Category : Press Release
Date : November 02, 2018
Agency : Investor Relations Office
Title : PH highlights bright economic prospects before HK, US investors in non-deal roadshow
Article : 15-23 October 2018 — A Philippine delegation led by National Treasurer Rosalia de Leon and Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo visited institutional investors in Hong Kong and the US cities of Los Angeles, Boston, New York, New Jersey, and Philadelphia to showcase the Philippines’ robust growth outlook.

During a series of one-on-one investor meetings, Deputy Governor Guinigundo discussed economic updates and the country’s positive growth prospects supported by sound macroeconomic fundamentals and important policy reforms. Guinigundo communicated that the Philippines is expected to continue to outperform most emerging markets in terms of economic growth and resilience to external shocks in the years ahead.

During the meetings, Guinigundo cited rising government and private-sector investments, as well as improving labor productivity as some growth drivers. He likewise stressed the country’s strong external payments position, supported by steady FX inflows and prudent external account management to maintain Philippine resilience to external shocks.

Guinigundo likewise discussed the inflation outlook, which this year accelerated due to supply side factors and rising global oil prices, and is expected to return to within the target range of 2.0 to 4.0 percent beginning 2019.

Committed to its price stability mandate, the BSP took a series of policy rate hikes totaling 150 basis points from May to September this year to help anchor inflation expectations and address second round effects.

Meantime, National Treasurer De Leon discussed the government’s bold fiscal program, under which tax reform generates additional revenues to fund vital and long over-due infrastructure projects launched under the Government’s Build, Build, Build program. The infrastructure thrust is aimed to further create jobs, improve connectivity, attract investments, and increase the country’s productive capacity.

Under the Build, Build, Build initiative, big-ticket infrastructure projects are being rolled out all over the country to squarely address the infrastructure gap. In doing so, the National Treasurer said that the government is mindful of keeping the fiscal deficit within manageable levels — at 3.2 percent of GDP for 2019 and 3.0 percent of GDP for 2020 to 2022.

On the Philippine government’s bond offerings, the National Treasurer said that in recent years, such have “been very well-received by the international market as evidenced by the bonds’ favorable pricing.” Non-deal roadshows are “opportunities to communicate to international stakeholders, respond to questions, and to clarify policy objectives to maintain healthy international investor perception of the Philippines,” added De Leon.

Investors regard the Philippines as one of high-growth performing emerging markets, recognizing its solid economic growth and implementation of structural reforms to further enhance resiliency.

The Philippines is poised for accelerated and more inclusive economic growth moving forward. It grew by 6.7 percent last year and is widely projected to maintain growth within the 6-percent territory this year. The government is keen on seeing accelerated and more inclusive growth in the next few years.

The Hong Kong and US roadshows were part of the government’s overall investor-relations effort to build and maintain positive perception of the Philippines, such as among potential and existing holders of peso-denominated bonds. A well informed investor community is believed to be crucial in helping Philippine government bonds fetch competitive yields and in raising funds for necessary development initiatives.

Both Guinigundo and De Leon agree that sufficient investor knowledge of prospects for the Philippine economy plays an essential role in maintaining economic growth and stability. As such, constant and active engagement of investors both here and abroad by our economic officials is a worthwhile and indispensable task.

Follow-up communications with the institutional investors, including responding to queries on the Philippine economy, the provision of data and informative materials, and any assistance in the setting of future meetings with private and public sector representatives is the task of the Investor Relations Office (IRO) of the Bangko Sentral ng Pilipinas, whose Director, Atty. Elizabeth Medina-Navarro, also joined the meetings.