by: Sarah Joson
Tuesday, September 8, 2015 |
The International Monetary Fund (IMF) still sees the economy of the Philippines “favorable” despite the falling inflation and global volatilities affecting the local financial market. The institution even commended the economic managers for being able to handle the economy well.
During the conclusions of the 2015 Article IV Consultation with the Philippines, IMF released a statement that said the country is still growing and has a lot of potential amid the slowdown in growth during the first few months of the year.
The global monetary authority also said the forecast for the Philippine economy remains favorable even with largely weaker global growth prospects. Moreover, since the economy is propelled by potential, there are no price or wage challenges even with the considerable slack in the labor market.
As for growth, the Philippine Statistics Authority (PSA) reported that the country matured at a revised growth of five percent in the first quarter, and posted a 5.6 percent growth in the second quarter.
A one-percent decline was seen in inflation - the latest in August at 0.6 percent. The foreign exchange market ad stock exchange, on the other hand, showed significant losses this year because of market volatility.
The IMF pointed out that the Philippines’ external and fiscal positions are solid, and has a significant level of current-account surplus and gross international reserve.
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