They are equivalent to 11.6 months' worth of imports of goods and payments of services and primary income. The country's gross international reserves (GIR), which totaled USD108.7 billion as of end-January 2021, are hefty. Overall external position remains healthy. While inflation will be elevated in the first half of 2020 due to supply side factors, we see it settling within the target range by the end of 2021 as the impact of supply-side factors subside. Government authorities forecast that the economy will grow within the range of 6.5 to 7.5 percent for this year and 8-10 percent in 2022. Higher consumer spending, infrastructural push, accommodative monetary policy, and global recovery will be the main sources of the recovery. In fact, the economy has started to bounce back as businesses reopen following the easing of restrictions and the onset of the vaccination program. After all, before 2020, the Philippines had a record 21-year uninterrupted growth. Yet, this is not reflective of the country's strong fundamentals. Its economy contracted by 9.5 percent in 2020-the sharpest decline since 1946. In its 2020 Annual Report, the International Monetary Fund dubbed the pandemic as "a crisis like no other," which is worse than the Great Depression. I will then share some insights on the current trend which drives our policy perspectives as well as the BSP's key policy issuances and initiatives in the pipeline.įinally, I will leave with some thoughts to ponder regarding our way to move forward.Īs you know, the global economy continues to grapple against the COVID-19 crisis. This will be followed by the Philippine banking sector's performance, which has been the steady anchor of financial system's stability and resilience amid the pandemic. But like Newton and his apple, we can use this extraordinary crisis to reform, innovate and transform and emerge from it better, stronger, and more resilient.įor today, allow me to present the macroeconomic landscape, which has been the country's source of strength going into the crisis. It is true, as some of the world's greatest discoveries and inventions took place during wartime or crisis.įor instance, Isaac Newton unraveled the Law of Universal Gravitation and laid the foundations of his works in calculus and optics, while doing his 1665 version of work from home and social distancing during the Bubonic Plague in England. They say that tough and desperate times spark the creativeness and innovativeness in people. This is an opportune time to share with you the BSP's insights, policy perspectives and initiatives as we navigate the path towards economic recovery. Thank you for inviting me to be the keynote speaker in today's event.
The dissemination of these indicators is part of the ECB's climate action plan.To all the members of the Joint Foreign Chambers of the Philippines led by the European Chamber of Commerce of the Philippines (ECCP), our strategic partners and allies in the business sector, and everyone joining in this webinar, good morning. Companies affected by extreme events might find it difficult to service their debts, or the assets placed as collateral might fall in value, with negative repercussions on the financial system. Analytical indicators on physical risks analyse the impact of extreme natural events related to climate change - such as floods (river and coastal), wildfires, landslides, erosion, windstorms and water stress - on the performance of the portfolios held by financial institutions.Analytical indicators on transition risks provide information on the exposure of intermediaries to transition risks, using data on financed carbon emissions and the carbon intensity of securities and loans held in portfolios.Experimental indicators on sustainable finance provide an aggregate overview of sustainability‑linked debt instruments issued or held by euro-area residents.More specifically, the indicators cover three areas: sustainable finance, climate-related transition risks, and climate‑related physical risks. For further details on this subject, please see the methodological documentation annexed to the indicators.
The indicators are classified as 'experimental' or 'analytical': the former comply with many, but not all, of the quality requirements of official ECB statistics the latter have significant limitations in terms of representativeness of the information and should therefore be used with caution. The European Central Bank (ECB), in collaboration with experts from national central banks, including the Bank of Italy, has published a set of indicators to assess the impact of climate risks on the financial sector and to monitor the development of sustainable finance.
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