Philippines economy is a race car, but not overheating: Central Bank chief

Central Bank governor says conclusions should be based on a wide range of elements

The headquarters of the Philippines Central Bank in Manila (photo courtesy of Ramon F. Velasquez) (By Wikimedia Commons)

TAIPEI (Taiwan News) – The economy of the Philippines may be hot like a race car, but it is not overheating, the country’s Central Bank chief told reporters.

Concerns have been rising that the Southeast Asian nation’s economy, once regarded as one of the slowest in the region, has been moving too fast.

In a message to reporters, Nestor Espenilla Jr., governor of the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, drew a comparison between the country’s economy and a sports car.

“There’s a huge difference between a hot engine and an overheated engine,” he wrote. “If we don’t like hot engines, we should keep our car parked,” website Concept Central reported him as saying.

Espenilla cautioned that any assessment of the state of an economy could not be based on just a single factor such as credit growth, but on a thorough analysis of a range of elements, since an economy was a complex structure made up of many moving parts.

“Overheating happens when the present demands on the economy significantly exceeds its present capacity to provide,” the bank governor wrote.

BSP officials spent a lot of time analyzing all factors and deciding how the bank should respond, if at all, Concept Central quoted Espenilla as writing in his message to reporters.