Bangko Sentral ng Pilipinas (BSP) stressed that recent macroeconomic developments show optimistic signs that the country’s economic recovery is underway.
BSP San Fernando Branch Acting Area Director Ronaldo Bermudez, in echoing BSP Governor Benjamin Diokno’s message, said that despite the challenges of the pandemic, the start of 2021 shows a position of strength as the country continues to rev up towards economic and social recovery.
According to the official, key performance indicators show double-digit growth in Gross Domestic Product (GDP) during the second quarter of the year.
“Our labor force continues to recover as we build on this growth in the second quarter. Unemployment rate fell to its lowest since the start of the pandemic down to 6.9 percent in July 2021. In terms of confidence in the market, we have observed improvement in both overall consumer and business sentiments,” he said.
Bermudez said that another source of optimism is the credit updating upgrades and affirmations which are proof of confidence in the government’s ability to stage a strong recovery from the present health crisis.
In June 2021, BSP also recorded a 7% increase in cash remittances from Overseas Filipinos as it shifts to its highest level in six months, climbing to nearly US$15 million.
“Our country’s gross international reserves reached 108.5 million by end of August. This reflects a more than adequate level of external liquidity buffer equivalent to 12.3 months’ worth of importation of goods and payments of services,” he assured.
The official added that outstanding external debt narrowed to US$97 billion in March 2021.
Consequently, he said Philippine banks remained well capitalized, with the capital adequacy ratio of the banking system in the first quarter of the year pegged at 16.9%. This is well above the 10% minimum threshold set by the BSP.
In sum, the director said the BSP has infused about 2.23 trillion in liquidity equivalent to 12.5% of the country’s GDP in 2020.
With this, he said the BSP is banking on both the government and private sector as its partners in revving up and endeavoring to reach new heights in the post pandemic era. (PIA 3)
