IMF slightly raises growth projection for ASEAN states

MANILA, Philippines — The International Monetary Fund has upgraded its 2018 growth forecast for five major Southeast Asian states, including the Philippines.

In an economic outlook update published on January 22 (Washington time), the IMF slightly hiked its 2018 economic growth projection for Indonesia, Malaysia, the Philippines, Thailand and Vietnam by 0.1 point to 5.3 percent from 5.2 percent.

The multilateral lender kept its 2019 forecast at 5.3 percent.

“Global economic activity continues to firm up,” the IMF said. “Risks to the global growth forecast appear broadly balanced in the near term, but remain skewed to the downside over the medium term."

The Philippines' gross domestic product — or the value of all finished goods and services produced in the country — grew 6.6 percent in the fourth quarter of 2017, decelerating from the upwardly revised 7 percent in the previous three months.

The October-December GDP settled below market estimate of 6.7 percent, but nonetheless matched the growth rate recorded in the same period in 2016.

The fourth quarter figure placed the country’s full-year GDP performance to 6.7 percent, slower than 2016’s 6.9 percent but still within the government’s 6.5-7.5 percent growth target range in 2017.

READ: Philippine economy grows 6.7% in 2017

The Philippines has a 7.0-8.0 percent growth target in 2018.

Last year, Manila-based Asian Development Bank raised its 2018 GDP forecast for the country to 6.8 percent from 6.7 percent.

Meanwhile, the World Bank’s expects the country’s economy to grow 6.7 percent in 2018 and 2019, before clocking a tad slower growth rate of 6.5 percent in 2020.