updates on the monetary, external and banking sectors and our outlook for these sectors, but it also allows for an exchange of ideas, where feedback is welcome, and critical questions can be asked, providing us with additional input when we consider our reform initiatives and policy decisions. i have read that to find equilibrium between continuity and change one must : first have a deep understanding of the operating context ; second take a holistic approach, and third, for success and sustainability of policies, work with all facets of the environment. i will present my message following this outline. first, the operating context the philippines is recognized among one of the fastest growing and most resilient economies in 1 / 5 bis central bankers'speeches the region and the world, enjoying a sweet spot of high growth and manageable inflation complemented by a strong and resilient financial system. gdp growth averaged 6. 4 percent in the first semester of 2017. as of the second quarter of 2017, the philippines posted 74 consecutive quarters of uninterrupted growth ( i. e., q1 1999 to q2 2017 ) or a span of 18. 5 years, with growth accelerating in recent years. the government has set a growth target of 6. 5 to 7. 5 percent for this year, and 7. 0 to 8. 0 percent for 2018 up to 2022. we believe these targets are attainable, given strong macroeconomic fundamentals, rising government spending on critical infrastructure and human capital development, increasing private sector investments, and strong domestic consumption on the back of rising incomes of the country ’ s young and educated workforce. this strong economic performance did not happen overnight. rather, it is the result of meaningful reforms pursued since the 1997 asian financial crisis. the list of reforms is long and wide ranging. among its highlights is the adoption in 2002 of the inflation targeting framework. since 2009, we have consistently achieved our inflation target, except only in 2015 – 2016 when inflation went below 2 % due to unusually low oil prices. this track record has reinforced the credibility of the bsp ’ s inflation targeting framework. with its sound macroeconomic fundamentals, the philippines ’ economic outlook in the years ahead continues to be promising. inflation for the first 8 months of this year averaged 3. 1 percent, well within the target range of 2. 0 to 4. 0 percent for this year. we have often been asked why we have not yet raised policy rates given that inflation is trending higher this year and also given

amando m tetangco, jr : the philippine economy – amidst global headwinds, leveraging on domestic tailwinds to stay the course speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the foreign correspondents association of the philippines ( focap ) media forum, manila 29 november 2013. * * * good morning. in the american tradition, today, the day after thanksgiving day, is called “ black friday ” – the “ official ” first day of christmas shopping. picture herds of early birds lining up retail stores to catch the biggest sales. consumer watchdogs in america would be detailing on monday whether this year ’ s black friday recorded a larger sales number than previous years. undoubtedly, the result of the surveys would provide the fed with additional input as they decide whether to taper sooner rather than later. the numbers could also help answer the question of whether the fed has been successful in steering domestic consumption enough to sustain positive economic growth. so far, so good … in the last few years, external factors, particularly, the fed signals have exerted greater impact on the domestic market. this has been the case on two fronts – 1 ) financial market volatility and, 2 ) external trade. the other external risks we have been watchful of are the tepid recovery in europe, the impact of abenomics, and the growth story in china. so far, our calibrated use of our economic policy tool kit – both traditional policy tools and macroprudential measures – has been successful in taming financial market volatility and in supporting domestic aggregate demand to help make up for any weaknesses in external trade. just to cite some indicators. q3 2013 growth at 7. 0 percent is the 59th consecutive quarter of positive gdp growth since 1999. the last five consecutive quarters all registered growth rates of 7 percent or more. this is not a fluke. the philippine growth story has structural roots. inflation has been within target for the last four years. our current account has consistently been in surplus for over a decade now. our gross international reserves have been at record highs. and our banking system balance sheets remain strong, with npl ratios continuing their decline to levels lower than pre - 1997 crisis. shall we, however, continue to live in this goldilocks world – where everything seems to be just right – where the porridge