w/o Leyte w/ Leyte w/ Leyte w/o Leyte w/ Leyte w/o Leyte w/ Leyte w/ Leyte w/ Leyte
w/o Leyte

Employment Status 1
Labor Force (in thousands) 41,379 41,343 43,206 42,520 41,637 43,289 41,727 43,286 43,704 42,109
Employed 38,651 38,741 40,837 40,052 39,213 40,664 39,202 40,954 41,664 39,347
Employment Created2 1,253 752 44 1,777 1,889 (705)
Agriculture 186 (123) (786)
Industry 812 825 136
Services 779 1,186 (53)
Unemployed 2,728 2,602 2,367 2,468 2,424 2,625 2,525 2,332 2,040 2,761
Underemployed 7,118 7,180 7,478 7,881 7,716 7,431 7,148 7,134 7,508 6,398
Labor Force Participation Rate (%) 64.6 63.7 63.4 63.3 63.4 63.5 63.7 63.2 63.6 60.7
Employment Rate (%) 93.4 93.7 94.5 94.2 94.2 93.9 93.9 94.6 95.3 93.4
Unemployment Rate (%) 6.6 6.3 5.5 5.8 5.8 6.1 6.1 5.4 4.7 6.6
Underemployment Rate (%) 18.4 18.5 18.3 19.7 19.7 18.3 18.2 17.4 18.0 16.3
NCR Labor Turnover Rate (%) 1.2 1.4 1.0 2.3 3.7 3.4

Overseas Employment (Deployed, in thousands)2 1,833 1,844

Land-based 1,431 1,438
Sea-based 402 407

Strikes
Number of New Strikes 2 5 15 0 3 5 7 1
Number of Workers Involved 51 730 3,106 0 650 283 2173 214

Nominal Daily Wage Rates (in pesos)3

Non-Agricultural
NCR 466.0 481.0 491.0 481.0 491.0 491.0 491.0 491.0
Regions Outside NCR 362.5 362.5 378.5 362.5 364.0 378.5 378.5 378.5
Agricultural
NCR
Plantation 429.0 444.0 454.0 444.0 454.0 454.0 454.0 454.0
Non-Plantation 429.0 444.0 454.0 444.0 454.0 454.0 454.0 454.0
Regions Outside NCR
Plantation 337.5 337.5 353.5 337.5 337.5 353.5 353.5 353.5
Non-Plantation 322.0 335.0 335.0 335.0 335.0 335.0 335.0 348.0
4
Real Daily Wage Rates (in pesos), 2006=100
Non-Agricultural
NCR 356.5 363.8 361.6 364.7 369.2 366.1 361.6 357.9
Regions Outside NCR 260.2 257.8 265.2 259.1 250.7 268.3 265.2 262.1
Agricultural
NCR
Plantation 328.2 335.9 334.3 336.6 341.4 338.6 334.3 330.9
Non-Plantation 328.2 335.9 334.3 336.6 341.4 338.6 334.3 330.9
Regions Outside NCR
Plantation 242.3 240.0 247.7 241.2 240.0 250.5 247.7 244.8
Non-Plantation 224.7 229.5 223.5 228.5 225.9 225.1 223.5 230.0
Notes:
1
Starting with January 2007 LFS round, the population projection based on the 2000 Census of Population was adopted to generate the labor force statistics per NSCB Resolution No. 1 Series of 2005.
2
Details may not add up to totals due to rounding.
3
Source of data for both nominal and real wage rates is the National Wages and Productivity Commission. Includes basic minimum wage and cost of living allowance (COLA). Starting 2006, annual average/total is as of December.
4
Starting 10 November 1990, adjustments in the minimum legislated wage rates are being determined by the Regional Tripartite Wages Productiviity Board. Starting 2010, real terms is computed using 2006 as base year.
5
Annual 2014 data refer to the average estimates for April, July and October survey rounds only excluding data of the province of Leyte.
P
Preliminary

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

2014 2015 2016 2017 2017

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1
Program
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jun-16
Revenues 398.4 535.3 491.3 483.5 470.5 615.2 519.2 504.0 479.0 622.0 545.8 549.2 532.4 -
Ratio to GDP 13.8 17.1 16.2 13.5 15.5 18.5 16.3 13.3 14.6 17.2 15.7 13.4 14.9 -
Tax 355.4 469.1 449.9 444.7 403.7 489.4 462.7 459.8 425.3 557.6 489.7 507.7 479.6 -
Non-tax 43.0 66.3 41.4 38.9 66.9 125.8 56.6 44.2 53.6 64.4 56.1 41.4 52.8 -

Expenditures 482.5 505.2 468.4 525.5 504.0 567.9 558.5 600.1 591.5 629.8 639.2 688.9 615.4 -
Ratio to GDP 16.7 16.1 15.4 14.7 16.6 17.1 17.5 15.9 18.1 17.4 18.3 16.8 17.2 -
Interest Payments 103.1 56.6 97.7 63.8 100.6 55.5 99.6 53.6 102.6 51.1 96.1 54.7 97.9 -
Equity 0.1 0.3 0.8 0.5 0.1 0.2 . 0.4 8.2 0.3 . 3.2 0.0 -
Net Lending 4.9 1.5 2.0 5.0 2.2 0.4 1.8 5.2 3.5 0.6 -0.4 11.6 -1.7 -
Subsidy 1.2 48.3 12.7 18.2 3.7 40.3 11.8 22.2 8.2 28.4 45.8 20.8 19.7 -
Allotment to LGUs 85.1 89.0 85.8 84.4 97.1 96.8 96.8 96.8 121.7 108.5 108.1 111.5 122.3 -
Tax Expenditures 0.1 12.3 0.7 12.9 5.6 1.9 0.5 5.6 0.1 3.5 0.9 7.8 0.2 -
Others 288.0 297.1 268.7 340.8 294.7 372.8 347.9 416.2 347.1 437.6 388.8 479.3 377.1 -

Surplus/Deficit (-) -84.1 30.1 22.9 -42.0 -33.5 47.3 -39.3 -96.1 -112.5 -7.8 -93.4 -139.7 -83.0 -
Ratio to GDP -2.9 1.0 0.8 -1.2 -1.1 1.4 -1.2 -2.5 -3.4 -0.2 -2.7 -3.4 -2.3 -
Primary Balance 19.0 86.8 120.6 21.8 67.1 102.8 60.3 -42.5 -9.9 43.3 2.7 -85.0 14.9 -
Ratio to GDP 0.7 2.8 4.0 0.6 2.2 3.1 1.9 -1.1 -0.3 1.2 0.1 -2.1 0.4 -

Financing 1 7.0 31.3 69.9 67.0 -9.3 24.8 60.7 16.7 86.3 25.0 109.1 0.5 87.4 -
84.1 -30.1 -22.9 42.0 33.5 -47.3 39.3 96.1 112.5 7.8 93.4 139.7 0.0
External Borrowings -4.2 -5.3 26.6 -4.6 22.6 28.2 -0.6 14.5 14.6 -7.4 -5.6 -25.8 29.8 -
Domestic Borrowings 11.2 36.6 43.3 71.6 -31.9 -3.5 61.3 2.2 71.6 32.4 114.7 26.3 57.7 -

Total Change in Cash: Deposit/Withdrawal (-) -170.8 88.5 85.5 34.6 30.7 29.8 23.4 -85.5 -116.3 -9.2 -15.7 -116.4 50.5 -

Budgetary -77.1 61.5 92.8 25.0 -42.8 72.0 21.4 -79.4 -26.2 17.2 15.7 -139.2 4.5 -
Non-Budgetary Accounts 2 -93.7 27.0 -7.4 9.6 73.6 -42.2 2.0 -6.1 -90.1 -26.4 -31.4 22.7 46.0 -

1
Availment less repayment
2
Refers to accounts not included in the NG budget, e.g., sale, purchase or redemption of government securities, but included in the cash operations report to
show the complete relations in the movements of the cash accounts.
. rounds off to zero
- not available
Note: Details may not add up to total due to rounding off
Source: Bureau of the Treasury
 4 CONSUMER PRICE INDEX IN THE PHILIPPINES
for periods indicated
(2006=100)
Quarterly Average

2011 2012 2013 2014 2015 2016 2017

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

ALL ITEMS 124.3 126.0 126.7 127.6 128.2 129.7 131.2 131.4 132.3 133.2 134.4 135.9 137.7 139.0 140.7 140.8 141.1 141.3 141.5 142.2 142.7 143.4 144.4 145.7 147.2
FOOD AND NON-ALCHOLIC BEVERAGES 135.2 136.2 136.7 138.1 138.0 138.9 141.0 141.5 141.7 142.2 144.1 147.1 149.7 151.8 155.6 156.4 156.9 156.4 157.3 158.5 159.4 160.0 161.6 164.0 165.5
FOOD ITEMS 136.5 137.4 137.9 139.4 139.2 140.1 142.3 142.7 142.9 143.3 145.4 148.6 151.3 153.5 157.5 158.4 158.8 158.2 159.2 160.5 161.4 162.0 163.7 166.2 167.9
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 120.0 122.3 123.7 124.6 125.8 128.4 129.7 130.8 158.4 168.5 170.1 171.1 173.6 175.2 176.1 177.8 180.5 181.8 182.6 184.8 189.3 191.8 193.6 196.4 200.7
NON-FOOD 117.3 119.3 120.3 120.7 121.9 123.7 124.8 124.8 125.3 126.0 126.7 127.4 128.6 129.3 129.7 129.2 129.4 130.0 129.8 129.9 130.1 130.8 131.3 131.9 133.2
CLOTHING AND FOOTWEAR 116.5 117.8 119.3 119.9 120.9 123.7 125.3 125.9 126.8 128.2 129.1 129.7 131.3 132.5 133.5 134.1 135.4 136.0 136.6 137.2 138.0 139.1 140.1 140.8 141.8
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 117.7 120.6 121.1 121.7 123.4 125.9 127.2 126.5 126.9 127.7 127.8 129.1 130.9 131.5 130.9 129.6 129.4 130.1 128.7 128.1 128.1 128.8 129.0 129.6 131.8
of which: ELECTRICITY, GAS AND OTHER FUELS 125.8 132.1 132.7 134.4 137.4 140.1 141.6 139.2 138.7 139.2 138.7 142.6 146.8 146.9 143.6 138.7 134.0 134.9 129.5 126.5 124.7 125.8 125.3 126.3 132.2
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 115.6 116.6 117.3 117.6 118.2 120.6 122.4 123.2 124.0 125.0 125.5 126.0 127.4 128.1 128.9 129.4 130.2 130.8 131.1 131.5 132.2 132.9 133.9 134.6 135.3
HEALTH 122.8 123.8 125.0 125.5 126.2 128.0 129.3 129.8 130.7 131.8 132.7 133.2 135.0 135.8 137.2 137.7 138.6 138.9 139.5 140.2 141.2 142.2 143.2 143.8 144.9
TRANSPORT 120.0 123.5 124.0 124.1 125.2 126.3 125.5 125.9 126.3 126.1 126.8 126.9 127.7 127.8 128.2 126.9 126.8 127.8 127.6 128.1 127.2 127.8 127.6 129.2 130.6
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 121.9 126.9 125.9 125.5 128.4 128.6 126.3 127.9 128.4 127.2 130.5 130.8 133.8 134.3 133.4 127.9 119.8 122.7 120.5 119.5 116.7 119.7 119.5 121.3 124.6
COMMUNICATION 92.5 92.4 92.4 92.2 92.2 92.5 92.6 92.6 92.7 92.6 92.7 92.6 92.7 92.7 92.7 92.7 92.6 92.6 92.7 92.7 92.7 92.8 92.8 92.8 92.9
RECREATION AND CULTURE 105.8 106.5 107.2 107.4 108.3 109.3 110.1 110.2 110.7 111.6 112.8 112.9 113.5 113.8 114.3 114.6 114.8 115.1 115.5 115.8 116.1 116.9 117.5 117.8 118.2
EDUCATION 126.8 128.7 132.7 132.8 132.9 134.8 138.7 138.7 138.7 140.8 145.2 145.2 145.2 147.5 152.6 152.6 152.6 154.4 158.1 158.1 158.1 159.0 160.9 161.0 161.0
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 117.9 119.0 119.9 120.4 121.5 123.0 123.8 124.2 125.0 125.9 126.5 126.9 127.6 128.3 128.7 129.2 129.6 129.9 130.3 130.9 131.7 132.7 133.4 133.8 134.4

Quarter-on-Quarter Change (in percent)

2011 2012 2013 2014 2015 2016 2017
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

ALL ITEMS 2.0 1.4 0.6 0.7 0.5 1.2 1.2 0.2 0.7 0.7 0.9 1.1 1.3 0.9 1.2 0.1 0.2 0.1 0.1 0.5 0.4 0.5 0.7 0.9 1.0
FOOD AND NON-ALCHOLIC BEVERAGES 2.7 0.7 0.4 1.0 -0.1 0.7 1.5 0.4 0.1 0.4 1.3 2.1 1.8 1.4 2.5 0.5 0.3 -0.3 0.6 0.8 0.6 0.4 1.0 1.5 0.9
FOOD ITEMS 2.8 0.7 0.4 1.1 -0.1 0.6 1.6 0.3 0.1 0.3 1.5 2.2 1.8 1.5 2.6 0.6 0.3 -0.4 0.6 0.8 0.6 0.4 1.0 1.5 1.0
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.3 1.9 1.1 0.7 1.0 2.1 1.0 0.8 21.1 6.4 0.9 0.6 1.5 0.9 0.5 1.0 1.5 0.7 0.4 1.2 2.4 1.3 0.9 1.4 2.2
NON-FOOD 1.6 1.7 0.8 0.3 1.0 1.5 0.9 0.0 0.4 0.6 0.6 0.6 0.9 0.5 0.3 -0.4 0.2 0.5 -0.2 0.1 0.2 0.5 0.4 0.5 1.0
CLOTHING AND FOOTWEAR 1.0 1.1 1.3 0.5 0.8 2.3 1.3 0.5 0.7 1.1 0.7 0.5 1.2 0.9 0.8 0.4 1.0 0.4 0.4 0.4 0.6 0.8 0.7 0.5 0.7
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 2.1 2.5 0.4 0.5 1.4 2.0 1.0 -0.6 0.3 0.6 0.1 1.0 1.4 0.5 -0.5 -1.0 -0.2 0.5 -1.1 -0.5 0.0 0.5 0.2 0.5 1.7
of which: ELECTRICITY, GAS AND OTHER FUELS 4.1 5.0 0.5 1.3 2.2 2.0 1.1 -1.7 -0.4 0.4 -0.4 2.8 2.9 0.1 -2.2 -3.4 -3.4 0.7 -4.0 -2.3 -1.4 0.9 -0.4 0.8 4.7
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.7 0.9 0.6 0.3 0.5 2.0 1.5 0.7 0.6 0.8 0.4 0.4 1.1 0.5 0.6 0.4 0.6 0.5 0.2 0.3 0.5 0.5 0.8 0.5 0.5
HEALTH 0.9 0.8 1.0 0.4 0.6 1.4 1.0 0.4 0.7 0.8 0.7 0.4 1.4 0.6 1.0 0.4 0.7 0.2 0.4 0.5 0.7 0.7 0.7 0.4 0.8
TRANSPORT 2.8 2.9 0.4 0.1 0.9 0.9 -0.6 0.3 0.3 -0.2 0.6 0.1 0.6 0.1 0.3 -1.0 -0.1 0.8 -0.2 0.4 -0.7 0.5 -0.2 1.3 1.1
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 5.8 4.1 -0.8 -0.3 2.3 0.2 -1.8 1.3 0.4 -0.9 2.6 0.2 2.3 0.4 -0.7 -4.1 -6.3 2.4 -1.8 -0.8 -2.3 2.6 -0.2 1.5 2.7
COMMUNICATION -0.1 -0.1 0.0 -0.2 0.0 0.3 0.1 0.0 0.1 -0.1 0.1 -0.1 0.1 0.0 0.0 0.0 -0.1 0.0 0.1 0.0 0.0 0.1 0.0 0.0 0.1
RECREATION AND CULTURE 0.2 0.7 0.7 0.2 0.8 0.9 0.7 0.1 0.5 0.8 1.1 0.1 0.5 0.3 0.4 0.3 0.2 0.3 0.3 0.3 0.3 0.7 0.5 0.3 0.3
EDUCATION 0.1 1.5 3.1 0.1 0.1 1.4 2.9 0.0 0.0 1.5 3.1 0.0 0.0 1.6 3.5 0.0 0.0 1.2 2.4 0.0 0.0 0.6 1.2 0.1 0.0
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 1.0 0.9 0.8 0.4 0.9 1.2 0.7 0.3 0.6 0.7 0.5 0.3 0.6 0.5 0.3 0.4 0.3 0.2 0.3 0.5 0.6 0.8 0.5 0.3 0.4

Year-on-Year Change (in percent)

2011 2012 2013 2014 2015 2016 2017
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

ALL ITEMS 4.5 5.0 4.8 4.7 3.1 2.9 3.6 3.0 3.2 2.7 2.4 3.4 4.1 4.4 4.7 3.6 2.5 1.7 0.6 1.0 1.1 1.5 2.0 2.5 3.2
FOOD AND NON-ALCHOLIC BEVERAGES 5.6 6.2 5.3 4.9 2.1 2.0 3.1 2.5 2.7 2.4 2.2 4.0 5.6 6.8 8.0 6.3 4.8 3.0 1.1 1.3 1.6 2.3 2.7 3.5 3.8
FOOD ITEMS 5.9 6.3 5.4 5.0 2.0 2.0 3.2 2.4 2.7 2.3 2.2 4.1 5.9 7.1 8.3 6.6 5.0 3.1 1.1 1.3 1.6 2.4 2.8 3.6 4.0
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 3.8 5.3 6.1 6.2 4.8 5.0 4.9 5.0 25.9 31.2 31.1 30.8 9.6 4.0 3.5 3.9 4.0 3.8 3.7 3.9 4.9 5.5 6.0 6.3 6.0
NON-FOOD 3.6 4.0 4.4 4.5 3.9 3.7 3.7 3.4 2.8 1.9 1.5 2.1 2.6 2.6 2.4 1.4 0.6 0.5 0.1 0.5 0.5 0.6 1.2 1.5 2.4
CLOTHING AND FOOTWEAR 3.2 3.7 4.0 3.9 3.8 5.0 5.0 5.0 4.9 3.6 3.0 3.0 3.5 3.4 3.4 3.4 3.1 2.6 2.3 2.3 1.9 2.3 2.6 2.6 2.8
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 4.8 4.9 5.1 5.6 4.8 4.4 5.0 3.9 2.8 1.4 0.5 2.1 3.2 3.0 2.4 0.4 -1.1 -1.1 -1.7 -1.2 -1.0 -1.0 0.2 1.2 2.9
of which: ELECTRICITY, GAS AND OTHER FUELS 10.5 8.3 8.9 11.3 9.2 6.1 6.7 3.6 0.9 -0.6 -2.0 2.4 5.8 5.5 3.5 -2.7 -8.7 -8.2 -9.8 -8.8 -6.9 -6.7 -3.2 -0.2 6.0
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 2.4 2.4 2.6 2.4 2.2 3.4 4.3 4.8 4.9 3.6 2.5 2.3 2.7 2.5 2.7 2.7 2.2 2.1 1.7 1.6 1.5 1.6 2.1 2.4 2.3
HEALTH 3.1 3.4 3.3 3.1 2.8 3.4 3.4 3.4 3.6 3.0 2.6 2.6 3.3 3.0 3.4 3.4 2.7 2.3 1.7 1.8 1.9 2.4 2.7 2.6 2.6
TRANSPORT 4.2 6.6 6.9 6.3 4.3 2.3 1.2 1.5 0.9 -0.2 1.0 0.8 1.1 1.3 1.1 0.0 -0.7 0.0 -0.5 0.9 0.3 0.0 0.0 0.9 2.7
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 8.2 10.8 11.1 8.9 5.3 1.3 0.3 1.9 0.0 -1.1 3.3 2.3 4.2 5.6 2.2 -2.2 -10.5 -8.6 -9.7 -6.6 -2.6 -2.4 -0.8 1.5 6.8
COMMUNICATION -0.1 -0.2 -0.3 -0.4 -0.3 0.1 0.2 0.4 0.5 0.1 0.1 0.0 0.0 0.1 0.0 0.1 -0.1 -0.1 0.0 0.0 0.1 0.2 0.1 0.1 0.2
RECREATION AND CULTURE 1.1 1.3 1.6 1.7 2.4 2.6 2.7 2.6 2.2 2.1 2.5 2.5 2.5 2.0 1.3 1.5 1.1 1.1 1.0 1.0 1.1 1.6 1.7 1.7 1.8
EDUCATION 4.3 4.5 5.1 4.8 4.8 4.7 4.5 4.4 4.4 4.5 4.7 4.7 4.7 4.8 5.1 5.1 5.1 4.7 3.6 3.6 3.6 3.0 1.8 1.8 1.8
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 2.4 2.8 3.1 3.2 3.1 3.4 3.3 3.2 2.9 2.4 2.2 2.2 2.1 1.9 1.7 1.8 1.6 1.2 1.2 1.3 1.6 2.2 2.4 2.2 2.1

Source: Philippine Statistics Authority (PSA)

 4a CONSUMER PRICE INDEX IN METRO MANILA
for periods indicated
(2006=100)
Quarterly Average

2011 2012 2013 2014 2015 2016 2017

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

ALL ITEMS 119.5 120.9 121.2 122.1 122.9 123.7 125.6 125.4 125.7 125.8 126.5 127.8 129.2 130.3 131.4 131.0 131.6 131.6 131.9 132.1 132.0 132.7 133.7 135.1 136.6
FOOD AND NON-ALCHOLIC BEVERAGES 130.3 130.6 130.5 132.9 131.6 132.0 135.3 135.2 134.9 134.7 136.5 139.6 141.3 143.3 147.1 147.6 147.6 146.4 148.4 150.2 150.3 151.4 153.9 158.2 159.9
FOOD ITEMS 131.5 131.7 131.6 134.2 132.7 133.0 136.5 136.3 135.9 135.7 137.6 141.0 142.8 144.9 149.0 149.5 149.4 148.0 150.2 152.1 152.3 153.4 156.1 160.7 162.5
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 117.6 118.9 119.1 119.5 120.4 122.5 124.2 126.5 140.3 144.7 145.8 146.5 151.2 152.6 153.2 153.9 155.1 155.9 156.4 156.5 158.7 161.1 163.9 164.9 169.5
NON-FOOD 115.2 117.0 117.4 117.7 119.4 120.3 121.7 121.4 121.7 121.8 122.0 122.6 123.8 124.6 124.6 123.8 124.7 125.1 124.7 124.2 124.0 124.5 124.9 125.1 126.5
CLOTHING AND FOOTWEAR 118.7 118.9 121.2 121.3 123.1 126.6 129.8 130.4 131.1 132.3 132.6 132.8 135.5 136.8 138.2 139.1 140.6 141.1 142.2 142.3 142.9 144.7 146.0 146.5 148.0
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 116.6 119.2 119.3 120.0 121.8 122.9 124.5 123.4 123.5 123.5 123.0 124.2 125.5 126.3 125.0 123.3 124.1 124.4 122.5 121.3 120.8 120.9 120.9 120.8 122.8
of which: ELECTRICITY, GAS AND OTHER FUELS 119.1 124.3 124.4 126.8 128.7 130.4 134.3 129.3 127.7 127.2 125.1 129.4 133.1 133.7 127.9 121.2 117.6 116.2 105.8 101.1 99.8 99.5 99.0 98.2 106.1
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 112.1 112.2 112.3 112.4 112.7 114.1 117.7 119.2 120.5 120.8 120.8 121.1 123.7 124.7 125.6 126.2 126.3 126.4 126.5 126.5 126.8 127.1 128.1 128.8 129.3
HEALTH 126.7 127.0 128.8 129.0 130.0 130.8 132.4 132.6 134.5 134.7 136.5 136.6 139.7 140.4 143.4 143.6 145.3 145.4 147.0 147.0 147.3 148.0 148.4 148.8 150.4
TRANSPORT 110.8 114.3 114.0 113.7 114.9 114.4 113.8 114.3 114.2 113.5 114.2 114.6 115.6 115.6 115.6 113.7 116.5 117.2 116.7 116.9 116.0 115.9 115.9 117.4 119.6
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 113.8 118.0 116.8 116.1 118.5 117.4 117.0 119.0 117.8 115.2 118.2 119.6 122.9 122.8 121.6 115.8 109.0 111.2 108.7 107.7 104.6 107.6 107.5 109.7 112.9
COMMUNICATION 93.6 93.4 93.3 93.2 93.1 93.7 93.9 93.9 93.9 93.9 93.9 93.9 94.1 94.1 94.1 94.1 94.1 94.2 94.3 94.3 94.3 94.4 94.4 94.4 94.8
RECREATION AND CULTURE 107.5 107.4 107.3 107.3 110.2 111.1 112.5 112.5 113.1 114.1 114.8 114.8 115.9 116.7 117.6 117.9 118.5 119.1 119.9 120.3 120.6 122.3 124.2 124.4 125.1
EDUCATION 130.6 132.2 135.5 135.5 135.5 137.0 140.0 140.0 140.0 142.1 146.2 146.2 146.2 149.0 154.5 154.5 154.5 157.3 163.0 163.0 163.0 164.4 167.3 167.3 167.3
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 114.8 115.9 116.3 116.5 119.5 119.9 120.7 120.7 120.9 121.1 121.2 121.3 121.8 122.7 123.1 123.1 123.3 123.3 123.6 123.6 124.0 124.8 125.0 125.2 125.8

Quarter-on-Quarter Change (in percent)

2011 2012 2013 2014 2015 2016 2017
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

ALL ITEMS 1.6 1.2 0.2 0.7 0.7 0.7 1.5 -0.2 0.2 0.1 0.6 1.0 1.1 0.9 0.8 -0.3 0.5 0.0 0.2 0.2 -0.1 0.5 0.8 1.0 1.1
FOOD AND NON-ALCHOLIC BEVERAGES 1.3 0.2 -0.1 1.8 -1.0 0.3 2.5 -0.1 -0.2 -0.1 1.3 2.3 1.2 1.4 2.7 0.3 0.0 -0.8 1.4 1.2 0.1 0.7 1.7 2.8 1.1
FOOD ITEMS 1.4 0.2 -0.1 2.0 -1.1 0.2 2.6 -0.1 -0.3 -0.1 1.4 2.5 1.3 1.5 2.8 0.3 -0.1 -0.9 1.5 1.3 0.1 0.7 1.8 2.9 1.1
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 1.1 1.1 0.2 0.3 0.8 1.7 1.4 1.9 10.9 3.1 0.8 0.5 3.2 0.9 0.4 0.5 0.8 0.5 0.3 0.1 1.4 1.5 1.7 0.6 2.8
NON-FOOD 1.9 1.6 0.3 0.3 1.4 0.8 1.2 -0.2 0.2 0.1 0.2 0.5 1.0 0.6 0.0 -0.6 0.7 0.3 -0.3 -0.4 -0.2 0.4 0.3 0.2 1.1
CLOTHING AND FOOTWEAR 0.7 0.2 1.9 0.1 1.5 2.8 2.5 0.5 0.5 0.9 0.2 0.2 2.0 1.0 1.0 0.7 1.1 0.4 0.8 0.1 0.4 1.3 0.9 0.3 1.0
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 2.3 2.2 0.1 0.6 1.5 0.9 1.3 -0.9 0.1 0.0 -0.4 1.0 1.0 0.6 -1.0 -1.4 0.6 0.2 -1.5 -1.0 -0.4 0.1 0.0 -0.1 1.7
of which: ELECTRICITY, GAS AND OTHER FUELS 2.8 4.4 0.1 1.9 1.5 1.3 3.0 -3.7 -1.2 -0.4 -1.7 3.4 2.9 0.5 -4.3 -5.2 -3.0 -1.2 -9.0 -4.4 -1.3 -0.3 -0.5 -0.8 8.0
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.3 0.1 0.1 0.1 0.3 1.2 3.2 1.3 1.1 0.2 0.0 0.2 2.1 0.8 0.7 0.5 0.1 0.1 0.1 0.0 0.2 0.2 0.8 0.5 0.4
HEALTH 1.4 0.2 1.4 0.2 0.8 0.6 1.2 0.2 1.4 0.1 1.3 0.1 2.3 0.5 2.1 0.1 1.2 0.1 1.1 0.0 0.2 0.5 0.3 0.3 1.1
TRANSPORT 3.4 3.2 -0.3 -0.3 1.1 -0.4 -0.5 0.4 -0.1 -0.6 0.6 0.4 0.9 0.0 0.0 -1.6 2.5 0.6 -0.4 0.2 -0.8 -0.1 0.0 1.3 1.9
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 6.1 3.7 -1.0 -0.6 2.1 -0.9 -0.3 1.7 -1.0 -2.2 2.6 1.2 2.8 -0.1 -1.0 -4.8 -5.9 2.0 -2.2 -0.9 -2.9 2.9 -0.1 2.0 2.9
COMMUNICATION -0.2 -0.2 -0.1 -0.1 -0.1 0.6 0.2 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.1 0.0 0.0 0.4
RECREATION AND CULTURE 0.1 -0.1 -0.1 0.0 2.7 0.8 1.3 0.0 0.5 0.9 0.6 0.0 1.0 0.7 0.8 0.3 0.5 0.5 0.7 0.3 0.2 1.4 1.6 0.2 0.6
EDUCATION 0.0 1.2 2.5 0.0 0.0 1.1 2.2 0.0 0.0 1.5 2.9 0.0 0.0 1.9 3.7 0.0 0.0 1.8 3.6 0.0 0.0 0.9 1.8 0.0 0.0
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 1.6 1.0 0.3 0.2 2.6 0.3 0.7 0.0 0.2 0.2 0.1 0.1 0.4 0.7 0.3 0.0 0.2 0.0 0.2 0.0 0.3 0.6 0.2 0.2 0.5

Year-on-Year Change (in percent)

2011 2012 2013 2014 2015 2016 2017
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

ALL ITEMS 4.1 4.2 3.9 3.8 2.8 2.3 3.6 2.7 2.3 1.7 0.7 1.9 2.8 3.6 3.9 2.5 1.9 1.0 0.4 0.8 0.3 0.8 1.4 2.3 3.5
FOOD AND NON-ALCHOLIC BEVERAGES 5.0 5.8 4.5 3.3 1.0 1.1 3.7 1.7 2.5 2.0 0.9 3.3 4.7 6.4 7.8 5.7 4.5 2.2 0.9 1.8 1.8 3.4 3.7 5.3 6.4
FOOD ITEMS 5.3 6.0 4.7 3.5 0.9 1.0 3.7 1.6 2.4 2.0 0.8 3.4 5.1 6.8 8.3 6.0 4.6 2.1 0.8 1.7 1.9 3.6 3.9 5.7 6.7
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.3 2.9 2.8 2.8 2.4 3.0 4.3 5.9 16.5 18.1 17.4 15.8 7.8 5.5 5.1 5.1 2.6 2.2 2.1 1.7 2.3 3.3 4.8 5.4 6.8
NON-FOOD 3.9 3.5 3.6 4.1 3.6 2.8 3.7 3.1 1.9 1.2 0.2 1.0 1.7 2.3 2.1 1.0 0.7 0.4 0.1 0.3 -0.6 -0.5 0.2 0.7 2.0
CLOTHING AND FOOTWEAR 3.5 2.9 3.3 2.9 3.7 6.5 7.1 7.5 6.5 4.5 2.2 1.8 3.4 3.4 4.2 4.7 3.8 3.1 2.9 2.3 1.6 2.6 2.7 3.0 3.6
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 4.9 3.3 3.8 5.3 4.5 3.1 4.4 2.8 1.4 0.5 -1.2 0.6 1.6 2.3 1.6 -0.7 -1.1 -1.5 -2.0 -1.6 -2.7 -2.8 -1.3 -0.4 1.7
of which: ELECTRICITY, GAS AND OTHER FUELS 9.9 0.0 2.3 9.5 8.1 4.9 8.0 2.0 -0.8 -2.5 -6.9 0.1 4.2 5.1 2.2 -6.3 -11.6 -13.1 -17.3 -16.6 -15.1 -14.4 -6.4 -2.9 6.3
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 2.2 1.1 0.8 0.5 0.5 1.7 4.8 6.0 6.9 5.9 2.6 1.6 2.7 3.2 4.0 4.2 2.1 1.4 0.7 0.2 0.4 0.6 1.3 1.8 2.0
HEALTH 4.1 4.1 3.3 3.2 2.6 3.0 2.8 2.8 3.5 3.0 3.1 3.0 3.9 4.2 5.1 5.1 4.0 3.6 2.5 2.4 1.4 1.8 1.0 1.2 2.1
TRANSPORT 4.1 6.9 7.2 6.1 3.7 0.1 -0.2 0.5 -0.6 -0.8 0.4 0.3 1.2 1.9 1.2 -0.8 0.8 1.4 1.0 2.8 -0.4 -1.1 -0.7 0.4 3.1
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 9.0 10.5 11.3 8.2 4.1 -0.5 0.2 2.5 -0.6 -1.9 1.0 0.5 4.3 6.6 2.9 -3.2 -11.3 -9.4 -10.6 -7.0 -4.0 -3.2 -1.1 1.9 7.9
COMMUNICATION -0.1 -0.3 -0.6 -0.6 -0.5 0.3 0.6 0.8 0.9 0.2 0.0 0.0 0.2 0.2 0.2 0.2 0.0 0.1 0.2 0.2 0.2 0.2 0.1 0.1 0.5
RECREATION AND CULTURE 1.6 0.7 0.1 -0.1 2.5 3.4 4.8 4.8 2.6 2.7 2.0 2.0 2.5 2.3 2.4 2.7 2.2 2.1 2.0 2.0 1.8 2.7 3.6 3.4 3.7
EDUCATION 3.7 3.7 3.8 3.8 3.8 3.6 3.3 3.3 3.3 3.7 4.4 4.4 4.4 4.9 5.7 5.7 5.7 5.6 5.5 5.5 5.5 4.5 2.6 2.6 2.6
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 2.8 3.7 3.0 3.1 4.1 3.5 3.8 3.6 1.2 1.0 0.4 0.5 0.7 1.3 1.6 1.5 1.2 0.5 0.4 0.4 0.6 1.2 1.1 1.3 1.5

Source: Philippine Statistics Authority (PSA)

 4b CONSUMER PRICE INDEX IN AREAS OUTSIDE METRO MANILA
for periods indicated
(2006=100)
Quarterly Average

2011 2012 2013 2014 2015 2016 2017

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

ALL ITEMS 125.8 127.6 128.4 129.3 129.8 131.6 133.0 133.3 134.4 135.5 136.8 138.5 140.4 141.7 143.6 143.8 144.1 144.3 144.6 145.3 146.0 146.8 147.7 149.0 150.5
FOOD AND NON-ALCHOLIC BEVERAGES 136.3 137.4 138.0 139.2 139.3 140.4 142.2 142.8 143.2 143.7 145.7 148.7 151.4 153.5 157.4 158.3 158.8 158.5 159.1 160.3 161.3 161.8 163.2 165.2 166.7
FOOD ITEMS 137.5 138.6 139.2 140.5 140.5 141.5 143.5 144.0 144.4 144.8 147.0 150.1 153.0 155.2 159.3 160.2 160.7 160.3 161.0 162.3 163.2 163.7 165.2 167.3 169.0
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 120.4 123.0 124.7 125.6 126.8 129.6 130.8 131.6 162.1 173.3 175.0 176.0 178.1 179.7 180.7 182.6 185.6 187.0 187.8 190.5 195.4 197.9 199.5 202.8 206.9
NON-FOOD 118.1 120.3 121.5 122.0 122.8 125.1 126.0 126.1 126.7 127.7 128.6 129.3 130.6 131.2 131.7 131.3 131.2 131.9 131.8 132.1 132.4 133.3 133.9 134.6 135.9
CLOTHING AND FOOTWEAR 115.8 117.4 118.6 119.5 120.2 122.7 123.9 124.4 125.4 126.8 127.9 128.6 130.0 131.0 131.9 132.5 133.7 134.3 134.7 135.5 136.4 137.2 138.2 138.9 139.8
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 118.2 121.2 121.9 122.5 124.1 127.3 128.4 128.0 128.4 129.5 130.0 131.4 133.4 133.9 133.6 132.4 131.8 132.7 131.5 131.1 131.4 132.3 132.7 133.5 135.8
of which: ELECTRICITY, GAS AND OTHER FUELS 128.2 134.9 135.6 137.0 140.6 143.4 144.1 142.6 142.4 143.4 143.4 146.9 151.7 151.5 148.9 144.7 139.6 141.3 137.6 135.2 133.2 134.8 134.3 135.9 141.1
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 116.9 118.2 119.0 119.5 120.2 122.9 124.0 124.7 125.3 126.5 127.2 127.8 128.7 129.3 130.0 130.5 131.6 132.3 132.7 133.3 134.1 135.0 136.0 136.7 137.4
HEALTH 121.7 122.9 124.0 124.6 125.1 127.2 128.5 129.0 129.7 131.0 131.7 132.3 133.7 134.6 135.5 136.1 136.7 137.1 137.5 138.3 139.5 140.6 141.8 142.4 143.4
TRANSPORT 122.9 126.4 127.1 127.4 128.4 130.0 129.1 129.5 130.1 130.0 130.7 130.7 131.4 131.7 132.1 131.0 130.0 131.2 130.9 131.6 130.7 131.5 131.3 132.9 134.0
OPERATION OF PERSONAL TRANSPORT EQUIPMENT 124.7 130.1 129.1 129.0 131.4 132.7 130.0 131.5 132.8 132.2 135.5 135.3 138.3 139.0 138.2 132.8 124.2 127.3 125.3 124.3 121.6 124.6 124.4 126.0 129.4
COMMUNICATION 92.0 92.0 92.0 91.8 91.8 91.9 92.0 92.0 92.1 92.0 92.1 92.0 92.1 92.1 92.0 92.0 91.9 91.9 91.9 91.9 91.9 92.0 92.0 92.0 92.0
RECREATION AND CULTURE 105.2 106.2 107.1 107.4 107.7 108.7 109.2 109.4 109.8 110.8 112.1 112.3 112.6 112.8 113.2 113.4 113.6 113.7 114.0 114.2 114.5 115.0 115.2 115.4 115.8
EDUCATION 125.7 127.7 131.9 132.0 132.1 134.2 138.3 138.3 138.3 140.4 144.9 144.9 144.9 147.1 152.0 152.0 152.0 153.5 156.6 156.7 156.7 157.5 159.1 159.2 159.2
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 119.2 120.3 121.4 122.1 122.5 124.3 125.2 125.8 126.8 128.0 128.7 129.4 130.2 130.8 131.2 131.9 132.4 132.7 133.2 134.2 135.0 136.1 137.0 137.5 138.1

Quarter-on-Quarter Change (in percent)

2011 2012 2013 2014 2015 2016 2017
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

ALL ITEMS 2.1 1.4 0.6 0.7 0.4 1.4 1.1 0.2 0.8 0.8 1.0 1.2 1.4 0.9 1.3 0.1 0.2 0.1 0.2 0.5 0.5 0.5 0.6 0.9 1.0
FOOD AND NON-ALCHOLIC BEVERAGES 2.9 0.8 0.4 0.9 0.1 0.8 1.3 0.4 0.3 0.3 1.4 2.1 1.8 1.4 2.5 0.6 0.3 -0.2 0.4 0.8 0.6 0.3 0.9 1.2 0.9
FOOD ITEMS 3.0 0.8 0.4 0.9 0.0 0.7 1.4 0.3 0.3 0.3 1.5 2.1 1.9 1.4 2.6 0.6 0.3 -0.2 0.4 0.8 0.6 0.3 0.9 1.3 1.0
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 2.5 2.2 1.4 0.7 1.0 2.2 0.9 0.6 23.2 6.9 1.0 0.6 1.2 0.9 0.6 1.1 1.6 0.8 0.4 1.4 2.6 1.3 0.8 1.7 2.0
NON-FOOD 1.5 1.9 1.0 0.4 0.7 1.9 0.7 0.1 0.5 0.8 0.7 0.5 1.0 0.5 0.4 -0.3 -0.1 0.5 -0.1 0.2 0.2 0.7 0.5 0.5 1.0
CLOTHING AND FOOTWEAR 1.0 1.4 1.0 0.8 0.6 2.1 1.0 0.4 0.8 1.1 0.9 0.5 1.1 0.8 0.7 0.5 0.9 0.4 0.3 0.6 0.7 0.6 0.7 0.5 0.6
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 2.0 2.5 0.6 0.5 1.3 2.6 0.9 -0.3 0.3 0.9 0.4 1.1 1.5 0.4 -0.2 -0.9 -0.5 0.7 -0.9 -0.3 0.2 0.7 0.3 0.6 1.7
of which: ELECTRICITY, GAS AND OTHER FUELS 4.6 5.2 0.5 1.0 2.6 2.0 0.5 -1.0 -0.1 0.7 0.0 2.4 3.3 -0.1 -1.7 -2.8 -3.5 1.2 -2.6 -1.7 -1.5 1.2 -0.4 1.2 3.8
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 0.9 1.1 0.7 0.4 0.6 2.2 0.9 0.6 0.5 1.0 0.6 0.5 0.7 0.5 0.5 0.4 0.8 0.5 0.3 0.5 0.6 0.7 0.7 0.5 0.5
HEALTH 0.8 1.0 0.9 0.5 0.4 1.7 1.0 0.4 0.5 1.0 0.5 0.5 1.1 0.7 0.7 0.4 0.4 0.3 0.3 0.6 0.9 0.8 0.9 0.4 0.7
TRANSPORT 2.8 2.8 0.6 0.2 0.8 1.2 -0.7 0.3 0.5 -0.1 0.5 0.0 0.5 0.2 0.3 -0.8 -0.8 0.9 -0.2 0.5 -0.7 0.6 -0.2 1.2 0.8
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 6.0 4.3 -0.8 -0.1 1.9 1.0 -2.0 1.2 1.0 -0.5 2.5 -0.1 2.2 0.5 -0.6 -3.9 -6.5 2.5 -1.6 -0.8 -2.2 2.5 -0.2 1.3 2.7
COMMUNICATION -0.1 0.0 0.0 -0.2 0.0 0.1 0.1 0.0 0.1 -0.1 0.1 -0.1 0.1 0.0 -0.1 0.0 -0.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0
RECREATION AND CULTURE 0.3 1.0 0.8 0.3 0.3 0.9 0.5 0.2 0.4 0.9 1.2 0.2 0.3 0.2 0.4 0.2 0.2 0.1 0.3 0.2 0.3 0.4 0.2 0.2 0.3
EDUCATION 0.1 1.6 3.3 0.1 0.1 1.6 3.1 0.0 0.0 1.5 3.2 0.0 0.0 1.5 3.3 0.0 0.0 1.0 2.0 0.1 0.0 0.5 1.0 0.1 0.0
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 0.8 0.9 0.9 0.6 0.3 1.5 0.7 0.5 0.8 0.9 0.5 0.5 0.6 0.5 0.3 0.5 0.4 0.2 0.4 0.8 0.6 0.8 0.7 0.4 0.4

Year-on-Year Change (in percent)

2011 2012 2013 2014 2015 2016 2017
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

ALL ITEMS 4.6 5.2 5.0 5.0 3.2 3.1 3.6 3.1 3.5 3.0 2.9 3.9 4.5 4.6 5.0 3.8 2.6 1.8 0.7 1.0 1.3 1.7 2.1 2.5 3.1
FOOD AND NON-ALCHOLIC BEVERAGES 5.8 6.2 5.4 5.1 2.2 2.2 3.0 2.6 2.8 2.4 2.5 4.1 5.7 6.8 8.0 6.5 4.9 3.3 1.1 1.3 1.6 2.1 2.6 3.1 3.3
FOOD ITEMS 6.0 6.4 5.5 5.2 2.2 2.1 3.1 2.5 2.8 2.3 2.4 4.2 6.0 7.2 8.4 6.7 5.0 3.3 1.1 1.3 1.6 2.1 2.6 3.1 3.6
ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 4.1 5.9 6.8 6.9 5.3 5.4 4.9 4.8 27.8 33.7 33.8 33.7 9.9 3.7 3.3 3.7 4.2 4.1 3.9 4.3 5.3 5.8 6.2 6.5 5.9
NON-FOOD 3.6 4.4 4.9 4.8 4.0 4.0 3.7 3.4 3.2 2.1 2.1 2.5 3.1 2.7 2.4 1.5 0.5 0.5 0.1 0.6 0.9 1.1 1.6 1.9 2.6
CLOTHING AND FOOTWEAR 3.1 3.9 4.2 4.3 3.8 4.5 4.5 4.1 4.3 3.3 3.2 3.4 3.7 3.3 3.1 3.0 2.8 2.5 2.1 2.3 2.0 2.2 2.6 2.5 2.5
HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 4.8 5.5 5.7 5.7 5.0 5.0 5.3 4.5 3.5 1.7 1.2 2.7 3.9 3.4 2.8 0.8 -1.2 -0.9 -1.6 -1.0 -0.3 -0.3 0.9 1.8 3.3
of which: ELECTRICITY, GAS AND OTHER FUELS 10.7 11.2 11.3 11.7 9.7 6.3 6.3 4.1 1.3 0.0 -0.5 3.0 6.5 5.6 3.8 -1.5 -8.0 -6.7 -7.6 -6.6 -4.6 -4.6 -2.4 0.5 5.9
FURNISHINGS, HOUSEHOLD EQUIPMENT
AND ROUTING MAINTENANCE OF THE HOUSE 2.5 2.9 3.2 3.1 2.8 4.0 4.2 4.4 4.2 2.9 2.6 2.5 2.7 2.2 2.2 2.1 2.3 2.3 2.1 2.1 1.9 2.0 2.5 2.6 2.5
HEALTH 2.8 3.2 3.3 3.2 2.8 3.5 3.6 3.5 3.7 3.0 2.5 2.6 3.1 2.7 2.9 2.9 2.2 1.9 1.5 1.6 2.0 2.6 3.1 3.0 2.8
TRANSPORT 4.2 6.5 6.8 6.5 4.5 2.8 1.6 1.6 1.3 0.0 1.2 0.9 1.0 1.3 1.1 0.2 -1.1 -0.4 -0.9 0.5 0.5 0.2 0.3 1.0 2.5
of which: OPERATION OF PERSONAL TRANSPORT EQUIPMENT 8.3 11.3 11.2 9.7 5.4 2.0 0.7 1.9 1.1 -0.4 4.2 2.9 4.1 5.1 2.0 -1.8 -10.2 -8.4 -9.3 -6.4 -2.1 -2.1 -0.7 1.4 6.4
COMMUNICATION -0.1 -0.2 -0.2 -0.3 -0.2 -0.1 0.0 0.2 0.3 0.1 0.1 0.0 0.0 0.1 -0.1 0.0 -0.2 -0.2 -0.1 -0.1 0.0 0.1 0.1 0.1 0.1
RECREATION AND CULTURE 0.9 1.5 2.1 2.4 2.4 2.4 2.0 1.9 1.9 1.9 2.7 2.7 2.6 1.8 1.0 1.0 0.9 0.8 0.7 0.7 0.8 1.1 1.1 1.1 1.1
EDUCATION 4.5 4.8 5.5 5.1 5.1 5.1 4.9 4.8 4.7 4.6 4.8 4.8 4.8 4.8 4.9 4.9 4.9 4.4 3.0 3.1 3.1 2.6 1.6 1.6 1.6
RESTAURANTS AND MISCELLANEOUS GOODS AND SERVICES 2.2 2.3 3.1 3.3 2.8 3.3 3.1 3.0 3.5 3.0 2.8 2.9 2.7 2.2 1.9 1.9 1.7 1.5 1.5 1.7 2.0 2.6 2.9 2.5 2.3

Source: Philippine Statistics Authority (PSA)

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

LEVELS (in billion pesos)

2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 r
A. Liquidity
1. M4 (2+7) 9,016.9 9,126.2 9,334.3 9,888.7 10,031.8 10,254.7 10,459.2 11,214.6 11,279.0

2. M3 : Broad Money Liabilities (3+6) 7,650.0 7,755.4 7,851.4 8,429.9 8,542.0 8,728.1 8,860.7 9,506.0 9,535.5
% to GDP 59.8 59.8 59.9 63.3 63.0 63.0 62.6 65.6 64.5

3. M2 (4+5) 7,344.3 7,434.5 7,510.8 8,067.3 8,219.0 8,412.6 8,525.7 9,140.4 9,189.6
% to GDP 57.4 57.3 57.3 60.6 60.6 60.7 60.2 63.1 62.2

4. M1: Currency Outside Depository Corporations and Transferable Deposits (Narrow Money ) 2,312.1 2,379.2 2,453.3 2,667.6 2,712.4 2,794.2 2,858.8 3,069.5 3,113.0
% to GDP 18.1 18.3 18.7 20.0 20.0 20.2 20.2 21.2 21.1

Currency Outside Depository Corporations (Currency in Circulation) 658.9 653.8 670.0 791.4 766.3 776.9 795.6 921.0 887.7
Transferable Deposits (Demand Deposits) 1,653.2 1,725.4 1,783.3 1,876.2 1,946.1 2,017.3 2,063.2 2,148.5 2,225.3

5. Other deposits included in broad money 5,032.2 5,055.3 5,057.5 5,399.7 5,506.6 5,618.4 5,666.9 6,071.0 6,076.6
Savings Deposits 3,209.8 3,269.9 3,357.5 3,586.9 3,702.9 3,824.2 3,898.5 4,100.8 4,084.2
Time Deposits 1,822.4 1,785.4 1,700.0 1,812.8 1,803.7 1,794.1 1,768.4 1,970.2 1,992.4

6. Securities Other Than Shares Included in Broad Money (Deposit Substitutes) 305.6 320.9 340.7 362.7 323.0 315.5 335.0 365.5 345.9

7. Transferable & Other Deposits in Foreign Currency (FCDU Deposits-Residents) 1,366.9 1,370.8 1,482.8 1,458.8 1,489.8 1,526.7 1,598.6 1,708.6 1,743.5
8. Liabilities Excluded from Broad-Money (Other Liabilities) 1,856.1 1,860.1 2,015.3 1,971.1 2,144.4 2,374.9 2,642.8 2,294.3 2,496.7

B. Domestic Claims 6,997.4 7,114.6 7,387.2 7,861.0 8,075.9 8,332.2 8,608.4 9,199.9 9,397.8
1. Net Claims on Central Government 1,096.9 1,124.5 1,209.0 1,261.7 1,447.1 1,414.7 1,490.5 1,603.0 1,663.6
Claims on Central Government 1,862.6 1,926.4 2,019.0 1,992.6 2,066.8 2,043.1 2,108.8 2,097.0 2,205.2
Less: Liabilities to Central Government 765.7 801.9 810.0 730.9 619.7 628.4 618.3 494.0 541.6

2. Claims on Other Sectors 5,900.4 5,990.1 6,178.2 6,599.3 6,628.8 6,917.5 7,117.9 7,596.8 7,734.3
Claims on Other Financial Corporations 628.2 628.8 667.9 680.5 689.9 722.7 724.0 770.8 792.1
Claims on State and Local Government 70.5 70.6 74.0 76.6 77.8 80.5 81.9 82.8 82.5
Claims on Public Nonfinancial Corporations 271.9 274.2 281.4 278.0 282.1 286.8 277.2 256.8 257.4
Claims on Private Sector 4,929.9 5,016.5 5,154.9 5,564.2 5,578.9 5,827.5 6,034.8 6,486.4 6,602.3

C. Net Foreign Assets 3,875.6 3,871.7 3,962.4 3,998.8 4,100.3 4,297.4 4,493.7 4,309.0 4,377.8
1. Bangko Sentral ng Pilipinas 3,556.8 3,598.5 3,731.8 3,762.8 3,778.5 3,970.4 4,136.4 3,946.6 3,992.3
Claims on Non-residents 3,627.5 3,671.8 3,806.9 3,837.3 3,852.5 4,045.5 4,214.3 4,023.8 4,071.3
Less: Liabilities to Non-residents 70.8 73.2 75.0 74.4 74.0 75.1 77.9 77.2 79.0

2. Other Depository Corporations 318.9 273.2 230.5 235.9 321.8 327.0 357.3 362.4 385.5
Claims on Non-residents 964.1 951.0 985.1 1,023.9 1,070.9 1,108.2 1,134.4 1,211.6 1,229.3
Less: Liabilities to Non-residents 645.3 677.7 754.5 787.9 749.1 781.2 777.2 849.3 843.7

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
6 SELECTED DOMESTIC INTEREST RATES
for periods indicated; in percent per annum

NOMINAL INTEREST RATES REAL INTEREST RATES 1

2014 2015 2016 2017 2014 2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

3.2 4.1 4.4 4.7 3.6 2 1.7 0.6 1 1.1 1.5 2 2.5
Interbank Call Loans 2.0147 2.0618 2.3356 2.5384 2.5266 2.5225 2.5241 2.5291 2.5289 2.5293 2.5247 2.5074 2.5354 -2.0853 -2.3382 -2.3644 -1.0616 0.5266 0.8225 1.9241 1.5291 1.4289 1.0293 0.5247 0.0074 2.5354
Savings Deposits 0.5370 0.6270 0.6460 0.7070 0.7170 0.6720 0.7210 0.7270 0.7370 0.7140 0.7290 0.6990 0.6890 -3.5630 -3.7730 -4.0540 -2.8930 -1.2830 -1.0280 0.12100 -0.2730 -0.3630 -0.7860 -1.2710 -1.8010 0.6890
Time Deposits (All Maturities) 0.9740 0.9870 1.0480 1.3470 1.3760 1.5220 1.4720 1.6290 1.6120 1.5210 1.4450 1.5770 1.6880 -3.1260 -3.4130 -3.6520 -2.2530 -0.6240 -0.1780 0.8720 0.6290 0.5120 0.0210 -0.5550 -0.9230 1.6880
Lending Rates
High 6.7287 6.8083 6.8860 6.7818 6.8698 6.9390 6.9376 6.7607 6.8407 6.7760 6.6280 6.4397 6.5050 2.6287 2.4083 2.1860 3.1818 4.8698 5.2390 6.3376 5.7607 5.7407 5.2760 4.6280 3.9397 6.5050
Low 4.3688 4.3417 4.3861 4.4397 4.5031 4.5183 4.5025 4.3579 4.4055 4.4067 4.2788 4.1097 4.2013 0.2688 -0.0583 -0.3139 0.8397 2.5031 2.8183 3.9025 3.3579 3.3055 2.9067 2.2788 1.6097 4.2013
All Maturities 2 5.5000 5.4780 5.5350 5.5820 5.4240 5.5150 5.6250 5.7390 5.6310 5.6240 5.6840 5.6290 5.5410 1.4000 1.0780 0.8350 1.9820 3.4240 3.8150 5.0250 4.7390 4.5310 4.1240 3.6840 3.1290 5.5410
Bangko Sentral Rates 3
Overnight Lending Facility (OLF) … … … … … … … … … .. .. .. .. … … … … … … … … … .. .. .. ..
Overnight RRP 3.5000 3.5000 3.7500 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 3.4902 3.0000 3.0000 3.0000 -0.6000 -0.9000 -0.9500 0.4000 2.0000 2.3000 3.4000 3.0000 2.9000 1.9902 1.0000 0.5000 3.0000
Overnight Deposit Facility (ODF) … … … … … … … … … 2.5000 2.5000 2.5000 2.5000 … … … … … … … … … 1.0000 0.5000 0.0000 2.5000
Term Deposit Auction Facility (TDF)
7-Day … … … … … … … … … 2.5000 2.5000 2.7882 3.0160 … … … … … … … … … 1.0000 0.5000 0.2882 3.0160
28-Day … … … … … … … … … 2.5000 2.5129 2.9071 3.3812 … … … … … … … … … 1.0000 0.5129 0.4071 3.3812

Rate on Government Securities

Treasury Bills, All Maturities 1.2880 1.5000 1.5000 1.5720 1.6910 2.0780 1.9980 1.7440 1.6130 1.6990 1.5050 1.5630 2.3640 -2.8120 -2.9000 -3.2000 -2.0280 -0.3090 0.3780 1.3980 0.7440 0.5130 0.1990 -0.4950 -0.9370 2.3640
91-Day 1.0650 1.2740 1.2580 1.2860 1.4690 1.9400 1.8610 1.7100 1.5550 1.5970 1.4160 1.4400 2.1790 -3.0350 -3.1260 -3.4420 -2.3140 -0.5310 0.2400 1.2610 0.7100 0.4550 0.0970 -0.5840 -1.0600 2.1790
182-Day 1.4000 1.5890 1.5820 1.7000 1.7290 2.2070 2.0140 1.6970 1.5800 1.6540 1.4520 1.6890 2.3800 -2.7000 -2.8110 -3.1180 -1.9000 -0.2710 0.5070 1.4140 0.6970 0.4800 0.1540 -0.5480 -0.8110 2.3800
364-Day 1.5400 1.8630 1.8090 1.8250 1.9480 2.2630 2.2000 1.8970 1.7230 1.8570 1.6790 1.8800 2.7100 -2.5600 -2.5370 -2.8910 -1.7750 -0.0520 0.5630 1.6000 0.8970 0.6230 0.3570 -0.3210 -0.6200 2.7100

Government Securities in the Secondary Market 4 3.9 4.4 4.4 2.7 2.4 1.2 0.4 1.5 1.1 1.9 2.3 2.6
3-Month 1.6917 1.3229 1.7104 2.5409 2.2714 2.0765 1.6817 2.6667 1.7650 1.7567 1.5857 2.0755 2.9696 -2.2083 -3.0771 -2.6896 -0.1591 -0.1286 0.8765 1.2817 1.1667 0.6650 -0.1433 -0.7143 -0.5245 2.9696
6-Month 2.0367 1.4938 1.9479 2.6432 2.5795 2.1980 1.7967 2.9183 1.8950 1.5949 1.2931 2.9464 2.4222 -1.8633 -2.9062 -2.4521 -0.0568 0.1795 0.9980 1.3967 1.4183 0.7950 -0.3051 -1.0069 0.3464 2.4222
1-Year 2.3125 1.8917 2.1729 2.6955 2.6886 2.4297 2.5467 2.3710 1.7313 2.1671 2.0107 2.4520 2.6708 -1.5875 -2.5083 -2.2271 -0.0045 0.2886 1.2297 2.1467 0.8710 0.6313 0.2671 -0.2893 -0.1480 2.6708
2-Year 2.7563 2.8542 2.9813 3.0568 3.1959 2.6999 2.6143 3.9847 3.4700 2.3877 2.2855 3.8676 3.2500 -1.1437 -1.5458 -1.4187 0.3568 0.7959 1.4999 2.2143 2.4847 2.3700 0.4877 -0.0145 1.2676 3.2500
3-Year 3.1650 2.8917 3.3833 3.4500 3.4136 3.0281 3.1016 3.6625 3.6900 3.0660 3.2925 3.5170 4.0988 -0.7350 -1.5083 -1.0167 0.7500 1.0136 1.8281 2.7016 2.1625 2.5900 1.1660 0.9925 0.9170 4.0988
4-Year 3.3917 3.1750 3.5083 3.5705 3.5864 3.7717 3.7263 3.8750 3.2332 3.3067 2.8798 3.8814 4.2500 -0.5083 -1.2250 -0.8917 0.8705 1.1864 2.5717 3.3263 2.3750 2.1332 1.4067 0.5798 1.2814 4.2500
5-Year 3.7479 3.9812 4.2146 3.6795 3.8273 3.8900 3.4923 3.9250 3.4583 2.8997 3.6321 4.7426 4.2577 -0.1521 -0.4188 -0.1854 0.9795 1.4273 2.6900 3.0923 2.4250 2.3583 0.9997 1.3321 2.1426 4.2577
7-Year 3.8615 4.0292 4.1229 4.1475 3.8932 3.7189 4.1617 4.5853 4.2283 2.9197 3.4483 4.8857 5.0625 -0.0385 -0.3708 -0.2771 1.4475 1.4932 2.5189 3.7617 3.0853 3.1283 1.0197 1.1483 2.2857 5.0625
10-Year 4.4562 4.1667 4.3475 4.3705 4.0614 4.3550 3.7995 4.1000 4.6900 4.2183 3.6455 4.6281 5.0554 0.5562 -0.2333 -0.0525 1.6705 1.6614 3.1550 3.3995 2.6000 3.5900 2.3183 1.3455 2.0281 5.0554
20-Year 5.3938 5.3750 5.3125 5.1727 4.9850 4.6511 5.1350 5.5217 5.2317 4.2415 4.6482 5.3771 5.0302 1.4938 0.9750 0.9125 2.4727 2.5850 3.4511 4.7350 4.0217 4.1317 2.3415 2.3482 2.7771 5.0302
25-Year 5.6354 5.4329 5.3750 4.9500 4.7659 .. 4.7280 4.8916 .. .. .. .. .. 1.7354 1.0329 0.9750 2.2500 2.3659 .. 4.3280 3.3916 .. .. .. .. ..

1
Nominal interest rate less inflation rate
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. Starting 3 June 2016, the interest rates for these facilities were set as follows: 3.5 percent in the OLF
(a reduction from 6.0 percent); 3.0 percent in the overnight RRP rate (an adjustment from 4.0 percent); and 2.5 percent in the ODF (no change from the previous SDA rate). The OLF and ODF will serve as the upper bound and lower bound, respectively, of the IRC system.
4
End of Period; (For Q1 2013 to Q1 2015, data refers to PDST-F while for Q2 2015 to present, it refers to PDST-R2)
p
Preliminary
r
Revised
- Not Available
.. No Transaction/No Quotation/No Issue
... Blank
Source: Bangko Sentral ng Pilipinas
 1
7 NUMBER OF FINANCIAL INSTITUTIONS
as of periods indicated
2014 2015 2016
r r r p
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Total 28,065 28,094 28,128 28,232 28,331 28,319 28,293 28,471 27,502 27,657 27,889 28,392
Head Offices 6,943 6,888 6,840 6,735 6,721 6,685 6,625 6,576 6,329 6,297 6,280 6,252
Branches/Agencies 21,122 21,206 21,288 21,497 21,610 21,634 21,668 21,895 21,173 21,360 21,609 22,140

Banks 10,020 10,120 10,207 10,361 10,456 10,528 10,538 10,756 10,849 10,936 11,024 11,178
Head Offices 667 664 652 648 646 638 634 632 622 618 613 602
Branches/Agencies 9,353 9,456 9,555 9,713 9,810 9,890 9,904 10,124 10,227 10,318 10,411 10,576

Universal and Commercial Banks 5,514 5,583 5,738 5,833 5,901 5,946 5,946 6,060 6,094 6,133 6,147 6,237
Head Offices 36 36 36 36 36 36 36 40 41 41 41 42
Branches/Agencies 5,478 5,547 5,702 5,797 5,865 5,910 5,910 6,020 6,053 6,092 6,106 6,195
Thrift Banks 1,856 1,878 1,873 1,920 1,927 2,013 1,999 2,086 2,130 2,124 2,180 2,176
Head Offices 70 70 69 69 69 70 69 68 66 64 64 60
Branches/Agencies 1,786 1,808 1,804 1,851 1,858 1,943 1,930 2,018 2,064 2,060 2,116 2,116
Savings and Mortgage Banks 1,219 1,242 1,248 1,280 1,317 1,386 1,356 1,517 1,545 1,548 1,562 1,585
Head Offices 28 28 28 28 28 29 28 28 27 26 26 25
Branches/Agencies 1,191 1,214 1,220 1,252 1,289 1,357 1,328 1,489 1,518 1,522 1,536 1,560
Private Development Banks 437 432 440 444 408 416 417 338 355 363 404 402
Head Offices 19 19 19 19 19 19 19 18 18 18 19 18
Branches/Agencies 418 413 421 425 389 397 398 320 337 345 385 384
Stock Savings and Loan Assns. 171 175 154 165 171 180 195 200 199 182 184 183
Head Offices 19 19 18 18 18 18 18 18 17 16 16 15
Branches/Agencies 152 156 136 147 153 162 177 182 182 166 168 168
Microfinance Banks 29 29 31 31 31 31 31 31 31 31 30 6
Head Offices 4 4 4 4 4 4 4 4 4 4 3 2
Branches/Agencies 25 25 27 27 27 27 27 27 27 27 27 4
Rural Banks 2,650 2,659 2,596 2,608 2,628 2,569 2,593 2,610 2,625 2,679 2,697 2,765
Head Offices 561 558 547 543 541 532 529 524 515 513 508 500
Branches/Agencies 2,089 2,101 2,049 2,065 2,087 2,037 2,064 2,086 2,110 2,166 2,189 2,265

Non-Banks r 18,045 17,974 17,921 17,871 17,875 17,791 17,755 17,715 16,653 16,721 16,865 17,214
Head Offices r 6,276 6,224 6,188 6,087 6,075 6,047 5,991 5,944 5,707 5,679 5,667 5,650
Branches/Agencies r 11,769 11,750 11,733 11,784 11,800 11,744 11,764 11,771 10,946 11,042 11,198 11,564
Investment Houses 26 25 25 25 25 25 25 25 26 26 26 25
Head Offices 16 15 15 15 15 15 15 15 16 16 16 15
Branches/Agencies 10 10 10 10 10 10 10 10 10 10 10 10
Finance Companies 88 88 88 88 88 88 110 110 118 118 127 129
Head Offices 20 20 20 20 20 20 22 22 22 22 22 22
Branches/Agencies 68 68 68 68 68 68 88 88 96 96 105 107
ABB Forex Corporations - - - - - - 5 5 5 5 5 5
Head Offices - - - - - - 5 5 5 5 5 5
Branches/Agencies - - - - - - - - - - - -
Investment Companies 3 3 2 2 2 2 2 2 2 2 2 1
Head Offices 3 3 2 2 2 2 2 2 2 2 2 1
Branches/Agencies - - - - - - - - - - - -
Securities Dealers/Brokers 13 13 13 13 13 13 13 13 13 13 13 12
Head Offices 13 13 13 13 13 13 13 13 13 13 13 12
Branches/Agencies - - - - - - - - - - - -
Pawnshops 17,584 17,513 17,461 17,422 17,426 17,340 17,278 17,238 16,170 16,237 16,372 16,723
Head Offices 6,022 5,971 5,936 5,847 5,835 5,807 5,745 5,698 5,460 5,432 5,420 5,407
Branches/Agencies 11,562 11,542 11,525 11,575 11,591 11,533 11,533 11,540 10,710 10,805 10,952 11,316
Lending Investors 1 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - - - - - -
Non-Stock Savings and Loan Assns. 198 199 199 199 199 201 200 200 199 200 200 199
Head Offices 71 71 71 71 71 71 70 70 69 69 69 68
Branches/Agencies 127 128 128 128 128 130 130 130 130 131 131 131
Private Insurance Companies 2 r 110 110 110 99 99 99 99 99 97 97 97 97
Head Offices r 108 108 108 96 96 96 96 96 97 97 97 97
Branches/Agencies r 2 2 2 3 3 3 3 3 - - - -
Government Non-Banks 4 4 4 4 4 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4 4 4 4 4 4
Branches/Agencies - - - - - - - - - - - -
Venture Capital Corporations - - - - - - - - - - - -
Head Offices - - - - - - - - - - - -
Branches/Agencies - - - - - - - - - - - -
Credit Card Companies 3 3 3 3 3 3 3 3 3 3 3 3
Head Offices 3 3 3 3 3 3 3 3 3 3 3 3
Branches/Agencies - - - - - - - - - - - -
Other Non-Bank with QBF 1 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - - - - - -
Electronic Money Issuer 4 4 4 4 4 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4 4 4 4 4 4
Branches/Agencies - - - - - - - - - - - -
Remittance Agent 1 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies - - - - - - - - - - - -
Credit Granting Entities 9 9 9 9 9 9 9 9 9 9 9 9
Head Offices 9 9 9 9 9 9 9 9 9 9 9 9
Branches/Agencies - - - - - - - - - - - -
1
Refers to the number of financial establishments which includes the head offices and branches; excludes the Bangko Sentral ng Pilipinas
Starting Q4 2009, data include other banking offices per Circular 505 and 624 dated 22 December 2005 and 13 October 2008, respectively.
(Other banking offices refer to any office or place of business in the Philippines other than the head office, branch or extension offfice, which primarily
engages in banking activities other than the acceptance of deposits and/or servicing of withdrawals thru tellers or other authorized personnel.)
2
Covers only the head offices and their foreign branches.
p
Preliminary
_
zero or nil
Source: Bangko Sentral ng Pilipinas
 1
8 TOTAL RESOURCES OF THE PHILIPPINE FINANCIAL SYSTEM
as of periods indicated
in billion pesos

2012 2013 2014 2015 2016 2017

Institutions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 r Q1 p

Total 9,522.0 9,797.5 9,981.4 10,633.4 10,772.5 11,285.1 11,820.7 12,814.6 13,032.3 13,339.7 13,488.3 14,446.6 14,322.0 14,453.5 14,779.2 15,381.7 15,559.2 15,963.8 16,212.2 17,136.2 17,333.4

Banks 7,456.0 7,663.3 7,877.5 8,369.0 8,434.7 8,925.1 9,454.8 10,292.8 10,465.2 10,612.2 10,751.0 11,546.2 11,374.2 11,502.7 11,863.2 12,406.3 12,529.9 12,865.9 13,114.3 13,914.2 14,111.4
Universal and Commercial Banks 6,668.0 6,877.6 7,054.3 7,486.6 7,547.6 7,995.5 8,505.4 9,300.4 9,412.5 9,545.6 9,658.0 10,398.4 10,238.9 10,327.9 10,670.8 11,159.2 11,254.8 11,578.5 11,810.5 12,560.5 12,730.2
Thrift Banks 608.6 606.2 622.4 681.5 679.3 739.8 764.6 809.1 825.0 848.7 866.6 916.2 899.3 964.7 979.6 1,034.1 1,055.1 1,064.0 1,080.4 1,122.0 1,149.5
a
Rural Banks 179.4 179.4 200.8 200.8 207.9 189.8 184.8 183.3 227.7 217.9 226.4 231.6 236.0 210.1 212.8 213.0 220.0 223.4 226.3 231.7 231.7
Non-Banks 2 2,065.9 2,134.3 2,103.9 2,264.4 2,337.8 2,359.9 2,365.9 2,521.8 2,567.1 2,727.5 2,737.3 2,900.3 2,947.8 2,950.7 2,916.0 2,975.4 3,029.4 3,098.1 3,114.2 3,222.0 3,222.0 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 2016
p
Preliminary
Notes: (1) Data on Non-Banks are based on Consolidated Statement of Condition (CSOC).
(2) Data on Rural Banks were based on CSOC up to March 2010. Data from April 2010 onwards are based on FRP.
(3) Details may not add up to total due to rounding off.
Source: Bangko Sentral ng Pilipinas
 1/
9 NON-PERFORMING LOANS (NPL), TOTAL LOANS AND LOAN LOSS PROVISIONS OF THE BANKING SYSTEM
end-of-period
in billion pesos

Non-Performing Loans 2 Gross Non-Performing Loans 3 Net Non-Performing Loans 3 Total Loans Loan Loss Provisions
UB&KBs TBs RBs Total UB&KBs TBs RBs Total UB&KBs TBs RBs Total UB&KBs TBs RBs Total UB&KBs TBs RBs Total

2006 117.410 20.550 9.045 147.005 2073.698 249.993 83.234 2406.925 97.031 10.138 3.820 110.989
2007 97.634 20.231 9.841 127.706 2195.110 295.499 100.215 2590.824 91.123 9.560 3.587 104.270
2008 88.191 20.107 9.563 117.861 2502.662 303.632 95.892 2902.186 88.201 10.774 3.636 102.611
2009 80.912 23.396 10.157 114.465 2725.200 321.742 97.534 3144.476 90.898 12.097 3.952 106.947

2010
Mar 81.382 25.189 9.363 115.934 2531.003 320.902 99.346 2951.251 91.982 12.702 4.380 109.064
Jun 87.668 25.868 9.491 123.027 2682.230 326.275 100.778 3109.283 95.394 13.723 4.603 113.720
Sep 83.141 28.177 9.417 120.735 2670.645 343.058 97.794 3111.497 97.379 14.500 4.533 116.412
Dec 80.215 26.323 10.249 116.787 2802.041 359.484 103.695 3265.220 95.040 14.123 5.102 114.265

2011
Mar 82.410 25.911 11.838 120.159 2759.938 354.660 117.155 3231.753 99.197 16.645 5.970 121.812
Jun 74.143 22.746 12.198 109.087 3030.631 367.867 119.701 3518.199 93.548 13.420 6.113 113.081
Sep 74.326 22.699 12.127 109.152 3021.051 364.469 121.659 3507.179 91.944 13.618 6.296 111.858
Dec 71.938 21.953 12.263 106.154 3222.105 383.731 120.963 3726.799 90.903 12.946 6.176 110.025

2012
Mar 106.354 26.090 13.940 146.384 18.918 11.550 7.470 37.938 3192.496 402.540 123.740 3718.776 124.968 18.170 7.690 150.828
Jun 102.098 24.360 14.370 140.828 11.393 9.530 7.350 28.273 3388.091 432.990 124.870 3945.951 127.269 18.270 8.230 153.769
Sep 103.420 25.830 14.800 144.050 13.224 11.340 7.060 31.624 3444.161 410.520 128.780 3983.461 128.598 18.560 9.000 156.158
Dec 100.610 26.530 15.850 142.990 11.310 12.220 6.910 30.440 3650.760 449.260 128.580 4228.600 128.460 18.090 10.220 156.770

2013
Mar 99.357 26.930 17.250 143.537 16.245 12.240 8.073 36.558 3625.043 439.240 129.473 4193.756 127.487 18.960 10.420 156.867
Jun 100.912 27.840 15.910 144.662 14.569 12.320 7.420 34.309 3760.891 468.830 128.740 4358.461 131.291 20.130 9.750 161.171
Sep 100.638 28.895 16.400 145.933 16.497 13.088 7.870 37.455 3922.085 490.705 126.790 4539.580 131.338 20.199 9.740 161.277
Dec 90.509 27.729 17.306 135.544 8.050 12.291 8.250 28.591 4256.963 508.199 131.788 4896.950 130.440 20.107 10.327 160.874

2014
Mar 93.323 27.057 18.114 138.494 9.939 13.146 8.800 31.885 4329.734 547.791 137.889 5015.414 131.790 18.771 10.612 161.173
Jun 94.798 27.165 17.867 139.830 12.437 12.931 8.895 34.263 4513.288 562.850 132.888 5209.026 133.317 19.088 10.240 162.645
Sep 96.181 26.049 16.476 138.706 14.129 11.572 8.257 33.958 4704.656 575.778 134.611 5415.045 133.708 19.375 9.486 162.569
Dec 93.055 25.373 16.402 134.830 15.289 11.346 8.104 34.739 5117.884 576.057 138.436 5832.377 132.542 19.468 9.563 161.573

2015
Mar 97.365 27.293 16.758 141.416 18.093 12.116 8.407 38.616 4991.914 600.981 139.144 5732.039 134.544 20.460 9.646 164.650
Jun 94.122 29.954 14.254 138.330 15.356 14.141 6.501 35.998 5110.488 638.154 119.780 5868.422 134.924 21.456 8.910 165.290
Sep 95.241 30.503 13.997 139.741 18.006 14.300 5.998 38.304 5244.589 668.457 121.416 6034.462 133.090 22.036 9.196 164.322
Dec 91.598 31.199 13.706 136.503 21.672 14.692 5.513 41.877 5719.665 689.019 118.711 6527.395 129.220 23.045 9.381 161.646

p
2016
Mar 97.112 34.346 14.215 145.673 29.065 16.288 5.741 51.094 5659.766 728.258 122.708 6510.732 129.193 25.001 9.739 163.933
Jun 98.198 36.158 14.473 148.829 30.689 17.388 5.576 53.653 5940.313 731.832 126.088 6798.233 130.708 25.617 10.178 166.503
Sep 98.398 37.414 14.380 150.192 28.399 18.049 5.157 51.605 6144.623 745.564 128.012 7018.199 133.465 26.440 10.499 170.404
Dec 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

p
2017
a a a a
Mar 99.712 40.069 13.703 153.484 24.465 20.104 4.679 49.248 6751.129 792.147 127.674 7670.951 138.546 27.883 10.353 176.782

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.
a
As of December 2016
p
Preliminary

Details may not add up due to rounding off.

Source: Bangko Sentral ng Pilipinas
 1
9 RATIOS OF NON-PERFORMING LOANS (NPL) AND LOAN LOSS PROVISIONS
TO TOTAL LOANS OF THE BANKING SYSTEM
end-of-period, in percent

NPL/Total Loans 2 Gross NPL/Total Loans 3 Net NPL/Total Loans 3 Loan Loss Provisions/Total Loans
UBs &KBs TBs RBs Total UBs &KBs TBs RBs Total UBs &KBs TBs RBs Total UBs &KBs TBs RBs Total

2006 5.662 8.220 10.867 6.108 4.679 4.055 4.589 4.611

2007 4.448 6.846 9.820 4.929 4.151 3.235 3.579 4.025
2008 3.524 6.622 9.973 4.061 3.524 3.548 3.792 3.536
2009 2.969 7.272 10.414 3.640 3.335 3.760 4.052 3.401

2010
Mar 3.215 7.849 9.425 3.928 3.634 3.958 4.409 3.696
Jun 3.268 7.928 9.418 3.957 3.557 4.206 4.567 3.657
Sep 3.113 8.213 9.629 3.880 3.646 4.227 4.635 3.741
Dec 2.863 7.322 9.884 3.577 3.392 3.929 4.920 3.499

2011
Mar 2.986 7.306 10.105 3.718 3.594 4.693 5.096 3.769
Jun 2.446 6.183 10.190 3.101 3.087 3.648 5.107 3.214
Sep 2.460 6.228 9.968 3.112 3.043 3.736 5.175 3.189
Dec 2.233 5.721 10.138 2.848 2.821 3.374 5.106 2.952

2012
Mar 3.331 6.481 11.266 3.936 0.593 2.869 6.037 1.020 3.914 4.514 6.215 4.056
Jun 3.013 5.626 11.508 3.569 0.336 2.201 5.886 0.717 3.756 4.219 6.591 3.897
Sep 3.003 6.292 11.492 3.616 0.384 2.762 5.482 0.794 3.734 4.521 6.989 3.920
Dec 2.756 5.905 12.327 3.381 0.310 2.720 5.374 0.720 3.519 4.027 7.948 3.707

2013
Mar 2.741 6.131 13.323 3.423 0.448 2.787 6.235 0.872 3.517 4.317 8.048 3.740
Jun 2.683 5.938 12.358 3.319 0.387 2.628 5.764 0.787 3.491 4.294 7.573 3.698
Sep 2.566 5.888 12.935 3.215 0.421 2.667 6.207 0.825 3.349 4.116 7.682 3.553
Dec 2.126 5.456 13.132 2.768 0.189 2.419 6.260 0.584 3.064 3.957 7.836 3.285

2014
Mar 2.155 4.939 13.137 2.761 0.230 2.400 6.382 0.636 3.044 3.427 7.696 3.214
Jun 2.100 4.826 13.445 2.684 0.276 2.297 6.694 0.658 2.954 3.391 7.706 3.122
Sep 2.044 4.524 12.240 2.561 0.300 2.010 6.134 0.627 2.842 3.365 7.047 3.002
Dec 1.818 4.405 11.848 2.312 0.299 1.970 5.854 0.596 2.590 3.380 6.908 2.770

2015
Mar 1.950 4.541 12.044 2.467 0.362 2.016 6.042 0.674 2.695 3.404 6.932 2.872
Jun 1.842 4.694 11.900 2.357 0.300 2.216 5.427 0.613 2.640 3.362 7.439 2.817
Oct 1.816 4.563 11.528 2.316 0.343 2.139 4.940 0.635 2.538 3.297 7.574 2.723
Dec 1.601 4.528 11.546 2.091 0.379 2.132 4.644 0.642 2.259 3.345 7.902 2.476

p
2016
Mar 1.716 4.716 11.584 2.237 0.514 2.237 4.679 0.785 2.283 3.433 7.937 2.518
Jun 1.653 4.941 11.478 2.189 0.517 2.376 4.422 0.789 2.200 3.500 8.072 2.449
Sep 1.601 5.018 11.233 2.140 0.462 2.421 4.029 0.735 2.172 3.546 8.202 2.428
Dec 1.399 4.711 10.733 1.894 0.317 2.228 3.665 0.569 2.023 3.441 8.109 2.270

p
2017
a a a
Mar 1.477 5.058 10.733 2.001 0.362 2.538 3.665 0.642 2.052 3.520 8.109 2.305

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.
a
As of December 2016
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

2015 2016 2007

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Volume 150,587 68,804 191,792 82,078 97,625 135,028 118,017 91,601 140,555
Financials 978 1,238 1,154 725 741 1,012 1,906 1,450 1,495
Industrial 10,913 6,133 11,872 5,550 6,153 6,410 11,122 5,345 9,604
Holding Firms 10,844 6,076 25,300 13,115 8,600 11,584 9,081 7,749 29,926
Property 12,138 8,586 7,757 16,680 10,446 11,770 20,015 12,974 22,113
Services 21,263 9,370 8,628 10,202 17,038 17,876 31,139 20,533 29,621
Mining & Oil 94,056 37,160 136,929 35,490 54,421 85,693 44,046 42,982 47,549
SME (in thousand shares) 393,244 239,362 149,843 315,570 222,462 681,589 708,473 565,685 247,653
ETF1/ (in thousand shares) 1,893 2,235 1,715 1,220 2,964 1,008 943 987 656

Value 641,594 553,577 517,832 438,408 407,066 524,669 576,329 421,435 436,165
Financials 74,595 88,404 66,529 43,993 51,044 81,396 78,796 64,291 62,314
Industrial 145,948 143,103 150,323 91,553 90,691 88,097 130,479 92,713 95,489
Holding Firms 174,325 136,336 108,947 119,313 98,158 141,840 145,256 106,019 107,784
Property 103,447 75,621 77,548 104,550 74,676 93,801 103,546 75,656 73,843
Services 111,491 85,432 94,494 67,320 74,501 94,777 96,593 64,268 76,891
Mining & Oil 27,328 21,899 17,914 8,583 15,738 17,146 16,669 15,622 17,704
SME (in thousand pesos) 4,226,414 2,498,500 1,876,456 2,957,202 1,927,800 7,488,170 4,868,616 2,748,376 2,061,918
ETF1/ (in thousand pesos) 234,748 282,800 200,392 139,155 331,093 123,996 120,654 116,416 78,599

Composite Index (end of period) 7940.49 7564.50 6893.98 6952.08 7262.30 7796.25 7629.73 6840.64 7311.72

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

1/ Starting 2 December 2013, trading of an Exchange Traded Fund commenced. ETF is an open-end investment company that trades its shares in the stock exchange
Source : Philippine Stock Exchange
11 PHILIPPINES: BALANCE OF PAYMENTS
in million US dollars
2016 2017 p Growth (%)
Q1 Q2 Q3 Q4 Q1 Q1 2017 p

Current Account 730 141 763 -1032 -318 -143.7

(Totals as percent of GNI) 0.9 0.2 0.9 -1.0 -0.4
(Totals as percent of GDP) 1.1 0.2 1.0 -1.2 -0.4
Export 26499 27622 29051 26834 29065 9.7
Import 25770 27481 28288 27867 29384 14.0

Goods, Services, and Primary Income -5179 -6071 -5594 -7517 -6786 -31.0
Export 20411 21231 22512 20193 22397 9.7
Import 25590 27302 28106 27710 29184 14.0

Goods and Services -5820 -6767 -6129 -8238 -7464 -28.2

(Totals as percent of GNI) -6.9 -7.3 -6.9 -8.3 -8.6
(Totals as percent of GDP) -8.4 -8.7 -8.3 -9.9 -10.4
Export 18024 18860 20088 17830 19953 10.7
Import 23844 25627 26217 26068 27418 15.0

Goods -7816 -8347 -7943 -9973 -9839 -25.9

(Totals as percent of GNI) -9.2 -8.9 -8.9 -10.0 -11.3
(Totals as percent of GDP) -11.3 -10.7 -10.7 -11.9 -13.8
Credit: Exports 10183 10709 11933 10619 11617 14.1
Debit: Imports 17999 19057 19876 20592 21456 19.2

Services 1995 1580 1814 1735 2374 19.0

Credit: Exports 7841 8151 8155 7211 8336 6.3
Debit: Imports 5845 6570 6341 5476 5962 2.0

Primary Income 642 696 535 721 678 5.7

Credit: Receipts 2387 2371 2424 2363 2444 2.4
Debit: Payments 1745 1675 1889 1641 1766 1.2

Secondary Income 5908 6212 6357 6485 6468 9.5

Credit: Receipts 6088 6390 6540 6642 6668 9.5
Debit: Payments 180 179 183 157 200 11.2

Capital Account 24 26 28 24 9 -62.0

Credit: Receipts 28 30 32 28 43 56.8
Debit: Payments 3 4 4 4 34 965.9

Financial Account 955 -910 849 54 579 -39.4

Net Acquisition of Financial Assets 1686 2279 1446 1653 1301 -22.8
Net Incurrence of Liabilities 730 3189 596 1599 721 -1.2

Direct Investment -1049 -969 -387 -1829 -1142 -8.9

Net Acquisition of Financial Assets 288 1878 1280 253 417 45.1
Net Incurrence of Liabilities 1337 2847 1667 2082 1560 16.6

Portfolio Investment 1446 880 -634 -309 3205 121.7

Net Acquisition of Financial Assets 488 1247 -198 -418 564 15.5
Net Incurrence of Liabilities -958 367 436 -109 -2641 -175.8

Financial Derivatives -3 59 -11 -78 -183 -6560.7

Net Acquisition of Financial Assets -155 -210 -191 -145 -272 -75.8
Net Incurrence of Liabilities -152 -270 -180 -67 -90 41.2

Other Investment 562 -880 1882 2269 -1301 -331.6

Net Acquisition of Financial Assets 1065 -636 555 1962 592 -44.4
Net Incurrence of Liabilities 503 244 -1327 -307 1892 276.1

NET UNCLASSIFIED ITEMS -8 -233 1073 -1006 -106 -1193.2

OVERALL BOP POSITION -210 843 1014 -2068 -994 -374.2

(Totals as percent of GNI) -0.2 0.9 1.1 -2.1 -1.1
(Totals as percent of GDP) -0.3 1.1 1.4 -2.5 -1.4
Debit: Change in Reserve Assets -199 833 1025 -2079 -983 -394.3
Credit: Change in Reserve Liabilities 11 -11 11 -10 11 1.9

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

2016 2017
Mar Jun Sep Dec Mar

Gross International Reserves 82,977 85,284 86,139 80,692 80,894

Gold 7,765 8,336 8,307 7,259 7,888

SDRs 1,193 1,184 1,182 1,138 1,149
Foreign Investments 71,379 73,295 73,850 68,290 67,677
Foreign Exchange 2,217 2,020 2,342 3,563 3,735
Reserve Position in the Fund 424 449 458 442 446

Net International Reserves 82,964 85,282 86,126 80,689 80,881

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

2013 42.4462 0.4356 56.3942 66.4139 41.0195 33.9347 5.4725 13.4839 1.3832 0.0041 1.4305 0.0388 6.9048 11.3184 11.5567
Jan 40.7295 0.4580 54.1270 65.0893 42.7556 33.1823 5.2537 13.4143 1.3549 0.0042 1.4011 0.0382 6.5456 10.8608 11.0893
Feb 40.6723 0.4372 54.3618 63.0701 41.9596 32.8469 5.2446 13.1338 1.3647 0.0042 1.3727 0.0374 6.5255 10.8455 11.0736
Mar 40.7127 0.4293 52.8776 61.3734 41.9971 32.6803 5.2477 13.0966 1.3788 0.0042 1.3700 0.0370 6.5492 10.8564 11.0848
Apr 41.1422 0.4221 53.5266 62.9378 42.7442 33.2313 5.2999 13.4866 1.4164 0.0042 1.3793 0.0367 6.6485 10.9711 11.2020
May 41.2976 0.4092 53.5926 63.1389 40.9360 33.0769 5.3210 13.6880 1.3898 0.0042 1.3870 0.0372 6.7247 11.0124 11.2440
Jun 42.9069 0.4406 56.6122 66.4568 40.5481 34.0634 5.5291 13.6649 1.3959 0.0044 1.4334 0.0378 6.9941 11.4413 11.6823
Jul 43.3559 0.4350 56.7089 65.8438 39.7304 34.2142 5.5896 13.6030 1.3950 0.0043 1.4482 0.0385 7.0675 11.5609 11.8044
Aug 43.8639 0.4484 58.4174 67.8155 39.5530 34.4837 5.6559 13.3993 1.3899 0.0042 1.4640 0.0393 7.1644 11.6961 11.9425
Sep 43.8318 0.4420 58.5044 69.4375 40.6011 34.6960 5.6527 13.4795 1.3821 0.0039 1.4785 0.0404 7.1617 11.6874 11.9338
Oct 43.1825 0.4415 58.8668 69.5227 41.0612 34.7164 5.5693 13.5813 1.3850 0.0038 1.4696 0.0405 7.0723 11.5148 11.7573
Nov 43.5546 0.4357 58.7584 70.1141 40.6381 34.9239 5.6184 13.6441 1.3786 0.0038 1.4758 0.0410 7.1480 11.6137 11.8586
Dec 44.1043 0.4276 60.3768 72.1669 39.7100 35.1010 5.6885 13.6152 1.3677 0.0037 1.4864 0.0418 7.2565 11.7602 12.0081

2014 44.3952 0.4208 59.0432 73.1731 40.0974 35.0648 5.7252 13.5828 1.3672 0.0037 1.4659 0.0422 7.2076 11.8363 12.0872
Jan 44.9266 0.4321 61.2469 74.0269 39.8717 35.3263 5.7920 13.6219 1.3657 0.0037 1.4918 0.0422 7.4251 11.9795 12.2323
Feb 44.8950 0.4397 61.3016 74.3135 40.2635 35.4679 5.7867 13.5655 1.3756 0.0038 1.4817 0.0419 7.3893 11.9711 12.2238
Mar 44.7916 0.4381 61.9409 74.4520 40.6363 35.3400 5.7711 13.6530 1.3832 0.0039 1.4738 0.0419 7.2601 11.9437 12.1953
Apr 44.6416 0.4351 61.6350 74.6995 41.6028 35.5664 5.7572 13.7098 1.3815 0.0039 1.4773 0.0428 7.1717 11.9035 12.1542
May 43.9236 0.4314 60.3484 73.9965 40.8495 35.1096 5.6660 13.6035 1.3513 0.0038 1.4582 0.0429 7.0410 11.7116 11.9588
Jun 43.8175 0.4293 59.5975 74.0822 41.0022 35.0303 5.6528 13.6158 1.3474 0.0037 1.4609 0.0430 7.0296 11.6829 11.9300
Jul 43.4665 0.4276 58.9257 74.2780 40.8363 34.9877 5.6085 13.6594 1.3531 0.0037 1.4523 0.0426 7.0096 11.5901 11.8342
Aug 43.7673 0.4258 58.3659 73.2141 40.7390 35.0739 5.6473 13.7637 1.3663 0.0038 1.4599 0.0427 7.1085 11.6701 11.9160
Sep 44.0751 0.4119 56.9349 71.9350 40.0406 34.9299 5.6860 13.7383 1.3708 0.0037 1.4653 0.0427 7.1795 11.7517 12.0001
Oct 44.7979 0.4156 56.8661 72.0912 39.3383 35.1776 5.7746 13.7129 1.3812 0.0037 1.4743 0.0423 7.3101 11.9421 12.1967
Nov 44.9514 0.3875 56.1001 70.9959 38.9172 34.7182 5.7970 13.4555 1.3717 0.0037 1.4646 0.0411 7.3394 11.9815 12.2384
Dec 44.6878 0.3755 55.2554 69.9919 37.0710 34.0494 5.7632 12.8943 1.3589 0.0036 1.4306 0.0405 7.2276 11.9074 12.1666

2015 45.5028 0.3760 50.5291 69.5888 34.2412 33.1266 5.8697 11.7236 1.3308 0.0034 1.4340 0.0403 7.2423 12.1317 12.3892
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 49.9910 0.4401 53.2686 61.9521 37.8889 35.3106 6.4419 11.2478 1.4234 0.0037 1.6098 0.0434 7.2569 13.3323 13.6123
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

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

2013 0.0236 2.2977 0.0178 0.0151 0.0244 0.0295 0.1829 0.0742 0.7230 245.5338 0.6997 25.8055 0.1451 0.0884 0.0866
Jan 0.0246 2.1833 0.0185 0.0154 0.0234 0.0301 0.1903 0.0745 0.7381 237.3247 0.7137 26.1531 0.1528 0.0921 0.0902
Feb 0.0246 2.2870 0.0184 0.0159 0.0238 0.0304 0.1907 0.0761 0.7327 238.0952 0.7285 26.7344 0.1532 0.0922 0.0903
Mar 0.0246 2.3291 0.0189 0.0163 0.0238 0.0306 0.1906 0.0764 0.7253 238.0952 0.7299 27.0040 0.1527 0.0921 0.0902
Apr 0.0243 2.3692 0.0187 0.0159 0.0234 0.0301 0.1887 0.0741 0.7060 236.4865 0.7250 27.2303 0.1504 0.0911 0.0893
May 0.0242 2.4438 0.0187 0.0158 0.0244 0.0302 0.1879 0.0731 0.7195 237.2881 0.7210 26.9162 0.1487 0.0908 0.0889
Jun 0.0233 2.2697 0.0177 0.0150 0.0247 0.0294 0.1809 0.0732 0.7164 229.7461 0.6976 26.4293 0.1430 0.0874 0.0856
Jul 0.0231 2.2990 0.0176 0.0152 0.0252 0.0292 0.1789 0.0735 0.7168 232.0888 0.6905 25.9770 0.1415 0.0865 0.0847
Aug 0.0228 2.2300 0.0171 0.0147 0.0253 0.0290 0.1768 0.0746 0.7195 240.1130 0.6830 25.4567 0.1396 0.0855 0.0837
Sep 0.0228 2.2622 0.0171 0.0144 0.0246 0.0288 0.1769 0.0742 0.7235 256.7237 0.6764 24.7496 0.1396 0.0856 0.0838
Oct 0.0232 2.2651 0.0170 0.0144 0.0244 0.0288 0.1796 0.0736 0.7220 262.1723 0.6805 24.6943 0.1414 0.0868 0.0851
Nov 0.0230 2.2954 0.0170 0.0143 0.0246 0.0286 0.1780 0.0733 0.7254 265.9574 0.6776 24.3813 0.1399 0.0861 0.0843
Dec 0.0227 2.3387 0.0166 0.0139 0.0252 0.0285 0.1758 0.0734 0.7311 272.3147 0.6728 23.9394 0.1378 0.0850 0.0833

2014 0.0225 2.3819 0.0170 0.0137 0.0250 0.0285 0.1747 0.0736 0.7315 267.1980 0.6823 23.7037 0.1388 0.0845 0.0827
Jan 0.0223 2.3140 0.0163 0.0135 0.0251 0.0283 0.1727 0.0734 0.7322 270.9677 0.6703 23.7101 0.1347 0.0835 0.0818
Feb 0.0223 2.2745 0.0163 0.0135 0.0248 0.0282 0.1728 0.0737 0.7269 266.3116 0.6749 23.8692 0.1353 0.0835 0.0818
Mar 0.0223 2.2828 0.0161 0.0134 0.0246 0.0283 0.1733 0.0732 0.7229 255.4745 0.6785 23.8908 0.1377 0.0837 0.0820
Apr 0.0224 2.2981 0.0162 0.0134 0.0240 0.0281 0.1737 0.0729 0.7239 255.7201 0.6769 23.3846 0.1394 0.0840 0.0823
May 0.0228 2.3180 0.0166 0.0135 0.0245 0.0285 0.1765 0.0735 0.7400 261.5193 0.6858 23.3281 0.1420 0.0854 0.0836
Jun 0.0228 2.3295 0.0168 0.0135 0.0244 0.0285 0.1769 0.0734 0.7422 271.7391 0.6845 23.2612 0.1423 0.0856 0.0838
Jul 0.0230 2.3389 0.0170 0.0135 0.0245 0.0286 0.1783 0.0732 0.7390 269.9229 0.6886 23.4480 0.1427 0.0863 0.0845
Aug 0.0228 2.3485 0.0171 0.0137 0.0245 0.0285 0.1771 0.0727 0.7319 266.4797 0.6850 23.4308 0.1407 0.0857 0.0839
Sep 0.0227 2.4279 0.0176 0.0139 0.0250 0.0286 0.1759 0.0728 0.7295 269.9229 0.6824 23.4244 0.1393 0.0851 0.0833
Oct 0.0223 2.4064 0.0176 0.0139 0.0254 0.0284 0.1732 0.0729 0.7240 270.2703 0.6783 23.6559 0.1368 0.0837 0.0820
Nov 0.0222 2.5810 0.0178 0.0141 0.0257 0.0288 0.1725 0.0743 0.7290 270.2703 0.6828 24.3576 0.1363 0.0835 0.0817
Dec 0.0224 2.6630 0.0181 0.0143 0.0270 0.0294 0.1735 0.0776 0.7359 277.7778 0.6990 24.6842 0.1384 0.0840 0.0822

2015 0.0220 2.6606 0.0198 0.0144 0.0292 0.0302 0.1705 0.0855 0.7517 293.6672 0.6974 24.8330 0.1381 0.0825 0.0808
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 0.0200 2.2724 0.0188 0.0161 0.0264 0.0283 0.1552 0.0889 0.7026 267.1749 0.6214 23.0384 0.1378 0.0750 0.0735
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

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

2013 15.26 12.38 24.45 87.44 81.57 115.85

Jan 15.53 12.43 25.14 91.17 84.88 120.98
Feb 15.72 12.65 25.35 90.71 84.77 120.01
Mar 15.82 12.82 25.37 90.76 84.87 120.03
Apr 15.71 12.81 25.07 90.41 84.79 119.30
May 15.75 12.96 24.97 90.39 85.15 118.89
Jun 15.14 12.27 24.27 87.15 80.87 115.93
Jul 15.08 12.29 24.09 85.75 80.37 113.22
Aug 14.88 12.02 23.92 84.33 78.11 112.32
Sep 14.89 12.07 23.89 84.35 78.23 112.25
Oct 14.97 12.11 24.04 85.06 78.90 113.18
Nov 14.94 12.15 23.90 85.09 79.45 112.66
Dec 14.85 12.10 23.72 84.84 79.26 112.29

2014 14.92 12.24 23.72 87.20 82.50 114.36

Jan 14.67 11.95 23.44 87.94 83.88 114.67
Feb 14.63 11.86 23.46 86.39 81.79 113.25
Mar 14.65 11.85 23.54 85.66 80.46 112.93
Apr 14.68 11.90 23.54 85.92 80.23 113.76
May 14.89 12.07 23.88 87.16 81.07 115.72
Jun 14.96 12.15 23.95 87.81 81.73 116.53
Jul 15.03 12.24 24.02 87.64 82.21 115.66
Aug 14.97 12.26 23.83 87.20 82.03 114.84
Sep 15.06 12.49 23.75 87.29 82.95 114.13
Oct 14.94 12.40 23.55 86.88 82.77 113.38
Nov 15.18 12.79 23.69 88.19 85.48 113.67
Dec 15.46 13.04 24.09 89.30 86.67 114.98

2015 15.68 13.25 24.39 92.12 90.22 117.81

Jan 15.63 13.22 24.30 95.00 94.32 120.30
Feb 15.85 13.44 24.61 94.86 94.18 120.11
Mar 15.93 13.60 24.61 94.28 93.73 119.27
Apr 15.85 13.60 24.39 94.07 93.46 119.06
May 15.75 13.46 24.30 92.87 91.48 118.28
Jun 15.75 13.47 24.29 92.72 91.39 118.03
Jul 15.76 13.44 24.35 91.80 90.76 116.61
Aug 15.65 13.15 24.46 90.91 88.29 116.98
Sep 15.51 12.84 24.50 89.59 85.57 116.69
Oct 15.56 12.94 24.48 90.07 86.49 116.86
Nov 15.48 12.99 24.20 90.11 87.48 115.98
Dec 15.44 12.88 24.24 89.74 86.54 116.06

2016 15.00 12.20 24.01 88.81 84.16 116.34

Jan 15.41 12.67 24.45 93.82 90.98 120.87
Feb 15.18 12.43 24.17 90.50 87.53 116.80
Mar 15.31 12.57 24.32 90.58 87.29 117.21
Apr 15.24 12.48 24.25 90.46 86.51 117.71
May 15.16 12.32 24.25 90.03 84.92 118.33
Jun 15.21 12.29 24.43 90.41 84.79 119.33
Jul 14.98 12.12 24.06 88.20 83.21 115.92
Aug 14.95 12.04 24.08 87.57 82.02 115.70
Sep 14.75 11.88 23.78 86.30 80.59 114.26
Oct 14.60 11.77 23.50 85.50 79.88 113.17
Nov 14.62 11.84 23.47 86.11 80.90 113.51
Dec 14.73 12.07 23.44 86.66 82.26 113.38

2017 14.52 11.90 23.10 88.41 85.33 114.28

Jan 14.69 12.03 23.40 90.35 87.44 116.55
Feb 14.49 11.88 23.05 88.07 85.08 113.76
Mar 14.37 11.79 22.84 86.81 83.47 112.52
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
31 December 2016 31 March 2017
Short-term Medium & Short-term Medium &
Total Total
Trade Non-Trade Long- Term Trade Non-Trade Long- Term

a a
Grand Total 2,087 12,440 60,237 74,763 3,050 12,011 58,744 73,805

b b
Public Sector 801 36,669 37,470 648 37,012 37,660

Banks 801 3,119 3,921 648 3,455 4,103

c c
Bangko Sentral ng Pilipinas 1,292 1,292 1,309 1,309
Others 801 1,828 2,629 648 2,147 2,795

Non-Banks 33,549 33,549 33,556 33,556

NG and Others 33,549 33,549 33,556 33,556

Private Sector 2,087 11,638 23,568 37,293 3,050 11,363 21,733 36,145

Banks 11,450 3,666 15,116 11,174 3,428 14,602

d d
Foreign Bank Branches 4,012 166 4,178 4,758 266 5,025
Domestic Banks 7,438 3,500 10,938 6,416 3,161 9,577

e e
Non-Banks 2,087 188 19,902 22,177 3,050 189 18,305 21,543

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

Exclusions 31 December 2016 31 March 2017

a
Residents' holdings of Philippine debt papers issued offshore; 16,529 17,026
Non-residents' holdings of peso-denominated debt securities 5,506 4,588

Inclusions

b
Cumulative foreign exchange revaluation on US$-denominated
multi-currency loans from Asian Development Bank and World Bank -43 -29
c
Accumulated SDR allocations from the IMF 1,121 1,140
d
"Due to Head Office/Branches Abroad" (DTHOBA) accounts of branches
and offshore banking units of foreign banks operating in the Philippines
which are considered by BSP as "quasi-equity" 3,123 3,758
e
Loans without BSP approval/registration which cannot be serviced
using foreign exchange from the banking system; 13,139 11,979
Obligations under capital lease arrangements 1,306 1,253

Source: Bangko Sentral ng Pilipinas

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

2016 2017 p
Q1 Q2 Q3 Q4 Q1

Debt Service Burden (DSB) 1 2292 1473 1422 1956 2389

Principal 1572 954 711 1355 1688
Interest 720 519 711 600 701

Export Shipments (XS) 2 10183 10709 11933 10619 11617

Exports of Goods and Receipts 24945 26084 27476 25223 27464

from Services and Income (XGSI) 2, 3

2
Current Account Receipts (CAR) 26499 27622 29051 26834 29065

External Debt 77640 77721 76622 74763 73805

Gross Domestic Product (GDP) 69225 77767 74081 83566 71530

Gross National Income (GNI) 84648 93304 89393 99390 87036

Ratios (%) :

DSB to XS 22.51 13.75 11.92 18.42 20.56

DSB to XGSI 9.19 5.65 5.18 7.75 8.70

DSB to CAR 8.65 5.33 4.89 7.29 8.22

DSB to GNI 2.71 1.58 1.59 1.97 2.74

External Debt to GDP 26.47 26.19 25.41 24.52 24.05

External Debt to GNI 21.88 21.68 21.07 20.37 20.00

1
Debt service burden represents principal and interest payments after rescheduling. In accordance with the internationally-accepted
concept, debt service burden consists of (a) Principal and interest payments on fixed MLT credits including IMF credits, loans covered by
the Paris Club and Commercial Banks rescheduling, and New Money Facilities; and (b) Interest payments on fixed and revolving short-term
liabilities of banks and non-banks but excludes (i) Prepayments of future years' maturities of foreign loans and (ii) Principal payments on
fixed and revolving ST liabilities of banks and non-banks.
2
Based on the accounting principle under the Balance of Payments and International Investment Position Manual, Sixth edition (BPM6)
3
Includes cash remittances of overseas Filipino workers that were coursed through and reported by commercial banks which are reflected
under Compensation of Employees in the Primary Income account and workers' remittances in the Secondary Income account.
p
Preliminary
Source: BSP
 16 SELECTED FOREIGN INTEREST RATES
period averages; in percent

2012 2013 2014 2015 2016 2017

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

US Prime Rate 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2841 3.5000 3.5000 3.5000 3.5119 3.7935

US Discount Rate 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7935 1.0000 1.0000 1.0000 1.0492 1.2935

US Federal Funds Rate 0.1142 0.1649 0.1570 0.1722 0.1546 0.1140 0.0848 0.0802 0.0767 0.0780 0.0784 0.0930 0.0974 0.1151 0.1323 0.1574 0.3694 0.3831 0.3994 0.4491 0.6974

LIBOR (90 days) 0.5141 0.4663 0.4239 0.3170 0.2917 0.2750 0.2614 0.2413 0.2358 0.2282 0.2343 0.2363 0.2603 0.2794 0.3142 0.4085 0.6248 0.6433 0.7853 0.9208 1.0684

SIBOR (90 days)1 0.4375 0.4375 0.4120 0.4063 0.4063 0.4063 0.4063 0.4062 0.4033 0.4038 0.4055 0.4254 0.7503 0.8791 0.9613 1.0921 1.2369 1.0062 0.8807 0.9059 0.9529

1
SIBOR data refers to SIBOR rates (in Singapore $)
Source: Bloomberg, Asian Wall Street Journal, Reuters
 17 BALANCE SHEET OF THE BANGKO SENTRAL NG PILIPINAS
as of periods indicated

LEVELS (in billion pesos)

2015 2016 2017
u p
Mar Jun Sep Dec Mar Jun Sep Dec Mar

Assets 4,134.4 4,180.5 4,296.4 4,309.9 4,405.5 4,591.3 4,760.7 4,559.1 4,612.7
4,134.4 4,180.5 4,296.4 4,309.9 4,405.5 4,591.3 4,760.7 4,559.1
International Reserves 3,581.1 3,622.1 3,753.7 3,782.4 3,798.6 3,991.3 4,158.0 3,998.0 4,044.1
Foreign Exchange Receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Domestic Securities 223.0 223.1 223.4 222.6 224.0 224.2 224.8 223.2 224.5
Loans and Advances 85.1 85.3 85.7 85.5 163.5 154.5 151.7 151.1 151.2
Revaluation of International Reserves 35.9 36.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Bank Premises and Other Fixed Assets 18.0 17.9 18.0 18.3 18.1 17.9 18.0 18.1 18.6
Derivative Instruments in a Gain/Loss (-) Position 1.3 0.4 0.2 0.0 0.0 1.5 1.6 0.0 0.2
Derivative Asset 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other Assets 190.0 194.9 215.6 201.0 201.3 201.9 206.6 168.8 174.2

Liabilities 4,092.5 4,137.3 4,253.9 4,268.7 4,362.9 4,545.3 4,703.4 4,500.7 4,551.6

Currency Issue 809.7 798.6 817.3 1,005.2 930.5 931.4 942.1 1,124.2 1,046.1
Deposits 2,893.1 2,945.9 2,952.6 2,788.9 2,935.7 2,967.2 2,991.7 2,679.0 2,771.4
Reserve Deposits of Other Depository Corporations (ODCs) 1 1,277.7 1,324.4 1,373.3 1,456.2 1,427.0 1,393.5 1,559.4 1,631.6 1,686.7
Reserve Deposits of Other Financial Corporations (OFCs) 2 7.6 7.1 6.8 5.7 4.0 2.7 2.5 1.9 2.0
Overnight Deposit Facility 3 1,052.2 1,008.1 953.7 828.3 1,027.5 1,004.7 634.5 236.6 131.8
Term Deposit Facility 3 .. .. .. .. .. 90.1 330.1 529.2 576.6
Treasurer of the Philippines 4 478.6 528.0 544.1 426.8 336.3 332.2 318.1 136.9 227.6
Other Foreign Currency Deposits 0.0 0.0 0.0 0.0 0.5 0.1 0.1 0.1 0.1
Foreign Financial Institutions 43.7 44.4 39.3 39.3 108.7 111.1 111.1 111.1 111.1
Other Deposits 5 33.4 33.9 35.3 32.5 31.7 32.9 35.9 31.6 35.5
Foreign Loans Payable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Bonds Payable 22.8 22.6 23.9 23.6 23.5 23.5 24.8 24.9 25.7
Derivative Instruments in a Loss Position 0.0 0.0 0.0 0.1 1.8 0.0 0.0 0.0 0.1
Derivatives Liability 0.1 0.0 0.0 0.0 0.0 0.2 0.1 0.0 0.1
Allocation of SDRs 51.7 53.2 55.1 54.7 54.3 55.1 56.7 56.1 57.1
Revaluation of International Reserves 0.0 0.0 86.2 73.9 96.2 252.3 371.3 299.5 389.9
Reverse Repurchase Facility 3 304.8 306.3 308.5 311.7 309.8 305.0 305.0 305.1 249.7
Other Liabilities 10.2 10.8 10.1 10.6 10.9 10.5 11.6 11.9 11.5

Net Worth 41.9 43.2 42.5 41.2 42.6 46.0 57.3 58.4 61.1

Capital 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Surplus/Reserves -8.1 -6.8 -7.5 -8.8 -7.4 -4.0 7.3 8.4 11.1

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

1
ODCs are deposit generating institutions other than the BSP such as universal and commercial banks (UB/KBs), specialized government banks (SGBs), thrift banks (TBs), rural banks (RBs)
and non-banks with quasi-banking functions (NBQBs).
2
OFCs are trust units of banks.
3
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.
p
Based on the tentative BSP Financial Statements (FS) as of end-March 2017.
u
Based on the unaudited pre-closing BSP FS as of end-December 2016.
p&u
Figures may change once the end-2016 FS become final and audited.
.. No transaction

Source: Bangko Sentral ng Pilipinas

 18 INCOME POSITION OF THE BANGKO SENTRAL NG PILIPINAS
for periods indicated

LEVELS (in billion pesos)

2015 2016 2017
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 u FY u Q1 p

Revenues 15.299 16.083 11.806 13.477 56.665 13.167 20.533 23.422 12.085 69.207 12.557

Interest Income 8.454 9.735 10.226 10.777 39.192 11.495 11.503 11.698 11.288 45.984 13.140
International Reserves 6.111 7.333 7.639 8.058 29.141 8.824 9.026 9.342 10.553 37.745 10.801
Domestic Securities 0.941 1.021 1.147 1.240 4.349 1.052 1.023 0.967 0.926 3.968 1.016
Loans and Advances 0.424 0.417 0.438 0.418 1.697 0.438 0.501 0.417 -0.450 0.906 0.407
Others 0.978 0.964 1.002 1.061 4.005 1.181 0.953 0.972 0.259 3.365 0.916
Miscellaneous Income 6.672 5.584 1.184 2.442 15.882 1.263 9.037 11.522 0.741 22.563 -0.299
Net Income from Branches 0.173 0.764 0.396 0.258 1.591 0.409 -0.007 0.202 0.056 0.660 -0.284

Expenses 17.308 18.538 17.993 19.162 73.001 16.684 18.146 16.993 19.364 71.187 15.588

Interest Expenses 12.022 12.240 12.325 12.202 48.789 11.550 10.986 10.858 10.226 43.620 10.010
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
National Government Deposits 2.205 2.651 2.614 2.544 10.014 1.828 1.498 1.495 1.301 6.122 1.221
Reverse Repurchase Facility 1 3.033 3.083 3.140 3.133 12.389 3.148 2.874 2.339 2.338 10.699 2.060
Overnight Deposit Facility 1 6.291 6.003 6.233 5.803 24.330 6.064 6.010 5.096 2.781 19.951 0.998
Term Deposit Facility 1 .. .. .. .. .. .. 0.085 1.386 3.217 4.688 5.131
Loans Payable and Other
Foreign Currency Deposits 0.487 0.494 0.326 0.706 2.013 0.500 0.506 0.532 0.577 2.115 0.587
Other Liabilities 0.006 0.009 0.012 0.016 0.043 0.010 0.013 0.010 0.012 0.045 0.013
Cost of Minting/Printing of Currency 1.940 1.711 1.585 2.949 8.185 1.284 2.362 1.775 3.819 9.240 1.523
Taxes and Licenses 0.355 0.225 0.252 0.256 1.088 0.364 0.251 0.259 0.175 1.049 0.424
Others 2.991 4.362 3.831 3.755 14.939 3.486 4.547 4.101 5.144 17.278 3.631

Net Income/(Loss) Before Gain/(Loss) on FXR Fluctuations and

Income Tax Expense/(Benefit) -2.009 -2.455 -6.187 -5.685 -16.336 -3.517 2.387 6.429 -7.279 -1.980 -3.031
2
Gain/(Loss) on Foreign Exchange Rate Fluctuations -1.176 3.496 5.333 3.897 11.550 3.673 0.878 4.145 10.413 19.109 4.695

Income Tax Expense/(Benefit) 0.000 0.000 0.002 -0.335 -0.333 0.000 0.000 0.002 0.104 0.106 0.000

Net Income/(Loss) After Tax -3.185 1.041 -0.856 -1.453 -4.453 0.156 3.265 10.572 3.030 17.023 1.664

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

1
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.
2
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 tentative BSP Financial Statements (FS) as of end-March 2017.
u
Based on the unaudited pre-closing BSP FS as of end-December 2016.
p&U
Figures may change once the end-2016 FS become final and audited.
..
No transaction
Source: Bangko Sentral ng Pilipinas