The International Monetary Fund expects the Philippine economy to grow faster than 6.2 percent this year, on the back of robust domestic demand and slower inflation rate.
“Philippine growth will remain robust on the back of strong domestic demand. There is also strong confidence of the business sector with the Philippine economy,” IMF resident representative to the Philippines Yongzheng Yang said during a business forum Wednesday at Dusit Thani Hotel in Makati City.
“The Philippine economy will do better this year than last year,” Yang said. He did not cite specific growth forecast.
“The IMF will have an update on the Philippine economy in the coming weeks,” Yang said.
Yang said the risks to economic growth were reduced, as the inflation rate returned near the target range of 2 percent to 4 percent for the year.
Latest government data showed that inflation in February eased to a one-year low of 3.8 percent from 4.4 percent in January. The February print brought the average inflation in the first two months to 4.1 percent, near the target range of 2 percent to 4 percent.
Yang said that aside from the slowing inflation, the continued infrastructure investments under the ‘Build, Build, Build’ infrastructure program of the government would support growth this year.
The Philippine economy grew 6.2 percent in 2018. The government expects the economy to grow between 7 and 8 percent in 2019, anchored on higher fiscal spending, robust domestic demand and investments.
Finance Secretary Carlos Dominguez III said the Philippines was on track to becoming an upper middle-income economy by 2020.
“2019 is the year to complete the policy and tax reforms. 2020 will be the year our people start feeling what it means to be an upper middle-income economy,” Dominguez said during the same forum.
“We will be the growth leader for the region and an inspiring study for the emerging economies. Already, the Philippines is being described as Asia’s new economic powerhouse,” Dominguez said.
He said the Duterte administration was carrying out the infrastructure modernization program and reform agenda at full throttle to prop up the economy.