Korean debt...

added.

On a similar note, BSP Governor Nestor A. Espenilla, Jr. said: “As observed by independent third-parties from the international community, such as NICE Investors Service, the Philippine economy has sufficient buffers against external shocks.”

“With gross international reserves equivalent to about seven months of imports, a steady source of FX inflows led by remittances, BPO revenues, and tourism receipts, a flexible exchange rate policy, and overall prudent management of the country’s external accounts, the economy shall remain resilient amid global volatilities,” Espenilla said.

“Moreover, the BSP constantly monitors external and domestic developments, and stands ready to implement appropriate policy actions consistent with its price and financial stability mandates,” he added.

The first package of the Duterte administration’s tax reform — the Tax Reform for Acceleration and Inclusion (TRAIN) — took effect in January this year, generating net revenues for the government, helping fund the “Build, Build, Build” initiative.

Among other provisions, the law slashed individual income tax rates, and adjusted excise taxes on oil, automobile sales, and sugary drinks.

Succeeding tax reform packages are pending in Congress. Tax reform helps government address the infrastructure gap without compromising fiscal health.

NICE projected that the Philippine economy will grow by 6.3 percent this year. It noted that while such marks a slowdown from last year’s 6.7 percent, the Philippines will still remain as one of the fastest growing economies in the region.

NICE also said elevated inflation this year is not expected to undermine the country’s short-term macroeconomic stability, especially with the BSP’s exhibited commitment to price stability.

Inflation accelerated this year largely on account of supply-side factors and is not expected to be persistent.