IMF sees 6% PH growth


The International Monetary Fund (IMF) has raised its 2013 growth forecast for the Philippines, citing robust consumer spending and rising domestic investments.

The IMF also said that an increase in public spending, aided by an improvement in the government’s fiscal standing, would help in boosting the country’s economy this year.

The IMF now expects the Philippines to grow by 6 percent this year—better than the 4.8 percent it announced last October. Still, the forecast is below the estimated 6.5 percent growth registered in 2012.

For 2014, the IMF expects the Philippine economy to grow by 5.5 percent.

Rachel Van Elkan, head of the IMF mission to the Philippines, said in a press conference yesterday that the Philippines’ performance last year was remarkable. She said the country was able to shrug off the problems now upsetting the global economy.

Van Elkan also believes that the Philippines will continue to be resilient, fending off global shocks.

“This growth resilience and more favorable outlook is both a testament to the Philippines’ improved macroeconomic fundamentals [and] policy reforms,” she said.

The IMF took note of the reforms in governance, saying that these complemented efforts to keep the economy healthy.

“The focus on good governance has buoyed confidence and is supportive of more inclusive growth,” Elkan said.

On inflation, the IMF expects the rate of rise in consumer prices to settle at the lower end of the government’s target range of 3 to 5 percent over the short term.

Also, the balance of payments “is forecast to stay in the surplus,” Van Elkan said.

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  • Archie_whites

    Multiplier effect must be the bottom line of every peso that goes to the funds of Govt pump priming spree, the economy that was created by pump priming in a certain locality should be guided not “aided” to attain sustainability. 

  • Ben

    The country`s effort is not enough. More is needed to attain an 8% or higher GDP/GNP growth. We must find ways to stream line doing business here and reduce the red tape, remove the barrier that prevents us from attaining the ideal growth rate, the rate that is really going to be felt by the people 8% or more. If the constitution is the stumbling block we must amend it and make it responsive to the time, allow and encourage R& D in our country with a condition that there will be technology transfer. We need to double our effort to help this country, unleash the PPP languishing for years now. We need infrastructures that will make trasporting of good and services cheaper and faster, implement the high speed railway, build an array of armored road dikes to free up development, speed up traffic and protect the population from yearly climate change damage.

  • Your_King

    Maybe the IMF is not aware that it is election time in the Philippines so the spending and growth is due to that. The figures are good, but as the IMF Chief Legarde mentioned, it is due to the work that the Philippines leaders have done the past decade which hits back to the time of GMA. The numbers that are out now are from initiative that were put up by the previous admin. Aquino is just benefiting off of the results. He hasn’t added anything significant and tangible to have accounted for these figures. All he’s done is jail GMA and jailing GMA does not contribute to any growth. I know people may read this and think it was all Aquino but that is very inaccurate.

  • disqusted0fu

    This is more believable than that of the spinsters of the Palace. 

    Pnoy is an economics graduate, he should know what to do on how to at least keep PH economy afloat, and not just rely on sweetened up numbers and twisted facts to make it appear that it is so.

  • kilabot

    6% growth in the waistlines of the rich; 
    to the ordinary man, 6% growth in suffering; 
    6% growth in pork and mooe for politicians. 
    666, that’s a good number.

  • Hayek_sa_Maynila

    Why did we allow this institution to set the direction of our macroeconomic policies for at least 3 decades? Even more sad is that there are still some top Filipino economic managers from Roxas Blvd who still look at the PHL economy from the lenses of 1990’s one-size-fits all financial programming framework of this Bretton-Woods institution. 
    Why in the world is the BSP letting its SDA balloon to nearly $2 trillion despite nominal GDP growing just as fast as M3? How many years has M3 growth stayed in single digits and below nominal GDP expansion? Its about time we allow unsterilized FX intervention! Unsterilized FX purchases in the spot USD/PHP market is nothing compared to QE infinity in the US, BoE, BoJ and the ECB!

  • Hayek_sa_Maynila

    Why is the IMF silent about their 2012 GDP growth estimate of the PHL? Just to remind everyone, as early as October 2012, the IMF was forecasting 4.8% GDP for FY2012 for the PHL despite 1H2012 growth already at 6.1%. 

    The most recent “informal” revision was from Ms. Lagarde herself who said that the PHL can grow by 5.0% in 2012. Now that 9M2012 growth is out at 6.5%, still no upward revision?

  • rickysgreyes

    We can grow at 7-8% if government will fast track PPP

  • rodben

    Good news to the Philippine gov’t but Bad news to OFW’s nothing benefits in return being a MILKING COW of the Philippine gov’t. TSK…TSK…TSK..

    • Bring back Phils Glory. Unite.

      i hope that OFWs will be allowed to bring their cars home. At least every 4 years. So when they have paid for it in full. They can bring it to the country.

      • 1voxPopuli

        yes you can, chop-chop mo then padala mo sa balikbayan box. =)

        kidding aside, this will kill local car dealers.

      • Bring back Phils Glory. Unite.

        but OFWs doesn’t have two salaries to buy one car in their host country and in the Philippines. this will help them out.

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