Showing posts with label Bangko Sentral ng Pilipinas. Show all posts
Showing posts with label Bangko Sentral ng Pilipinas. Show all posts
Sunday, June 5, 2011
Diliman Video of the Week: Coins: Issues in Circulation
CEBU CITY-- Coin shortage is becoming a serious problem in the country despite the Bangko Sentral ng Pilipinas (BSP) minting 15.6 billion pieces of coins worth P16.9 billion as of December 2009.
This wide-reaching shortage exists because coins are usually left at home, stored in piggy banks, hiding inside cabinets and car compartments, scattered on top of the refrigerator, gathering dust and forgotten, according to a multimedia special report published by Sun.Star Network Exchange (Sunnex) at http://www.wix.com/sunstaronline/coins.
The report, which looked into the effect of coin shortage on vendors, drivers, business and financial institutions that need these coins to responsibly transact with the public, said each Filipino holds 150 pieces of coins, with the BSP producing more than 11 billion pieces every year.
Read the rest here.
Monday, December 27, 2010
Another Look at the New Philippine Banknotes
(Editor's note: to enlarge the graphics, just click on them)
By Alain Del B. Pascua
MANILA, Dec.20 (PNA Feature) -- When I first heard the news that the Bangko Sentral ng Pilipinas (BSP) is releasing a new set of banknotes, the first thing I did was to see if the American flag in the P100 bill is still there.
It was no longer there, so I was very happy for the removal of a foreign symbol in our national currency. But my gratefulness was only for seconds and my jubilation was gone when I saw that the Leyte landing, led by American General Douglas McArthur, was depicted in the P50 bill.
I firmly believe that our national banknotes should not in any way give space to foreign symbols and personalities no matter their importance to our history. Yes, it is a reality that we were conquered by the Spaniards, the Americans and even the Japanese, but to put this on our national symbols such as our banknotes defy our very own sovereignty, independence and nationalism.
In the case of the P50 bill, why feature the Leyte Landing and the so-called “American Liberation of the Philippines,” when what should be highlighted is the victory and gallantry of the Filipino guerrillas against the Japanese invaders sans the Americans, who, led by General Douglas McArthur, left the country and departed to Australia when the Japanese forces held the upper hand in war.
It was the Filipino guerrilla who fought it out against the Japanese forces inch by inch until such time as the Japanese stragglers were already in the mountains and away from populated areas even before the so-called “Liberation of the Philippines by the Americans.” We have enough historical references on these events and yet our officials choose to honor events led by foreigners instead of events portraying the greatness of our Filipino “kababayan” (compatriots)..
COAT-OF-ARMS
The same observation can be said on the Coat-of-Arms of the Republic of the Philippines, which the BSP erroneously referred to as “Seal of the President” in all its descriptions of the new banknotes. Why is the Bald Eagle of the United States of America and the Lion-Rampant of Spain (the Charge of the Kingdom of Leon) included in the depiction of the Coat of Arms of the Republic of the Philippines when these symbols and representation of colonial history are no longer mentioned in the Flag and Heraldic Code of the Philippines?
Republic Act No. 8491, An Act Prescribing the Code of the National Flag, Anthem, Motto, Coat-of-Arms and other Heralding Items and Devices of the Philippines, which was signed into a law on February 12, 1998, states in Chapter IV entitled “The National Coat-of-Arms,” Section 41:
“The National Coat-of-Arms shall have: Paleways of two (2) pieces, azure and gules; a chief argent studded with three (3) mullets equidistant from each other; and, in point of honor, ovoid argent over all the sun rayonnant with eight minor and lesser rays. Beneath shall be the scroll with the words "REPUBLIKA NG PILIPINAS," inscribed thereon.”
MEDIA HIGHLIGHTS, PUBLIC OUTCRY
When the new banknotes was made public, the media highlighted the placement of three Aquinos in the P500 bill – that President Cory Aquino joined her martyred husband Ninoy Aquino, now sporting a smile unlike the sadness he depicted in the old bill, with the new President, their son Noynoy, signing anew the new banknotes. It’s history indeed!
The media also highlighted the relegation of President Gloria Macapagal Arroyo in a not so prominent space in the new P200 bill.
Of course, the BSP proudly announces the various security measures that are embedded in the new banknotes, the youthful looks of presidents and heroes, and the general designs and features. These changes are truly remarkable and very laudable.
After some hours of the announcement and few days have passed, serious criticisms have started to come out from every ordinary people who will be using the new banknotes.
From different sectors, from various quarters, from separate individuals – Filipinos took to the internet, to social networks, to email groups - they gave their collective observations:
1. The Philippine map excludes Batanes (the map only includes the Babuyan Islands);
2. Tubbataha Reefs is mislocated hundreds of miles away (the location alluded to is the Bulis Suan and Cagayan Sulu Islands);
3. St. Paul’s Subterranean or Underground River is also mislocated (the location should be near the sea, not inland);
4.The Blue-Naped Parrot is miscolored (beak should be red not yellow, and tail should be yellow, not green);
5. The scientific names defies the standard format (scientific names should be italicized);
SOME MORE CRITICISMS:
Of the 6 new banknotes, five featured Luzon (P20 Banaue Rice Terraces, P50 Taal Lake, P100 Mayon Volcano, P500 Puerto Princesa Subterranean River, P1000 Tubbataha Reefs), only one featured the Visayas (P200 Bohol Chocolate Hills), and none featured Mindanao. Why the disparity?
Can we not give equal representation to Luzon, Visayas and Mindanao like the three equal and equidistant stars in the Philippine flag?
In Mindanao can be found Mt. Apo, the highest peak in the country; Philippine Eagle, the king of birds; Waling-waling, the queen of orchids; and many, many more. Why the obvious neglect?
Why only English names, aside from scientific names, accompanied the wildlife species? Why not include the Pilipino names – Alamid, Maliputo, Butanding, etc. which can easily be understood and identified with by the Filipinos?
In the P500 bill, why feature the Blue-Naped Parrot when it is more majestic to highlight the endangered Palawan endemics like the Palawan Peasant-Peacock, Palawan Hornbill or the Philippine Cockatoo?
The errors pointed out by the public can easily be corrected by the BSP. They should bow down to the collective wisdom of the Filipino people. The Filipino is their boss, is it not? And the errors pointed out can be rectified easily. Never mind if the first batch already printed becomes collectors’ items. That is a small price compared to doing the correct things, and properly so.
GREAT FEATURES
The new banknotes are generally great and laudable. The highlighting of national treasures – endemic wildlife, national heritage and culture - tops all of the new features being sighted in the new notes.
The use of Baybayin, the old Pilipino script, and the native cloth designs surely lifts the greatness of the Filipino race and stirs patriotism in all of us.
The new BSP logo – the Philippine Eagle in graphic style – makes up for the absence of Haring Ibon in the new series.
BANKNOTES AND NATIONALISM
The present brouhaha over the new banknotes only show the importance of our currency forms in our national life, not only because if represents wealth and purchasing power, but more so because the banknotes are representations of our national treasures and our national struggle for greatness.
While the authorities have decided that the new banknotes continue to depict past Philippine presidents and modern-day martyrs and heroes, one can not help but ask why Presidents Emilio Aguinaldo, Jose Laurel, Ramon Magsaysay, Elpidio Quirino, Carlos Garcia and Ferdinand Marcos are not featured in our banknotes.
Never mind the controversy of having Ferdinand Marcos in our banknotes, but how about the others? Of course President Fidel Ramos, Joseph Ejercito Estrada and Gloria Macapagal Arroyo are still living so we can safely say they do not yet merit being featured in our banknotes.
Of this new series, four modern-day heroes and martys were featured despite not being Presidents of the Republic – Josefa Llanes Escoda, General Vicente Lim, Chief Justice Jose Abad Santos and Senator Benigno Aquino Jr. But where are the other heroes that fought for Philippine Independence and established the Filipino nation?
The greatness of heroes are usually depicted in banknotes bearing lower denominations. Gat Jose Rizal was/is feature in the P1 bill/coin, etc. But the practice of featuring national heroes to lower denominations like P1, P2, P5, P10 has become irrelevant as coins have replaced paper bills because of the devaluation of the peso. The present poor and the past national heroes are twin victims in the devaluation of the peso.
But our heroes – Gat Jose Rizal, Gat Andres Bonifacio, Emilio Aguinaldo, Apolinario Mabini, Emilio Jacinto, Antonio Luna, Melchora Aquino, Macario Sakay, Gabriela Silang, Lapu-Lapu, etc. – are personalities any generation of Filipino can easily identified with. Hands down, their roster will beat the roster of Philippine Presidents in inculcating love of country and fellowmen.
Their delegation to coins whose values are decreasing do not help in inculcating patriotism, nationalism, faith in the Filipino and the greatness of the Filipino people and nation. Put them in bank notes and, once again, we help every Filipino love and be proud of his/her country and heritage more.
Every Filipino hero mentioned above have been leaders of historical events that made our country today – the Propaganda Movement, Noli me Tangere and El Filibusterismo, Kataastaasan at Kagalanggalangan Katipunan ng mga Anak ng Bayan, the Great 1896 Revolution, the 1898 Declaration of Independence, the victory of the Filipinos in Balanggiga, Samar, the victory of Lapu-Lapu in Mactan, etc.
All these events that stir Filipinism, Filipino nationalism and patrimony, and the greatness of the Filipino people, can have greater and lasting impact on the Filipino people when featured in their banknotes and not just in coins.
OTHER BANKNOTE SERIES
To make our banknotes not only representations of wealth, purchasing power and currencies, but more so as repository of the Filipino people’s struggle for greatness and nationhood, and national treasures and patrimony, there is a need to break the limitations of having just 6 banknotes. Like any other country, it is very permissible to issue new series of banknotes with different features and highlights.
We can have a “national heroes and historical events” series where the national heroes and historical events discussed above are featured.
We can have another series depicting national symbols like the evolution of the Philippine Flag, the Lupang Hinirang, the Philippine Eagle, Sampaguita, Narra, Anahaw, Mango Tamaraw, Arnis, Sipa, etc.
Another series can highlight Philippine endemics, both flora and fauna.
We can have these series while maintaining the bills’ value of P20, P50, P100, P200, P500 and P1000 the same for every series.
It is high time for the country and the BSP to make Philippine banknotes as representations and repositories of what the Filipino is – from past to present – and the national treasures and jewels that we have blessed with.
Do not deny us our heroes, our history, our treasures, our patrimony. Make us proud and great. (PNA Feature)
By Alain Del B. Pascua
MANILA, Dec.20 (PNA Feature) -- When I first heard the news that the Bangko Sentral ng Pilipinas (BSP) is releasing a new set of banknotes, the first thing I did was to see if the American flag in the P100 bill is still there.
It was no longer there, so I was very happy for the removal of a foreign symbol in our national currency. But my gratefulness was only for seconds and my jubilation was gone when I saw that the Leyte landing, led by American General Douglas McArthur, was depicted in the P50 bill.
I firmly believe that our national banknotes should not in any way give space to foreign symbols and personalities no matter their importance to our history. Yes, it is a reality that we were conquered by the Spaniards, the Americans and even the Japanese, but to put this on our national symbols such as our banknotes defy our very own sovereignty, independence and nationalism.
In the case of the P50 bill, why feature the Leyte Landing and the so-called “American Liberation of the Philippines,” when what should be highlighted is the victory and gallantry of the Filipino guerrillas against the Japanese invaders sans the Americans, who, led by General Douglas McArthur, left the country and departed to Australia when the Japanese forces held the upper hand in war.
It was the Filipino guerrilla who fought it out against the Japanese forces inch by inch until such time as the Japanese stragglers were already in the mountains and away from populated areas even before the so-called “Liberation of the Philippines by the Americans.” We have enough historical references on these events and yet our officials choose to honor events led by foreigners instead of events portraying the greatness of our Filipino “kababayan” (compatriots)..
COAT-OF-ARMS
The same observation can be said on the Coat-of-Arms of the Republic of the Philippines, which the BSP erroneously referred to as “Seal of the President” in all its descriptions of the new banknotes. Why is the Bald Eagle of the United States of America and the Lion-Rampant of Spain (the Charge of the Kingdom of Leon) included in the depiction of the Coat of Arms of the Republic of the Philippines when these symbols and representation of colonial history are no longer mentioned in the Flag and Heraldic Code of the Philippines?
Republic Act No. 8491, An Act Prescribing the Code of the National Flag, Anthem, Motto, Coat-of-Arms and other Heralding Items and Devices of the Philippines, which was signed into a law on February 12, 1998, states in Chapter IV entitled “The National Coat-of-Arms,” Section 41:
“The National Coat-of-Arms shall have: Paleways of two (2) pieces, azure and gules; a chief argent studded with three (3) mullets equidistant from each other; and, in point of honor, ovoid argent over all the sun rayonnant with eight minor and lesser rays. Beneath shall be the scroll with the words "REPUBLIKA NG PILIPINAS," inscribed thereon.”
MEDIA HIGHLIGHTS, PUBLIC OUTCRY
When the new banknotes was made public, the media highlighted the placement of three Aquinos in the P500 bill – that President Cory Aquino joined her martyred husband Ninoy Aquino, now sporting a smile unlike the sadness he depicted in the old bill, with the new President, their son Noynoy, signing anew the new banknotes. It’s history indeed!
The media also highlighted the relegation of President Gloria Macapagal Arroyo in a not so prominent space in the new P200 bill.
Of course, the BSP proudly announces the various security measures that are embedded in the new banknotes, the youthful looks of presidents and heroes, and the general designs and features. These changes are truly remarkable and very laudable.
After some hours of the announcement and few days have passed, serious criticisms have started to come out from every ordinary people who will be using the new banknotes.
From different sectors, from various quarters, from separate individuals – Filipinos took to the internet, to social networks, to email groups - they gave their collective observations:
1. The Philippine map excludes Batanes (the map only includes the Babuyan Islands);
2. Tubbataha Reefs is mislocated hundreds of miles away (the location alluded to is the Bulis Suan and Cagayan Sulu Islands);
3. St. Paul’s Subterranean or Underground River is also mislocated (the location should be near the sea, not inland);
4.The Blue-Naped Parrot is miscolored (beak should be red not yellow, and tail should be yellow, not green);
5. The scientific names defies the standard format (scientific names should be italicized);
SOME MORE CRITICISMS:
Of the 6 new banknotes, five featured Luzon (P20 Banaue Rice Terraces, P50 Taal Lake, P100 Mayon Volcano, P500 Puerto Princesa Subterranean River, P1000 Tubbataha Reefs), only one featured the Visayas (P200 Bohol Chocolate Hills), and none featured Mindanao. Why the disparity?
Can we not give equal representation to Luzon, Visayas and Mindanao like the three equal and equidistant stars in the Philippine flag?
In Mindanao can be found Mt. Apo, the highest peak in the country; Philippine Eagle, the king of birds; Waling-waling, the queen of orchids; and many, many more. Why the obvious neglect?
Why only English names, aside from scientific names, accompanied the wildlife species? Why not include the Pilipino names – Alamid, Maliputo, Butanding, etc. which can easily be understood and identified with by the Filipinos?
In the P500 bill, why feature the Blue-Naped Parrot when it is more majestic to highlight the endangered Palawan endemics like the Palawan Peasant-Peacock, Palawan Hornbill or the Philippine Cockatoo?
The errors pointed out by the public can easily be corrected by the BSP. They should bow down to the collective wisdom of the Filipino people. The Filipino is their boss, is it not? And the errors pointed out can be rectified easily. Never mind if the first batch already printed becomes collectors’ items. That is a small price compared to doing the correct things, and properly so.
GREAT FEATURES
The new banknotes are generally great and laudable. The highlighting of national treasures – endemic wildlife, national heritage and culture - tops all of the new features being sighted in the new notes.
The use of Baybayin, the old Pilipino script, and the native cloth designs surely lifts the greatness of the Filipino race and stirs patriotism in all of us.
The new BSP logo – the Philippine Eagle in graphic style – makes up for the absence of Haring Ibon in the new series.
BANKNOTES AND NATIONALISM
The present brouhaha over the new banknotes only show the importance of our currency forms in our national life, not only because if represents wealth and purchasing power, but more so because the banknotes are representations of our national treasures and our national struggle for greatness.
While the authorities have decided that the new banknotes continue to depict past Philippine presidents and modern-day martyrs and heroes, one can not help but ask why Presidents Emilio Aguinaldo, Jose Laurel, Ramon Magsaysay, Elpidio Quirino, Carlos Garcia and Ferdinand Marcos are not featured in our banknotes.
Never mind the controversy of having Ferdinand Marcos in our banknotes, but how about the others? Of course President Fidel Ramos, Joseph Ejercito Estrada and Gloria Macapagal Arroyo are still living so we can safely say they do not yet merit being featured in our banknotes.
Of this new series, four modern-day heroes and martys were featured despite not being Presidents of the Republic – Josefa Llanes Escoda, General Vicente Lim, Chief Justice Jose Abad Santos and Senator Benigno Aquino Jr. But where are the other heroes that fought for Philippine Independence and established the Filipino nation?
The greatness of heroes are usually depicted in banknotes bearing lower denominations. Gat Jose Rizal was/is feature in the P1 bill/coin, etc. But the practice of featuring national heroes to lower denominations like P1, P2, P5, P10 has become irrelevant as coins have replaced paper bills because of the devaluation of the peso. The present poor and the past national heroes are twin victims in the devaluation of the peso.
But our heroes – Gat Jose Rizal, Gat Andres Bonifacio, Emilio Aguinaldo, Apolinario Mabini, Emilio Jacinto, Antonio Luna, Melchora Aquino, Macario Sakay, Gabriela Silang, Lapu-Lapu, etc. – are personalities any generation of Filipino can easily identified with. Hands down, their roster will beat the roster of Philippine Presidents in inculcating love of country and fellowmen.
Their delegation to coins whose values are decreasing do not help in inculcating patriotism, nationalism, faith in the Filipino and the greatness of the Filipino people and nation. Put them in bank notes and, once again, we help every Filipino love and be proud of his/her country and heritage more.
Every Filipino hero mentioned above have been leaders of historical events that made our country today – the Propaganda Movement, Noli me Tangere and El Filibusterismo, Kataastaasan at Kagalanggalangan Katipunan ng mga Anak ng Bayan, the Great 1896 Revolution, the 1898 Declaration of Independence, the victory of the Filipinos in Balanggiga, Samar, the victory of Lapu-Lapu in Mactan, etc.
All these events that stir Filipinism, Filipino nationalism and patrimony, and the greatness of the Filipino people, can have greater and lasting impact on the Filipino people when featured in their banknotes and not just in coins.
OTHER BANKNOTE SERIES
To make our banknotes not only representations of wealth, purchasing power and currencies, but more so as repository of the Filipino people’s struggle for greatness and nationhood, and national treasures and patrimony, there is a need to break the limitations of having just 6 banknotes. Like any other country, it is very permissible to issue new series of banknotes with different features and highlights.
We can have a “national heroes and historical events” series where the national heroes and historical events discussed above are featured.
We can have another series depicting national symbols like the evolution of the Philippine Flag, the Lupang Hinirang, the Philippine Eagle, Sampaguita, Narra, Anahaw, Mango Tamaraw, Arnis, Sipa, etc.
Another series can highlight Philippine endemics, both flora and fauna.
We can have these series while maintaining the bills’ value of P20, P50, P100, P200, P500 and P1000 the same for every series.
It is high time for the country and the BSP to make Philippine banknotes as representations and repositories of what the Filipino is – from past to present – and the national treasures and jewels that we have blessed with.
Do not deny us our heroes, our history, our treasures, our patrimony. Make us proud and great. (PNA Feature)
(Editor’s Note: The author of this article is the current president of the Kaakbay organization, which sought party-list elections in the national poll this year with former National Treasurer Eleanor Briones as its candidate.)
(Pictures of banknotes with graphics from Bangko Sentral ng Pilipinas website at: http://www.bsp.gov.ph/publications/media.asp?id=2471)
(Pictures of banknotes with graphics from Bangko Sentral ng Pilipinas website at: http://www.bsp.gov.ph/publications/media.asp?id=2471)
Thursday, November 25, 2010
P-Noy signed paper notes out starting Friday
MANILA, Nov. 24 (PNA) –- The Bangko Sentral ng Pilipinas (BSP) will make available starting Friday bank notes signed by President Benigno Aquino III.
A complete set of banknotes, dubbed new series, and bearing President Aquino's signature, was presented by BSP Governor Amando Tetangco Jr. to the President today at the President's Conference Room, Premier Guest House, Malacañang.
The new series is separate from the redesigned bank notes, which the central bank earlier said would be released next month.
Earlier, BSP Deputy Governor Armando Suratos said the new P500 bill will include the image of former President Corazon Aquino with her husband, Benigno Aquino Jr., whose picture is now used on the said note.
Monetary officials said the redesigned notes will feature prominent places in the country like the Mayon Volcano.
They said it will also include improved security features that would enable the public to easily determine counterfeit bills. The existing notes will still be in circulation three years after the introduction of the new design but will be out after the third year.
The BSP has released a comprehensive primer and FAQ on its new banknotes. Members of the public may access this by clicking on this link: http://www.bsp.gov.ph/publications/media.asp?id=2296
Wednesday, November 24, 2010
Bangko Sentral ng Pilipinas launches art competition
Manila (23 November) -- The Bangko Sentral ng Pilipinas (BSP) will be having its first national painting competition this 2010. The competition aims to support the development of Philippine contemporary art and challenge artists to strive for a higher level of artistic excellence.
The BSP, the prime financial institution of the country, is a known patron of the arts and have in its collection impressive artwork ranging from the 18th century to the present era.
Through the competition, the BSP intends to raise the public's awareness and appreciation of art and to recognize the artistic excellence of contemporary artists.
The competition is open to professional and non-professional Filipino artists who have previously won in national and international competitions and art fairs. Artists are free to explore any subject or theme.
Winners will be announced on 16 February 2011. There will be an exhibition of the top three winners and the finalists at the Metropolitan Museum of Manila from 16 February to 16 April 2011.
Prizes will be awarded during the opening ceremony of the exhibit.
Competition rules and regulations and entry forms may be downloaded online at www.bsp.gov.ph.
For more information, participants may contact the Museo ng Bangko Sentral ng Pilipinas at 524-9534/ 516-7499 or 524-7011 locals 2981 and 2377.
(Source: http://www.pia.gov.ph)
Thursday, September 16, 2010
Consumer Confidence Improves Appreciably in Q3 2010; Sentiment Remains Strong over the Next 12 Months - BSP
Consumer sentiment improves considerably for the quarter and the year ahead in anticipation of brighter economic prospects, the Bangko Sentral ng Pilipinas (BSP) said in a media release on September 16, 2010.
With continuing sound macroeconomic fundamentals and brighter economic prospects expected to bring about improved household finances, consumer sentiment improved markedly in Q3 2010. While still in the negative territory, the confidence index (CI) increased from -28.7 percent in Q2 2010 to -14.0 percent, the highest reading since the nationwide survey started in 2007. Expectations of good governance was another major reason cited by respondents for their favorable outlook.
For the next 3 months and the year ahead, consumers expected that favorable macroeconomic conditions would generate better employment and business opportunities, resulting in improved family finances and higher family income. The expectations of Filipino consumers followed the trends observed in neighboring countries such as India, Indonesia, Singapore, China and Vietnam, as economic activity is expected to strengthen as global economic recovery gains traction and as concerns over the sovereign debt crisis in some parts of Europe have dissipated.
Consumers expect stronger economic conditions, higher family income and better family finances
Consumer perception rose to their highest levels in Q3 2010 on the three dimensions of the country’s economic condition, family financial situation and family income. For the next quarter and the year ahead, the optimists outnumbered the pessimists in all three dimensions, with consumers being most upbeat on the country’s economic condition.
High-income group is the most optimistic
Consumer sentiment across all income groups climbed to their highest levels. The high-income group registered the strongest consumer confidence on their family financial situation and family income. The middle-income group is the most optimistic about the economic condition of the country. Meanwhile, the consumer confidence of the low-income group was the weakest among the three groups, even as a significant improvement in its outlook was observed across time.
Spending on basic goods and services is expected to decline in Q4 2010 due to low inflation
While consumers expected to spend more on basic goods and services in Q4 2010, the number of respondents that anticipated their expenditures to rise declined compared to the previous quarter’s survey results. This development could be driven by the respondents’ expectations of subdued inflation over the course of the next 12 months.
Buying conditions improve
Consistent with their improved overall outlook, the percentage of households that considered the current quarter as a favorable time to buy big-ticket items rose relative to a quarter ago. The buoyant outlook was most pronounced on buying conditions for real estate.
Buying intentions for the next 12 months continue to rise
The positive outlook of consumers regarding buying conditions spilled over to their buying intentions for the next 12 months. This is in line with consumers’ expectations that inflation will be contained at lower levels over the course of the next 12 months. The highest increase in buying intention was for housing, followed by consumer durables.
Selected Economic Indicators: Outlook for the next 12 months
Consumers have a more positive view on the general direction of selected economic indicators. The most optimistic view of consumers was on the employment outlook. The index on unemployment dropped to 7.9 percent from 52.4 percent in Q2 2010, indicating that more consumers (relative to the previous quarter) believed that the unemployment rate will decline considerably in the next 12 months. Similarly, driven by the prevailing favorable inflation environment, respondents expected inflation and interest rates to remain low in the next 12 months. Consumers likewise anticipated that the peso will continue to appreciate against the US dollar in the year ahead, in line with expectations of continued strong inflows of foreign exchange, particularly from overseas Filipinos’ remittances, business process outsourcing services receipts and merchandise export revenues.
Expenditures of Overseas Filipino Workers in Q3 2010
Most OFW households used remittances in Q3 2010 for food (96.0 percent of the households). Nearly three-fourths of the households surveyed (71.7 percent) used their remittances for education expenses, 61.6 percent for medical expenses and 50.3 percent for debt payments. The percentage of households that allotted a portion of their remittances to savings continued to increase to 43.0 percent (from a low of 7.2 percent in at the start of the nation-wide survey in Q1 2007).The percentage of OFW households that utilized remittances to purchase consumer durables and motor vehicles also went up. Similarly, those that apportioned part of their remittances for the amortization or full payment of houses purchased increased to 15.5 percent (from 11.9 percent and in the previous quarter). On the other hand, the percentage of OFW households that allocated portion of their remittances to investment remained steady at 7.0 percent in Q3 2010.
About the survey
The BSP started the Consumer Expectations Survey (CES) in the National Capital Region in Q3 2004. The coverage of the CES was expanded beginning Q1 2007 to encompass the whole country. The CES samples were drawn from the National Statistics Office’s (NSO) Master Sample List of Households, which is considered a representative sample of households nationwide. The said master sample was generated using a stratified multi-stage probability sampling scheme. For Q3 2010, the CES was conducted during the period 1-15 July 2010 with a total sample size of 5,774 households, of which 3,101 (53.7 percent) were from the NCR and 2,673 (46.3 percent) from the AONCR. The nationwide total survey response rate for Q3 2010 was 96.6 percent (from 96.0 percent in the last quarter’s survey).
The overall consumer confidence index is the average confidence index (CI) across 3 dimensions, namely, macroeconomic conditions - general economic condition of the country, family financial situation - status of family finances such as income, savings, outstanding debts, investments and assets; and family income - receipts from all sources received by all family members as participants in any economic activity or as recipients of transfers, pensions and grants.
The CI, which is computed for each of the 3 dimensions as well as for other indicators in the survey, is the percentage of respondents that answered in the affirmative less the percentage of respondents that answered negative for a given indicator. A positive CI indicates that respondents with favorable views outnumber those with unfavorable views, except for unemployment, change in prices and interest rate for borrowing money, where a positive CI indicates the opposite.
With continuing sound macroeconomic fundamentals and brighter economic prospects expected to bring about improved household finances, consumer sentiment improved markedly in Q3 2010. While still in the negative territory, the confidence index (CI) increased from -28.7 percent in Q2 2010 to -14.0 percent, the highest reading since the nationwide survey started in 2007. Expectations of good governance was another major reason cited by respondents for their favorable outlook.
For the next 3 months and the year ahead, consumers expected that favorable macroeconomic conditions would generate better employment and business opportunities, resulting in improved family finances and higher family income. The expectations of Filipino consumers followed the trends observed in neighboring countries such as India, Indonesia, Singapore, China and Vietnam, as economic activity is expected to strengthen as global economic recovery gains traction and as concerns over the sovereign debt crisis in some parts of Europe have dissipated.
Consumers expect stronger economic conditions, higher family income and better family finances
Consumer perception rose to their highest levels in Q3 2010 on the three dimensions of the country’s economic condition, family financial situation and family income. For the next quarter and the year ahead, the optimists outnumbered the pessimists in all three dimensions, with consumers being most upbeat on the country’s economic condition.
High-income group is the most optimistic
Consumer sentiment across all income groups climbed to their highest levels. The high-income group registered the strongest consumer confidence on their family financial situation and family income. The middle-income group is the most optimistic about the economic condition of the country. Meanwhile, the consumer confidence of the low-income group was the weakest among the three groups, even as a significant improvement in its outlook was observed across time.
Spending on basic goods and services is expected to decline in Q4 2010 due to low inflation
While consumers expected to spend more on basic goods and services in Q4 2010, the number of respondents that anticipated their expenditures to rise declined compared to the previous quarter’s survey results. This development could be driven by the respondents’ expectations of subdued inflation over the course of the next 12 months.
Buying conditions improve
Consistent with their improved overall outlook, the percentage of households that considered the current quarter as a favorable time to buy big-ticket items rose relative to a quarter ago. The buoyant outlook was most pronounced on buying conditions for real estate.
Buying intentions for the next 12 months continue to rise
The positive outlook of consumers regarding buying conditions spilled over to their buying intentions for the next 12 months. This is in line with consumers’ expectations that inflation will be contained at lower levels over the course of the next 12 months. The highest increase in buying intention was for housing, followed by consumer durables.
Selected Economic Indicators: Outlook for the next 12 months
Consumers have a more positive view on the general direction of selected economic indicators. The most optimistic view of consumers was on the employment outlook. The index on unemployment dropped to 7.9 percent from 52.4 percent in Q2 2010, indicating that more consumers (relative to the previous quarter) believed that the unemployment rate will decline considerably in the next 12 months. Similarly, driven by the prevailing favorable inflation environment, respondents expected inflation and interest rates to remain low in the next 12 months. Consumers likewise anticipated that the peso will continue to appreciate against the US dollar in the year ahead, in line with expectations of continued strong inflows of foreign exchange, particularly from overseas Filipinos’ remittances, business process outsourcing services receipts and merchandise export revenues.
Expenditures of Overseas Filipino Workers in Q3 2010
Most OFW households used remittances in Q3 2010 for food (96.0 percent of the households). Nearly three-fourths of the households surveyed (71.7 percent) used their remittances for education expenses, 61.6 percent for medical expenses and 50.3 percent for debt payments. The percentage of households that allotted a portion of their remittances to savings continued to increase to 43.0 percent (from a low of 7.2 percent in at the start of the nation-wide survey in Q1 2007).The percentage of OFW households that utilized remittances to purchase consumer durables and motor vehicles also went up. Similarly, those that apportioned part of their remittances for the amortization or full payment of houses purchased increased to 15.5 percent (from 11.9 percent and in the previous quarter). On the other hand, the percentage of OFW households that allocated portion of their remittances to investment remained steady at 7.0 percent in Q3 2010.
About the survey
The BSP started the Consumer Expectations Survey (CES) in the National Capital Region in Q3 2004. The coverage of the CES was expanded beginning Q1 2007 to encompass the whole country. The CES samples were drawn from the National Statistics Office’s (NSO) Master Sample List of Households, which is considered a representative sample of households nationwide. The said master sample was generated using a stratified multi-stage probability sampling scheme. For Q3 2010, the CES was conducted during the period 1-15 July 2010 with a total sample size of 5,774 households, of which 3,101 (53.7 percent) were from the NCR and 2,673 (46.3 percent) from the AONCR. The nationwide total survey response rate for Q3 2010 was 96.6 percent (from 96.0 percent in the last quarter’s survey).
The overall consumer confidence index is the average confidence index (CI) across 3 dimensions, namely, macroeconomic conditions - general economic condition of the country, family financial situation - status of family finances such as income, savings, outstanding debts, investments and assets; and family income - receipts from all sources received by all family members as participants in any economic activity or as recipients of transfers, pensions and grants.
The CI, which is computed for each of the 3 dimensions as well as for other indicators in the survey, is the percentage of respondents that answered in the affirmative less the percentage of respondents that answered negative for a given indicator. A positive CI indicates that respondents with favorable views outnumber those with unfavorable views, except for unemployment, change in prices and interest rate for borrowing money, where a positive CI indicates the opposite.
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