Good economic news

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A dry newspaper report, but sounds like good news:

Philippines 'in Strong Position' to Hit GDP Goal – BSP

By Eireene Jairee Gomez December 2, 2022  https://www.manilatimes.net/2022/12/02/business/top-business/ph-in-strong-position-to-hit-gdp-goal-bsp/1868629

THE Bangko Sentral ng Pilipinas (BSP) on Thursday expressed confidence that this year's economic growth target would be met, in turn providing monetary authorities further leeway to combat inflation.

"The robust expansion recorded for the third quarter of 2022 places the Philippines in a strong position to meet its target GDP (gross domestic product) growth rate of 6.5 to 7.5 percent this year," central bank Governor Felipe Medalla said in a statement.

The third-quarter result of 7.6 percent, he noted, was the sixth consecutive quarterly expansion after pandemic-induced contractions between the first quarters of 2020 to 2021.

Year to date, average GDP currently stands at 7.8 percent, above the government's 6.5- to 7.5-percent goal. For the target to be hit, the economy only needs to grow by 3.3 to 6.9 percent in the last three months of the year.

"The favorable growth outcome shall also provide the BSP the flexibility to maneuver as it acts to bring inflation back to the target while helping the national government steer the economy toward a durable recovery," Medalla said.

Rising inflation — October's 7.7 percent was the highest in nearly 14 years — has prompted the BSP's policymaking Monetary Board to increase key interest rates by 300 basis points (bps) since May 2022.

Rates are expected to be raised further this month but analysts expect a smaller 50-bps adjustment to be ordered. Medalla has previously said that policy changes would depend on how inflation turns out and the way the US Federal Reserve also proceeds with its tightening.

Late on Tuesday, the BSP said that consumer price growth could have accelerated even further to 8.2 percent due to higher food, electricity and cooking gas prices. Lower pork and fuel prices plus a stronger peso, meanwhile, could push the rate down to as low as 7.4 percent.

In Wednesday's statement, the BSP said that it was "ready to adjust its monetary policy settings and is reassured by the timely implementation of non-monetary interventions meant to address supply-side inflation pressures.

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