IMF cuts 2022, 2023 growth forecast for Philippines

Grocery shoppers
Shoppers wearing face shields and face masks browse through aisles for some food supply run at a supermarket in Mandaluyong City on August 23, 2020. (The STAR/Miguel de Guzman)

 The International Monetary Fund (IMF) on Monday slashed its growth forecasts for the Philippines for this year and next to reflect the impact of a global economic slowdown and tightening financial conditions.

The IMF said economic growth in the Southeast Asian country this year would hit 6.5%, weaker than its previous forecast of 6.7%, while growth next year is seen at 5.0%, also slower than its earlier estimate of 6.3%.

The growth outlook is subject to “significant downside risks,” Cheng Hoon Lim, IMF mission head, said in a news conference.

She also said the Philippine central bank’s “continued near-term tightening was appropriate.”

The Bangko Sentral ng Pilipinas (BSP) has so far raised interest rates by a total 225 basis points, bringing its policy rate to 4.25%, to combat inflation.

—Reporting by Neil Jerome Morales; Editing by Kanupriya Kapoor and Louise Heavens



IMF cuts 2022, 2023 growth forecast for Philippines
Source: Political Elections PH

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