Even if the Philippines is earning progressively and has strong demand for locally made goods, the International Monetary Fund, a Washington-based global financial firm, has kept its forecast of the country’s economic growth at 6.2 percent due to the financial state of economies worldwide.
According to the report "World Economic Outlook" by IMF, maintaining the growth forecast for this year is driven by the external factors the country faces amidst accommodative policies, favorable external demand, and better financial conditions.
Growth was projected at 6.5 percent for this year, but went down to 6.2 percent last July because of the slow performance of the economy during the first quarter. It then increased to 6.4 percent due to strong exports and manufacturing output. However, it did not come close to the 7.9 percent growth posted during last year’s second quarter.
Shanaka Jayanath Peiris, IMF Representative to the Philippines, said recovery in exports and other economic developments is not that different from what they expected before, which is why they are retaining the 6.2 percent forecast for 2014.