IMF upgrades 2020 PHL economic outlook, ups growth projection to 6.3%

Given the increase in government spending and the easing of key policy rates in the country, the International Monetary Fund (IMF) on Monday upgraded its 2020 outlook on the Philippine economy.

In a press conference in Manila, mission chief Thomas Helbling said the IMF had raised its 2020 growth projection to 6.3 percent from the 6.2 percent it announced in October.

"Growth is projected at 5.7 percent in 2019, unchanged from the October 2019 World Economic Outlook, and to strengthen 6.3 percent in 2020, underpinned by an increase in government spending and the recent monetary policy easing," Helbling told reporters.

The Philippine economy grew by 6.2 percent in the third quarter, the best quarterly performance so far this year, which the government attributed to spending.

Meanwhile, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) earlier this year reduced interest rates by a total of 75 basis points - 25 basis points each during its May 9, August 8, and September 26 meetings.

"The medium-term economic outlook remains favorable, especially if the strong structural reform momentum continues," said Helbling.

The IMF said it now sees inflation at 1.6 percent by end-2019, and three percent by the end of 2020, within the government's two to four percent target range.

"Prudent macroeconomic management and a strong structural reform momentum have made the Philippine economy more resilient, reinforced growth, and helped to reduce poverty," said Helbling.

"The IMF will continue to cooperate with the authorities in their efforts to achieve their development goals -- through policy dialogue and support for the development of economic analysis and policy capacity," he elaborated. — DVM, GMA News