Pursue reform or be the ‘new mediocre’

The global economy is finally stabilizing nearly a decade after a major financial crisis erupted, but new challenges are emerging and it is up to Asian economies to turn risks into opportunities to avoid becoming the “new mediocre,” the Philippine central bank governor said.

In an opening statement late Monday at a financial forum in Cebu, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. highlighted four key areas of global change that could make or break these economies in the region: growing protectionism, financial spillovers, the middle income trap and demographics.