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June 19, 2024

Philippine economy back in fighting form – BSP

The Philippine economy is back in fighting form prompting economic managers to call on partners from Singapore to invest in the country’s continued growth.

During the Philippines-Singapore Business and Investment Summit, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the country’s gross domestic product (GDP) growth is seen accelerating to a range of seven to nine percent this year before stabilizing at a range of six to seven percent next year.

The Philippines emerged from the pandemic-induced recession last year with a GDP growth of 5.7 percent after shrinking by 9.6 percent in 2020 due to the impact of the COVID-19 pandemic.

“This is due in part to the wide range of monetary and regulatory relief

measures implemented by the BSP, which complemented the massive

relief efforts of the national government,” Diokno added.

According to the BSP chief, COVID-19 response measures include cuts in the policy rates by 200 basis points and banks’ reserve requirements to help stimulate credit activities; time-bound liquidity support to the national government to help fund its pandemic response programs; and relief

measures for banks to strengthen the financial system’s stability and ensure

the public’s continued access to financial services.

Notably, Singapore is a leading source of foreign direct investments,

injecting more than $761 million to the Philippines in 2021.

The city-state also ranked as the top source of approved investments into the Philippines in 2021.

“We invite you to continue working with us as we move into the next chapters of our economic development,” Diokno said.