by: Sarah Joson
Thursday, March 26, 2015 |
Sufficient money supply, manageable inflation, reliable banking industry, and positive external position have been identified as key pillars that will be supporting the Philippines’ economic growth, according to Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr.
Tetangco said the 7-8 percent growth target eyed by the local government for 2015 is achievable as long as domestic demand remains strong, as well as there is progression in labor market dynamics and production efficiency.
The government’s prediction for this year is higher than other recent forecasts which are pegged below seven percent. For instance, the Asian Development Bank (ADB) forecast for GDP growth is 6.4 percent this year and 6.3 percent in 2016.
Tetangco said inflation projections will be based on the current inflation forecasts. In a survey done by BSP and Consensus Economics, both 2015 and 2016’s inflation projections are close to the mid-point where the former posted two percent, and four percent for the latter. As for the banking sector, Tetangco said it will remain as an intermediator of funds in the country.
Surplus in the country’s external current account as remittances from overseas Filipino workers, revenue from business process outsourcing (BPO) operations, and earnings from tourism are predicted to continue to grow.
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