IMF raises PH GDP outlook to 6%
WASHINGTON, UNITED STATES — The International Monetary Fund (IMF) raised its 2023 gross domestic product (GDP) projection for the Philippines from its previous forecast of five per cent to six per cent.
This would be slower than the 7.6% GDP expansion in 2022 but would match the lower end of the Philippine government’s 6-7% target for this year.
In its latest World Economic Outlook (WEO), the IMF said that the Philippines could post the “fastest growth in emerging and developing Asia this year” despite a global economic slowdown.
Based on IMF projections, the Philippines’ 6% GDP growth outlook is faster than India’s 5.9%, China’s 5.2%, Vietnam’s 5.8%, Indonesia’s 5%, Malaysia’s 4.5%, and Thailand’s 3.4%.
“For emerging markets and developing economies, economic prospects are on average stronger than for advanced economies, but these prospects vary more widely across regions,” it said.
Based on the IMF’s Global Financial Stability Report, emerging markets have smoothly managed the aggressive tightening of the monetary policy compared to advanced economies.
“In addition to having generally stronger fundamentals and higher buffers than in the past, they have benefited from policy space created by commencing their own tightening cycles ahead of advanced economies,” the IMF added.
However, the multilateral lender lowered its 2024 growth projection for the Philippines from 6% to 5.8%, falling on the lower end of the government’s 2024 GDP target.
