Sun Life Investment Management and Trust Corporation (SLIMTC) projects Philippine economic growth to accelerate next year, driven by consumption and ramped up government spending. In a recent interview, SLIMTC president and chief investment officer Michael Enriquez said economic growth will likely hit 5.6 percent this year and accelerate to 6 percent in 2024. “2023 [economic growth projection] is 5.6 percent. This was an upgrade from 4.8 percent because of the third quarter upswing. We all know what happened in the third quarter, everybody was surprised because [the] government accelerated spending,” he said. The Philippine economy grew by 5.9 percent in the third quarter of the year. Government final consumption expenditure, which accelerated to 6.7 percent, was one of the main drivers of growth. For 2024, Enriquez said consumption will still be a main driver. “The one that will bring it higher would be accelerated spending of the government and then higher exports,” he said. “It’s really the government that can boost GDP (gross domestic product). On the capital formation, the private side, we have been noticing slow takeup of loans for obvious reason, [it’s] so expensive to borrow money that’s why, there’s a slowdown on that so the government needs to be the one to take up the slack and I think they’re doing it but I think they should have done it earlier,” he added. Enriquez, meanwhile, forecasts headline inflation to settle at 6 percent this year and slow down to 3.7 percent next year. He said that with inflation easing, the Bangko Sentral ng Pilipinas may start cutting rates starting in the second quarter of 2024. ‘As inflation continues to go down, I think we’re in consensus that starting with [the] second quarter, we may see rate cuts and I think this is also aligned with how the Fed(eral Reserve) is poised to cut rates as well by H2 (second half) of next year,” he added.
Source: Philippines News Agency
The Ministry of Industry and Trade (MoIT) and relevant ministries and sectors of Vietnam are ready to work with the Belgian side to effectively support cooperation activities between the two countries’ enterprises, Minister Nguyen Hong Dien told a bilateral business forum in Brussels on December 1.
He affirmed consistent assistance and the best possible conditions for Belgian firms to conduct fruitful and sustainable investment, production, and business activities in Vietnam.
Dien considered Belgian enterprises’ success as Vietnam’s, adding that the Southeast Asian nation also hopes Belgian authorities will create conditions for its businesses to consider investment and carry out projects in the European country.
The enhancement of economic and trade ties within the bilateral framework as well as the ASEAN – EU framework will generate enormous benefits for both countries, he said, adding Vietnam and Belgium hold much potential to continue expanding bilateral trade as their export and import structures do
not directly compete with but are complementary to each other.
This is a favourable condition for the two countries’ enterprises to develop partnerships and diversify supply chains, especially for the sectors matching one country’s strength and the other’s demand, he went on.
In terms of investment, the minister noted that such comprehensive, practical, and effective cooperation mechanisms as the EU – Vietnam Free Trade Agreement (EVFTA) and the EU – Vietnam Investment Protection Agreement (EVIPA) will provide optimal conditions for investors from Belgium as well as the EU to expand their investment and business projects in Vietnam, particularly in the fields that the EU and Belgium are strong at and Vietnam has demand for like mechanical engineering, processing – manufacturing, new materials, electronics, chemicals, hi-tech industries, renewable energy, and logistics.
The advantages and opportunities in bilateral relations will create a crucial basis, further momentum, and confidence for both sides’ enter
prises to scale up investment, production, and business activities in the future, Dien opined.
He added that the MoIT hopes Belgium will ratify the EVIPA soon, and Vietnam welcomes more Belgian firms coming to invest in the country.
Addressing the forum, Nguyen Van Thao, Vietnamese Ambassador to Belgium and head of the Vietnamese delegation to the EU, stressed that Vietnam’s relations with Belgium and the EU have been growing well as seen in recent mutual visits. There remains much room for Vietnam and Belgium to promote cooperation in multiple spheres, especially seaport, renewable energy, and environment.
As President of the Belgian – Vietnamese Alliance (BVA) and First Vice President of the Belgian Senate, Andries Gryffroy pledged utmost support for both sides’ enterprises to enter each other’s markets, and that the BVA will help Vietnamese firms export to Belgium and the EU.
The BVA and the Vietnam Chamber of Commerce and Industry (VCCI) signed a memorandum of understanding under which they will work
together to bolster bilateral economic, trade, and investment ties, Gryffroy said.
Mariella Cantagalli, a senior expert at the Directorate-General for Trade at the European Commission, also highly valued the EU – Vietnam trade and investment partnerships, especially since the EVFTA officially came into force. She described the EVFTA as a driving force for Vietnam’s economic links with 27 EU members and European enterprises.
On the sidelines of the forum, Minister Dien received leaders of British oil and gas company Pharos Energy and BVA President Gryffroy. He also had a working session with the trade office of Vietnam in Belgium and the EU./.
Source: Vietnam News Agency
