Philippines: 2019 Article IV Consultation-Press Release; and Staff Report

IMF Staff Country Reports, February 6, 2020

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Economic performance remains strong.
Growth regained momentum in the second half of 2019 following a slowdown in the first half of 2019.
The first-half 2019 slowdown primarily reflected budgetary developments, with some temporary government underspending in the early part of the year.
A decisive monetary policy tightening in response to the inflation spike and overheating risks in 2018, and weaker external demand, also contributed to the slowdown.
Gross domestic product growth is projected to rise further in the near term, underpinned by government spending acceleration and the recent monetary policy easing.
Risks to the outlook are to the downside, reflecting:
- increased trade tensions,
- shifts in global financial conditions,
- natural disasters,
- risks to the global economy.

Macroeconomic policy focus:
- Keep the economy close to balance under the baseline outlook and risk scenarios.
Macroprudential strategy:
- Address risks from a potential renewed acceleration in credit growth.
Structural reforms and spending:
- Continue policies and reforms to foster stronger and inclusive growth.
- Maintain the structural reform momentum and infrastructure push.

Subject: Credit, Expenditure, Inflation, Infrastructure, Money, National accounts, Prices, Public debt
Keywords: CR, Credit, energy inflation, FSI website, fund, Global, IMF definition, IMF staff estimate, Inflation, Infrastructure, ISCR, liability positions vis-à-vis nonresident, Philippines, private sector, rate, report data, ROSC report

Source: International Monetary Fund — Philippines: 2019 Article IV Consultation-Press Release; and Staff Report