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PHL ready to address overheating economy —BSP

The Philippine economy may not be at risk of overheating anytime soon, but the Bangko Sentral ng Pilipinas (BSP) said on Tuesday it is prepared to address such concern.

"We continue to closely monitor growth and risks and we stand ready to deploy macroprudential fundamental measures if necessary," BSP Governor Nestor Espenilla Jr. said in his keynote speech during the Security Bank Economic Forum in Makati City.

The Philippine gross domestic product grew by 6.9 percent in the third quarter of the year, higher than a market consensus of 6.6 percent.

An economy may overheat when demand overwhelms supply and growth becomes unsustainable as factories overproduce to keep up with consumption.

Espenilla said last week that overheating could be a concern if growth continues to be above the potential.

On Tuesday, however, Espenilla said the Philippine economic growth remains be "manageable."

"The risk of overheating has been raised by some analysts. We do not believe we are there yet and we remain very vigilant to avoid it," he said. — VDS, GMA News