PH economy to grow 5.5 pct in 2025: IMF mission chief

MANILA, May 24 ------ The Philippine economy may grow 5.5 percent in 2025, a mission from the International Monetary Fund (IMF) said. The IMF previously estimated the 2025 Philippine gross domestic product to expand by 6.1 percent. 

In a statement, IMF Mission Chief Elif Arbatli-Saxegaard said lower interest rates, inflation and unemployment would drive consumption. She added that the Bangko Sentral ng Pilipinas (BSP) has room to further ease monetary policy, and that she expects inflation to stay towards the lower end of the target band at 2.2 percent. But Arbatli-Saxegaard noted that the risks to growth were tilted to the downside because of external factors. "While the announced US tariffs are expected to have a limited direct impact, the higher global policy uncertainty and lower growth in major economies will weigh on growth," she said. 

She also flagged the weaker-than-expected growth in the first quarter. The Philippine economy grew 5.4 percent in the first three months of the year. The official said bad weather and other supply shocks, including potential disruptions in global supply chains, could drive inflation upward. "On the other hand, risks of weaker global demand prospects and excess capacity in certain sectors could pose deflationary risks, including through lower commodity prices," she said. “The Philippine economy holds significant potential with a sizable demographic dividend and abundant natural resources," Arbatli-Saxegaard said. 

She said, however, that government should continue to work on strengthening social protection programs, promoting digitalization, and increasing resilience to climate shocks and natural disasters.  

Source: news.abs-cbn.com