PHL Economy Will Be #1 in ASEAN and #2 in World, says IMF
FULL STEAM AHEAD. There are no signs of the Philippine economy slowing down according to the the latest World Economic Outlook released by the International Monetary Fund (IMF).
In fact, the Philippines, over the next couple of years, is expected to outstrip its Southeast Asian neighbors and become the fastest growing economy in the region and second fastest in the world.
The resiliency of the country’s economy to external shocks is the main contributor to its continuous growth according to the IMF.
IMF resident representative for the Philippines YongZheng Yang said that the gross domestic product (GDP) growth projection for the Philippines is at 6.7% for 2018 and 6.8% for 2019.
“As you may know, these growth forecasts are among the highest in the Asia-Pacific region,” Yang said after the IMF released its latest economic outlook.
Based on the IMF’s latest growth forecast, only India is ahead of the Philippines when it comes to economic growth. India’s growth is projected at 7.4% this year and 7.8% for next year.
Comparing to other Asian countries, China is expected to grow by 6.6% in 2018 and 6.4% in 2019 while Vietnam is projected to grow by 6.6% in 2018 and 6.5% in 2019.
According to the same report, the ASEAN-5 composed of the Philippines, Vietnam, Indonesia, Thailand, and Malaysia could achieve a 5.3% growth this year and a 5.4% growth next year.
Robust domestic demand and higher investments are two factors that can fuel the strong growth of the country.
“We believe the Philippine economy will continue to grow strongly, driven by solid domestic demand and public investment,” Yang said.
Yang also mentioned that the 3.9% global growth for 2018 and 2019 can bring positive effects on the PH’s export sector, remittances, as well as the business process outsourcing (BPO) sector.
“Strong domestic reform momentum, including in the area of taxation and capital market development, bodes well for private sector investment, including foreign direct investments,” he said.
via The Philippine Star / Lawrence Agcaoili
