Philippines: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Philippines

IMF Staff Country Reports, December 15, 2023

Source details

Canonical URL: Philippines: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Philippines

The Philippines’ growth momentum started to moderate after a strong post-pandemic recovery.
Growth is projected to rebound in the second half of 2023 and 2024.
Inflation is expected to gradually approach the target.
Risks to the growth outlook are tilted to the downside, mainly stemming from persistently high inflation, globally and locally, and a highly uncertain global economic and geopolitical environment.
Upside risks to the inflation outlook include higher commodity prices and potential second-round effects.

Growth: moderation after post-pandemic recovery; rebound expected in H2 2023 and 2024.
Inflation: gradual approach to target, but subject to upside risks from commodity prices and second-round effects.
Risk assessment: downside tilt to growth outlook due to sustained inflationary pressures and global uncertainty.

Anchor inflation expectations.
Maintain debt sustainability.
Increase economic and financial resilience to adverse shocks.
Support the investment recovery.
Implement reforms to raise productivity growth and the standard of living for all Filipinos.

Reduce infrastructure and education gaps.
Promote foreign investment.
Strengthen governance.
Harness the digital economy to boost growth potential and inclusivity.
Complement reforms with efforts to further strengthen skills and the social safety net.
Address climate risks through a multipronged approach.