Economy to endure risks with growth drivers intact

CEBU, Philippines - The Philippine economy is in a position to weather the risks in the global environment as domestic growth drivers remain intact.

Dr. Joselito Basilio, acting deputy director at the Department of Economic Research of the Bangko Sentral ng Pilipinas, said the domestic economy has been able to maintain positive growth and stable inflation.

At a recent conference in Cebu City, he said the economy provides plentiful opportunities for domestic and foreign investors alike.

"Philippine economy offers sustainability and stability, hence continues to be a viable destination for business and investment," he said.

He said broad-based growth should sustain its momentum as investments and household consumption continue to support growth.

Basilio said the accelerated infrastructure spending should strengthen the country’s growth impetus.

He cited the country’s current infrastructure gaps along with severe weather disturbances as among the risks facing the country.

Externally, he said risks could come from the political and policy uncertainties in the US and European Union, US Fed policy normalization, and China’s economic rebalancing.

The Philippine economy grew 6.4 percent in the first quarter of 2017, among Asia's fast growing economies second to China.

Earlier, Economic Planning Chief Ernesto Pernia said domestic economy is poised to maintain its growth momentum with the recovery of external trade and private sector’s steadfast optimism.

The government is also looking to achieve sustainable and equitable growth with an ambitious infrastructure program. This is among the many other reforms and programs contained in the Philippine Development Plan 2017-2022.

"But we remain on the lookout for external downside risks that may include market volatility from continuing U.S. interest rate normalization, geopolitical tensions in various regions, and the possible rise of protectionist sentiments especially in Western countries," he said.

The country also has to remain cautious and stand ready to take measures to counter the potential effects of El Niño. This may include continuous production support, timely importation, and the distribution of seeds, he said. (FREEMAN)