Nestor A Espenilla, Jr: ASEAN+3 - emergence, sustainability and
success
Speech by Mr Nestor A Espenilla, Jr, Governor of Bangko Sentral ng Pilipinas (BSP, the central
bank of the Philippines), at the AMRO-BSP Joint Seminar on Asia's Emergence in the New
World Order: Growth, Integration and Resilience, Manila, 3 May 2018.
* * *
Fellow Central Bank Governors, ASEAN+3 Macroeconomic Research Office (AMRO) headed by
Dr. Junhong Chang, distinguished panelists, ladies and gentlemen, magandang umaga... a
pleasant morning to all.
On behalf of the Monetary Board and the Bangko Sentral ng Pilipinas, I am pleased to welcome
you to Manila and to this Joint Seminar. We proudly collaborate with AMRO and co-host this
event. It is an excellent opportunity for open discourse and the exchange of vital insights in
economic policymaking and on developments in central banking in the region.
This Joint Seminar hopes to provide ASEAN+3 economies with broader insights in dealing with
contemporary challenges. It also aims to elicit stronger consensus in fostering deeper regional
integration as a critical strategy to reduce external vulnerabilities and sustain our standing as an
economic powerhouse in the new world order.
Asia's Economic Emergence
The seminar's theme, "Asia's emergence in the new world order: growth, integration and
resilience" invokes some feelings of nostalgia. Like most of you here, we stand not as passive
witnesses, but as active participants in Southeast Asia's emergence and transition from being a
developing-economic region into a dynamic economic powerhouse.
At the core of ASEAN+3's successful growth story is globalization, which paved the way for
greater trade openness and deeper economic integration in the region. I believe that member
states have positively leveraged on regional integration to retain their collective growth
momentum. Integration has also provided the additional impetus for individual country growth.
ASEAN+3 has become a major global economic player. In 2016, the region accounted for more
than a quarter of the world's gross domestic product (GDP). With its combined output, the
ASEAN+3 region was considered as the richest economy in 2016.
ASEAN+3's unrelenting expansion in recent decades can be attributed to adherence to sound
macroeconomic management. There has been a credible and collective commitment to
longrun development.
The Philippine Economy in ASEAN
The narrative of the Philippine economy mirrors the Southeast Asian experience. After the
pursuit of strategic, targeted and purposeful reforms over the last two decades, the Philippines
now enjoys an economic bright spot, with 76 consecutive quarters of positive GDP growth.
Moreover, this sustained economic expansion was achieved in an environment of generally low
and stable inflation.
The continued stability and soundness of the financial system also contributed to the economy's
resurgence. The external sector has been a pillar of strength for many years. Given expectations
of strong growth of 7.0-8.0 percent over the medium term, we expect Philippine contribution to
the overall ASEAN+3 output to rise over time.
So, is it time to relax?
In fact, the Concept Note prepared for this Seminar comprehensively captures the emerging
challenges that confront the ASEAN+3 economies in the new world order and during this time of
the fourth industrial revolution.
Among the issues that the distinguished panel of speakers will be addressing today include those
relating to demographic transition, the rapid rise of disruptive technologies, raising productivity,
and accelerating further market integration among the ASEAN+3 economies.
The way governments tackle policymaking and the way businesses are operated are being
altered by megatrends like those earlier mentioned, along with a rebalancing of the world
economy, furious urbanization, climate change, and the adoption of inward-looking policies.
These trends cannot be ignored. They contribute to the uncertainties faced by the region and by
the individual countries that comprise it.
As we confront these challenges, globalization and greater regional integration remain key.
However, I believe that for these growth engines to continue to pay off amid global uncertainties,
there has to transpire a seamless fusion between conventional growth models and
forwardlooking strategies aimed at ensuring sustained economic resilience in a technology-savvy future.
This is indeed an exciting time for the region and there is no better venue to discuss our endless
potential and possibilities. We look forward to the insights our keynote speaker and distinguished
panelists will share with us today.
Thank you and welcome once again to the BSP-AMRO Joint Seminar!