By: Marites Toledo
THE governor of the Bangko Sentral ng Pilipinas (BSP) made it sure that the economy of the country will continue to grow until the end of President Rodrigo Duterte’s term in 2022.
Amando Tetangco Jr.’s statement dispels prediction of some politicians and businessmen that the growth of Philippine economy would slow down due to Duterte’s relentless attacks on the United States of America and the bloody war against the drug menace.
Tetangco said “our economy will continue to grow based on what we see on the horizon. We will continue to move forward.”
He said the strength of the Philippine economy in general, and the banking system in particular, can be attributed to more than two decades of reform.
“As of September this year, we have had 71 quarters of uninterrupted GDP (gross domestic product) growth. The series of economic reforms and the enhanced governance standards we have adopted have built the base upon which we have derived the momentum for sustained and resilient growth,” he said.
Tetangco cited the country’s 7.1% GDP growth this third quarter of the year, described as fastest moving economy in in Asia.
The GDP growth was better than the second quarter, which was pegged at 7.0%.
He noted that this brought the average inflation rate for the first 10 months of the year to 1.6 percent.
He explained that the whole picture of the economy can be “defined not just by the complexities of finance. Rather, it is about the web of inter-connectedness between transacting parties across products, as well as the channels of risk that underpin the activities in the market.”
He added that the country has sufficient buffers against “external headwinds.”
The country’s gross international reserves of $85.75 Billion as of end of October this year was enough to cover 10 months’ worth of imports and it is also equivalent to 6.1 times the country’s short-term external debt based on original maturity and 4.4 times based on residual maturity.