The International Monetary Fund expects the Philippine economy to grow faster than the regional average as domestic reforms unlock stronger long-term expansion, the head of the global lender said Thursday.
IMF managing-director Kristalina Georgieva told the Philippine News Agency that the Philippines stands out within the Association of Southeast Asian Nations. Georgieva said the Philippines is expected to outperform the regional average growth of 4.3 percent this year.
The IMF World Economic Outlook projects Philippine growth at 5.6 percent this year and 5.8 percent in 2027.
Georgieva expressed hope Philippines can catch up this year through the implementation of economic reforms.
She said the 119 million people in the Philippines and the broader region remain an economic bright spot.
Georgieva, however, warned that Middle East tensions could disrupt the global economy. She said the world has become more shock-prone and rapidly changing, and past experience showed that energy price shocks lead to higher inflation expectations and tighter financial conditions.
She said that developments in the Middle East are again testing the resilience of a world economy that has faced a series of significant shocks over recent years.
The heavy reliance on imported oil in the Philippines remains a vulnerability. Georgieva credited the government for easing regulations on solar projects and urged a faster transition to renewable energy to mitigate energy price volatility.
The IMF chief said the country reduce its dependence on imported oil by rapidly increasing its use of existing domestic resources like solar and other renewable energy.
