IMF sees Philippines growing at 6.6 percent in 2017
The International Monetary Fund (IMF) on Tuesday placed the Philippines’ growth at 6.6 percent for 2017, down from its February estimates of 6.8 percent
In a statement from the Fund after it concluded its review, it said “growth is projected to remain close to potential at 6.6 percent in 2017 and 6.8 percent in the medium term, supported by robust domestic demand and recovery in exports.”
It saw inflation remaining “at the center of the target band in in 2017-2018 reflecting stable commodity prices and a near zero output gap.”
The team, led by Luis Breuer, visited Manila from July 26 to August 9.
The IMF “team supports the authorities’ plan to eraise infrastructure and social spending - to expand the productive capacity of the economy-while anchoring fiscal policy at the deficit cap of 3 percent of GDP over the medium term.”
It also welcomed the 2018 budget submitted to Congress, “which implies a return to a broadly neutral fiscal stance and is consistent with the medium-term fiscal framework,” Breuer said.
Passage of the comprehensive tax reform program, budget reform and rightsizing bill will help boost growth.
“Passing the first package of the comprehensive tax reform proposal is critical to sustain the rise in expenditures while maintaining the strong investor confidence and low borrowing costs,” Breuer said.
“Passage of the budget reform and rightsizing bill also help further improve spending efficiency and quality, helping to achieve the inclusive growth agenda,” he added. DMS