IMF lowers Philippine 2024 growth forecast to 6% from 6.2% estimated in April

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MANILA: The Philippine financial system would doubtless develop 6% this yr, lower than forecast in April, the International Monetary Fund mentioned on Monday, however the tempo of enlargement will choose up from final yr as home demand recovers.
The IMF’s newest estimate is down from its April forecast of 6.2%, however exceeds the financial system’s 5.5% enlargement in 2023. The determine was on the lowest finish of the federal government’s 6.0-7.0% goal for 2024.
The IMF maintained its 2025 growth forecast of 6.2%.
“Growth is expected to rebound…on the back of stronger consumption demand, higher public and private investment, and a recovery in exports,” the IMF mentioned in a press release.
The outlook will not be with out draw back dangers, the IMF mentioned, due to geopolitical tensions, climate-related shocks, and better rates of interest.
The Philippine central financial institution’s key coverage price is at a 17-year excessive of 6.50% after a sequence of price hikes final yr to tame inflation which has come down from a 14-year peak of 8.7% in January final yr. Annual inflation averaged 3.5% in the 5 months to May.
With inflationary dangers nonetheless tilted to the upside, the IMF mentioned “monetary policy should remain sufficiently restrictive to firmly anchor inflation” throughout the central financial institution’s 2.0% to 4.0% goal band.
The central financial institution, which can meet on June 27 to overview financial coverage, has mentioned it may cut back charges as early as August and ship one other price lower in the fourth quarter.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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