The Republic of the Philippines Resilient Against All Odds December 2013
This document does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Republic of the Philippines (the “ Republic ”) or as an inducement to enter into investment activity. No part of this document, nor the fact of its distribution should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax or other product advice. This document has been prepared by the Republic based on information available to them for use at a non-deal road show presentation by the Republic for selected recipients for information purposes only and does not constitute a recommendation regarding any securities of the Republic. The information has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Republic or any of its advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. This document is being given solely for your information and for your use and this document, or any portion thereof, may not be shared, copied, reproduced or redistributed to any other person in any manner. The statements contained in this document speak only as at the date as of which they are made, and the Republic expressly disclaims any obligation or undertaking to supplement, amend or disseminate any revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. By preparing this document, none of the Republic, its representatives or their respective advisors undertakes any obligation to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies in any such information which may become apparent. This document may contain forward-looking statements based on the currently held beliefs and assumptions of the Republic, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual economic results, financial condition, performance, or achievements of the Republic to differ materially from the economic results, financial condition, performance or achievements expressed or implied by such forward-looking statements Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements.
Outline I. Update – Typhoon Yolanda and Impact on the Philippines ........................4 II. Investment Grade Philippines – Sovereign Credit Highlights ……………..6 III. Powerful Reform Momentum – Gains in Governance and Supportive Political Backdrop ………………………………………………….26
I. Update – Typhoon Yolanda and Impact on the Philippines
Impact and Response to Super Typhoon Yolanda (Haiyan) Assessment of the damage and funding the recovery Super Typhoon Yolanda: Immediate Response ROP Response: Progress in Impacted Areas � Power has been restored in 33% of municipalities and the � Landfall on 11/8/2013 Government targets to restore power in all municipalities before � Sustained winds of 270kph (168mph) with Christmas gusts up to 312kph (194mph) � All air and sea ports affected are open for commercial flights and sea vessels except Tacloban airport � State of National Calamity declared by � All national roads in affected areas have been cleared and are the President. Local governments units of Samar, Leyte, Cebu, Iloilo, Capiz, Aklan & now passable Palawan have also declared state of � The government is implementing cash for work program which calamity in their respective areas employs Yolanda victims for clearing and cleaning operations, and reconstruction of schools and government buildings � Estimated damage over PHP 27.8 billion � DPWH has started to construct bunkhouses in Tacloban City (USD 634.4m) to date* and Palo, Leyte as temporary shelter for disaster victims � PHP 15.6bn (USD 354.5m) to infrastructure � PHP 12.3bn (USD 279.9m) to Funding the Recovery agriculture � Foreign nations and international organizations have pledged � PHP 631.0m (USD 14.4m) worth of relief USD 414.6 million (PHP 18.2bn) in cash and kind.* Status of assistance has been provided to affected donations can be viewed in www.gov.ph under the Foreign families* Aid Transparency Hub (FAiTH) � ROP has ample fiscal space to spend for relief efforts. Actual expenditure for Jan-Sep 2013 was 5.0% below program; The government has imposed price � 5,598 reported dead* overall fiscal deficit for Jan-Sep 2013 was PHP 101.2bn, well controls on basic goods and within the program of PHP 144.5bn for the same period and � 1,759 persons missing* commodities in the affected areas PHP 238.0bn for 2013 and is in charge of the use of funds � 26,136 injured* for rescue, recovery, relief, and � Under the proposed 2014 budget, PHP 55.5 billion (USD � 1,095 evacuation centers sheltering rehabilitation efforts 1.26bn) will be earmarked for reconstruction of affected 48,239 families ( 219,158 people )* areas Sources: Bangko Sentral ng Pilipinas (BSP), National Economic and Development Authority (NEDA), and National Disaster Risk Reduction and Management 5 Council (NDRRMC) * Figures as of November 29, 2013, 6:00 a.m. Exchange rate used is USD1=PHP43.884
II. Investment Grade Philippines – Sovereign Credit Highlights
ROP Achieves Investment Grade from Fitch, S&P and Moody's Improved credit metrics over the past 7 years 2005 vs. Latest 2005 Latest Change Sovereign Credit Ratings Fitch Ratings BB BBB- (Mar 2013) Standard and Poor’s BB- BBB- (May 2013) Moody’s Investors Service B1 Baa3 (Oct 2013) GDP Growth Rate 4.8 7.4 (Jan-Sep 2013) GDP Per Capita 1 (USD), PPP concept 3,061 4,381 (2012) GNI Per Capita 1 (USD), PPP concept 3,855 5,770 (2012) National Government Interest (% of Revenue) 36.7 20.4 (Jan-Sep 2013) Fiscal Balance (% of GDP) (2.6) (1.2) (Jan-Sep 2013) General Government Debt (% of GDP) 59.2 38.5 (end-Mar 2013) Gross International Reserves (USD bn) 18.5 83.6 (end-Oct 2013) Import Cover (months) 3.8 11.9 (end-Oct 2013) OF Remittances (USD bn) 10.7 18.2 (end-Sep 2013) External Debt Service Burden (% of CAR) 12.6 7.6 (Jan-Aug 2013) Current Account (% of GDP) 1.9 4.2 (Jan-Jun 2013) 7 Sources: BSP, NEDA, Department of Finance (DOF) 1/ At current prices
Robust Economic Outperformance in Asia ROP’s economy has grown faster than most peers The Philippines is one of the fastest growing and most dynamic economies in Asia Real GDP Growth (%) 8 7.7 7.67.0 6.8 FY 2012 7 Q1 2013 6 Q2 2013 5 Q3 2013 4 3 2 1 0 Singapore Taiwan Korea India Thailand Malaysia Vietnam Indonesia Philippines China 2012 Q1-Q3 2012 Q1-Q3 2013 GDP Growth (constant, base year = 2000) 6.8% 6.7% 7.4% Growth Share Growth Growth By Industrial Origin Share to GDP Share to GDP Rate to GDP Rate Rate Agri, Fishery, Forestry and Hunting 11.1 2.8 10.7 2.0 10.1 1.1 Industry 32.0 6.8 31.8 6.1 32.5 9.8 Of which: Manufacturing 22.1 5.4 21.8 5.4 22.3 9.8 Services 56.9 7.6 57.5 8.0 57.4 7.3 By Expenditure Household Final Consumption 70.4 6.6 69.0 6.7 67.8 5.6 Government Final Consumption 10.3 12.2 11.1 13.0 11.6 12.3 Capital Formation 18.5 -3.2 16.9 -8.5 19.6 24.4 Of which: Fixed Capital 20.3 10.4 19.9 17.2 21.1 14.0 of which: Public Construction 1.8 29.8 37.0 1.7 2.1 31.8 Private Construction 6.4 11.5 3.7 6.1 4.3 11.5 Exports 48.4 8.9 52.6 8.9 48.3 -1.4 Imports 47.6 5.3 49.5 4.5 48.0 4.4 8 Sources: National Statistical Coordination Board (NSCB)
Recommend
More recommend
