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By APD writer Melo M. Acuna
**MANILA, Jan. 16 (APD) – **Citing growth rates for the first three quarters of 2017 which saw an average of 6.7 percent attributed to robust production and domestic spending, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr. looks to a better year ahead.
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Speaking at the Tuesday Breakfast Club this morning, Governor Espenilla said the country enjoyed strong manufacturing and service sector activity along with firm household consumption with accelerated public investment in infrastructure and social programs.
“Surpassing market expectations, we remain one of the fastest-growing economies in Asia,” Espenilla said.
He added the global economic recovery translated to a stronger demand for Philippine exports.
Mr. Espenilla said the growth may offset the expected increase in import of raw materials and manufactured goods due to accelerating public investment in infrastructure.
He described 2018 as both promising and interesting as the peso strengthened on steady equity investments and remittances from overseas Filipinos “but have since weakened lately.”
Being one of the country’s economic managers, Mr. Espenilla said despite the optimism, he cited the lingering uncertainty on the “global spillover effects” including the fiscal reforms in the United States, the policy normalization in some advanced economies and the ongoing discussions over Brexit process in the United Kingdom in addition to geopolitical concerns.
“The United States seems to be looking inward and there’s instability in Europe with the Brexit,” he added.
He said he’s also concerned with what’s going on in the Middle East as it would have direct connection on fuel prices where a third of the country’s foreign remittances are sourced.
Asked further of geopolitical concerns, Governor Espenilla said developments in the Korean Peninsula is one of them.
“We have paid our debts and the country is now less indebted,” Governor Espenilla claimed with both deficit and inflation under control.
He further described the Philippines as fiscally strong.
Asked of the possible effect on remittances from the Middle East, Governor Espenilla said Filipinos always have a way of sending money back home.
Governor Espenilla said efforts are also being exerted to address cyber security concerns.
“The buffers and sound macroeconomic fundamentals we have over the years do not automatically guarantee continued economic prosperity,” he added.
He emphasized the Bangko Sentral ng Pilipinas remains dedicated to strengthening sources of resilience.
These could be attained by monitoring current and emerging threats and intensify efforts “to safeguard the health and stability” of the financial system through reforms and relentless implementation of risk-mitigating measures.
“We will continue to provide a conducive operating environment for the financial sector to help in its role as catalyst of economic growth,” Mr. Espenilla concluded.
(ASIA PACIFIC DAILY)
