media and research - speeches the philippines : pursuing reforms, accelerating growth, reaching new heights date : may 31, 2022 place : malaga, spain occasion : 9th bbva seminar for public sector speaker : bsp governor benjamin e. diokno to the officers and staff of the banco bilbao vizcaya argentaria, guests from other banks, ladies, and gentlemen, good morning. it is my pleasure to provide you an overview of the southeast asian region with a focus on the philippines as an ideal investment destination. member - economies of the association of southeast asian nations - or asean - entered 2021 on an optimistic note with the containment of the pandemic that started in 2020. the accelerated vaccination efforts in the second half of 2021 allowed easing of mobility restrictions, thus boosting economic recovery in the region. in the case of the philippines, its 8. 3 - percent growth in the first quarter of 2022 made it the fastestgrowing economy in the region. nevertheless, risks exist. a prolonged ukraine - russia conflict may keep food and energy prices elevated, which may push up inflation and dampen growth in the region as most of our economies are net energy importers. the s & p global asean manufacturing pmi rose to 52. 8 in april from 51. 7 in march as business conditions in the region continued to improve despite protracted supply chain disruptions and broadening inflationary pressures. all asean countries included in the regional pmi registered growth in their respective manufacturing sectors, with singapore posting the fastest growth in manufacturing activity followed by the philippines, thailand, and indonesia. looking ahead, firms remain confident that manufacturing output will continue to recover. the philippine economy ’ s 8. 3 - percent growth in the first quarter, which followed the 5. 7 - percent expansion in 2021, already surpassed the pre - pandemic gdp level and exceeded the median analysts ’ forecast of 6. 7 percent. we expect our full - year growth to range from 7. 0 to 8. 0 percent this year and 6. 0 to 7. 0 percent in 2023 to 2025. growth in the first quarter was broad - based. on the supply side, all sectors expanded, driven by industry at 10. 4 percent, followed by services at 8. 6 percent. on the expenditure side, growth was driven by the 10. 1 - percent increase in private consumption, a stark reversal of 4. 8 - percent contraction in the same quarter a year ago. investments and external trade also performed

to 2022. today, we are officially launching the crd project. the project aims to improve access to finance among smes by promoting risk - based lending which uses credit scoring models to assess the capacity of smes to repay their loan. the project is a tangible step in building a sustainable financing ecosystem for smes. banks, on the other hand, will benefit from the robust credit scoring models built on the database to supplement or to validate their internal scoring models. this will particularly be useful to those without a credit scoring model. the crd will enhance the credit risk management system of banks. 1 / 2 bis central bankers'speeches as we usher in the new economy and steer towards a strong post - pandemic economic recovery, we expect the crd to contribute to providing stimulus for inclusive economic development. as the crd will augment the access of smes to credit, it will lead to their enhanced productivity and competitiveness and also generate much - needed jobs and source of income for many filipinos. indeed, the project will provide long - term support to smes. i want to thank the government of japan and jica for their commitment towards socio - economic development in the philippines. i also wish to thank the 17 pioneer participating banks : land bank of the philippines, development bank of the philippines, security bank, rizal commercial banking corporation, philippine business bank, sterling bank of asia, china bank savings, malayan bank, philippine savings bank, ucpb savings bank, producers savings bank, queen city development bank, wealthbank, sun savings bank, allbank, card sme bank and first consolidated bank. their participation and commitment in the crd project is crucial in the development of the sector. msmes have taken steps to continue their businesses amid the pandemic. the bsp, in cooperation with jica and the philippine financial institutions, will do our part. together, we will create a sustainable and vibrant financing ecosystem in the country. thank you and mabuhay! 2 / 2 bis central bankers'speeches