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


19 Aug 2017 Hits:57 Be the first to comment!

Este si Jaime Cariño Canayon Jr., 15 años de edad, 5’6” el altor , anak di Jaime M. Canayon Sr. y Imelda Cariño . Su hermana si Jaine Mae C. Canayon y sila maga  residentes de Pluto, Tumaga Ciudad de Zamboanga . Grade 10 ta estudia na Ateneo de Zamboanga University . Este su istoria…. Ya principia yo juga Taekwondo cuando grade 9 iyo .  Este el desportes Quiere yo y quiere yo queda deberasan mi sueño.  Pureso ya atraca yo con mi mayores y ya abla yo canila  , ya conseja sila conmigo kay baka afecta el mi istudio. Ya promete yo canila kay estudia yo buenamente, ya comporma mi mayores para man enrol na taekwondo con coach Cesar Oliver Basilio [...] Read more

Prev Next Page:


18 Aug 2017 Hits:65 Be the first to comment!

Este si Namshur Yahcob Pingli , su palayao “Nams”, 14 años de edad, 5’6” el altor , anak di Usman J. Pingli y Aeesha Masuhud Yahcob , su hermana si [...] Read more


17 Aug 2017 Hits:75 Be the first to comment!

Este si Euroe gene Sosas Soriano, su palayao “EG Boy”, 28 años de edad 5’8” el altor , casao cun Al Jean B. Soriano , diila anak si Bayle B. [...] Read more


15 Aug 2017 Hits:86 Be the first to comment!

Este istoria aserca con el maga anak di Don Mustafa Arbison Loong y Titina Anni Faraown Loong, residente de Km 4, Pasonanca road, Ciudad de Zamboanga . Este el cuento di [...] Read more


13 Aug 2017 Hits:110 Be the first to comment!

Este el dos man hermana si Elizabeth Talisha B. Chan , su palayao “Eliza” , 16 años de edad y Nathalie B. Chan , su palayao “China”, 14 años de [...] Read more

City fetes outgoing police commanders

12 Aug 2017 Hits:128 Be the first to comment!

As a show of gratitude for all their hardwork and sacrifices, the seven (7) outgoing police station commanders were recognized by Mayor Beng Climaco in fitting ceremonies Friday noon that [...] Read more


12 Aug 2017 Hits:115 Be the first to comment!

Este si Aaron Josh Niu Dee , ta lama conele Aaron, 9 años de edad, 121 cm el altor y un grade 4 estudiante de Ateneo de Zamboanga University . [...] Read more


12 Aug 2017 Hits:98 Be the first to comment!

Este si Paolo Miguel Tianzon Pagteilan , ta lama conele na palayao “Miggy”, 10 años de edad, 4’11” el altor y un grade 5 estudiante de Ateneo de Zamboanga University [...] Read more

ZCPPO No. 2 Mid-Year Assessment: Exceeding Targets

12 Aug 2017 Hits:111 Be the first to comment!

The Parole and Probation Administration is mandated by law not only to investigate potential convicted offenders who would likely respond positively to community-based corrections but also to supervise their much [...] Read more

Metro Rotarians on the move

11 Aug 2017 Hits:151 Be the first to comment!

Members of the Rotary Club of Metro Zamboanga organized a blood letting activity together with the Sharaffa Ysabelle Foundation at the Red Cross Blood Center in Petit Barracks on August [...] Read more


11 Aug 2017 Hits:109 Be the first to comment!

Este si Chezka Luy Centeno , ta lama conele na palayao “Joe”, 18 años de edad , 5’3” el altor, y residente de Veterans Avenue Extension, Tetuan, Ciudad de Zamboanga [...] Read more


09 Aug 2017 Hits:109 Be the first to comment!

Este si Brandon  Dizon  Recinto , 17 años de edad , 161 cm el altor, anak di Borman Luna Recinto y Evangeline Dizon Recinto y residente de Luistro drive , [...] Read more


07 Aug 2017 Hits:128 Be the first to comment!

Este el istoria de un familia nana y anak athleta de Taekwondo Este si Titina A. Faraown Loong, Ta lama conele na palayao “Tina”, 42 años de edad, 150 cm el [...] Read more


06 Aug 2017 Hits:127 Be the first to comment!

Este si Ruben Juaton Arquiza, 56 años de edad , 5’6” el altor , casao cun Ma. Soledad , tiene sila 5 anak y ta esta na Morning Breeze ,Talon [...] Read more


05 Aug 2017 Hits:134 Be the first to comment!

Este si Nelson Fernandez , conosido na palayao “Choy”, 52 años de edad, 5’4” el altor , casao cun Shirley Fernandez , tiene sila 3 anak y residente de Aurora [...] Read more


04 Aug 2017 Hits:138 Be the first to comment!

Este si Algene Marhee Pecson Amiruddin , ta llama conele na palayao “Genne” , 17 años de edad , 161 cm el altor y residente de Uy’s Drive , Lumiyap, [...] Read more


31 Jul 2017 Hits:169 Be the first to comment!

Este el Pencak Silat Association que ta encabesa el Presidente del asociacion si Rommel L. Bernardo , El persona que ya discubri o ya principia grupu, amo si Sultan Jamalul [...] Read more


30 Jul 2017 Hits:178 Be the first to comment!

“Este el Team Zamboanga City Bikers , el team Kalayat kay el miembro del team de otro otro grupu mga athleta pero todo  quiere juga este clase de desportes . [...] Read more


29 Jul 2017 Hits:174 Be the first to comment!

Este el CEO City Engineer’s Office Basketball team , el maga empleado del oficina del CEO amo el maga miembros del team : Este canda Nelson Tarroza, Engr. Sherwin Rabago, [...] Read more