Crossroads (Toward Philippine economic and social progress)
Philippine Star, 26 June 2019


Speaking before the Wallace Business Forum recently, BSP Governor Benjamin Diokno said that the Philippine economy is in the Goldilocks phase.

Further clarifying, he said the economy is experiencing the “the right mix of high growth and low inflation,” making growth sustainable without inflationary pressures. In short, this is an economic condition that is favorable and optimistic.

He cautioned, however, that risks to the international economy remain and that the policy-makers are ready to respond with flexible responses to make the economy resilient.

I must add, however, that the risks to the Goldilocks scenario are not trivial in the current world stage. So, they pose real dangers to the country’s forward progress.

The biggest of these at the moment are geopolitical troubles in some parts of the world. The dangers of miscalculations are serious today in the US-Iran-Middle East tensions. These risks are also present in the South China Sea, in the Korean peninsula within our immediate region.