Latest news with #MichaelRicafort
Yahoo
2 days ago
- Automotive
- Yahoo
Philippine vehicle sales fall 1% in May
New vehicle sales in the Philippines declined by just over 1% to 39,775 units in May 2025 from 40,271 units a year earlier, according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA). This was the second year-on-year decline so far this year, following the market's strong three-year rebound from the pandemic lows. The Philippine economy expanded by 5.4% year-on-year in the first quarter of 2025, slightly better than the revised 5.3% growth in the fourth quarter of 2024, underpinned by stronger domestic consumption, export growth and lower interest rates. The central bank cut its benchmark interest rate by a further 25 basis points in its June meeting to 5.25%, down from a peak of 6.5% last year, to support domestic growth. Rizal Commercial Banking Corporation's chief economist, Michael Ricafort, said in a statement: 'Vehicle sales have been weighed down recently by reduced consumer and business sentiment as the trade war is expected to reduce global trade, investments, employment, and the world economy.' In the first five months of 2025, the vehicle market was still up by almost 2% to 190,429 units compared with 187,191 units in the same period last year, driven by a 10% rise in commercial vehicle sales to 151,704 units, while sales of passenger cars fell by over 21% to 38,725 units. Separate industry data showed that sales of electrified vehicles amounted to 10,433 units year-to-date, including 8,536 hybrid electric vehicles (HEVs), 1,779 battery electric vehicles (BEVs) and 118 plug-in hybrids. Not all brands are covered in this data, however, including some key Chinese brands. Last year, the government expanded its EO12 zero-tariff incentive programme, which runs until 2028, from just zero emission vehicles to also include hybrid vehicles. Toyota reported a 6% sales increase to 91,652 units in the five-month period, helped by the recent launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 36,613 units (+4%); Nissan 9,879 units (-14%); Suzuki 8,913 units (+12%); and Ford 8,559 units (-30%). CAMPI remains optimistic that the vehicle market will continue to expand this year, to 500,000 units from 467,252 units in 2024. The association's president, Rommel Gutierrez, told reporters: 'We are encouraged by the industry's sustained growth, especially commercial vehicles. With strong momentum heading into the second half of the year, CAMPI remains confident in the automotive industry's positive performance.' "Philippine vehicle sales fall 1% in May" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
GMA Network
4 days ago
- Business
- GMA Network
Peso weakens to 12-week low of P57.45:$1
The Philippine peso weakened for the eighth straight trading day on Thursday to mark its worst showing in 12 weeks, as the market factored in geopolitical tensions between Israel and Iran and the current levels of global crude prices. The local currency closed at P57.45:$1, 47 centavos weaker than Wednesday's finish of P56.98:$1. This is the weakest close of the peso since March 26, 2025 when it finished at P57.69:$1. Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Thursday's depreciation to the possible escalation of the Israel and Iran tensions to potentially involve the United States. US President Donald Trump has declined to say if he had made any decision on whether to join Israel's campaign, saying he may or may not do it, adding that 'nobody knows what I'm going to do.' 'Some risk aversion or flight-to-quality recently due to the continued geopolitical risks in the Middle East, the conflict and retaliatory attacks between Israel and Iran since Friday,' Ricafort said. He also noted the correction of the US dollar against major global currencies to a new one-week high from recent three-year lows, and the global crude oil prices that have hit the highest level since January this year. Ricafort said the peso is expected to trade at P57.35 to P57.55 against the dollar on Friday, June 20, 2025, with the major six-month resistance at P57.55:$1 levels. For its part, the Bangko Sentral ng Pilipinas (BSP) said it is developing a playbook for intervention, but it would take some time for the continuous depreciation of the peso to impact inflation and prompt it to intervene. — RSJ, GMA Integrated News
GMA Network
03-06-2025
- Business
- GMA Network
PH debt rises to new record P16.75 trillion as of end-April 2025
The Philippines' sovereign debt has increased to a fresh record-high as of end-April 2025 as the government continued its fundraising efforts to support budgetary requirements, data released by the Bureau of the Treasury (BTr) showed Tuesday. The national government's outstanding debt rose to P16.752 trillion, 0.41% higher than the P16.68-trillion debt stock recorded as of end-March. Despite the uptick, the Treasury said the government "continues to follow a disciplined debt strategy, ensuring that borrowings support productive investments while keeping fiscal sustainability." In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increasing debt pile was consistent with the continued budget deficit in recent months, thereby fundamentally increasing the need for the national government to borrow more to finance the budget deficit. Nevertheless, the BTr said the state's "fiscal deficit has also been steadily narrowing and is on track to drop to about 3.8% by 2028." "With the economy continuing to grow faster compared to its obligations, the country remains firmly on track to reduce the debt-to-GDP ratio to below 60% by the end of the President's term," the Treasury added. The government's domestic debt amounted to P11.59 trillion during the period, up 1.85% month-on-month due to "the strong demand for government securities, including P300 billion in benchmark bonds." Ricafort also cited the P300-billion 10-year Treasury notes issued in the latter part of April 2025, which was meant to fund the fiscal deficit. The Treasury said the issuance of P300-billion notes "reflects the investors' sustained confidence in the government's fiscal program." "With economic fundamentals remaining sound, the country continues to enjoy strong market access at reasonable rates," it said. "The local currency's appreciation also reduced the peso value of dollar-denominated domestic securities by P3.85 billion," it added. External debt, meanwhile, declined by 2.68% to P5.16 trillion by end-April, "primarily due to the P124.74 billion decrease in the peso value of external debt owing to peso appreciation, combined with net repayments of P58.28 billion." As of end-April 2025, the Treasury said domestic debt continued to account for the majority of the total debt stock at 69.2% while foreign obligations comprised 30.8%. "This is in line with the national government's thrust to reduce exposure to external vulnerabilities," the BTr said. The Treasury, moreover, said the state's debt portfolio "remains resilient" as 91.7% of obligations carry fixed interest rates and 82% are classified as long-term. "This structure helps insulate public finances from abrupt changes in interest rates and the market environment," it said. — VDV, GMA Integrated News
Yahoo
16-04-2025
- Automotive
- Yahoo
Philippines vehicle sales rose 8% in March
New vehicle sales in the Philippines increased by almost 8% to 40,306 units in March 2025 from 37,474 units a year earlier, according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA). The vehicle market has continued to grow so far this year, after rebounding strongly in the previous three years from the pandemic lows – supported by strong domestic economic growth. GDP expanded by 5.6% last year, driven by strong domestic consumption and exports. The central bank has cut its benchmark interest rate by 25 basis points on four occasions since last August, to 5.50%, to help support domestic consumption. In the first quarter of 2025 vehicle sales increased by almost 7% to 117,074 units from 109,606 units in the same period last year, driven by a 14% rise in commercial vehicle sales – including SUVs - to 92,742 units while sales of passenger cars fell by 14% to 24,332 units. Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, pointed out that the decline in passenger cars reflected a 'greater preference for SUVs, pickup trucks and other vehicles with a higher road clearance after the numerous typhoons and widespread floods that hit in the country in the latter part of 2024.' The associations' data show that a total of 5,311 electrified vehicles were sold year-to-date, including 4,544 hybrid electric vehicles (HEVs), 692 battery electric vehicles (BEVs) and 75 plug-in hybrids. Last year the government added hybrid electric vehicles (HEVs) to its EO12 zero-tariff incentive programme, which expires in 2028, having previously applied only for zero-emission vehicles such as battery electric vehicles (BEVs). Toyota reported an 12% increase in first-quarter sales to 55,510 units, helped by the recent launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 23,380 units (+12%); Nissan 6,720 units (-15%); Suzuki 5,440 units (+24%); and Ford 5,220 units (-31%). Earlier this year CAMPI said it expected total vehicle sales in the country to exceed 500,000 units this year, up from 467,252 units in 2024, driven by 'newly rolled out models and the anticipated introduction of new models', while Toyota is forecasting total industry volumes of 512,000 units. The Philippine government plans to introduce new incentives this year to encourage more local vehicle manufacturing in the country, under its 'Revitalizing the Automotive Industry for Competitiveness Enhancement' (RACE) programme. RACE will look to channel market incentives mainly to local producers to encourage investment. "Philippines vehicle sales rose 8% in March" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Filipino Times
14-03-2025
- Business
- Filipino Times
Philippine economy to stay strong despite challenges, economist says
The Philippine economy is expected to remain stable this year despite challenges like political noise and global risks. According to economist Michael Ricafort, former president Duterte's arrest has had little effect on the economy so far. He pointed out that the country's credit ratings remain strong, even with ongoing political tensions and geopolitical issues, like the China-Philippines dispute. However, some factors that would affect the country's economy would be the stricter immigration rules, as these might affect some OFWs' remittances. He also explained it could potentially slow down global trade, investments, and job opportunities. Nevertheless, the overall impact would likely remain limited for now. The economist also highlighted the risks posed by US President Donald Trump's protectionist policies, which could have a bigger effect on economic growth. These policies could affect global trade, especially with the Philippines. Despite these challenges, Ricafort emphasized that as long as the country's business and economic fundamentals remain strong, the government's efforts to attract more investors should not be affected.
