According to the International Monetary Fund (IMF), the Philippines will still be Asia’s second fastest-growing country, after China.
According to the World Economic Outlook report by IMF, amidst irregular economic growth across Asia and slower development for China, the growth of the Philippine economy is expected to be strong in 2014.
When the IMF visited Manila last March, it gave the country a 6.5 percent outlook. On the other hand, it gave China 7.5 percent. In terms of actual growth, China grew by 7.7 percent last year, while the Philippines grew by 7.2 percent.
IMF’s outlook for China and the Philippines surpasses their overall estimate for Asia this year which is 5.4 percent. It also tops the 4.9 percent for the ASEAN-5 which includes Indonesia, Thailand, Malaysia, Vietnam, and the Philippines.
The organization also pointed out that in the Association of Southeast Asian Nations (ASEAN) region, economies will be uneven, except for the Philippines and Malaysia. It likewise identified external factors that could pose threats. These include stricter financial environments - now that output in advanced countries like the US is picking up.
On the other hand, the IMF stated that Japan could experience slower growth due to negative spill overs resulting from foreign direct investment in Indonesia and Thailand. Another thing that the country should watch out for is the risk of deflation returns stemming from the policy promoted by Prime Minister Shinzo Abe, which is anticipated to lift Japan out of recession.