However, it may also show up in very strong credit growth, asset price booms and large capital inflows.
Even in the face of a challenging year marked by record high oil prices, rising global interest rates, political tremors and credit rating downgrades, we ended 2005 on a clearly upbeat note among others: •  Our economy continued to grow;  •  We contained inflation at single-digit levels even with runaway oil prices;  •  the cost of doing business remained benign with a steady downtrend in interest rates, based on 90-day t-bill rates;  •  The peso emerged as best performing currency in asia;  •  Capital adequacy ratio of banks remained well above the international benchmark;  •  The asset base of the banking sector sustained its growth;  BIS Review 3/2006  1  •  Asset quality of banks continued to improve with single-digit non-performing loan ratio;  •  Our poverty alleviation program through microfinance was recognized as excellent by the united nations, making us one of only three asian nations given that distinction;  •  OFW remittances hit their highest level;  •  Foreign investment inflows continued to rise;  •  A higher-than-expected bop surplus was registered;  •  International reserves hit record-high levels; and  •  The revised value added tax and sin taxes, accompanied by stronger tax administration efforts are showing positive results.