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IMF hikes Philippine growth forecast to 6.2 pct on back of strong prospects

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Jessica Fenol, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A view of the Quezon City skyline on May 31, 2022. George Calvelo, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/tvpatrol/07/28/20220531-economy-inflation-gc-4.jpg"/><figcaption>A view of the Quezon City skyline on May 31, 2022.<em> George Calvelo, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA — The International Monetary Fund on Friday said it raised the 2023 economic growth outlook for the Philippines due to the stronger-than-expected first quarter expansion as well as the positive indicators for the rest of the year.</p><p>The IMF expected the Philippines&#x27; gross domestic product (GDP) to expand by 6.2 percent this year from its earlier projection of 6 percent. </p><p>The Philippines posted a <a href="https://news.abs-cbn.com/business/05/11/23/philippine-gdp-grows-64-percent-in-first-quarter-of-2023">6.4 percent</a> growth in Q1. </p><p>&quot;The IMF has adjusted up its growth projection for the Philippines from 6.0 percent to 6.2 percent for 2023. Stronger-than-expected first quarter data and leading indicators for Q2 has shown demand and growth dynamics remaining strong in 2023,&quot; IMF Mission Chief for Philippines Jay Peiris told ABS-CBN News. </p><p>MIF also cited the Bangko Sentral ng Pilipinas&#x27; &quot;decisive&quot; action to tighten rates in order to reduce inflation. </p><p>Inflation reached a 14-year high of 8.7 percent in January. It has since eased to 5.4 percent in June but it remains above the government target of 2 to 4 percent. </p><p>The BSP in June, meanwhile, kept the interest rate at 6.25 percent as inflation decelerated. </p><p>Inflation is seen to moderate to 5.6 percent on average this year, the IMF said. </p><p>&quot;The BSP has acted decisively to tighten rates and reduce inflation, and we see the impact of tightening bringing inflation back to within target around 3 percent by early next year,&quot; Peiries said. </p><p>But upside risks for inflation could stem from El Niño as well as the volatility in global commodities, he said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/22/23/bsp-keeps-interest-rate-steady-at-625-percent">BSP keeps interest rate steady at 6.25 percent</a></li></ul><p>Peiris said the BSP&#x27;s &quot;tighter for longer&quot; stance was crucial for both domestic and global perspective.</p><p>&quot;This will also safeguard against potential capital outflows, which is still a relevant concern. Keeping this stance is also important to guard against the risk of excessively fast currency exchange rate depreciation,&quot; Peiris said.</p><p>However, growth may be slightly lower next year due to the impact of monetary tightening and possible slowdown in growth in advanced economies, he said.</p><p>The government expects the economy to grow by 6 to 7 percent this year.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/04/24/23/dbcc-keeps-6-to-7-percent-2023-growth-target-sees-higher-inflation">DBCC keeps 6 to 7 pct 2023 growth target; sees higher inflation</a></li></ul><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/1RIPKezUxJA?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The IMF said it raised the 2023 economic growth outlook for the Philippines due to the stronger-than-expected first quarter expansion. 

IMF hikes Philippine growth forecast to 6.2 pct on back of strong prospects

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IMF hikes Philippine growth forecast to 6.2 pct on back of strong prospects

Jessica Fenol,

ABS-CBN News

Published Jul 28, 2023 11:19 AM PHT

Read More:

IMF

economic growth

gross domestic product

inflation

BSP

interest rate

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