IMF says PH economy doing well, but cuts growth forecasts for 2022, 2023

The Philippines has done well to emerge from one of the strictest lockdowns in the pandemic; the economy remains fundamentally sound, with real gross domestic product projected to grow by 6.5 percent in 2022, according to a visiting team of the International Monetary Fund.

The latest IMF forecast on Philippine GDP growth for 2022 (6.5 percent) is lower than the 6.7 percent stated previously, taking into account the sharp slowdown in the global economy, according to IMF consultation mission chief Cheng Hoon Lim.

The IMF also cut its growth forecast on the Philippines for next year to 5 percent, from its earlier estimate of 6.3 percent.

One of the team’s recommendations is that the Bangko Sentral ng Pilipinas should continue raising interest rates until inflation is brought under control.

The team plans to submit to the IMF executive board the findings of the mission by the end of November.

Earlier, President Marcos’ economic team had tempered its growth expectations for this year to 6.5-7.5 percent from 7-8 percent previously due to the impact on the economy of the Russia-Ukraine conflict and interest rate hikes by central banks globally to rein in elevated inflation.

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