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By APD writer Melo M. Acuna
**MANILA,Jan 17.(APD) – **Growth reforms have brought the Philippines to where it is today as “one of the fastest growing economies in the region and in the world,” thus said Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo in his remarks before the Foreign Correspondents Association of the Philippines’ (FOCAP) “Prospects 2019” held late this morning.
The event was attended by government officials, members of the diplomatic corps, business leaders and members of the mainstream media.
He said the International Monetary Fund, Asian Development Bank and World Bank has projected the country’s economy to grow between 6.4 to 6.9 percent in 2018-2019, which is broadly in line with the National Government’s growth targets.
The government’s thrusts on infrastructure development through 75 flagship projects, 35 of which are worth over US$31.8 billion have already been approved by the National Economic and Development Authority’s board chaired by President Rodrigo Duterte. These projects include railways, roads and bridges, airports, water, energy, flood control and ports.
“The government has also focused on accelerating human capital development,” he added which include the K-12 Program, Universal Access to Tertiary Education, Free Tech-Voc Education and Training, Training for Scholarship Program and Universal Health Program.
He, however, said the country has its own challenges ahead which come in the supply side pressures and inflation expectations, infrastructure gaps, the US-China trade tension, political and policy uncertainty and the uncertainty over the pace of the US Fed policy normalization.
Deputy Governor Guinigundo said the BSP’s latest baseline inflation forecasts shift lower with the decline in global crude oil prices, the normalization of food supply conditions as well as the stabilization of the Philippine peso.
He added the inflation outlook is manageable and within the government’s target. The senior bank official explained the fiscal and current account deficits reflect increased spending on infrastructure and imports of capital goods, “which helps sustain the growth momentum.”
To further promote globally competitive industries while encouraging more investments, Deputy Governor Guinigundo said there is a need to improve access in both domestic and international markets and maximizing gains in foreign trade agreements and building of innovative, value-adding, technology-enhanced and globally competitive industry. There is also a need to attract massive flow of domestic and foreign investments and intensified support programs and efforts to promote Micro Small and Medium Enterprises. In addition, he said there lies a need to improve efforts to promote product standards, consumer awareness and encourage a culture of quality consciousness.
In closing, Deputy Governor Guinigundo said the Philippine economy has demonstrated uninterrupted economic expansion and has built domestic sources of resilience to help cushion the impact of external and domestic challenges.
He added productive capacity continues to improve following gains in efficiency and supported by favorable labor market dynamics.
He said strategic policy and structural reforms, addressing infrastructure gaps along with leveraging the country’s demographic opportunities played a significant role and will continue to underpin the economy’s path towards a balanced, sustainable and inclusive growth.
The senior bank official added the commitment to pursue infrastructure and reform agenda will help promote globally competitive industries in order to sustain the country’s economic growth momentum.
(ASIA PACIFIC DAILY)
