IMF sees Philippines missing growth targets in 2019, 2020
The International Monetary Fund still expects the Philippines to miss its growth targets this year and next amid external headwinds.
In a statement released Monday, the IMF said Philippine gross domestic product is projected to grow 5.7% this year — unchanged from its previous forecast — before accelerating to 6.3% in 2020.
If realized, the Fund’s 2019 and 2020 outlook would settle below the state’s 6%-7% target for this year and 6.5%-7.5% goal for next year.
The IMF said its assessment was “underpinned by an increase in government spending and the recent monetary policy easing.”
“The medium-term economic outlook remains favorable, especially if the strong structural reform momentum continues,” the Fund said.
“Risks to the outlook are tilted to the downside. The near-term rebound in GDP growth could be weaker than expected because of global trade tensions and related policy uncertainty, a change in global financial conditions, and natural disasters,” it added.
“On the upside, structural reform progress and infrastructure improvements could boost confidence and growth,” it continued.
The Philippine economy expanded 6.2% in the third quarter, faster than 5.5% pace recorded in the preceding three months.
Construction, which grew 16.3% in the July-September period, contributed the most to gross domestic product growth, National Statistician Dennis Mapa said.
According to IMF, “[b]old implementation efforts are needed for the strong structural reform momentum to lift medium-term growth and reduce poverty.”