THE Bangko Sentral ng Pilipinas (BSP) has expressed optimism on the country’s growth prospects for 2022, as cases fall and vaccination rates rise in recent months.
In a speaking engagement on Wednesday, BSP Governor Benjamin Diokno said the recent economic and health developments in the country show good indicators that the economy is on its way to a “strong recovery” in 2022.
“Considering the recent economic developments and significant improvement in vaccine rollout, we are optimistic that there is sufficient support for the country’s recovery this year and in the near-term,” Diokno said.
“The management of risks through the calibrated reimposition of lockdown restrictions, the expected revitalization of key industries due to government policy support and structural reforms, and an improving global economy should help the Philippine economy recover in 2021 and accelerate in 2022,” he added.
Diokno said among the economic indicators being monitored are the latest gross domestic product (GDP) growth, inflation, bank performance and the country’s external position.
The governor said the latest GDP growth print suggests that economic rebound is under way and inflation remains “well-anchored.”
Diokno also said banks remain sound and while non-performing loans increased, banks remain highly capitalized.
He noted that the country’s external position is strong, as supported by more than adequate external liquidity buffers and improving inflows from overseas Filipinos’ remittances and business-process outsourcing (BPO) receipts.
“Economic activity is vastly improving. Yet, the overall momentum of the economic recovery remains foggy as long as a big part of the population remains unvaccinated and there is still a possible emergence of more virulent variants,” the governor said.
“Nevertheless, the sustained implementation of targeted fiscal initiatives, as well as the acceleration of the vaccination program, should help boost market confidence and economic recovery,” he added.
The governor also reiterated his commitment to an accommodative monetary policy stance that is supportive of infusing liquidity in the financial system and recovery of the economy.
“The BSP’s actions and policy thrusts will continue to be anchored on its core mandates of promoting price and financial stability,” Diokno said.
Image courtesy of Jason Arlan Raval