MANILA - The International Monetary Fund (IMF) has maintained its 2019 growth forecast for the Philippines at 5.7 percent, and raised its 2020 projection to 6.3 percent from 6.2 percent previously.
In a briefing yesterday, Thomas Helbling, mission chief of the IMF Article IV Consultation to the Philippines from November 5-18, said they expect domestic growth to post stronger output after a slide in the first half of the year.
He attributed the better outlook to the combination of increased government spending on infrastructure projects, and the total of 75 basis points reduction in the Bangko Sentral ng Pilipinas’ key policy rates this year.
“The medium-term economic outlook remains favorable especially if the strong structural reform momentum continues,” he said. “The Philippines remains one of the best-performing economies in the region.”
Helbling cited the “substantial” increase on government’s infrastructure investment from about 3 percent of GDP to about 5 percent in recent years.
“It is (a) welcome (development). I think what the Philippines needs is close the infrastructure gap. And the government probably has plans to further increase infrastructure expenditure,” he said.
Helbling said increasing infrastructure spending vis-à-vis the domestic output is generally a challenge for governments around the globe since they face capacity constraints along the way in terms of project appraisal and implementation.*PNA
back to top