It is, however, important to note that this continues to be a deficit which, both in our and in the IMF's estimate, ensures external sustainability. Over the coming years, the current account deficit is expected to contract gradually towards 5% of GDP (assuming a normalisation of energy prices) and to be covered by net FDI inflows to a substantial degree.
This is the challenge of prudently asking ourselves constantly “What can go wrong?” and to prepare accordingly for such possibilities. To us at the Bangko Sentral ng Pilipinas, this is at the heart the very essence of ensuring financial stability. And, as complex a challenge as it may be, it represents our central policy framework moving forward.