No Sign Philippines Economy Overheating
No Sign Philippines Economy Overheating

No Sign Philippines Economy Overheating

No Sign Philippines Economy Overheating

The chief of the Bangko Sentral ng Pilipinas said the Philippine economy has not overheated yet, but if it does show signs of overheating, the central bank would be ready to step in.
An overheated economy happens when good economic growth causes high inflation rates and inadequate supply allocations, resulting from excessive production capacity in an attempt to cash in on high levels of wealth, Rappler reported.
BSP Governor Nestor Espenilla Jr said at the Security Bank Economic Forum 2017 in Makati City on Tuesday, that the central bank remains vigilant over economic overheating. “We do not believe that we are there yet and we remain very vigilant to avoid it,” Espenilla said in his keynote speech.
He added that the current pace of credit growth, which was at 21.1% in September, remains manageable. Espenilla also said the Philippines’ credit-to-gross domestic product ratio of 63.6% as of the 2nd quarter of the year is still “one of the lowest in Asia.”
According to the BSP governor, bank loans are diversified across economic sectors and are backed by durable economic activity, as 89% of the total credit went to the production sector.
He added that the BSP’s monetary operations indicate sufficient domestic liquidity to support expansion.  “Amid the stronger growth in liquidity, inflation dynamics remain very manageable. Key indicators of credit expansion are likewise below established international thresholds,” Espenilla said.
The Philippines has booked a positive GDP growth for 75 straight quarters, with 6.9% in the third  quarter of 2017, faster than the revised expansion of 6.7% in the 2nd quarter of the year, but still slower than the 7% growth in the 3rd quarter of 2016.


Short URL : https://goo.gl/5aoWgo
  1. https://goo.gl/YaD1bk
  • https://goo.gl/CuaJBP
  • https://goo.gl/sMPxUM
  • https://goo.gl/JJodLB
  • https://goo.gl/CSEN68

You can also read ...

Venezuela Devalues Currency by 95 Percent
Venezuela devalued its currency by about 95% ahead of the Aug...
The average annual salary for K–12 public-school teachers is roughly $58,000, and they typically spend a sizable chunk  of that on classroom supplies integral to their jobs
Airbnb, the popular platform that lets people rent out their...
S&P, Moody’s Lower Turkey Ratings
Two major global ratings agencies lowered Turkey’s ratings Aug...
Nigeria CB Reports $91b FX Inflow in 2017
The Central Bank of Nigeria, said the aggregate foreign...
Russia’s largest electronics chain, M. Video, estimates that about a fifth of its products are bought with credit  or on installment plans as people are more confident about the future.
Russian consumers are borrowing like the boom times are back...
Argentina Says Poverty to Rise as Economy Slumps
More Argentines are likely living in poverty now compared with...
Egypt Keeps Rates Steady
Egypt’s central bank left its main interest rates unchanged,...
China Internet Stocks Fumble
A steep downturn in heavyweight Chinese internet stocks and...

Add new comment

Read our comment policy before posting your viewpoints