IMF upgrades growth forecast for Philippines

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Visiting International Monetary Fund Managing Director Christine Legarde gestures while answering questions from the media during a news conference Friday, Nov. 16, 2012 at Malacanang Palace in Manila, Philippines. Legarde lauded the Philippines for transforming the country from being a “borrower” to a “small creditor.” AP

MANILA, Philippines—The Philippines is probably the only country for which the International Monetary Fund is upgrading its growth forecast for 2012, the IMF’s managing director Christine Lagarde announced at a Malacañang news briefing Thursday.

While the economies of Europe and the United States are mired in recession, the Philippines is on the road to economic growth in excess of 5 percent this year, Lagarde said.

“I congratulated the Filipino authorities for their excellent economic stewardship during difficult times. In the last decade, the Philippines managed to have an average growth of about 5 percent,” Lagarde said. “And you will be interested to know that this year, 2012, at a very difficult time because of the financial crisis in other parts of the world, the Philippines is probably the only country of which we have increased the growth forecast as opposed to other places in the world where we actually decreased our forecast.”

The Aquino administration has set a growth target of between 5 and 6 percent this year, 6 and 7 percent in 2013, and at least 7 percent in the succeeding years.

Lagarde’s remarks gave credence to a statement visiting Canadian Prime Minister Stephen Harper made last week that the Philippines was “an emerging Asian tiger.”

Officials of other first-world countries such as Australia had earlier arrived at the same observation, with the business establishment led by Asia Society Australia telling the President, during a state visit to Australia last moth, that the Philippines was now “the fastest-growing economy in Asia.”

Lagarde said she knew that the growth in 2012 would be “way in excess of five percent” even as the IMF looked forward to the country’s growth rate for 2013 being in the range of 5 percent, as well.

Lagarde credited this robust economic growth of the country—once the basket case of Asia—on the two-year-old Aquino administration’s fiscal reforms.

“This is due in no little part to the excellent policy mix deployed both by the secretary of finance and the Central Bank of the Philippines, and the combination of sound fiscal policy as well as sound monetary policy,” she added.

However, she said, she hoped for more “inclusive growth” that would trickle down to the poor.

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  • http://www.facebook.com/gigi.yuchan Gigi Yuchan

    Kung si obama 4 years niya bagsak parin economy ng america, pero si aquino 2 years lang maganda na agad feedback ng ibang bansa sa economy ng pilipinas, ibig sabihin lang niyan ang policy talaga ng kasalukuyang administrasyon ang dahilan maganda man o hindi ang economy ng bansa.

  • Cal_Reznick

    Let’s pause and take a moment to give credit where credit is due based off of what the IMF chief explained.

    Good job to the previous Administration for setting up and initiating this economic growth.

    &

    Good job to the current Administration for maintaining it thus far.

    Hopefully, the current Administration can maintain this growth.

  • My mom

    IMF is of course aware that bloated DOF statistics have been used to justify the impending approval of the sin tax reform bill. By the experience of other countries imposing tobacco tax shocks, IMF knows that tax hauls might rise in Year One but backfire starting Year Two. IMF is aware of the resulting long-term oversupply of tobacco leaves in the North will starve tobacco farmers. IMF knows that the unemployment problem will worsen as cigarette factories close one after the other, except for some PMFTC factories. Through all this, IMF knows that the Philippine Universal Health Care program will be eating crow two years from the day the sin tax bill is signed into law. Especially so because bloated DOF statistics will tell by then. Why doesn’t IMF care? Because the sin tax bill will favor importation and sourcing of cigarettes abroad. Soon, most cigarettes sold in the country would be imported through legal or illegal means. “Blue Sealed.” What’s IMF solution? Text Tax, the dreaded text tax. Later, IMF will prescribe heavier, steeper income taxes so smokers and non-smokers alike are forced to pay for excise tax losses. What a mess! The Filipino nation have all been duped, used, and abused by the IMF/WB on the altar of the new world order. The sad truth is that it is IMF’s mission to wreck local economies so that imbalanced world trade could prosper.

  • http://pulse.yahoo.com/_GYYFBINDMTZHM6TDHPB667452M agustin

    GMA’S  EXIT ,OUR ECONOMY WAS AT 7.5%, DUE TO NOYNOYING IT DROPS TO 3%. NOW IMF FORECAST THE GROWTH TO 5%. IT IS NOW BOUNCING BACK DUE TO GMA’S ECONOMIC FOUNDATION SHE LAID UP DURING HER TERMS.

  • http://profile.yahoo.com/FFSZ7TIZZG47FYQFAZFIGYXKPM Pers

    IF AQUINO HAS WORKED HARDER THIS ECONOMICS GROWTH CAN BE 7 PERCENT UP. BUT AQUINO IS LAZY.THIS ECONOMIC GROWTH IS ACHIEVEMENT OF ARROYO. UNTIL NOW AQUINO ADMINISTRATION HAS NO ECONOMIC POLICY.PURO DAL2X NG DAL2X

  • ProudPinoyinLosAngeles

    God bless the Philippines! Now is the time for us to be more united as a people. All of the Filipinos worldwide should be proud of the things that are happening back in the motherland. Let’s rid ourselves of the “crab” mentality that has plagued our culture for so long! Let’s unite under our President that we may together as one nation bring the Philippines out of global obscurity! Go Philippines!

  • goavan

    the country can even register 20% growth…next question is??? does it benefit the common tao??? or its just a case where rich people becoming more richer and poor people becoming more poorer.  lagarde said that she hope the growth is “inclusive”.  what say???

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