Philippine economy to grow below target in 2019, 2020 — IMF
MANILA, Philippines — The Philippines will likely miss its growth targets for this year and the next after the economy underperformed in the second quarter and as external headwinds bite, the International Monetary Fund reported Wednesday.
In its new “World Economic Outlook” report, the Washington-based global lender said it expects the Philippine economy to grow 5.7% in 2019, lower than its previous projection of 6%.
For 2020, the IMF penciled in a growth rate of 6.2%, down from 6.3% forecast it gave in July.
The government is aiming to hit growth rates of 6%-7% in 2019, 6.5%-7.5% in 2020 and 7%-8% from 2021 to 2022. The economy expanded 6.2% last year.
The Philippine economy expanded 5.5% in the second quarter, weaker than 5.6% recorded in the preceding three months after the delayed approval of the 2019 budget disrupted state spending.
Socioeconomic Planning chief Ernesto Pernia said the economy would have to grow by an average of 6.4% in the second half to hit the low-end of the government’s target for this year.
Meanwhile, IMF slashed its global growth forecast to 3% for this year — the lowest level since 2008–2009.
“With uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize,” IMF said.
“To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to economic activity where needed,” it added.
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