found out traces some historical associations to the philippines, said “ those who do not remember the past are condemned to repeat it. ” the philippines is not a newbie in terms of crisis, we have faced quite a number of those in the past. each crisis we encountered was unique in its roots and causes. but we have learned from each, every time. it ’ s too early to make prescriptions, given that much is still to unfold. but as i end today ’ s remarks, i ’ d like to share some themes we may pick up even at this stage from this current crisis. i take these from our own acronym – bsp. some of you may have read this from a previous interview but i thought it would be appropriate for this audience. i repeat it hear with some slight modification. b – be prepared, keep your tools sharp ( review cost structures, enhance product offerings ) s – stay alert to spot opportunities ( consider trends and structural changes, enlarge market scope, do research ) p – push ahead! as i scan this audience, i see a wealth of experience that covers the breadth and depth of the crises the philippines has gone through in the last three decades. so i know, what i have just shared as lessons with you is not news to you. the bsp is doing its part to limit the impact of the crisis and to anticipate the upturn, but we cannot do this alone. we need the full support and cooperation of the private sector and those among your ranks to make us and the whole nation ready for that upturn. let us preserve what we have stored in 2008 and, together, let us build further on these in 2009. thank you for the opportunity to share these thoughts with you. i wish you and your loved ones all the best possible for 2009!

will be dispersed. i encourage you further to create more opportunities that will sustain the light. many pundits say that the worst is yet to come in the local and international financial markets. i say, no one knows how much deeper or how much longer this downturn will be. so there will continue to be challenges. but i want to add, this won ’ t go on forever. what we need to do now is to make the best of what we can at this time, try to ease some of the “ pain ” currently experienced, build up safeguards, and prepare for the eventual upturn. this is why i say 2009 is critical. our actions and policies this year will help define how prepared we would be when the upturn does come about. several relatively optimistic analysts forecast a recovery among the major economies could occur as soon as 18 months. so, depending on when you begin to count, and because time does fly, the upturn could be just around the corner! we ended 2008 on a much sounder footing than most in the region. philippine growth for the first 3 quarters of 2008 stood at 4. 6 percent, quite respectable compared to our asean - 5 neighbors. inflation was on an uptrend and elevated due mainly to highly volatile oil and nonoil commodity prices. we take comfort, however, in that this trend was not unique to the philippines. at an average inflation for the year of 9. 3 %, this still compares favorably against asean - 5 range of 5. 5 to 10. 3 %. also, inflation has started to recede faster than expected. we found ourselves better - situated than others at the end of 2008 precisely because we came into that downturn prepared and with buffers, including a forward - looking monetary policy framework ; a healthier reserves level for insurance ; and a sound banking system. 2008 – what buffers have we stored? let me quickly run through these buffers with some detail. first of all, the resilience of domestic demand. in previous crises, it was internal activity that kept the economy going. last year, real growth was broad - based. the major domestic sectors, including agriculture, industry, and services, provided positive contributions to growth. in addition, government spending for infrastructure as well as private consumption supported by steady remittances helped sustain domestic demand. second, the discipline of inflation targeting has helped us focus on our primary mandate of price stability. that we were able to maintain inflation at