IMF Lowers Growth Forecast for the Philippines Amid Weak Consumption and Investment

Philippines: The International Monetary Fund (IMF) has revised its growth forecast for the Philippines, citing weaker-than-expected household consumption and investments.

The IMF now projects the Philippine economy to grow by 6 percent in 2024, down from its earlier forecast of 6.2 percent in April. The Philippine government, however, expects the economy to expand between 6 to 7 percent for the entire year. In the first quarter of 2024, the Philippine GDP grew by 5.7 percent.

The IMF has maintained its 2025 growth forecast at 6.2 percent, anticipating a possible increase in domestic demand, investment, and consumption.

Inflation is expected to decrease to 3.4 percent this year, with prices likely to fall within the government's target range of 2 to 4 percent. Despite this, the IMF recommended maintaining a "sufficiently restrictive" monetary policy stance.

In its May meeting, the Bangko Sentral ng Pilipinas kept interest rates at a 17-year high of 6.5 percent, following a series of rate hikes last year aimed at curbing persistent inflation.

Source: ABS-CBN News