MANILA — Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday the country was building “adequate buffers” for the economy to withstand the impact of the rising protectionism across the globe and policy uncertainty.
These steps include opening up the economy to trade and direct investments, strengthening domestic industries to make them globally competitive and diversifying products and markets, Diokno said.
“Keeping our house in order remains the first and best line of defense,” Diokno said.
The trade war between the Philippines and China has “no direct imposition on the Philippines,” he said.
The Philippines can increase food and agricultural products exports to the US. Companies can also position the country as an alternative manufacturing site to China, but it will compete with Indonesia and Vietnam.
“The potential upside may not come about for a few years as firms would need to complete the lengthy process of shifting production sites,” he said.
The trade spat could “negatively affect overall sentiment and increase caution and uncertainty in the global growth prospects,” he said. (ABS-CBN News)
