10-6-2024 (MANILA) The International Monetary Fund (IMF) has delivered an optimistic outlook for the Philippine economy, projecting a robust rebound in gross domestic product (GDP) growth driven by surging consumer demand. In a statement released on Monday, following a visit by an IMF team to the country’s capital, the global financial institution outlined its expectations for the nation’s economic trajectory.
According to the IMF’s projections, the Philippines’ GDP is anticipated to surge to an impressive 6.0 percent in the current year, with growth momentum continuing into 2025 at a projected rate of 6.2 percent. This upbeat outlook is underpinned by a resurgence in consumer demand, which is expected to serve as the primary catalyst for the country’s economic revival.
While the growth prospects appear promising, the IMF emphasized the importance of maintaining a sufficiently restrictive monetary policy stance to anchor inflation expectations effectively. Recognizing the ongoing risks posed by geopolitical tensions and volatile commodity prices, the international body cautioned that inflationary pressures could persist, necessitating a vigilant approach from policymakers.
On the external front, the IMF forecasts a narrowing of the current account deficit to 2.1 percent of GDP, primarily driven by an anticipated rise in goods exports and a resurgence in tourism activity. This development is expected to provide a much-needed boost to the country’s external position, bolstering its economic resilience.
