PH growth within target for 2015 and 2016--BSP

BSP Gov. Amado Tetangco Jr. says 7-8% target can be achieved

MANILA--Sustained strength of the Philippine economy made Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. believe that the government’s seven to eight percent growth target for this and next year is achievable.

Asked for his projection for domestic expansion in the first three months of 2015, the central bank chief said they do “not publish quarterly forecasts for GDP (gross domestic product) growth.”

“Nevertheless, the BSP is of the view that prospects for the domestic economy remain favorable,” he said.

Tetangco said “private demand will continue to be strong, aided mainly by sustained remittance inflows and low inflation.”

Remittances have been among the domestic economy’s growth drivers in the past decades.

In the first quarter of the year, cash inflows from Filipino overseas grew by 5.5

BSP chief cites strong private demand, remittances and low inflation Spending for infrastructure, elections seen to give local economy a boost

percent to $5.8 billion from $5.5 billion a year ago.

For last March alone, cash inflows posted a strong recovery after rising by 11 percent year-on-year from February’s four percent. This is a big improvement from the 0.2 percent last January.

Cash remittances in the third month of 2015 reached $2.1 billion, higher than the previous month’s $1.88 billion and last year’s $1.89 billion.

The central bank chief also said the government’s planned infrastructure spending as well as election spend- ing “should also provide an additional boost to the local economy.”

He also noted that “capital formation should also contribute to economic growth with construction and investments in durable equipment expected to remain strong.”

“For 2015 and 2016, the BSP shares the Government’s assumption that the domestic economy will grow by seven to eight percent,” he added.

In 2014, domestic growth was below the government’s 6.5 to 7.5 percent target after it only reached 6.1 percent due largely to the impact of the congestion in Manila port, which was implemented by the City Government of Manila from February to Septemeber last year.

However, growth recovered in the last quarter of the year after expanding by 6.9 percent from then previous quarter’s 5.3 percent and the 6.3 percent in the third quarter of 2013.