Filtered By: Money
Money

IMF gives PHL economy a favorable outlook


Despite the economic headwinds blowing overseas, the Philippine economic outlook remains favorable, the International Monetary Fund said at the conclusion a consultation mission to Manila.
 
"Real GDP is projected to grow by 6.7 percent in 2015, as lower commodity prices lifted household consumption and improved budget execution raises public spending," IMF Mission Head Chikahisa Sumi told reporters during a press conference on Tuesday.
 
By 2016, however, the multilateral lender expects the positive impact of fiscal spending and lower oil prices to wane, prompting the Fund to assign a slower growth of 6.3 percent for the Philippines.
 
Among the downside risks to the outlook are the monetary policies in advanced economies that could disrupt Philippine asset prices as well as price bubbles in the property sector, weak fiscal spending, as well as extreme weather conditions.
 
"Finally, there is a downside risk association with El Niño conditions leading to a poor harvest and rapid run-up in food prices," Sumi said.
 
"The Philippine authorities have undertaken preemptive measures and continue to be prepared to respond as needed with suitable policies should any of these risk scenarios materialize, given the Philippine economy's strong fundamentals and ample policy space," the IMF official added. – VS, GMA News
LOADING CONTENT