My Google Page Rank

BSP upbeat on 2011 economic prospects – Tetangco


The Bangko Sentral ng Pilipinas (BSP) sees continued positive developments in the domestic economy this year despite uncertainties in the global front.

BSP Governor Amando Tetangco Jr., in a forum Tuesday, said the country is “entering 2011 from a position of strength” after proving its resiliency to the recent global economic and financial crunch and its remnants.

He said major economies continue to show weak recovery from the recent global economic downturn but the domestic economy churned in higher-than-expected growth, manageable inflation, and remittances and capital flows continue to be strong, among others.

The economy posted a 7.5 percent growth, as measured by gross domestic product (GDP) in the first three quarters of 2010 because of recovery in investments and exports.

This growth is unexpected and is higher than the five to six percent growth target set by economic managers for last year.

This performance is projected to be repeated this year and enable the economy to meet the seven to eight percent GDP growth target.

Also, inflation remains low with the end-November figure at 3.8 percent, near the lower end of the 3.5-5.5 percent target for last year.

For 2011, monetary officials see the rate of price increases to average at 3.6 percent, near the lower end of this year’s three to five percent target.
Tetangco said this low-inflation environment provides monetary officials the flexibility to keep policy rates at record-low.

To date, central bank’s overnight borrowing or reverse repurchase (RRP) facility is at four percent while the overnight lending or repurchase (RP) facility is at six percent. These were maintained since July 2009 after a total of 200 basis points cut from December 2008 to July last year to address impact of the recent global financial crunch.

“Nonetheless, given stable domestic financial conditions, the BSP started a paced unwinding of its monetary easing measures in the first quarter of 2010,” Tetangco said.

Among these measures are the reversal to pre-crisis level of the P20-billion rediscounting budget after this was increased to P60 billion in 2009 and the rate of this facility was reverted to the same level as that of the RRP facility instead of 3.5 percent.

Relatively, foreign exchange inflows continue to be strong due to the money sent home by Filipinos abroad as well as foreign portfolio and direct investments.

Remittances were projected to grow by eight percent in 2010 compared to the US$ 17.3 billion in 2009.

As of last October, remittances amounted to US$ 15.456 billion, a 7.9 percent year-on-year growth, while for October 2010 alone the inflows registered a record-high of US$ 1.67 billion.

The country’s gross international reserves (GIR) reached US$ 60.6 billion as of last November, higher than the end-2009 level of US$ 44.2 billion while the balance of payments (BOP) surplus totaled US$ 13.2 billion.

These performance prompted ratings agency Standard and Poor’s (S&P) to upgrade the country’s long-term foreign currency sovereign credit rating one-notch higher to “BB” with stable outlook from “BB-/stable outlook.”

“The credit rating upgrade is also significant in that the Philippines received this directly, without having to go through the standard credit outlook upgrade first,” Tetangco pointed out.

The BSP chief said debt service ratio also improved to 7.9 percent as of last September from year-ago’s 8.7 percent amid the increase in external debt to US$ 59.8 billion as of end-September 2010.

While the local currency remained strong against the dollar with the volatility and appreciation in the middle of the range in the region.

Tetangco said the domestic banking system is still stable with the average capital adequacy ratio (CAR), the bank’s risk-based financial health gauge, at 15.23 percent, higher than the 10 percent requirement of the central bank.

He said 2011 is a “critical year that could spell whether we would be able to press on the road to sustained strong recovery.”

Among the global risks to domestic monetary policy and banking regulatory reforms that he sees are the uneven growth between advanced and emerging economies, shifting investor preferences and measures of risk, and market reaction to regulatory changes.

Tetangco said this year “opened with much hope” for the country and cited that monetary officials will “remain committed to its role as the steward for price and financial stability.”

“The BSP’s policy priority will be focused broadly on exercising continued vigilance over price developments, nurturing a healthy external payments position and management external debt, sustaining key financial reforms that will strengthen bank capitalization, supervision and market discipline, and pursuing social advocacies that are supportive of an inclusive economic growth,” he added.

By Joann Santiago-PNA

Related news items:
Newer news items:
Older news items:

Add comment

Security code

Medical scholarship bill pass 2nd reading in Congress

21 Oct 2017 Hits:68 Be the first to comment!

The House of Representatives, through viva voce voting, recently approved on second reading, House Bill 6571 which seeks to establish a medical scholarship program to address the shortage of doctors in the country. Rep. Celso L. Lobregat, one of the authors of the measure, said the bill seeks to provide the institutional mechanism for the envisioned sustained human resource development of the Philippine public health care system. Lobregat said the government has acknowledged the reality that indeed, the country is facing an alarming shortage of medical doctors and other medical professionals. The solon said medical courses in the country are too costly that it has become beyond the reach of Filipino families, even to those belonging in the higher middle income class. “To make [...] Read more

Prev Next Page:

WestMinCom sends-off 1IB troops after liberation of Marawi

21 Oct 2017 Hits:72 Be the first to comment!

Army soldiers from the 1st Infantry Battalion (1IB) deployed to Marawi City to reinforce the soldiers there during the earlier stage of fighting are set to return to Luzon islands [...] Read more


21 Oct 2017 Hits:47 Be the first to comment!

Este el Zamboanga Bowlers Association, Inc. que ya organiza el Zamboanga Hermosa  2017 , El Copa de Ciudad Triple Men & Ladies Open Invitational Bowling Tournament del Octubre 6-8, 2017 [...] Read more


20 Oct 2017 Hits:46 Be the first to comment!

·   OCT 21, 2017(Sat)  - 8:00 pm –BAROCCA  ALL       STARS –vs- BRT TIGERS At Golden Boys Gym - MARK BARROCA POST        FIESTA PILAR CELEBRATION ·  OCT 22, [...] Read more

19th Siargao National Surfing Cup Kicks

20 Oct 2017 Hits:55 Be the first to comment!

The first leg of the Philippine Surfing Championship Tour (PSCT), the 19th Siargao National Surfing Cup, kicked off yesterday with a total of 186 surfers from different regions in the [...] Read more


15 Oct 2017 Hits:117 Be the first to comment!

Del Octubre 6, 2017 ya hace el opening del La Hermosa Invitational Volleyball Tournament na Zamboanga Trade School . Este el primer torneo de volleyball ya hace na Ciudad de [...] Read more


14 Oct 2017 Hits:89 Be the first to comment!

Oct. 7-8 2017 UZ IHK Campus,  Veterans , Zamboanga City GIRLS/WOMEN 12 yrs old & below 1ST PLACE  - RAMOS, ROSE JEAN        Mampang WC 2ND PLACE - HIPOLITO, JEANETH      [...] Read more


08 Oct 2017 Hits:157 Be the first to comment!

Este si Abdulbasir Yasin Tamsilani, 50 años de edad , 5’11” el altor, residente de Campo Islam , Ciudad de Zamboanga. Su tata si Hji Tamsilani Mahamud . Su esposa [...] Read more


07 Oct 2017 Hits:146 Be the first to comment!

Este si Mark Salcedo Capuy, su palayao “Duduy”, 29 años de edad, 6 ft el altor, residente de Luyahan , Ciudad de Zamboanga . Su mayores si Almario Alejandro Capuy [...] Read more


01 Oct 2017 Hits:242 Be the first to comment!

Este el Resulta del  Private Schools of Zamboanga City Athletic Association (PSZCAA) swimming competition del September 9, 2017. El maga ganador del competition ay representa con el  PSZCAA na Triangular [...] Read more

DOST, NAST call for 2018 award nominations

30 Sep 2017 Hits:162 Be the first to comment!

The Department of Science and Technology (DOST) and The National Academy of Science and Technology (NAST) are actively searching for possible nominees for various DOST and NAST awards. NAST, the highest [...] Read more

WMSU researches intensify promotion of rubber production in Zambo Peninsula

29 Sep 2017 Hits:229 Be the first to comment!

The region’s economic growth created greater capacity for consumption for different sections of the population. This has stimulated the demand for various products especially agricultural products, thus, generating the need [...] Read more


29 Sep 2017 Hits:190 Be the first to comment!

Este el istoria del persona que ya contribui su talento y tiempo para na maga swimmers de Zamboanga . Este si Rene Sta Teresa, head coach de Aqua Force , [...] Read more

Religious leaders renew call for peace education amid Marawi crisis

28 Sep 2017 Hits:307 Be the first to comment!

Filipino Religious leaders who attended the annual peace gathering in Rome, have vowed to advance the spread of peace education in all educational institutions to reach a common understanding and [...] Read more


28 Sep 2017 Hits:175 Be the first to comment!

Este el nuevo officers del ZCASA (Zamboanga City Amateur swimming Association) del September 15, 2017, President- Rustum Villanueva, Vice President- Dr. Omar Aranan jr, Secretary- Sherry Pengson, Treasurer- Kharen Bandolis [...] Read more

1,300 personnel to secure Zamboanga Hermosa Festival

27 Sep 2017 Hits:204 Be the first to comment!

Roughly around 1,300 security personnel are expected to be deployed all over Zamboanga City for the celebration of the Zamboanga Hermosa Festival in October. Acting City Police Director, PSSupt. Neri Vincent [...] Read more


27 Sep 2017 Hits:174 Be the first to comment!

Este istoria ya revela canaton el coach Ednie Morones del dos teams que ya gana na torneo reciente lang ,el varsity team del Baby Bulldogs ya gana na torneo del [...] Read more


25 Sep 2017 Hits:205 Be the first to comment!

Este si Jowie J. Natak , 44 años de edad , 5’ 9 el altor , anak di Nasal Natak y Remedios Jamie Natak que ta esta na Malayal Sibuco [...] Read more


24 Sep 2017 Hits:172 Be the first to comment!

Este el istoria porcaosa del nuevo posicion que ya dale con Rev. Fr. Jonathan Duka y Omar Bowon, el dos cabesa pensante, que ya delega canila cuando ya atende sila [...] Read more