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IMF Cuts Philippine Growth Forecast

IMF Cuts Philippine Growth ForecastIMF Cuts Philippine Growth Forecast

The International Monetary Fund trimmed its 2017 growth forecast for the Philippines to 6.6% from 6.8%, citing slower than expected first quarter expansion, but was optimistic the economy would grow strongly in the medium term, Reuters reported. There is no evidence that investor confidence in one of Asia’s fastest-growing economies has been hit by security worries, an IMF official said on Tuesday. However, he warned that rapid credit growth and strong private investment could lead to overheating. “The Philippines really stands out as a place that continues to do very well economically,” Luis Breuer, who led an IMF mission that just completed a review of the economy, told reporters. “Growth is very strong. At the same time, inflation is very low,” he said. While the new 2017 forecast was lower than the 6.8% the IMF estimated in February, Breuer said he expects growth to be at 6.8% in the medium term, supported by robust domestic demand and a recovery in exports.

 

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