BSP readies policies to shield Phl growth

CEBU, Philippines -  With the Philippine economy continuing to face challenges, the country’s central bank said it will continue to craft policies that will tone down the downside risks to economic growth.

The various stakeholders of the Bangko Sentral ng Pilipinas bared statistics that would help raise the public’s knowledge on the general direction of the economy, said Deputy Governor Diwa C. Guinigundo of BSP’s Monetary Stability Sector.

Guinigundo noted the relevant economic information that these companies have given helps BSP achieve its mandate to stabilize price, maintain a stable banking system and safe and reliable payments system.

The information support has also helped the people understand the aspects of the economy better and urged the BSP to respond with proper policy actions, he said during the appreciation event for BSP Central Visayas stakeholders in Cebu yesterday.

The deputy governor urged them to continue their support for promoting greater financial inclusion, improved financial education and consumer protection and better remittance environment for Overseas Filipino Workers.

In a statement, BSP Governor Amando M. Tetangco, Jr. said the nation’s economy continues to face headwinds “due to rebalancing of the global growth and the expected normalization of monetary policy in advanced economies.” front

But despite these risks, Tetangco, also the chairman of the Monetary Board, added the solid macroeconomic fundamentals have sustained the economy to be robust.

The governor recognized the timely information from BSP’s partner companies have helped in creating policies. Although he also claimed the external risks “have made monetary policy more challenging.”

The contribution of stakeholders has become essential given the risks that could potentially slowdown growth momentum, said Gerardo Tison, assistant governor of BSP’s Regional Monetary Affairs.

The BSP awarded All Fresh Food Products, Paul-Yu Philippines Corporation, Metro Cebu Credit Surety Fund, Bank of the Philippine Islands and National Economic and Development Authority Region Seven for supporting its statistical initiatives and information requirements.

In addition, the central bank also noted the domestic demand remains to be upbeat and the inflation outlook stays within its target. 

Steady growth

Although the country’s GDP growth at 5.7 percent in the first quarter of this year was lower than 2013 yearly growth, Economist Felipe M. Medalla noted steady growth is still expected to continue throughout the year.

Medalla, a Monetary Board member of BSP, also said strong performance of private consumption and services and the expansion of expenditures will dirve stronger growth.

He noted the Philippine economy is said to be one of the fastest growing economies in the Asia, pointing out the country’s GDP has expanded to more than five percent in the last nine quarters.

“Inflation has been kept well in the target because of responsive monetary policies,” added Medalla, who used to be director general of the NEDA.

The BSP official further expressed a positive outlook on the country’s economy, citing the country’s growth rates and the stronger recovery of exports and government infrastructures.

In a previous interview, Foreign Economist Brian Murray of AIA Group Limited expressed the forecast economic growth for the Philippines is seen to maintain in its strong momentum at 6.4 percent this year. Even as this is slightly lower compared to last year’s full year growth of 7.2 percent.

Murray also cited the rehabilitation and reconstruction in areas badly hit by super typhoon Yolanda and other natural disasters may have a significant impact on the nation’s economy in late 2014 or next year.

He however said the lack of progress of reconstruction and building of infrastructures seemed to have made negative sentiments. (FREEMAN)