IMF Predicts Stable Philippines' Economic Growth

Forex News

The Philippines has been one of the region’s strong economic performers over the past years. The International Monetary Fund forecasts, that the Philippines’ economic growth will reach 6.7% in 2018 and 2019, supported by strong consumption and investment. The IMF also said in a statement issued following its regular "Article 4" review of the Philippine economy, that the current account deficit will grow to 1.5% of GDP by end-2018, from a previous forecast of 0.3%, mainly due to increased imports of capital goods and raw materials.

The IMF also stated, that the medium-term economic outlook remains favorable, but short-term risks have risen. Real GDP growth is projected at just under 7% over the medium term. Inflation is projected to gradually fall to under 4% in 2019 and move toward 3% over time.

The current account deficit is projected to remain manageable, financed largely by foreign direct investment. Downside risks stem mainly from rising inflation, continued rapid credit growth, higher US interest rates and American dollar, volatile capital flows, and trade tensions.