for next year — at 7. 4 percent — is close to the high end of the government ’ s projection. inflation is manageable at 2. 5 percent in the first nine months of the year, and is seen to settle between 1. 75 – 3. 75 this year, and 2. 0 to 4. 0 percent next year and in 2022. favorable inflation provides an enabling environment for growth. 1 / 5 bis central bankers'speeches this gives room for the bsp to further ease monetary policy, in case needed. exports and imports will rebound from negative territory this year to 5. 0 - percent and 8 - percent growth, respectively, next year. fdis will rise to usd 7. 0 billion next year. overseas filipino remittances will rebound from a contraction of 2 percent this year — an improvement from our previous forecast of 5 percent contraction — to a growth of 4 percent next year. year - to - date, remittances dropped by only 2. 6 percent as of august. our overall external position will stay healthy. the balance of payments will post a surplus of usd 8. 1 billion this year and usd 3. 4 billion next year. the current account will also remain in surplus, at usd 6. 0 billion this year and usd 3. 1 billion next year. meanwhile, the gross international reserves will continue to hit new highs of usd 100 billion this year and usd 102 billion next year. our recovery prospects are supported by a whole - of - government approach to addressing the crisis. the national government has rolled out massive relief and mitigating measures, and boosted the country ’ s healthcare capacity. congress immediately passed critical bills to support the government ’ s covid response. for our part, the bangko sentral ng pilipinas ( bsp ) has been quick and decisive in responding to the crisis. our actions were meant to, first, boost market confidence and cushion economic activity ; second, provide liquidity to complement government programs ; third, sustain financial stability ; and fourth, support continuous delivery of financial services. in total, the bsp has already injected p1. 9 trillion ( about usd 39. 2 billion ) — equivalent to 9. 6 percent of gdp — into the financial system. besides cuts in the policy rate and the reserve requirement, we have implemented an extraordinary measure, but within the scope of our mandate. last october 1, the monetary board decided to provide a short - term provisional advances to the national government in the

amount of p540 billion — approximately us $ 11. 1 billion. this is came after the initial p300 billion or us $ 6. 2 billion advances was fully settled last month. we also purchased government securities in the secondary market. this has helped keep investors confident about the liquidity situation in the domestic capital market. our targeted measures have benefited the vulnerable sectors. for example, loans to micro, small, and medium enterprises ( msmes ) — which account for over 60 percent of employment — now count as part of banks ’ compliance to the reserve requirement. as such, we have seen a quantum jump in loans to msmes. 2 / 5 bis central bankers'speeches the suspension of fees on registration of digital payment services — plus the moral suasion for banks to waive fees on electronic fund transfers ( a call that has been overwhelmingly responded to ) — have aided digital financial transactions of the public amid quarantine. the increase in the single borrower ’ s limit and the limit on real estate loans are seen encouraging banks to lend, in support of economic recovery and growth. our latest move is put a cap on credit card charges. this will help ensure that consumers will not be burdened by higher interest rates on credit card consumption, especially during this difficult time. the bsp has done a lot. but our toolkit is far from exhausted. we are prepared to do more, if and when necessary. having said this, the bsp is mindful of the need for careful disengagement of our covid response measures. we recognize that doing so either too late or too early may have serious repercussions on the economy. moving on to the performance of the banking system. our banking system entered the crisis with sufficient buffers, which will help it remain stable amid the crisis. the capital adequacy ratio ( car ) of banks stood at 15. 3 percent on solo basis and 15. 9 percent on consolidated basis as of end - march, well above the 10 percent minimum requirement of the bsp and the 8 percent prescribed by basel. this shows banks have ample capacity to absorb shocks. bank ’ s liquidity coverage ratio ( lcr ) stood at 171. 4 percent as of end - march, well above the regulatory minimum of 100 percent. also, the net stable funding ratio of universal and commercial banks, which stood at 129. 1 percent as of end - march, indicates stable funding to serve customers in the short to medium term