BSP chief eyes strong domestic output for Phl despite ‘modest’ 2015 Q1 growth

Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. (headlinegl.com)

MANILA — Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. sees sustained robust expansion for the Philippine economy for the rest of 2015 citing that measures have been put in place to further support growth.

This, even after the slowdown in the first quarter to 5.2 percent from the downwardly revised 6.6 percent in the previous quarter due to weaker exports and public spending.

Tetangco, in a statement Thursday, said the “modest” expansion, as measured by gross domestic product (GDP), will be mitigated by measures put in place to address situations.

These measures include the programs to lessen impact of El Niño to the agriculture sector.

These mitigation programs, he said, “should boost economic performance going forward.”

Another driver of domestic growth is the increase in foreign direct investments (FDIs) due in part to the liberalisation of the country’s banking sector to foreign players.

“Their indigenous corporate investors should boost industry particularly manufacturing and construction,” Tetangco said.

The central bank chief said the strong domestic consumption, buoyed by remittances by overseas Filipinos, is also expected to remain among the top drivers of the economy.

He also cited additional impact of increase in government spending to growth.

Similarly, the central bank chief still considers current domestic monetary policy as appropriate”given the continued growth in the economy and the good prospects in the rest of the year.”

“There is sufficient liquidity in the economy while domestic credit remains supportive of growth,” he said.

Thus, the BSP chief vowed that the central bank “will continue to promote an enabling environment of stable prices and strong banking system” to help sustain the domestic economy’s rise.