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Customs rolls out ePay System

PHILSTAR FILE PHOTO

THE BUREAU OF CUSTOMS (BoC) has rolled out its Electronic Payment Portal (ePay) System to streamline payment collection.

“By expanding digital payment options through the ePay System, we are reducing unnecessary delays, limiting manual processes, and ensuring that every transaction is handled with greater transparency and accountability,” Commissioner Ariel F. Nepomuceno said in a statement on Sunday.

The new payment system handles the collection of miscellaneous payments, customs duties and taxes for non-electric to mobile transactions, and other authorized charges.

“It specifically covers payments arising from manually processed Goods Declarations under the informal entry procedure, addressing a critical segment of transactions not yet covered by automated customs systems,” it said. 

The ePay System is linked with the Land Bank of the Philippines’ Link.BizPortal, providing a centralized gateway for electronic payments through authorized channels.

This also minimizes dependence on manual payment methods, reduces in-person transactions, and enhances interoperability across government systems.

Customs also called for importers, exporters, licensed customs brokers, and other stakeholders engaged in applicable transactions to use the ePay System.

The agency said comprehensive user guidelines and step-by-step instructional materials are available on the official Customs website.

Customs is currently working on achieving full digitalization in its operations along with a new headquarters. — Aubrey Rose A. Inosante

Nine new BuCor officials take oath

BUCOR

NINE NEWLY promoted officers of the Bureau of Corrections (BuCor) took oath as part of the agency’s personnel development program, the agency said on Sunday.

Those promoted were Raul P. Levita, Gary Garcia, Lucio Guevarra, Roger Boncales, Ruben Formoso, Alfredo Devanadera, Jr., and Eduardo Gogorza, the BuCor said.

Two officials from the bureau’s technical service, Marjorie Ann P. Sanidad and Noel M. Marquez, were also elevated from Corrections Technical Superintendent to Corrections Technical Senior Superintendent.

BuCor said the promotions form part of its personnel development program and are aligned with efforts to strengthen institutional leadership and support the agency’s mandate within the corrections system. — Erika Mae P. Sinaking

Free agent Ravena hoping for an offer here or abroad

THIRDY RAVENA (center) — FACEBOOK.COM/OLYMPICPHI

SOUTHEAST Asian Games (SEAG) gold medalist Thirdy Ravena is still testing the market for his next venture after a historic stint with Dubai Basketball that debuted in the EuroLeague this year.

Mr. Ravena said he’s still in talks with his agent as to where he is headed next, hoping to have an offer on the table here or abroad anew after the New Year.

“I’m still not sure. I’m a free agent now. We’ll see,” said the 29-year-old guard after he and his teammates were recognized by the PBA at halftime of the Season 50 Philippine Cup quarterfinals over the weekend at the Smart Araneta Coliseum.

“It was an amazing experience (in the EuroLeague) even though I left the team early. It’s a great feeling to at least play with such environment. Ultimately, it’s a great blessing and now I know what it takes to play at that level.”

Mr. Ravena blazed another trail for Philippine basketball, becoming the first Filipino to suit up in the EuroLeague with Dubai this year after his signing last year when the squad was still in the ABA League.

He parted ways with Dubai last November, entering free agency for the first time since also becoming the first Filipino import in any overseas league, doing it in 2021 when he signed under the Asian Quota Program with San-En NeoPhoenix in the Japan B.League.

His jump to the overseas pros paved the way for a now fast-growing list of Filipino imports in Japan and Korea like Gilas main team’s Dwight Ramos, Kai Sotto, AJ Edu, Kevin Quiambao and Carl Tamayo.

“I’m very happy that we’re able to open another option. I tried to go far so the rest can go farther,” beamed the three-time UAAP champion and Finals MVP with Ateneo de Manila University.

Back at home with a lot of options after helping the hastily-formed Gilas to a SEAG sweep including a 70-64 finale win over Thailand, Mr. Ravena admitted that the PBA remains one of his dream destinations down the road albeit the next PBA Rookie Draft is still in October 2026.

“We’ll still see the options but of course, the PBA will always be on my radar. It’s always been a dream for me but we will wait for options,” he added.

For now, Mr. Ravena is just savoring his first Christmas with his family in years and the sweet redemption in the SEA Games after being part of the infamous silver-medal team in the 2022 Hanoi Games.

Mr. Ravena in 2022 in Vietnam teamed up with Matthew Wright, also in this year’s team, his brother Kiefer, nine-time PBA MVP June Mar Fajardo, Mo Tautuaa, Roger Pogoy, Troy Rosario and Will Navarro among the few for the Gilas team that lost to Indonesia, 85-81, in the finals.

That ended Gilas’ 33-year reign including 13 straight gold medals before redeeming the crown in 2023 in Cambodia and now completing a back-to-back feat in Bangkok for the country’s 20th overall crown, the most in the biennial meet’s history. — John Bryan Ulanday

NY Knicks extend hot stretch, sneak past free-falling Hawks

NEW YORK KNICKS — NBA.COM

OG ANUNOBY scored 15 points and hit four free throws in the final 30 seconds to help the visiting New York (NY) Knicks hang on for a 128-125 win over the Atlanta Hawks on Saturday.

Atlanta erased a 10-point fourth-quarter deficit and took the lead on a 3-pointer by Onyeka Okongwu with 2:01 remaining. After a pair of lead changes, Anunoby hit two free throws with 29.6 seconds left and added two more with 7.3 seconds remaining. Atlanta’s Nickeil Alexander-Walker missed a game-tying 3-pointer at the buzzer.

New York has won 13 of its last 16 and evened its road record at 7-7. Atlanta has lost six in a row and 10 of its last 12. The Hawks dropped to 5-11 at home.

New York was carried by Karl-Anthony Towns, who had 36 points and 16 rebounds for his 21st double-double, and Jalen Brunson, who scored 34. Towns matched his career high with 17 free throws in 18 tries.

Okongwu finished with 31 points and 14 rebounds before fouling out with 30 seconds left. Alexander-Walker scored 25 and Jalen Johnson had 20 points, nine rebounds and 12 assists for his 13th straight double-double.

Trae Young, playing on consecutive nights for the first time since returning from an MCL strain, had only two points at the half and finished with nine points and 10 assists.

Brunson came out hot, making 5 of 8 from the field to help the Knicks take a 33-27 lead at the end of the first period.

The Hawks started the second quarter with six straight points to knot the game at 33-all, only to have the Knicks regain their footing and methodically start to build a lead. Johnson left with his third foul at 7:19 and the Knicks built a 14-point advantage on a Brunson driving floater at 1:09. New York led 68-55 at intermission.

New York expanded its lead to 85-67 at 6:55 but the Hawks got within six on Young’s three-point play at 1:59. New York led 98-89 after the third quarter. — Reuters

Houston Texans clinch playoff berth by beating Chargers for 8th straight win

CJ STROUD threw two long touchdown passes and the Houston Texans clinched a playoff berth with a 20-16 victory over the Los Angeles Chargers on Saturday afternoon at Inglewood, California.

Stroud connected with Jayden Higgins on a 75-yard touchdown pass and Jaylin Noel on a 43-yard scoring pass in the first six minutes as Houston (11-5) came out strong to lay the groundwork for its eighth straight win. Derek Barnett had two of the Texans’ five sacks.

Stroud completed 16 of 28 passes for 244 yards and two interceptions for the Texans, who remain alive in the AFC South but are assured of at least a wild-card berth. The Jacksonville Jaguars (11-4) lead the division.

Justin Herbert completed 21 of 32 passes for 236 yards, one touchdown and one interception for the Chargers (11-5), who were eliminated from the AFC West race and will begin the playoffs on the road. The loss allowed the Denver Broncos (13-3) to clinch the division heading into their matchup with Los Angeles next week.

Omarion Hampton rushed for a touchdown and Oronde Gadsden II caught one for Los Angeles.

The Chargers were down 14 when they began their comeback attempt with a 1-yard touchdown pass from Herbert to Gadsden with 13 seconds left in the third quarter.

Ka’imi Fairbairn booted a 44-yard field goal to give the Texans a 20-10 advantage with 6:29 remaining.

Los Angeles pulled within four when Hampton scored from the 5 with 3:37 remaining. But Cameron Dicker was wide left on the extra point to prevent the Chargers from making it a field-goal game.

Houston then got two first downs while running out the clock.

Stroud’s two long early touchdown passes caught the Los Angeles defense napping.

On the game’s third offensive play, Higgins sped past the Chargers’ secondary and hauled in Stroud’s throw at the Los Angeles 35 and finished off the 75-yard scoring pass. — Reuters

Reaves-less Lakers

On Christmas Day at Crypto.com Arena, what was supposed to be a gift to fans instead became spoiled by a deepening malaise. The Lakers were once again outworked on the glass and clearly lacking in fundamentals en route to an embarrassing defeat at the hands of the visiting Rockets. The development wasn’t lost on all and sundry, and head coach JJ Redick joined critics in questioning their effort. “We don’t care enough right now,” he lamented in his postmortem.

Considering the Lakers’ swoon, Redick was justified in his blunt indictment of his charges’ lack of buy-in to the cause. They started the season with promise, moving up to as high as second in the highly competitive West at one point, but three straight defeats and six in 10 outings revealed their recent struggles to execute even the basics. And he was right to question their, in his words, “effort and execution.” His willingness to call out his roster publicly signaled his frustration with outcomes and, more importantly, with the glaring absence of professional consistency.

Needless to say, part of the trouble is attributable to personnel instability. On an evening when the Lakers desperately needed cohesion, presumptive All-Star Austin Reaves exited early with a sore left calf. An MRI later confirmed a Grade 2 strain, sidelining him for at least four weeks. It’s a blow not just to the rotation of the people and hold, but to their identity as well; he is enjoying a career year, exhibiting his unique brand of playmaking and scoring that have become central to their offensive flow.

Losing Reaves compounds the Lakers’ maladies. His absence will always be missed, but it comes at an especially wrong time and strips Redick of a reliable secondary scorer and floor spacer; bench pieces and role players are forced to log heavier workloads amid a defensive slide. Significantly, he had just returned from a calf injury and briefly reignited hopes of a sustained breakout. Now, questions loom about longer-term positioning in a conference where nearly all protagonists are bona fide contenders.

Redick’s candor about the Lakers’ next meeting being “uncomfortable” reflects an inflection point. The best of the best in the National Basketball Association are able to weather storms in light of their rock-solid culture. But when the head coach views commitment as a choice and sees it wanting on the court, it necessitates deeper work behind the scenes. And, yes, the marquee names, particularly Luka Doncic and LeBron James, will be asked not only to fill star lines, but to anchor the locker room as they navigate the next month without Reaves.

The Christmas loss, and the reaction it elicited, may well prove to be a defining turn of events for the Lakers. It is one thing for them to say they care, and quite another to show it through accountability regardless of the numbers on the scoreboard. How they respond to the challenge, both on the practice floor and in matches, will reveal whether the promise of the season can survive adversity or whether it unravels under the weight of unmet expectations.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

YEARENDER: Alex Eala puts the Philippines on the tennis world map

ALEX EALA — PHILIPPINE STAR/RUSSELL PALMA

CALL HER “Alexandra the Great.”

Twenty years young and all, Alexandra “Alex” Eala has ascended to the world’s echelon of stars on her way to establishing a queendom at home as the Philippine tennis’ best.

The Filipina sensation from the East to the West left an indelible mark, netting a bevy of firsts one after another in a relentless drive from start to finish to finally put the Philippines on the world map via an unpopular home sport at that.

Name it: a string of wins against a former and reigning major champions, a maiden title, a Grand Slam qualification feat paired with a main draw win and a Top 50 ranking for the first time ever for the Philippines, Ms. Eala had it all in a historic 2025 before saving her best for last with a gold medal in the Southeast Asian Games (SEAG).

Ms. Eala, who settled for three bronze medals in her SEAG debut in Hanoi in 2022, added two more bronze mints in the women’s team with Stefi Aludo, Alexa Milliam, Tennielle Madis and Shaira Rivera as well as in the mixed doubles with Niño Alcantara.

And that’s the sweet cherry on top of her banner year.

Ms. Eala started to make giant strides in March after a series of quick exits in the WTA Tour in Europe, the US, Africa and Asia by essaying a Cinderella run at the Miami Open, a WTA 1000 tourney as the biggest tennis event next to the majors.

Then ranked No. 140 as wildcard, unseeded and had to go through the qualifiers, Ms. Eala slayed three former Grand Slam and Top 25 players to barge into the Final Four, becoming the first-ever Filipina WTA semifinalist in history.

She fell short against home bet Jessica Pegula, 6-7, 7-5, 3-6, but caught the eyes, and especially the hearts, of the tennis world including its avid fanbase, after stunning five-time major winner Iga Swiatek (world No. 2) of Poland, 2017 French Open champion Jelena Ostapenko (world No. 25) of Latvia and 2025 Australian Open champion Madison Keys (world No. 5) of the United States.

Ms. Eala was the first Filipino to do it, again, and this time, joined the world’s elite list as well.

She’s only the third wild card to reach the last four in Miami, following former world No. 1 Justine Henin in 2010 and Victoria Azarenka in 2018 from their extended breaks.

Moreover, Ms. Eala became only the second wild card to slay three or more Grand Slam champions in a single tour-level event after Elina Svitolina at Wimbledon 2023.

That run for the ages catapulted Ms. Eala to the titan’s lane, entering No. 75 of the WTA rankings to qualify in all the main draws of Grand Slams like the US Open, Wimbledon and French Open after a qualifying exit in the Australian Open when she was just at the Top 150 threshold to start the year. She also took home her biggest purse from Florida with $332,160 or over P19 million.

And there was no stopping the Filipina juggernaut from there, both in her attempt to scale the world rankings and the confidence to duke it out against the best and more grizzled foes in the WTA Tour playoffs one after another.

By June, Ms. Eala scored another first — a WTA Tour finals appearance in Eastbourne, England following a tough three-setter defeat to Australia’s Maya Joint, 4-6, 6-1, 6(10)-7.

Then came her homecoming in New York, three years after being the first Filipina junior Grand Slam champion, where she blazed another trail by becoming the first Filipina to play and win in any Grand Slam main draw. She beat world No. 15 Clara Tauson of Denmark, 6-3, 2-6, 7-6 (13-11), but bowed to Spain’s Cristina Bucsa in the second round, 6-4, 6-3.

From semis to finals and finally — a championship, Ms. Eala did it in September at the WTA125 Guadalajara in Mexico with a 1-6, 7-5, 6-3 comeback win against Hungary’s Panna Udvardy to also become the first Filipina WTA Tour champion ever.

As if she’s in for a celebratory ride, Ms. Eala cruised to an Asian trip in China, Japan, Hong Kong and Macau leading up to her national team return that ultimately paid off by delivering the golds that mattered in the SEA Games.

The riveting storybook year propelled Ms. Eala’s to the No. 50 ranking at the end of the WTA Season, a first once again for Philippine tennis that’s about to start 2026 with a bang with the hosting of the Philippine Women’s Open as part of the WTA Tour on Jan. 26 to 31 — all thanks to Ms. Eala’s inspiration to the Philippine Tennis Association and the Philippine Sports Commission to bid.

If the stars align depending on Ms. Eala’s campaign in the Australian Open set on Jan. 12 to Feb. 1 in Melbourne, Ms. Eala is poised to play in her first home game ever after traveling around the world.

And that’s another chapter to open for Ms. Eala in a fast-skyrocketing career with an ultimate goal of winning a Grand Slam and becoming the world’s No. 1 player down the road.

“I have always been a big dreamer. To win Grand Slams has always been one of the end goals. To become No. 1 has always been one of the end goals,” beamed Ms. Eala on the WTA website. — John Bryan Ulanday

Recto touts gov’t record in containing inflation

A vendor waits for customers at a stall inside Commonwealth Market in Quezon City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE GOVERNMENT kept inflation low in 2025, protecting the public from the erosion of its purchasing power, Executive Secretary Ralph G. Recto said on Sunday.

Lower food prices, particularly for rice, have been the main driver, easing pressure on low-income households, he said in a statement.

“To put this in perspective, a 6% inflation rate means that your P100 can buy only about P94 worth of goods and services. But with inflation down to just 1.6% in 2025, that same P100 can now buy about P98.4 worth of goods and services,” according to Mr. Recto, who was recently appointed Executive secretary after having headed the Department of Finance.

“That’s why this is very important for every Filipino family, especially the poor. When inflation is low, we can keep basic goods affordable, particularly food,” he added.

Economic expansion is expected to come in at about 5% to 5.1% this year, according to the Asian Development Bank, World Bank and International Monetary Fund (IMF), exceeding expected growth in most of Southeast Asia, he noted in a statement.

The IMF projects the Philippines to be among the fastest-growing economies in the region by 2026 alongside Vietnam.

The government has focused on stabilizing prices and securing the food supply as the key to preserving purchasing power, Mr. Recto said.

The Department of Agriculture (DA) has rolled out a subsidy program offering rice at P20 per kilogram to eligible beneficiaries, mostly vulnerable members of society, he noted.

As a result, inflation for the bottom 30% of households by income fell to minus 0.2% in November, the sixth straight contraction, he said.

The benign inflation environment has also expanded policy space for the Bangko Sentral ng Pilipinas, allowing it greater flexibility to adjust interest rates to support consumption and investment, he said.

Mr. Recto noted that S&P Global Ratings recently reaffirmed the Philippines’ “BBB+” investment-grade rating with a “positive” outlook, citing low and stable inflation. — Chloe Mari A. Hufana

NSCR O&M contract seen attracting strong interest from bidders — DoTr

PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Transportation (DoTr) said it is confident the operations and maintenance (O&M) contract for the North-South Commuter Railway (NSCR) will generate strong interest, with five prospective bidders signifying their intent to bid so far.

“There were companies that have paid the participation fee to bid; I think about five or more. We are on track on this and (we are) confident that companies will bid,” Transportation Undersecretary Timothy John R. Batan told BusinessWorld.

Last week, the Transportation department said potential bidders attended the pre-bid conference for the project, which included San Miguel Corp. and the Lopez group’s construction company First Balfour, Inc.

Foreign companies that attended the pre-bid conference were Tokyo Metro Co., Ltd., Japanese rail operators JR East and JR West, as well as Mitsubishi Corp., and  Sumitomo Corp.

The DoTr said that French transport companies Group S.A., RATP Group, Keolis S.A., and Alstom also attended the pre-bid conference.

“The President giving clearance for (public-private partnerships to bid for) the operations and management of the NSCR shows the administration’s trust in private firms to handle the country’s biggest railway system. The high turnout also signals investor confidence,” Transportation Acting Secretary Giovanni Z. Lopez said in a statement.

According to the instructions to prospective bidders, the final O&M concession agreement will be released on April 30, 2026. Bids will be accepted by May 29 at 11 a.m., according to the PPP Center.

To qualify for the project, the bidder must have a minimum net worth of P114.65 billion or its equivalent in foreign currency as of the 2024 financial year. For consortia, the lead member of the group must have an equity interest of at least 34% of both voting and non-voting shares of the O&M concessionaire, the DoTr said.

Bidders including consortium members or affiliates must include at least one entity with 10 years of experience in rail operations, specifically in managing a rail line that handles at least 45,000 passengers per hour in each direction.

At least one entity must have eight years of experience in maintaining railway infrastructure and systems, including the use of a computerized maintenance management system, and another must have eight years of experience in track and civil infrastructure maintenance.

The NSCR O&M deal will cover 15 years from the signing date of the contract, the DoTr said.

The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The P873-billion project is co-financed by the Japan International Cooperation Agency and the ADB. It will have 35 stations and three depots. 

Full operations are expected by January 2032; partial operations on the Malolos to Valenzuela segment are projected by December 2027; operations on the Clark to West Valenzuela segment are expected by October 2028.

“To ensure convenient, efficient and safe management and operations of NSCR, we need to have a qualified and experienced operator,” Mr. Batan said in a statement last week.

Rene S. Santiago, an international consultant on transport development and former president of the Transportation Science Society of the Philippines, said companies are weighing the potential advantages of participating in the bidding.

He said companies may be more cautious about joining rail projects, considering Metro Pacific Investments Corp.’s  (MPIC) announcement that it is planning to divest its stake in Light Rail Manila Corp. (LRMC), the operator of Light Rail Transit Line 1 (LRT-1),

“All attendees know the hurdles, and are keen to know if it is worth their while. Can the government be trusted to live up to their end of the bargain, when it has not in LRT-1?” Mr. Santiago said.

MPIC has said that it is considering divesting its 35.8% stake in LRMC due to continued losses, with ridership yet to recover from the pandemic.

In November, LRMC said that it is gearing up for a financial rebound, citing renewed shareholder support and fresh talks with the Transportation department for the rebalancing of its concession agreement. — Ashley Erika O. Jose

LGU share of national taxes to total P1.19 trillion in 2026

BW FILE PHOTO

THE Department of Budget Management (DBM) said local government units (LGUs) will receive P1.19 trillion in 2026 as their share of national government revenue, which is known as the National Tax Allotment (NTA).

In a budget memorandum issued on Dec. 26, the DBM said the LGUs must be guided accordingly by the amounts to be allocated to facilitate their financial planning.

The NTA is the LGU share of the national government’s revenue total from three years prior. The distribution in 2026 will consist of P273.82 billion for 83 provinces, P274.1 billion for 149 cities, P404.49 billion for 1,491 municipalities and P238.1 billion for 41,913 barangays.

Adjustments to the NTA shares were made following the adoption of the 2024 Census of Population by province, city, municipality, and barangay, the DBM said.

“It is understood that the effect of the final FY 2026 NTA shares of LGUs will necessitate prioritization in the implementation of items of appropriations by the LGUs,” the DBM said.

Under the Local Government Code, LGUs are entitled to 40% of national government tax revenue. — Aubrey Rose A. Inosante

PHL agri exports grow 21.5% in November

PHILSTAR FILE PHOTO

AGRICULTURE-BASED exports in November rose 21.5% year on year to $658.06 million, according to preliminary data from the Philippine Statistics Authority (PSA).

The PSA said agro-based exports accounted for 9.5% of total exports by value.

Exports in the first nine months rose 25.8% to $6.71 billion, it said.

Coconut products, the Philippines’ top agricultural export commodity, posted a 27.1% increase to $330.82 million in November. The commodity group accounted for 4.8% of total exports.

Fruit and vegetable exports grew 26.2% to $251.37 million in November, accounting for 3.6% of total exports.

Exports of other agro-based products, including seafood, rubber and various types of plant fiber, declined 7.7% to $75.70 million in November. This group of commodities accounted for 1.1% of total exports.

The strongest export growth rates were recorded for dried seaweed (343.3%), desiccated coconut (63.8%), raw coffee (59.9%), pineapple juice (40%), and bananas (38.8%)

The top declines in export growth were posted by rice (-100%), pineapple concentrate (-30.8%), mango (-30.1%), and unmanufactured tobacco (-29.9%). — Vonn Andrei E. Villamiel

Typhoons could add 0.6 ppt to Philippine inflation — IMF

DOST-PAGASA FB PAGE

TYPHOONS are expected to add up to 0.6 percentage point (ppt) to Philippine inflation due to disruptions to supply chains and agriculture, according to the International Monetary Fund (IMF).

In a report following its Article IV Consultation with the Philippines, the IMF said: “Staff analysis suggests that climate shocks, operating through supply, demand, and expectation channels, increase inflation by up to 0.6 percentage point (annualized) in a typical year, and disproportionately impact the agriculture sector, pushing up food prices,” it said.

This year, the Philippines was hit by 23 tropical cyclones, leaving billions of pesos in damage, according to the government weather service, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).

PAGASA said in a typical year, the Philippines will endure the transit of about 20 typhoons.

In the report, the IMF projected Philippine inflation this year of 1.7%, upgrading an earlier estimate of 1.6%. For 2026, it expects inflation to settle at 2.8%, up from its earlier view of 2.6%. 

Headline inflation began to pick up to 1.5% in August as multiple weather disruptions drove food prices higher. During that period, three storms and the southwest monsoon left at least P4.86 billion worth of agricultural damage.

Inflation accelerated further to 1.7% in September and October amid lingering effects from the typhoons, before easing to 1.5% in November.

This brought average inflation to 1.6%, in line with the Bangko Sentral ng Pilipinas (BSP) full-year forecast but slightly above the IMF’s latest estimate.

The IMF said the temporary inflation spike will be a consideration when the BSP decides on monetary policy.

“While accommodating some of the shocks risks triggering a rise in inflation expectations, tightening monetary policy to keep inflation at target would raise the cost of capital, which can delay reconstruction and pose a greater loss in output,” it said. “Faced with these trade-offs, the BSP should accommodate a temporary spike in inflation while containing any increase in inflation expectations.”

It added that the government could opt to reduce tariffs on food imports to curb the possible impact of such trade-offs.

Meanwhile, the IMF also noted that weather disruptions trim gross domestic product (GDP) by 0.2-0.3% yearly.

“Typhoons are the most frequent natural disasters in the Philippines, causing recurring economic losses — about 0.2-0.3% of GDP annually, mainly impacting agriculture — and contributing to higher inflation,” it said.

Philippine economic growth slumped to 4% in the third quarter, from 5.5% in the second quarter and 5.2% a year earlier, amid sluggish government and household spending.

The economy expanded by an average 5% at the end of September, below the government’s 5.5%-6.5% target.

Economy Secretary Arsenio M. Balisacan has said that the widespread cancellations of school, work, and travel due to the typhoons may have caused the slowdown in household spending during the period.

The IMF expects Philippine GDP growth to average 5.1% this year, a downgrade from its previous estimate of 5.4%. It also sees slightly slower expansion next year of 5.6% from 5.7% previously.

“Over the long term, the economic effects of climate shocks and trends are expected to increase, with climate models forecasting more intense typhoons and sea level rise causing economic losses reaching up to 2% of GDP annually in the absence of adaptation measures,” the IMF added. — Katherine K. Chan

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