settings as needed. in closing, allow me to share three key takeaways : the spread of more transmissible covid - 19 variants weighed on the global economy ’ s recovery momentum in 2021 as governments reimposed more stringent quarantine restrictions. global economic growth is expected to pick up although risks emanating from tightening financial conditions and emergence of vaccine resistant covid variants pose downside risks to economic recovery. the bsp remains committed to maintaining accommodative policy settings for as long as necessary to ensure a durable path to economic recovery. bright spots of recovery have started to emerge. we are hopeful that our whole - of - government approach will help our country recover from this crisis stronger than ever. thank you and mabuhay ang ypo philippines! 3 / 3 bis central bankers'speeches

of key food items, and petitions for jeepney fare hikes due to higher oil prices. overall, the philippines remains in a sound position as its macroeconomic fundamentals underpin the economy ’ s recovery in 2022. the development budget coordination committee expects the economy to grow by 7. 0 to 9. 0 percent in 2022. risks and challenges remain as the emergence of highly transmissible covid - 19 variants delays the normalization of economic activities. nonetheless, the timely imposition of appropriate pandemic - related measures is necessary to control covid - 19 surges and arrest the spread of the omicron covid - 19 variant. the continued vaccination efforts and improving healthcare interventions in managing severe cases should usher the eventual transition of covid - 19 from pandemic to endemic. 2 / 3 bis central bankers'speeches on the external front, we are cognizant that ongoing policy normalization by major central banks could heighten volatility in financial markets. some central banks of major advanced economies, including the bank of korea, reserve bank of new zealand, and bank of england, have already raised key interest rates. while the shift to policy normalization of advanced economies could affect capital flows and lead to financial market volatility, this also reflects opportunities for economies like the philippines in terms of increased trade activities. nevertheless, the bsp remains steadfast in dealing with such spillover effects through our expanded policy toolkit. although the normalization of the currently ultra - accommodative monetary policy in advanced economies could lead to a rebalancing of global capital flows and depreciation of emerging markets ’ currencies vis - a - vis the dollar, the philippines is in a favorable position to navigate tightening global financial conditions given the manageable inflation environment and sufficient external buffers. the current level of gross international reserves – at usd108. 45 billion – is more than sufficient to withstand adverse external shocks. at the same time, structural flows from remittances, it - bpm revenues, and foreign direct investments are expected to further bolster the country ’ s external payments position. meanwhile, the bsp ’ s adherence to a market - determined exchange rate system and our macroprudential measures will continue to allow us to curb excessive fx volatility and respond to instability in financial markets. should external developments bring about risks to the domestic outlook for inflation and growth, the bsp stands ready to calibrate policy