the government ’ s target range of 3. 0 percent ± 1. 0 percentage point for the year. looking ahead, inflation is projected to average 2. 9 % for both 2020 and 2021. the country ’ s balance of payment ( bop ) position recently made a turnaround from a deficit in 2018 to a surplus of us $ 7. 84 billion in 2019. the surplus in the bop may be attributed partly to higher net inflows of foreign direct investments and foreign portfolio investments, bolstered by favorable investor sentiment on the country ’ s solid macroeconomic fundamentals. the peso has been broadly stable, appreciating by about 4 % in 2019. 1 / 4 bis central bankers'speeches the end 2019 level of the gross international reserves at $ 87. 8 billion is the highest ever. more importantly, our growth continues to be inclusive. poverty incidence among the population declined to 16. 6 % in 2018 from 23. 3 % in 2015, exhibiting a 2. 2 % decrease in poverty incidence annually. this means that nearly six million filipinos were lifted out of poverty during that period. as of october 2019, unemployment and underemployment rates in the country are both at a historic low of 4. 5 percent and 13. 0 percent, respectively. indeed, 2019 was a very good year for our country. the bsp ’ s core mandates on our part, we at the bsp will continue to effectively implement our mandates and policy priorities to support the country ’ s growth goals. we will remain firmly committed to maintaining price stability and financial stability, and ensuring an efficient payments and settlements system. with the passage of republic act no. 11211, which amended the ‘ new central bank act ’ or the bsp charter, we will continue to enhance our policy responsiveness since the law strengthened bsp ’ s pursuit of its mandates by expanding its policy toolkit. our policy and reform agenda also include further strategic, complementary and reinforcing efforts in developing deeper money, debt, and fx markets. these will help build the country ’ s resilience against external shocks by reducing its reliance on external funding. at the same time, we are pursuing initiatives to deepen the local debt market and the issuance of enhanced guidelines on valuation of peso - denominated government securities as well as enhanced rules on bond issuances. these initiatives will go a long way in funding infrastructure projects under the national government ’ s build, build, build program and other big

benjamin e diokno : a good 2019, a better 2020 speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the annual reception for the banking community, manila, 24 january 2020. * * * ladies and gentlemen, friends from the banking and financial community, good evening. it has become a tradition for us to gather at the beginning of every year, and for good reason. it is a timely opportunity for us to look back at the year that was and look forward to what the coming year may bring. last year, the bsp commemorated 70 years of central banking in the country. the celebration highlighted bsp ’ s journey from its creation in 1949 to what it aims to be today — a central bank closer to the filipino people. 2019 economy in review we started 2019 with some uncertainty — reflecting the weaker growth performance and escalating trade tensions between major economies, and geopolitical factors that affected business sentiment and global demand. on the domestic front, the delay in the passage of the 2019 budget and the election ban weakened government spending and public construction. however, despite these global and domestic challenges, the philippine economy remains in a position of strength. for the past 83 quarters, the philippine economy has experienced sustained uninterrupted expansion. the philippine economy expanded by 6. 4 percent in the fourth quarter of 2019, taking its full - year growth to 5. 9 percent. this highlights the philippines ’ place as one of the most resilient and fastest growing economies in asia and in the world. our country ’ s strong growth potential can be seen in the favorable outlook of institutions such as the international monetary fund, the world bank and the asian development bank. their assessments are broadly in line with the government ’ s target for 2019 up to 2022. goldman sachs em outlook 2020 expects the country ’ s gdp to grow by 5. 8 % in 2019 and 6. 5 % in 2020. this is higher than the gdp growth forecasts for thailand ( 2. 4 and 2. 8 % for 2019 and 2020, respectively ), indonesia ( 5. 0 and 5. 2 % ), and malaysia ( 4. 5 and 4. 3 % ). bsp ’ s effective monetary policy contributed significantly to achieving within - target inflation. from a high of 6. 7 percent in september and october 2018, average inflation for 2019 settled at 2. 5 percent, well within