Philippines looking at future with cautious optimism — BSP

• Oct 17, 2017

MANILA, Philippines — The Philippines is looking at the future with cautious optimism as the economic landscape has altered considerably a decade after the global financial crisis, Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. said yesterday.

Espenilla said during the 2017 Annual Meetings of the International Monetary Fund and the World Bank the world economy is now recovering but global growth remains fragile.

With global growth now expected to pick up in 2017 and 2018, Espenilla said the improving outlook on economic activity, investment, manufacturing, and trade has supported a recovery in commodity prices and reduced disinflationary pressures.

However, the BSP chief warned policymakers across the globe continue to face considerable challenges including the structural problems on productivity, infrastructure and inequality that serve as binding constraints to faster and more inclusive growth.

He said policy uncertainty in advanced economies remains a cause for concern, while the rise of protectionist sentiment and populism worldwide put pressure on the pace of monetary policy normalization in advanced economies, and the possibility of a tightening in financial conditions.

“All of these factors pose significant downside risks to global growth, especially over the medium term. Nevertheless, a dynamic emerging market like the Philippines, has reason to look to the future with cautious optimism,” he said.

The country booked a positive growth for 74 straight quarters as the economy enjoys broad-based support from strong consumption and the resurgence of industry and manufacturing.

The economy expanded 6.5 percent in the second quarter from 6.4 percent in the first quarter, bringing the first half growth to 6.4 percent in the first half.

Source: http://www.philstar.com/business/2017/10/17/1749469/philippines-looking-future-cautious-optimism-bsp