IMF cuts 2022, 2023 growth forecast for Philippines

THE International Monetary Fund (IMF) on Monday (Sep 26) 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 South-east Asian country this year would hit 6.5 per cent, weaker than its previous forecast of 6.7 per cent, while growth next year is seen at 5.0 per cent, also slower than its earlier estimate of 6.3 per cent.

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 per cent, to combat inflation. REUTERS