“Storm clouds” weigh on the economy
Former Governor of Bangko Sentral ng Pilipinas (BSP) sees three “storm clouds” that may affect the economy of the Philippines.
Amando Tetangco Jr., former governor of the BSP, identified them as rising debt in all countries, soaring global inflation and normalization of policies in advanced economies.
“There is a dangerous trend of increasing debt domestically and internationally. Slowing economic activity, combined with increased spending, has forced governments, including the Philippines, to borrow from domestic and foreign sources,” he explained at the First Bankers Association of the Philippines (BAP) 2022 CEO Forum in July.
“Domestically, a fiscal consolidation plan to improve the debt situation needs three key factors: continued growth, balance in managing the effort to reduce fiscal deficits without jeopardizing the recovery and maintaining the debt ratio reduction program which may take years,” Tetangco said. added.
Another BAP forum speaker, Cielito Habito, professor of economics at the Ateneo de Manila University and former secretary of the National Economic and Development Authority, emphasized “back to basics for allow the economy to grow.
He also detailed ways to improve the current macroeconomic environment, as well as his projections for the economy with the new administration.
“We need to put people first, maximize our land and water resources and reshape our services,” Habito said.
He also highlighted the importance of the agricultural sector, noting that it has seen growth during this pandemic. “We need to look to our brothers in Asean on how we manage how we use our natural resources recognizing the importance of agriculture in creating jobs and export products. “, he explained.
ASEAN is the Association of Southeast Asian Nations.
The BAP CEO Forum is a quarterly gathering of banking industry executives to discuss local and global financial and economic issues relevant to the banking industry.
In his opening address, BAP President Antonio Moncupa Jr. welcomed the resumption of the forum.
“I’m pretty sure we’re all thinking about how the economy – and therefore the banks – will fare in the face of the pandemic, global inflation, the resulting cycle of monetary tightening, the war in Ukraine, recession talks in major economies, the unusually negative outlook for China, the muscular dollar and the expected slowdown in global economic growth,” Moncupa noted.