Monetary authorities are keeping their 2021-2022 economic assumptions for now amid the higher-than-expected domestic output in the third quarter, citing that downside risks remain up.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said end-September domestic output, as measured by gross domestic product (GDP), is at 4.9 percent, near the full-year assumption of between 4 percent to 5 percent, and trade remains robust and has exceeded projections.
“However, as discussed, we remain mindful of the downside risks headlined by the resurgence of cases tied with renewed quarantine measures and by global supply chain problems weighing on the manufacturing and trade,” he said in a virtual briefing on Thursday.
Diokno said central bank officials are also “subjecting our external sector forecasts to more frequent reviews.”
The BSP previously assessed its economic assumptions twice a year but has done more frequently now because of the impact of the pandemic.
Diokno said the announcement of the result of the review for the second half of the year will be in mid-December.
“For now, we are inclined to retain the growth projections approved by the Monetary Board (MB) in September 2021,” he added.
Earlier this week, the Philippine Statistics Authority reported the 7.1-percent GDP in the third quarter of this year, higher than the -11.6 percent a year ago but lower than the previous quarter’s upwardly revised 12 percent.
Exports grew by 9 percent but imports posted a higher expansion of 13.2 percent.
Based on the MB-approved 2021-2022 balance of payments outlook as of last September, goods exports are expected to rise by 14 percent this year and 6 percent next year.
Imports of goods are also seen to expand by 20 percent this year and by 10 percent
Source: Philippines News Agency
