The Philippine economy is expected to grow in line with potential, at around 6½ percent per annum. Inflation is projected to remain within the BSP’s target band (3±1 percent). The external position is strong and fiscal policy is prudent, with a declining public debt ratio. Its small, bank-centric financial system has strong buffers, and risks associated with bank-corporate-real estate linkages are currently contained. Poor infrastructure has constrained private investment and job creation. [...]