Employees work on a construction site in Manila on Sept. 17, 2012. The International Monetary Fund has kept its 2012 growth projection for the Philippines, but reduced its figure for next year as it sees a weaker global economy. AFP PHOTO/JAY DIRECTO
The International Monetary Fund has kept its 2012 growth projection for the Philippines, but reduced its figure for next year as it sees a weaker global economy, which may dampen sentiments of investors and consumers.
In its latest issue of “World Economic Outlook” released Tuesday, the IMF said the Philippines would grow by 4.8 percent this year, sticking to the 2012 forecast it made in July.
But the growth outlook for 2013 was cut to 4.8 percent from the previous projection of 4.9 percent.
The IMF’s forecast is below that of the government’s range of 5 to 6 percent for this year, and 6 to 7 percent for next year.
In the report, the IMF said that the Asia-Pacific region would be facing graver risks next year due to the escalation of the crisis in Europe and the failure of the United States to address its fiscal problems.
Apart from being the Philippines’ biggest export markets, the eurozone and the United States are also two of the country’s biggest sources of foreign direct investments.
Exports account for about 30 percent of the Philippine economy.
The problems now upsetting some of the world’s most advanced nations may eventually dampen investment and consumption activities of economies across Asia, the IMF said.
The multilateral institution now expects the global economy to grow by just 3.3 percent this year, reducing its initial forecast of 3.5 percent. For 2013, the IMF also trimmed its global economic growth forecast to 3.6 percent, from 3.9 percent.