IMF Statement at the Conclusion of Staff Visit to the Philippines

An International Monetary Fund (IMF) mission to the Philippines was organized on February 11−17, 2016. The mission met with the Governor of the Bangko Sentral ng Pilipinas (BSP), the Secretaries of the economic cluster, senior government officials, private sector representatives, and the financial community.
According to the IMF following statement, “The Philippine economy has performed remarkably well in the face of a weaker external environment and global financial turbulence in 2015. Despite a large drag from net exports, real GDP growth remained robust in 2015 at 5.8 percent, reflecting a strong pickup in private investment and public construction through the year. Real GDP growth is projected at 6.0 percent in 2016 and 6.2 in 2017, driven by continued strong domestic demand offsetting weak net exports. The unemployment rate has fallen to a decade’s low of 5.3 percent, but significant under-employment remains. Inflation fell to 1.4 percent in 2015, below the inflation target range (2–4 percent), due to lower food and fuel prices. Inflation is expected to rise to 2 percent in 2016 as commodity prices stabilize.
The economic outlook is favorable but subject to increased downside risks, including lower growth in China and the region, higher global financial volatility and capital outflows, and weather related disruptions. However, the Philippines’ capacity to respond if these risks materialize is substantial given its ample reserves and policy space, both monetary and fiscal.
Over the medium term, a continuation of prudent macroeconomic policies and good governance would be critical to sustain investor confidence and the growth momentum. To support growth, structural reforms will also be needed to address structural issues centering around the low rate of national investment, opening up the economy to greater competition and foreign investment, and high rates of poverty and inequality”.
The 2016 Article IV consultation mission is planned to visit Manila in June–July 2016.”
Press-release at the official IMF web-site