Upbeat No. 21.07.14 nn No. 2114 10.30.2008
PHL economy is "well-positioned" The International Monetary Fund (IMF) said that the Philippine economy is strong enough to withstand tighter monetary conditions. As the country is projected to fare positively as monetary authorities move toward a more “normal” policy stance in preparation for tighter global financial conditions, the government still has a huge role to play in securing the economy’s continued expansion, according to IMF Resident Representative to the Philippines Shanaka Jayanath Peiris. The economy is well positioned for a tighter monetary policy setting, together with a needed rebalancing Knowledge of the policy mix towards an expansionary fiscal policy Management and Information Service to accommodate fiscal spending for post typhoon Makati City, Philippines Tel.: (632) 895.3611 reconstruction and infrastructure upgrading,” Fax: (632) 895.6487 publications@dti.gov.ph Peiris said. Copies available upon request.
He mentioned that the country is still positive in spite of a first quarter easing in economic growth to a below-target 5.7% as well as the recent slowdown in public spending. Meanwhile, the government had significantly improved its fiscal program in the past years, as divisions to certain sectors of the economy have been raised in line with the Administration’s inclusive growth agenda. “The fiscal surplus to May 2014 reflects higher revenues and lower than programmed spending... The greater allocation of spending to social sectors in the last few budgets have also been impressive,” he added. Generally, the spending efficiency has progressed over the last few years. It is still expected that the economic growth will continue to be robust despite the tough financial conditions and as industries continue to recover from last year's calamities. This works if the current Administration continues to elevate disbursements. The IMF perceives Philippine economic growth hitting 6.5% this 2014 and in 2015. The projections were showed at the end of an Article IV consultation in March, as well as in the World Economic Outlook (WEO) report released last April. From this year’s 6.5-7.5%, the government is targeting an even higher 7-8% expansion for 2015.