Is it time to expand your business?

 

Rappler.com

Published 5:34 PM, July 19, 2016

MANILA, Philippines – As an entrepreneur, you should continuously look for things you can improve on and novel ideas you can introduce to your customers. If you’ve enjoyed a good amount of success and are comfortable with your current operations, consider expanding your business. This won’t only get your creative juices flowing again, it will also bring in new revenue sources, which is always a good thing.

But expansion isn’t something you do with eyes closed. Below is a list of things you should have before expanding your business. If all things check out, be excited because you’re about to embark on a rewarding, albeit demanding journey.

Is it the right time to expand?

 

There are no set milestones to look out for because each business is different but generally, make sure that your existing business is in good standing – meaning you’ve gotten back your investment and have already started earning from it.

Treat your first business as a guinea pig. According to Francis Hernandez,* owner of a facial spa business that has 8 branches around Metro Manila, it’s imperative for business owners to study their first branch very well.

Experiment, see what works, and duplicate whatever does on your next branch. Before opening his second branch, Hernandez waited to recoup their investment. He says, “It’s easier to adjust and correct mistakes when there is only one branch and only a few employees involved.”

If you feel that your business isn’t quite ready for expansion yet, consider growing it in other ways like improving your marketing strategies and updating or increasing the services or products you offer.

Why do you want to expand?

What is the driving force behind your business? Is it to make people’s lives easier? To share innovations? To introduce cultures through food? Or something else? Answer these questions first.

Knowing your “why” and putting it side by side with what the market needs will allow you to discover your product’s unique selling proposition. It will also help you make tough decisions: if something doesn’t adhere to your “why,” don’t do it.

After establishing your “why,” move on to more concrete objectives. Dulce Alimbuyuguen, Small Business Loan Sales Head at BDO, suggests that you determine the following: your long-term and short-term milestones, resources needed to achieve these goals, and the internal and external financing needed to fund these resources.

Where do you want to expand to?

Expansion can mean different things so figure out how exactly you want to expand your business. Do you want a new branch? Are you considering opening an online store? Do you want to go international or try a related but completely different idea?

Learn more about what your competitors are doing and see how you can set your business apart. Look for locations with the same profile as your first branch and see if there are any stores that sell the same products. If there’s none, then that’s an untapped goldmine.

How much will you spend for the expansion?

While expansion leads to increased profit, it incurs increased operation costs as well. Before taking the leap, estimate security deposits, construction costs, equipment, and so on. To be on the safe side, Hernandez suggests that you add a buffer of 30% to your actual estimate, which will cover miscellaneous and unexpected expenses.

It’s ideal to use internally generated funds from the business but if you want to strike while the iron is hot, you can also look into loans. BDO’s SME Loan is a short to medium-term facility that helps entrepreneurs with additional working capital, purchase of business assets, and other business ventures like franchising.

Do you see yourself being able to manage your time properly?

Remember that expanding your business also means more work, so check if you’ll be able to squeeze everything into your daily 24 hours.

As you venture into expansion, make a list of your priorities and figure out which ones you have to do yourself and which ones you can entrust to others.

Hernandez shares: “We hired managers that can be delegated to handle the day to day operations of the branches. We split our time between the branches, depending on what branch needs more of our attention."

Once the road to expansion is clear, create a good system for operations, manage your people well, and set clear company policies to make sure your business continues to run as smoothly as possible.

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BSP to demonetize P100,000 and P2,000 commemorative bills

NUMISMATIC VALUE. Holders of the centennial commemorative banknotes may choose to keep the limited edition bills for their numismatic value. Image from BSP

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MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Tuesday, August 1, announced that the P100,000 and P2,000 centennial commemorative banknotes issued during the term of former president Joseph Estrada in 1998 would be demonetized.
This move reflects the provisions of Section 57 of Republic Act No. 7653 or the New Central Bank Act, which authorizes the BSP to replace banknotes that are more than 5 years old. (READ: FAST FACTS: What does the Bangko Sentral ng Pilipinas do?)
The BSP said the centennial commemorative banknotes will remain legal tender (mode of payment) up to July 31, 2018.
These limited edition bills can be exchanged for New Generation Currency (NGC) banknotes at full face value with the BSP from August 1, 2018 to July 31, 2019.
"Starting August 1, 2019, P100,000 and P2,000 centennial commemorative notes that have not been exchanged shall be considered demonetized," the BSP said in a statement.
But holders of the centennial commemorative banknotes may opt to keep these as collectors' items.
Currency collectors – also called numismatists – often preserve commemorative or limited release banknotes and coins for their numismatic value.
Rare banknotes
Commemorative banknotes are issued by the BSP to honor an event of historic significance to the country, the Philippines' central bank explained.
These are in limited volume, set apart from the banknotes intended for circulation and overprinted with an emblem or text descriptive of the theme or occasion being celebrated.
The BSP said the P100,000 centennial commemorative note is the biggest legal tender denomination it issued both in terms of face value and dimension, measuring 22 centimeters by 33 centimeters.

 

RARE. This rare banknote measures 22 centimeters by 33 centimeters, the biggest of its kind so far. Image from BSP

Only a thousand pieces of the P100,000 commemorative banknote were issued by the BSP on the occasion of the 1998 Philippine centennial year.

The P100,000 commemorative banknote features the proclamation of Philippine independence by General Emilio Aguinaldo on June 12, 1898 and the Sigaw ng Himagsikan (War Cry).

Also issued in 1998 was the P2,000 centennial commemorative banknote, which depicts the oath-taking of then president Joseph Estrada and the reenactment of the declaration of independence by former president Fidel Ramos.

 

LIMITED. The P2,000 centennial commemorative banknote depicts the oath-taking of former president Joseph Estrada. Image from BSP

"The P100,000 and P2,000 centennial notes have served their commemorative purpose. These banknotes are also part of the New Design Series which have been demonetized," the BSP said.

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BSP boosts fight vs fake Philippine peso bills

 

Michael O. Ligalig

Published 12:59 AM, August 06, 2017

 

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) boosted its fight against fake Philippine peso bills after having arrested 4 suspects accused of faking the Philippine currency in the first semester of 2017.
The BSP said in a statement on Friday, August 4, that its operatives from the Currency Issue and Integrity Office seized counterfeited banknotes made up of P1,000 and P500 bills, printing machines, a scanner, and printing paraphernalia. These were discovered inside the house of the suspects.
Ammunition and motorcycles used by the perpetrators in illegal activities were also confiscated, the BSP added.

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Since 2005, the central bank has conducted at least 117 anti-counterfeiting operations, leading to the arrest and filing of cases against 199 suspects.
Aside from fake Philippine pesos, the central bank said it had also seized counterfeited foreign currencies, including Iraqi dinar, Japanese yen, Malaysian ringgit, and US dollars.
The BSP said its anti-counterfeiting operations were successful largely due to the information provided by anonymous tipsters, who eventually received monetary rewards for cooperating in the government's crackdown on bogus money.
The central bank's reward system now includes "information involving the hoarding and mutilation/destruction of Philippine currency coins."
To report an illegal activity, informants may contact the BSP's hotline numbers 988-4833 and 926-5092, or they may coordinate with the nearest police station.
Under Section 50 of Republic Act No. 7653, the BSP is vested with police authority to "investigate, make arrests, and conduct searches and seizures in accordance with law, for the purpose of maintaining the integrity of the currency."

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Stats on holiday shopping in PH and why the ‘ber’ season is a myth

 

As early as September, Christmas songs start playing on radio stations and marketers launch holiday deals and promos, all with the intent of getting consumers in the mood to buy gifts, plan trips, and celebrate with their families and loved ones.

But are Filipinos’ shopping habits really aligned with these dates? And with growing concern about heavy traffic and poor public transportation in Metro Manila, how much shopping will be done online, and on which platforms? To find answers, Nerve, Rappler’s data research arm, recently conducted a survey among our readers.
Respondents were mostly millennials (aged 18-35) as well as adults aged 36 and up. The survey was served to visitors of the Rappler site from September 12 to 18. Majority (70%) of respondents hailed from the Philippines. There were slightly more female respondents (54%) than men (46%).
The survey's margin of sampling error is +/- 3 percentage points, with a 99% level of confidence. The poll sheds light on the new shopping habits of a modern, digitally-savvy market.

Procrastinating shoppers

Though many retailers begin their Christmas campaigns in September, consumers aren’t making the bulk of their purchases that early.

Among respondents, 55% indicated that December is the heaviest shopping month, with November coming in second at 24%. Only 5% of respondents said they shop in either September or October.

This means that early marketing and in-store retailing efforts spent on Christmas may largely be wasted. The classic marketer’s dilemma of “Right Message, Right Person, Right Time” is likely missing the time target.

November and December would be the best months to launch a holiday-themed campaign. So much for avoiding the rush!
Cash is still king
Most Rappler readers might still be bringing around cash to shop for gifts. Among respondents, only 35% of respondents said they own a credit card, while 48% still do not own a debit card.

While this may seem comparatively low on a global scale (90% of Singaporeans already own and use debit cards, for example), this is still a significantly higher number compared to the national average of 7% for credit cards and 43% for debit cards.

This preference for cash also affects where they will choose to shop as well.

Most shopping will be done in-store

While e-commerce is rising in popularity in the Philippines, there is still a high preference for in-store buying.

When asked “How do you distribute your Christmas shopping between in-store and online?” majority responded they shop all in-store (39.68%) or more in-store (36.77%).

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Shell income up 4% to P6.6 B

MANILA, Philippines — Pilipinas Shell Petroleum Corp. managed to improve its bottom line as of end-September, supported by its strong retail business segment despite lower inventory gains and a two-month refinery shutdown earlier in the year.

Shell said its net income reached P6.6 billion, up four percent from P6.4 billion last year, bolstered by retail business growth, high V-Power penetration and robust refinery performance.

It said retail network sales volumes increased five percent due to the continued higher uptake of its new efficiency fuel, V-Power with Dynaflex Technology, and the expansion of its retail footprint.

Shell president and CEO Cesar Romero said V-Power with Dynaflex Technology was developed with Ferrari in the F1 circuit aimed to deliver superior performance on vehicles.

To date, Shell has 1,014 retail stations serving motorists all over the country.

With the planned preventive maintenance work on the refinery completed in second quarter, Shell said it was able to capture strong refining margins in the third quarter.

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“A fit-for-purpose refinery, coupled with the significant cost savings that the company enjoys from the North Mindanao Import Facility, support the marketing growth of the company,” it said.

Apart from its fuel-related business, Shell’s convenience retailing business recorded a double-digit growth with 29 new Shell Select stores and the upgrade of several Shell Select sites.

The oil firm said a total of 37 sites already have the Deli2Go® offer, of which 18 are new stores this year. The lube bay and co-locator segment also expanded as the company opened 38 new lube bays and welcomed 30 new co-locators this year.

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Malaysia’s 2nd biggest bank soon to open first Philippines branch

By Lawrence Agcaoili (The Philippine Star) | Updated November 18, 2017 - 12:00am

MANILA, Philippines — Kuala Lumpur-based CIMB Group is set to open its first retail branch in the Philippines before the end of the year after obtaining the  green light from the Bangko Sentral ng Pilipinas (BSP) to establish banking operations in the country.

The Monetary Board of the BSP has approved the application of CIMB Bank Berhad to operate a branch in the Philippines, bringing the number of foreign banks allowed to open branches in the country to 11 since the banking industry was fully liberalized more than three years ago.

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Tengku Dato’ Sri Zafrul Aziz, chief executive of the CIMB Group, said the approval to set up a branch in the Philippines would complete the group’s footprint in Association of Southeast Asian Nations (ASEAN).

“We are delighted to have received the green light from the BSP. The awaited missing link to complete CIMB’s ASEAN-10 footprint has now materialized. This will further propel CIMB into becoming the leading ASEAN universal bank, which will further strengthen our value proposition to customers,” he said.

It also has presence in Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar, and Laos. Beyond ASEAN, the CIMB Group has market presence in China, Hong Kong, India, Sri Lanka, Korea, the US, and UK.

The approval finally paves the way for the Malaysian bank to establish a presence in the Philippines after a failed attempt in 2012.

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The CIMB Group entered into an agreement with diversified conglomerate San Miguel Corp. (SMC) in 2012 for the acquisition of the listed company’s 58 percent stake in Bank of Commerce for P12 billion.

However, the transaction was called off a year after as parties failed to reach a deal even after discussions were extended after the lapse of the memorandum of agreement (MOA).

“The Philippines offers tremendous opportunity with progressive regulation, attractive demographics, relatively lower banking penetration and good talent. Our strategy will see us applying the best of our digital assets from across the region as well as working with key strategic partners locally,” he said.

CIMB Group, Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups, has the most extensive retail branch network in the region with around 900 branches.

It operates its business through CIMB Bank CIMB Investment Bank, and CIMB Islamic. It has a 92.5 percent stake in Bank CIMB Niaga in Indonesia as well as a 94.1 percent interest in CIMB Thai in Thailand.

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Udenna acquires 177-hectare Clark property

By Iris Gonzales (The Philippine Star) | Updated November 18, 2017 - 12:00am

MANILA, Philippines — Dennis Uy’s Udenna Group is developing a new central business district within the Clark Freeport Zone following its acquisition of a 177-hectare prime property in the area.

Udenna envisions the master-planned development as a modern and sustainable business and transportation hub, which will leverage on the area’s proximity to the Clark International Airport and to the Subic Freeport Zone.

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Through the acquisition, Uy is expanding his real estate portfolio, with the property foreseen to be the center of business in Central Luzon and nearby areas.

Udenna vice president for corporate communications Adel Tamano said the development is another venue for synergistic growth of the group’s diverse business interests which include oil and gas through Phoenix Petroleum, shipping and logistics through Chelsea Shipping and 2Go and retail through FamilyMart.

“Through this strategic acquisition, aligned with our business plans, we aim to support the country’s business process outsourcing (BPO), logistics, manufacturing, tourism and housing sectors,” Tamano said.

Clark Global City Corp. (CGCC), a wholly-owned subsidiary of Udenna Development Corp. (Udevco),  acquired the entire outstanding capital stock of Global Gateway Development Corp. Holdings.

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The property will be rebranded as “Clark Global City,” where locators will enjoy, among others, the benefits of the tax privileges of the freeport zone, easy access to the SCTEX/NLEX interchange, proximity of the Clark International Airport, and anchor projects such as Medical City and 52,000 square meters of premium office spaces which are ready for occupancy.

Last month, the Philippine Competition Commission, the government institution that is mandated to review mergers and acquisitions worth at least P1 billion, approved the acquisition by Udevco.

CGCC completed the acquisition last Nov. 14, with Bank of China, BDO and PNB as its financial partners.

Uy is a Davao-based tycoon who is a known ally and campaign donor of President Duterte.

Since last year, Uy has been on an aggressive buying spree. He recently bought Enderun Colleges.

He is also building an integrated hotel and casino resort in Cebu.

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IMF backs gradual cut in bank reserves

MANILA, Philippines — The International Monetary Fund (IMF) is strongly supporting the gradual lowering of the level of deposits banks are required to maintain with the central bank to single digit, in tandem with capital market reforms.

IMF resident representative Yongzheng Yang said in a press conference the multilateral agency agrees with the Bangko Sentral ng Pilipinas (BSP) that the reserve requirement ratio (RRR) currently pegged at 20 percent should be reduced.

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“We agreed with the BSP that these reserves should be lowered but there is no rush to do that,” Yang said.

RRR is the percentage of bank deposits and deposit substitute liabilities that banks maintain or deposit with the central bank. The Philippines has the highest ratio in the region.

Adjusting policy settings such as the RRR also reduces the intermediation costs while also controlling liquidity.

BSP Governor Nestor Espenilla Jr. earlier said he prefers the RRR reduced to  single-digit level.

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“The RRR is something that I would like to personally see to single-digit level. But there is a game plan for it. So our game plan is to do it in such a way to avoid the situation – that we are unleashing too much liquidity that the economy is unable to absorb,” Espenilla said during the recent Philippine Business Conference and Expo.

Yang said the reduction of the RRR is a data-driven exercise.

“You have to look at the liquidity in the market. We say the current monetary policy stance is fine, you don’t move that,” he added.

He said tweaking the policy stance and the RRR would release more liquidity in the financial system.

Aside from liquidity, Yang explained the BSP would also have to watch inflation that is seen staying within the central bank’s two to four percent target.

“You have to know whether you need to inject or absorb liquidity. If there is need to inject liquidity, you have to lower the RRR. This will take time because the RRR right now at 20 percent is really high. It will take a while to get to single digit,” he said.

The BSP’s Monetary Board last tweaked the RRR in May 2014, raising the level to 20 percent from 19 percent to mop up more cash from the economy amid the elevated growth rates in liquidity and lending.

A one percentage-point reduction or increase releases or siphons off about P90 billion worth of liquidity into the financial system.

During the rate-setting meeting last Nov. 9, the Monetary Board kept interest rates as well as the RRR untouched, but raised the inflation forecast for 2018 to 3.4 percent instead of 3.2 percent primarily due to rising fuel prices as well as the weak peso.

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Debt-to-GDP ratio slides to 41.7% in Q3 — DOF

MANILA, Philippines — The national government’s debt, as percentage of gross domestic product, further shrank in the third quarter of the year amid faster than expected economic growth, data released by the Department of Finance showed.

According to the DOF’s economic bulletin issued on Friday, the Philippines’ debt-to-GDP ratio declined to 41.7 percent in the third quarter.

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This was down from 42.4 percent in the second quarter and 43 percent in July to September period last year.

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Debt-to-GDP ratio is an indicator used by debt watchers and credit rating agencies to assess a country’s debt sustainability.

A lower ratio indicates the government is generating more resources than debts, giving it more payment capacity.

As a percentage of GDP, debt is expected to hit a new record low of 40.76 percent of GDP by end-2017 from the 42.1 percent recorded in 2016.

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In the medium-term, the Budget Department said the proportion of debt to the GDP is expected to slide to 37.7 percent come 2022.

On Thursday, the government reported that the country’s GDP—or the value of all finished goods and services produced in the country—clocked a solid 6.9 percent growth rate in the third quarter of 2017.

This was higher than the upwardly revised 6.7 percent logged in the second quarter and above the 6.5-6.7 percent estimate by market analysts.

However, the 2017 third quarter GDP was slower than the 7.1 percent recorded in the same period last year.

READ: Philippine economy expands by 6.9% in Q3, beating forecasts

“Solid macro-economic fundamentals will continue to support the country's robust economic growth,” the DOF said.

“The strong fiscal position backed up by robust revenue collection will support double-digit expansion in public construction which is one of the main pillars of growth,” it added.

Government domestic debt dropped to 27.1 percent of GDP in between July to September from 27.7 percent. Its external debt-to-GDP ratio likewise improved to 14.6 percent from 14.8 percent.

In the third quarter, the share of combined tax and non-tax revenues to the economy surged to 16.4 percent from the preceding quarter’s 16.3 percent. However, government expenditures, as percentage of GDP, was a tad lower in the third quarter at 18 percent from 18.1 percent a quarter ago.

“Greater investments in infrastructure and social services such as education, health, and social protection will sustain a higher long-term growth path and translate the same into inclusive development. In this regard, the passage and implementation of fiscal reforms to finance these game-changing investments is most urgent,” the DOF said.

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Remittances shrink in September

MANILA, Philippines — Remittances from Filipinos abroad declined to a five-month low in September due to the repatriation of undocumented Filipino workers in Saudi Arabia as well as the decision of global correspondent banks to shut down more money service facilities.

The Bangko Sentral ng Pilipinas (BSP) reported yesterday personal remittances contracted seven percent to $2.44 billion in September, the lowest since April when it reached $2.32 billion. This was the biggest monthly contraction for personal remittances, exceeding the 6.2 percent decline in November 2014.

For the first nine months, personal remittances, which measures cash and non-cash items that flow through both formal or via electronic wire and informal channels such as money or goods carried across borders, went up 4.8 percent to $23.16 billion from $22.11 billion in the same period last year.

The central bank also reported cash remittances coursed through banks fell 8.3 percent to $2.19 billion in September, the biggest decline since contracting 10.9 percent in April 2003 and the lowest level since April when it amounted to $2.08 billion.

Saudi Arabia led the list of countries which registered the biggest drop in cash remittances in September as a result of the continued repatriation of Filipino workers under the Saudi Arabian amnesty program that started last March.

The Department of Foreign Affairs (DFA) said a total of 8,467 undocumented Filipinos have availed of the amnesty program.

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Philippine economy expands by 6.9% in Q3, beating forecasts

MANILA, Philippines (Updated 12:27 p.m.) 

— The Philippine economy grew faster than expected in the third quarter, making it the second fastest-growing economy in Asia next to Vietnam and ahead of China, the Philippine Statistics Authority reported Thursday.

The Philippines’ gross domestic product—or the value of all finished goods and services produced in the country—clocked a solid growth of 6.9 percent for the July-September period.

This was higher than the upwardly revised 6.7 percent logged in the second quarter and above the 6.5-6.7 percent estimate by market analysts. However, the third quarter GDP was slower than the 7.1 percent recorded in the same period last year.

Manufacturing, trade, real estate, renting and business activities were the main drivers of growth for the quarter, the statistics agency said.

Among the major economic sectors, industry recorded the fastest growth at 7.5 percent followed by services which rose by 7.1 percent.

Sustained growth in exports and improvements in public spending also helped prop up the economy.

Economic managers expect a growth of between 6.5 and 7.5 percent for the Philippine economy this year from 6.9 percent last year.

In a press conference, Socioeconomic Planning Secretary Ernesto Pernia said the government remains on course in achieving its full-year target.

“The Philippines remains one of the best performing economies in Asia,” Pernia said.

“With the year-to-date growth average of 6.7 percent, we are most optimistic that we will be on track in meeting our full-year target range,” he added.

The government plans to spend about P847.22 billion this year on infrastructure alone, equivalent to 5.32% of GDP as part of its “Build, Build, Build” program

According to Pernia, the government expects a pick-up in household consumption in the last quarter of the year due to the holiday season.

“So imagine if both public and private spending are on a roll. We are likely to see the economy steadily going on an upward trajectory,” he said.

Gross national income rose by 6.7 percent from July to September on the back of a 5.7 percent growth in net primary income from the rest of the world.

Per capita GDP surged to 5.4 percent while per capita GNI and per capita household final consumption expenditure expanded by 5.2 percent and 3.0 percent, respectively.

Q4 GDP ‘will be higher’

Asked for his GDP outlook for the last quarter of 2017, Pernia said he expects the economy to grow at a faster pace in October-December period despite risks posed by typhoons that come late in the year.

He also said agriculture, which slowed down by 2.5 percent in the third quarter, is likely to post positive growth in the coming months.

“Well the usual risks would be weather disturbances. But we were saying that we expect though that the... growth of the fourth quarter GDP will be higher or at least match the third quarter’s performance,” Pernia said.

Meanwhile, another domestic risk that could affect the government’s bullish outlook for the fourth quarter would be “an upward price pressures from oil prices,” National Economic and Development Authority Assistant Secretary Carlos Abad Santos said.

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Powerful Iran-Iraq earthquake is deadliest of 2017, 452 confirmed DEAD!

By Shirzad Bozorgmehr and James Masters, CNN

Updated 1810 GMT (0210 HKT) November 13, 2017

If you are in a safe place and have video from the earthquake, you can share it with CNN via WhatsApp at +1 347 322 0415. Please do not put yourself in danger.

Tehran, Iran (CNN)At least 452 people were killed and thousands injured after a powerful earthquake struck near the border of Iran and Iraq late Sunday.

The earthquake is the deadliest of the year, eclipsing the one that hit Mexico City in September, and was felt as far away as Turkey and Pakistan.

Around 100 of the dead are believed to be from one town in Iran's Kermanshah province, the country's semi-official Mehr news agency reported.

Iran: 445 people confirmed dead, 7,100 injured, Iran's Press TV has reported Monday afternoon.

Northern Iraq: 7 people dead in the semi-autonomous Kurdish region, said Rekawt Hama Rasheed, the health minister of the Kurdish Regional Government. Iraq's health ministry added that 535 people were injured.

Rescue efforts: Authorities in Iran and Iraq have initiated rescue operations; Iran has declared three days of mourning.

What happened

The earthquake hit late Sunday night with the epicenter in a rural area on the Iranian side of the border, just south of the Iraqi city of Halabja, according to the US Geological Survey, which tracks earthquake activity around the world.

The quake was at a depth of 23 km (just over 14 miles), which is considered shallow, according to the survey. It was felt across the region with aftershocks hitting Pakistan, Lebanon, Kuwait and Turkey, news agencies in those countries reported.

Iraq's Meteorological Organization issued a warning on Iraqi state TV urging citizens to stay away from buildings and to refrain from using elevators.

Iranians mourn over the body of a victim following a 7.3-magnitude earthquake in Sarpol-e Zahab in Iran's western province of Kermanshah.

Iranian President Hassan Rouhani planned to travel to Kermanshah to oversee rescue work on Tuesday, Iranian state TV reported. The country's interior and health ministers are already there to supervise the rescue operations, it said.

Iraqi Prime Minister Haider al-Abadi tweeted Monday that he "instructed civil defense teams and health and aid agencies to do all that they can to provide assistance" to those affected by the quake.

Meanwhile in Iran, the country's Supreme Leader Ayatollah Ali Khamenei sent a message of condolence and urged military and civilian help to be dispatched to quake victims.

Iran's Revolutionary Guard was reportedly traveling to the affected areas to help with rescue efforts, according to Iran's semi-official Tasnim news agency.

The Iranian Red Crescent Society was working in the hard-hit areas Monday with sniffer dogs, debris-removal teams, and teams offering emergency shelter and treatment, said Mansoureh Bagheri, a spokeswoman for the Iranian Red Crescent in Tehran.

More than 500 villages in the region suffered damage, Bagheri told CNN.

In Iraq's semi-autonomous Kurdish region, four people were killed in Darbandikhan, where a dam was hit by falling rocks. Rahman Shikhani, the head of the Darbandikhan Dam, told CNN that cracks were spotted in the upper part of the structure but there was no water leakage.

A man checks the interior of a damaged house after an earthquake in the city of Darbandikhan.

Meanwhile hundreds of people were injured in the region, though most of these were minor injuries, said Rasheed, the health minister.

What eyewitnesses saw

Majida Ameer, who lives in the south of Baghdad, said she ran to the streets with her three children after the quake hit late Sunday.

"I was sitting with my kids having dinner and suddenly the building was just dancing in the air," Ameer told Reuters.

"I thought at first that it was a huge bomb. But then I heard everyone around me screaming: 'Earthquake!'"

Iranian rescuers search the wreckage of a building in the city of Pole-Zahab in Kermanshah Province, Iran.

Pourya Badrkhani, a music teacher in Kermanshah, Iran, told CNN he was sitting at home watching television when the quake hit.

Badrkhani said he rushed out of his home along with his family and joined neighbors on the streets.

He said people were donating blood to help the injured while others have volunteered to go and help the border cities, which he says were the worst affected.

Previous earthquakes

Iran sits on a major fault line between the Arabian and Eurasian plates and has experienced a number of earthquakes in the past.

The deadliest this century occurred in 2003 when a magnitude 6.6 earthquake struck the southeastern city of Bam, killing some 26,000 people.

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