MANILA, Philippines (Xinhua) - Governor of central bank Amando M. Tetangco, Jr. said today that the government's 7 to 8 percent economic growth target in 2015 is attainable.
This is because "domestic demand remains firm and supported by brewing production efficiency and robust labor market dynamics," Tetangco said during the Euromoney Philippines Investment Forum.
He said the central bank is confident that the country will be able to attain the goal of an upward economic growth trajectory in an environment of price and financial stability because the bank will remain proactive in policy dialogue with stakeholders, preemptive in putting in place forward-looking policies, and prudent in adopting reforms.
The Philippine economy expanded by 6.1 percent last year, short of the government's 6.5 to 7.5 percent target and also slower than the 7.2 percent growth in 2013. However, this is the second fastest growth rate seen in Asia during the period.
Tetangco added that inflation should remain within 2 to 4 percent target for this year and the next, while liquidity is also expected to remain sufficient.
Despite the favorable prospects of the economy, he said the central bank continues to monitor risks to growth such as the uneven global output, uncertainty in oil prices, and the divergence in monetary policy settings across countries.
"Given the positive alignment between inflation growth and augmented government resources as a result of fiscal consolidation, both monetary and fiscal sectors have sufficient room to make policy adjustments as warranted," Tetangco said.