Camille Naredo

The San Juan -Mandaluyong skyline in this photo taken on November 8, 2022.  

The San Juan -Mandaluyong skyline in this photo taken on November 8, 2022.  Gigie Cruz

Article (news)

METRO MANILA

Jekki Pascual

ABS-CBN News

MANILA -- The International Monetary Fund (IMF) has cut its 2025 growth forecast for the Philippines from 5.5 percent to 5.4 percent. This was announced at the end of the IMF Article IV Consultation or the annual assessment of the country&#x27;s economic and financial policies in Manila. IMF Mission Chief Elif Arbatli Saxegaard said the Philippine economy remains resilient, but downside risks warrant close attention.&quot;This revision reflects factors related to the performance in the first half of 2025 which was weaker that what we have anticipated,&quot; she said.&quot;The main external risks stem from prolonged global trade policy uncertainty, geopolitical tensions, and disruptive financial market corrections. On the domestic front, more frequent and intense climate shocks would cause notable macroeconomic losses,&quot; she added.The 5.4 percent projection is lower than the government&#x27;s target of 5.5 to 6.5 percent, but Saxegaard said there are also upside risks like the implementation of structural and government reforms. There is also room to further ease monetary policy given the favorable inflation outlook.What is not yet factored in, however, is the ongoing flood control corruption controversy which may impact investor confidence.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/nation/2025/9/30/amlc-secures-3rd-freeze-order-for-assets-tied-to-flood-control-controversy-2131">READ: AMLC secures 3rd freeze order for assets tied to flood control controversy</a></div>&quot;It&#x27;s not yet clear whether and how these allegations will impact private sector confidence as well as their perception and behavior. We will continue to monitor the developments and provide an update in our reports once there is more clarity,&quot; Saxegaard said.Saxegaard offered some recommendations to the government like implement concrete and durable tax measures, strengthen budget credibility by enhancing public financial management, strengthen investment planning and procurement, and enhance accountability.She also mentioned the need to monitor the vulnerabilities of the real estate sector and the banks&#x27; connection with non-financial corporations.&quot;Vacancy rates remain elevated in some sectors, and also the exposure of the banking system to real estate sector is an important part of their portfolio… What really stands out is the exposure of banks to the non-financial corporate sector. Given those linkages, any risks to the non-financial corporations could feed into the banking system,&quot; she added.Overall, the IMF said the country has been resilient despite negative external spillovers and that reforms should continue to be implemented including the reduction of corruption vulnerabilities.

The International Monetary Fund (IMF) has cut its 2025 growth forecast for the Philippines from 5.5 percent to 5.4 percent.

The International Monetary Fund (IMF) has cut its 2025 growth forecast for the Philippines from 5.5 percent to 5.4 percent.

IMF cuts PH growth forecast, monitors flood control issue

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IMF cuts PH growth forecast, monitors flood control issue

Jekki Pascual,

ABS-CBN News

Published October 02, 2025 01:01 AM PHT

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Updated October 04, 2025 10:45 AM PHT

Read More:

International Monetary Fund

IMF

economy

flood control

flood control project

GDP

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