THE INTERNATIONAL Monetary ines to
The International Monetary Fund (IMF) anticipates that the Philippines will3.5%
Despite a projected outlook of 3.5%, the pine economy is expected to continue being one of the top-performing economies in the region this year.
Reduced rate of expansion in the world economy.
According to the most recent World Economic Outlook (WEO) from the IMF, the Philippines’ GDP is predicted to increase by 5.3% this year, falling short of the government’s target of 6-7%. This growth rate is also lower than the 7.6% expansion seen in 2022.
The growth projection for the Philippines by the multilateral lender in 2023 is the second highest among emerging and developing countries in Asia, trailing only India’s 6.3%.
It is in front of both China and Indonesia, with percentages of 5%. Vietnam follows closely with 4.7%, then Malaysia at 4%, and Thailand at 2.7%.
The growth of emerging and developing countries in Asia is projected to be 5.2% this year, down from 5.3% before. It is anticipated that the region’s growth will decrease to 4.8% in 2024 from 5% before.
The International Monetary Fund (IMF) has stated that the growth outlook for emerging markets and developing economies will continue to be poor in the current year.
2020 it will remain pressured by the weakness in
Worldwide operations reached their lowest point at the conclusion of the previous year, and are expected to continue facing challenges due to ongoing vulnerabilities in 2020.fl
The International Monetary Fund stated that the current situation, including both the main issue and its underlying cause, is gradually being managed.
“However, achieving a complete rebound to pre-pandemic levels seems more and more unattainable, particularly in emerging and developing countries,” the statement further stated.
The International Monetary Fund’s prediction of a 5.3% growth rate for the Philippines in the current year puts it ahead of the other five member countries of the Association of Southeast Asian Nations (ASEAN) in terms of speed.
The projected growth rate for the ASEAN-5 region is 4.2% for this year and 4.5% for next year.
According to the World Economic Outlook, the International Monetary Fund forecasts a 5.9% increase in the Philippines’ gross domestic product in 2024. However, this was recently adjusted to 6% after the completion of the Article IV consultation mission to Manila last week.
The Philippines is projected to remain the second-fastest growing economy in emerging and developing Asia, following India’s growth rate of 6.3%. Among the ASEAN-5 countries, the Philippines is expected to have the highest growth rate next year, followed by Indonesia at 5% and Malaysia at 4.3%.
IMF’s representative for the Philippines, Ragnar Gudmundsson, announced that the organization’s most recent predictions for the country were confirmed during the Article IV visit. The projections in the WEO update were made prior to the consultations.
“The e-mail stated that our stance on monetary policy remains consistent with that of last week. We made minor modifications to our forecasts after considering our discussions and the most recent data received during the mission.”
Earlier, the IMF’s growth forecast for the Philippines was said to be at risk due to ongoing issues. The IMF Mission Chief for the Philippines, Shanaka Jayanath Peiris, stated that the main concern is the persistent nature of these issues.fl
The current situation may lead the central bank to restart its efforts to tighten monetary policy.
2021 to grow by 6.9%
The International Monetary Fund predicts that the Philippine economy will experience a growth of 6.9% in the year 2021.fl
The forecast is for inflation to increase to approximately 6% in the current year before decreasing to 3.5% in 2024. The BSP predicts that this will occur.fl
The annual average is expected to be 5.8% for the current year and 3.5% in 2024.
The Bangko Sentral ng Pilipinas (BSP) has maintained the benchmark interest rate at 6.25%, which is the highest it has been in nearly 16 years, since March.
Mr. Peiris suggested that keeping interest rates at a higher level for an extended period of time may be necessary until inflation reaches the desired level.
The International Monetary Fund predicts that inflation in the Philippines will reach the 2-4% target again by 2020.fi
The first quarter of the upcoming year.
Meanwhile, the IMF expects global growth to slow to 3% this year, as the global economy continues to recover “slowly” from the pandemic, Russia’s invasion of Ukraine and the cost-of-living crisis. It also trimmed its 2024 outlook to 2.9%, from 3% previously (Related story: https://www.bworldonline.com/world/2023/10/10/550792/imf-says-global-economy-limping-along-cuts-growth-forecast-for-china/).
According to the IMF, the world economy is experiencing slow and inconsistent growth, resulting in increasing global disparities. The overall state of the global economy can be described as struggling rather than thriving.
The IMF expects global inflation to rise to 6.9% this year, but ease to 5.8% in 2024. Infl
Most economies globally are not expected to reach their target levels until 2025. – Keisha B. Ta-asan