PH economy can withstand global shocks – BSP
Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. underscored yesterday that the country is strong enough to buck global shocks and can absorb the effects of rapid growth.
“The Philippines can sustain a highgrowth economy,” he assured investors and market players during the second leg of the Philippine Economic Briefing 2018 at the ASEAN Convention Center in Clark, Pampanga.
“Second, the Philippines will remain among the most resilient in the world to external shocks,” he said. “Third, the BSP will stay focused on its core mandates of price and financial stability conducive to sustainable economic growth.”
Lastly, Espenilla expressed his continuing confidence of the country’s ability to see through and finance its economic development with the implementation of an “ambitious financial sector reforms” which he reiterated will “expand economic potential, avoid overheating, and lay the foundation for durable economic growth.”
Espenilla said the central bank will ensure an appropriate policy stance or an interest rate environment that is “conducive to credit and investment growth” and that the BSP is constantly scanning the operating environment and could readily “move pro-actively” when warranted.
He also added that the BSP continues to finetune its market operations to make it more effective in managing money supply or the growth of domestic liquidity.
Espenilla again stressed that their intention to implement a phased and gradual reduction of banks’ reserve requirement which he called “ultra high” at 19 percent currently, is a key factor to balancing liquidity and growth. In February, the BSP cut the reserve ratio by one percentage point, releasing an estimated 190 billion of additional liquidity.
Dev’t of NL, CL cited
Massive development projects in Central and Northern Luzon are cited as prime examples of how inclusive growth is being actively pursued by the Philippines, host of the upcoming 51st Annual Meeting of the Board of Governors of the Asian Development Bank. ADB’s “Manila 2018” event, which will run from May 3 to 6 and is expected to bring around 3,000 delegates to Manila, carries the theme “Linking People and Economies for Inclusive Development.”
As host country, the Philippines will lead discussions on how to achieve a more inclusive economic growth in Asia Pacific. The region is recognized as a key driver of global economic growth but remains challenged with poverty and inequality.
In a briefing, Finance Secretary Carlos G. Dominguez III said the Philippines is championing the inclusive growth agenda; and that this shows in the way government has been investing in the development of alternative growth areas outside Metro Manila.
“We are uniquely positioned to lead deliberations on this theme. The Duterte Administration has embarked on a program of reform to shift our economic expansion from being consumptionled to one that is investments-led,” Dominguez said.
“For Central and Northern Luzon, in particular, the government is also investing heavily to have major alternative growth areas,” the finance chief added.
He cited three big-ticket infrastructure projects in Luzon that have already passed approval by the board of the National Economic and Development Authority.
These are the 12.7-billion Chico River Pump Irrigation Project; the 1211.45-billion PNR North 2 Project; and the 115.35-billion Clark International Airport New Terminal Building Project. (With a report from Chino Leyco)