The International Monetary Fund (IMF) has maintained its growth outlook for the Philippines, projecting GDP growth of 5.8% for 2024 and 6.1% for 2025.
While these figures fall short of the Philippine government’s targets of 6% to 7% for 2024 and 6.5% to 7.5% for 2025, the IMF noted that the country has successfully navigated recent external challenges. The IMF expects growth momentum in 2025 to be supported by more accommodative financial conditions and increased investment.
The Bangko Sentral ng Pilipinas (BSP) has begun to ease its monetary policy in response to moderating inflation rates.
The IMF highlighted that decisive monetary tightening and other measures have effectively alleviated inflationary pressures experienced over the past two years.
With inflation now within the government’s target range of 2% to 4%, the BSP has reduced policy rates by 50 basis points in its last two meetings. The IMF projects that the country’s inflation rate will decline to 3.3% this year from 6% in 2023, and further to 3% in 2025.
The IMF also said that the global battle against inflation has largely been won, although price pressures persist in some countries.
Global growth is projected to remain steady at 3.2% for both 2024 and 2025, consistent with previous IMF forecasts.
For emerging and developing Asia, the IMF anticipates growth of 5.3% in 2024 and 5% in 2025, including economies like China, India, the Philippines, Indonesia, Thailand, Malaysia, and Vietnam.
However, growth in emerging Asia is expected to slow from 5.7% in 2023 to 5% in 2025, primarily due to a sustained slowdown in China and India
