MANILA, Philippines– The Philippine economy remains stable despite the crisis affecting the world’s biggest economies,
Diwa Guinigundo, Deputy Governor of Bangko Sentral ng Pilipinas (BSP), said.
Guinigundo said that the economy grew by 3.6 percent in the first three quarters of 2011, even as its trading partners in Europe and the US experienced economic slowdown.
He said that the 4.5 percent inflation rate recorded for the first 11 months of 2011 was within the government target of three to five percent inflation rate for the year. Thus, the purchasing power of the peso was not affected so much by the said crisis in Europe and United States.
The country also posted a balance-of-payments surplus of $10.3 billion for the first 11 months of 2011. This surplus is attributed to the nearly seven percent growth of dollar remittances from overseas Filipino workers (OFW) which amounted to $16.5 million.
The country’s foreign direct investment also displayed a positive performance posting a record of $700 million on a net basis. The influx of Business Process Outsourcing companies in the country also contributed to the positive growth of the economy. Also, the country’s portfolio investments posted a record of more than $4 million on a net basis.
The BSP posted an all-time high record of gross international reserves of more than $76 billion. This positive performance also strengthened peso versus the dollar. The year-end exchange rate was recorded at P43.80 to a dollar.
The positive credit rating given to the country, and BSP policies to ensure a stable banking system also contributed to the positive growth of the economy.
Guinigundo also said that with more government spending on infrastructure this year, the economy is expected to sustain its growth.