’ s fastest performing economies. for the past 74 quarters ( or 18. 5 years ), the philippines has posted uninterrupted gdp growth, backed by strong macroeconomic fundamentals. inflation today is low and stable with average headline inflation from january - august 2017 at 3. 1 percent. the balance of payments is under control despite global shifts. external liquidity is secure. we benefit from prudent fiscal management with the national government deficit at a manageable level of 2. 1 percent of gdp and a relatively low debt - to - gdp ratio of 42. 1 percent as of end 2016. and we protect our fiscal space to support economic gains by moving forward with an ambitious tax reform agenda. in the first half of 2017, gdp growth was 6. 4 percent. a strong domestic demand and expansive government budget for infrastructure development underpins this growth. overseas filipino remittances and bpo sector revenues continue to drive our economy. 1 / 5 bis central bankers'speeches recently, the world bank affirmed a positive growth path for the philippines, forecasting the economy to grow even more at 6. 8 percent this year, and at 6. 9 percent in 2018. overall business sentiment remains positive as shown by the results of the bsp business expectation survey for the third quarter of 2017. indeed, it is possible to have both strong economic growth and manageable inflation. for 2017 – 2019, we expect average inflation to track the target range midpoint of 2 - 4 percent … ample domestic liquidity and broad - based growth in bank lending for production activities continue to support economic growth. while there could be some transitory upside risks to inflation owing to the possible impact of the proposed tax reform program along with pending petitions to raise power rates, inflation expectations continue to be within target over the policy horizon. over the medium term, as the infrastructure program gets underway, the resulting improvement in productivity and various safety nets are also expected to temper the impact on inflation. based on these considerations, the monetary board decided during its meeting earlier today to maintain the bsp ’ s key policy rate at 3. 0 percent. with respect to the external sector, the philippines ’ current account ( ca ) balance narrowed during the 1st half of 2017 relative to a year earlier. this was due mainly to higher net receipts in the trade - in - services, and primary and secondary income accounts which mitigated the widening trade - in - goods deficit during the first half. in turn, the strong demand for imports

nestor a espenilla, jr : invisible to joined hands speech by mr nestor a espenilla, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the annual joint general membership meeting of mart, aci, ihap, toap, nasbi, and fmap, makati city, 21 september 2017. * * * the spirit of unity, collaboration and optimism in this annual joint general membership meeting is palpable. that there are six ( 6 ) prestigious financial market associations here in full force in spite of a holiday of sorts is exciting. it sets the tone for our willingness to work hard together, hand - inhand to make our financial markets stronger and better. historically and ideologically, there has been a divide between the private and the public sectors. there are staunch views that capitalism will take care of itself and government should leave markets alone. as early as the 18th century, adam smith ’ s theory of the “ invisible hand ” that guides supply and demand toward equilibrium and efficiency was gospel. in the 1930s, the idea of self - correcting markets was debunked by the great depression … even recently, by the global financial crisis. that government can improve market outcomes – to promote efficiency and equity, and address market failures is now accepted principle. that you have consistently been valuable partners of the bsp emphasizes – quite happily – that we are on a higher plane of acceptance. we view each other as indispensable partners in achieving our shared vision of greater economic development … there is resounding acknowledgement that we are on the same side … and it is only when we work together that we can achieve our goals. for this, i sincerely thank you. to the money market association of the philippines ( mart ), aci financial markets association philippines ( aci philippines ), the trust officers association of the philippines ( toap ), the fund managers association of the philippines ( fmap ), the investment house association of the philippines ( ihap ) and the national association of securities broker salesmen, inc. ( nasbi ), maraming salamat … thank you for being partners with us in our shared vision of ensuring a more robust financial system … to everyone in this ballroom, esteemed guests, ladies and gentlemen, good evening. setting context many of us have witnessed how our country has transformed from being an economic laggard to one of the region