The Philippines can weather any disruptions that a potential global economic slowdown or a financial crisis may bring, thanks to the country’s strong fundamentals and a vigilant monetary regulator, the head of the central bank said.
Speaking before Euromoney’s Philippine Investment Forum on Tuesday, Bangko Sentral ng Pilipinas Governor Benjamin Diokno also noted that the Duterte administration’s commitment to its P9-trillion infrastructure buildup program would help fuel “high, sustainable and more inclusive economic growth.”
“The Philippines is resilient to shocks and the BSP is committed to continue effectively managing the country’s external accounts to help ensure this resilience is maintained,” he said in his speech.
Buttressing his point is the country’s external payments position, which is recovering from record levels of dollar outflows last year brought about by the country’s yawning trade gap.
“Based on the latest estimates, the country is expected to post a $3.7-billion surplus in its balance of payments this year,” Diokno said. “Thanks to solid foreign exchange inflows in the capital and financial account, the deficit in the current account is more than adequately covered.”
The central bank chief noted that the large deficit in the current account “is not something out of the ordinary, especially for a growing economy like ours that is investing vigorously in its future through an aggressive public infrastructure drive.”
Despite the global uncertainties, he pointed out that the Philippines was expected to remain among the fastest growing economies in the world.