enjoys investment grade credit ratings and is on the cusp of becoming an upper middle income economy. with the reform momentum, we expect the philippines to become an a - rated economy in the next two years or so, and to become a high income economy by 2040. in closing, allow me to give the following take - away points : first, the philippines will remain among the fastest growing economies in the region and the world ; second, amid external headwinds, sustained growth will be supported by healthy external payments position and strong domestic demand ; third, robust, sustainable, and more inclusive economic growth will be supported both by “ soft ” or policy reforms and “ hard ” or physical infrastructure reforms ; and fourth, the reform momentum will push the philippines to its next stage of development where it enjoys single a credit ratings in the next two years or so, and where it becomes a high - income economy in two decades. amid this favorable backdrop, we invite everyone to seize the growth opportunities that this economy offers. thank you very much and mabuhay! 5 / 5 bis central bankers'speeches

requirement ratio ( rrr ) by a total of 300 basis points, 100 basis points of which will be effective at the start of november the favorable growth and inflation dynamics also helped boost business confidence and investments in the country. this is evident in part by the increase in importation of capital and intermediate goods to support an expanding economy. the increase in imports has led to a manageable deficit in the current account ( ca ). in fact, the 1 / 5 bis central bankers'speeches current account deficit is financeable, with robust foreign exchange inflows in the capital and financial account expected to keep the overall balance of payments ( bop ) in surplus this year. the country ’ s balance of payments position is driven primarily by steady inflows of business process outsourcing ( bpo ) revenues, overseas filipinos ’ cash remittances, and tourism receipts. combined, these three items recorded an amount equivalent to 17. 2 percent of the country ’ s gross domestic product ( gdp ) in 2018. another solid source of foreign exchange is foreign direct investments ( fdis ), which amounted to about us $ 10 billion both in 2017 and 2018. in 2010 and earlier years, fdis hovered at only less than us $ 2 billion. improvements in the macroeconomic and business climate are credited for the rise in fdis. looking ahead, we expect fdis to remain robust, as shown by hefty amounts of investment pledges approved by the country ’ s investment promotion agencies ( ipas ). in the first half of this year, foreign investment applications approved by the ipas amounted to p95. 6 billion, more than twice the p45. 2 billion recorded in the same period last year. the economy also enjoys sufficient buffers against external headwinds. its gross international reserves ( gir ) are high while external debt burden is low. as of end - september, the gir amounted to us $ 86. 2 billion. this is enough to cover 7. 5 months ’ worth of imports of goods and payments for services and primary income. the received doctrine is that 3 months worth of imports is enough. the country ’ s external debt is manageable. it is a mere 23. 8 percent of gdp as of end - june 2019. manageability of external debt has improved significantly over the years, with the amount recorded at nearly 60 percent of gdp in 2005. the country ’ s banking system remains sound and stable. with healthy indicators, including more - than