IMF: PH Economy Can Expect “Shocks” From Global Economic Slowdown

According to an official from the International Monetary Fund (IMF), the economy of the Philippines is still predicted to be one of the strongest performers in the region for 2023 despite it possibly facing “shocks” from an emerging global economic slowdown.

This prediction comes after the IMF lowered their global economic growth forecast to 2.7% from a previous 2.9%, specifying the effects of “the Russian invasion of Ukraine, a cost-of-living crisis caused by persistent and broadening inflation pressures, and the slowdown in China.”

In their latest World Economic Outlook, the IMF retained their forecast for the Philippines’ gross domestic product (GDP) growth at 6.5% for 2022 and 5% for 2023.

On the other hand, the government is aiming for a 6.5 – 7.5% GDP growth for 2022 and a 6 – 8% growth from 2023 to 2025.

“(The) impact of global shocks will weigh on the economy in the coming months and in 2023. GDP growth is therefore projected to slow to 5% in 2023, before picking up to about 6% in 2024. (Growth of) 5% still places the Philippines among the strong regional performers in 2023,”  said Ragnar Gudmundsson, an IMF Representative to the Philippines.

Among the five  Association of Southeast Asian Nations (ASEAN) member countries, the Philippines was ranked as the second fastest for the 2023 growth outlook. Vietnam was first with 6.2% and Indonesia with 5%.

On the other hand, the IMF decreased their ASEAN-5 forecast for 2023 to 4.9% from a previous prediction of 5.1% “to reflect mainly less favorable external conditions, with slower growth in major trading partners such as China, the euro area, and the US.”

Source: Business World