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Philippine Economy to Expand 6.7%

Philippine Economy to Expand 6.7%Philippine Economy to Expand 6.7%

The Philippine economy is set to sustain strong growth this year and next, the International Monetary Fund staff said after concluding the Article IV Mission, Business Insider reported. Real GDP grew 6.7 percent in 2017. The IMF team projected that this rate will be sustained in 2018 and 2019 driven by strong consumption and investment. Citing rising international oil prices, external pressures on the peso, one-off effects of higher excise taxes, and domestic demand pressures, IMF staff team led by Luis Breuer, forecast inflation to rise rapidly to 5.2% in June. Further, the current account deficit is expected to rise to 1.5% of GDP by end-2018, reflecting increased imports of capital goods and raw materials. The medium-term economic outlook remains favorable, but short-term risks have risen, Breuer said. Real gross domestic product growth is projected at just under 7% over the medium term. Inflation is projected to gradually fall to under 4% in 2019 and move toward 3% over time.

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