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BSP says PHL at risk of overheating if economy keeps growing 'above potential'

The Philippine economy could be at risk of overheating if it continues growing "above potential" but it is not at the point yet, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. said Thursday.

"That begins to be a concern if we're persistently growing above potential. Not there yet," he said in a text message to reporters, when asked if the economy could be at risk of overheating.

Overheating happens when economic growth is unsustainable, pushing producers to overproduce to keep up with an increase in demand.

The country posted a 6.9 percent GDP growth in the third quarter of the year, higher than a market consensus of 6.6 percent.

"To keep growing strongly without overheating, we expand the potential itself through high-quality investments funded in a sustainable manner," Espenilla said. — VDS, GMA News