The Philippines looked set to becoming an upper middle-income economy by the end of the Duterte administration, according to former central bank governor Amando M. Tetangco Jr.
“With a reform-oriented government and a collaborative private sector, achieving the Philippines’ goal of becoming an upper middle-income economy by 2022 is indeed highly feasible,” said Tetangco in a speech before members of the Joint Foreign Chambers of Commerce (JFC). The group awarded him the Arangkada Philippines Lifetime Achievement during a forum last week.
Tetangco, who stepped down as a two-term governor of the Bangko Sentral ng Pilipinas (BSP) last July, continues to see the country’s “strong macroeconomic fundamentals, sound economic management, solid domestic demand and a young and vibrant workforce.”
“The Philippines is touted to become Asia’s next economic powerhouse,” said Tetangco, citing the World Bank’s June 2017 Global Economic Prospects projects that the Philippines “will be in the top 10 fastest growing economies in the world with a GDP growth forecast of 6.8 percent.”
Arangkada Philippines Forum has its own “Implementing the 10-point Agenda” proposals and Tetangco thanked the group for its “valuable partnership and inputs (and) its constructive criticisms.”
Tetangco said it is important to this agenda to enhance the competitiveness of the business environment, to fast-track economic growth and for inclusive growth. Tetangco pointed out that this was achievable and listed the factors that would continue to support growth such the country’s “low and stable” inflation, the well-capitalized and liquid banking system that he said “continues to intermediate funds to the productive sectors of the economy” and “poverty incidence that continues to decline over the years.”
“The BSP has helped cultivate this positive alignment of macroeconomic indicators through calibrated monetary policy, aided by enhanced surveillance and an expanded tool kit; responsive banking regulations, aligned with international standards but recognizing relevant domestic conditions; and market determined external policy, including the liberalization of foreign exchange regulations,” he said. The JFC Arangkada Lifetime Achievement Award is for individuals – not strictly Filipinos – who have “contributed significantly to improving the country’s business environment.”
“Mr. Tetangco was chosen by the JFC for accomplishments as BSP governor that were very important to the foreign investment community,” a statement from the group said. Past awardees include former President Fidel V. Ramos, former PEZA director general Lilia de Lima, SGV founder Washington Sycip, and former foreign affairs secretary Roberto Romulo.