MANILA, Philippines ? The Bangko Sentral ng Pilipinas believes that the economy has what it takes to avoid a so-called ?boom-and-bust cycle,? shrugging off speculations that the rare and robust growth in the first quarter may not be sustained due to financial risks abroad.

Diwa Guinigundo, deputy governor at the BSP, said the economy already has developed inherent strength that can help ease effects of adverse developments outside its borders, such as the debt crisis in Europe.

He said the Philippines proved its resiliency in 2009 by growing, albeit at a much slower pace, in spite of the global economic turmoil raging at the time.

?The best proof that we are capable of preventing a boom-and-bust cycle is that, through the worst of the [global economic] crisis, growth of the [Philippine] economy remained in the positive territory,? Guinigundo told reporters Friday.

The central bank official said this in response to doubts on the sustainability of the country?s growth. The economy in the three months to March grew 7.3 percent. The growth rate beat most expectations, even that of the government itself.

In 2009, the Philippines grew by 1.1 percent, narrowly escaping a recession. The Philippines was one of the few economies that did not contract last year. But 2009?s growth however, was much slower than the 3.8 percent registered in 2008 and the 7.2 percent posted in 2007.

The central bank official said resiliency of the economy was partly credited to its strong external liquidity, manifested by a sustained surplus in its balance of payments (BOP) and record-high gross foreign exchange reserves.

Guinigundo also said the sustained rise in remittances from Filipinos based abroad had helped in building up the country?s reserve of foreign currencies.

The central bank executive also said the country?s foreign exchange liquidity was the reason why investments and credit continued to flow in.

The inflow of funds, in turn, support investment and consumption activities, Guinigundo added.