Home Other Philippines economy is in a ‘Goldilocks situation’: Guinigundo

Philippines economy is in a ‘Goldilocks situation’: Guinigundo

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(G.N.S.) Dt. 26
Manila
Diwa Guinigundo is not your typical banker. The deputy governor of the Central Bank of the Philippines, or Bangko Sentral ng Pilipinas (BSP), crackles with optimism when he talks about the country’s finances.
Interviewed by Asia Times in his BSP office on the state of the economy and the prospects for next year, Guinigundo says that 2017 has been a “watershed year for the Philippines’ economy.” A graduate from the London School of Economics, the 39-year-old is direct and to the point. A refreshing quality.
“We are not a popcorn economy,” Guinigundo says. “We have grown for 75 consecutive quarters even through the Great Recession of 2008.” To underline the message, he points to low inflation and high growth. He also stresses that the Philippines is now a middle-income level country, although it is at the lower end of the spectrum. The World Bank defines as middle-income a nation with a GDP of between US$1,026 to $12,615 per capita.
“The Philippines is in a Goldilocks situation,” Guinigundo says. “We have low inflation at 3.2% and high growth at 6.9%. We can sustain high growth.” He also insists there are policies in place to cope with any economic headwinds. “The Balance of Payment is manageable and there are sufficient buffers for external events,” Guinigundo says. His main concerns revolve around geopolitical risks, but he adds that the macroeconomic fundamentals are strong enough to absorb any shocks.
In a strong statement of intent, he talks about how public and private sector investment will help drive growth until 2022, and says that potential output has moved from the 4-5% range to the 7-8% level.

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