The International Monetary Fund expects the Philippine economy to grow faster this year at 6.5 percent from the actual 5.7-percent expansion in 2021 as the country recovers from the devastating impact of the global health crisis.
An IMF team led by Cheng Hoon Lim held discussions on the Philippine economy for the 2022 Article IV Consultation from Sept. 12 to 26.
Lim said in a statement the Philippines emerged successfully from one of the world’s strictest pandemic lockdowns on sustained reforms and disciplined macroeconomic policies that contained financial vulnerabilities and mitigated the hardships faced by the poor.
“Following a sharp contraction in 2020, the Philippine economy rebounded in late 2021 and accelerated further in the first half of 2022, spurred by strong domestic demand and private investment,” she said.
“IMF staff project real GDP to grow by 6.5 percent in 2022 but to slow to 5 percent in 2023 as the confluence of global shocks weigh on the economy in the coming months,” she said.
The economy grew by 7.8 percent in the first half, following the 8.2-percent and 7.4-percent expansion in the first and second quarters, respectively.
Inflation is expected to rise to 5.3 percent in 2022, then to decline modestly in 2023, supported by a moderation in commodity prices and converge to the mid‑point of the band in 2024, as tighter monetary policy keeps inflation expectations anchored.