by: Sarah Joson
Thursday, September 3, 2015 |
According to global finance organization International Monetary Fund (IMF), they will be announcing lower forecasts for the Philippine economy in October - in line with the local government’s descending revision to the first-quarter growth in gross domestic product (GDP). This year, the IMF’s initial forecast was 6.2%, and 6.5% for 2016.
An IMF representative said the organization is positive that the Philippine economy will recover and gain traction, but it will likely fall short of the forecast range of 6.2%, and is nearer the low end range of 6%.
The government overestimated growth projections during the first quarter, and revised their initial figure from 5.2% to 5% after reviewing data from public administration and defense; mining and quarrying; and agriculture, hunting, forestry, and fishing sectors.
Shanaka Jayanath Peiris, IMF resident representative to the Philippines, pointed out that abrupt revisions made by the government and the risks in the global economic environment are expected to lead to lower growth forecast for the country for 2015 and 2016. The official added that the revised growth forecast for the Philippines will be released in October and will be included in the revision to the multilateral group’s World Economic Outlook report.
Peiris also noted that the IMF is positive that the country will continue to gain traction in terms of growth in the 6-6.5% mark for 2015 and 2016 as public spending continues to improve, as well as the continuous improvement in exports and pacified global economies.
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