IMF Staff Country Reports

The Philippine economy has achieved successful disinflation on the back of a
well-calibrated monetary policy tightening cycle and concerted government measures
to reduce food prices. Domestic demand, underpinned by public spending, has been
resilient, supporting headline growth. The Philippines is affected by the recent increase
in global trade barriers, though its direct exposures remain relatively limited, playing a
mitigating role. Growth is expected to remain robust but below its potential in the near
term amid heightened external challenges, while inflation is expected to remain muted.
Risks are tilted to the downside, stemming from rising global trade barriers and policy
uncertainty, while natural disasters continue to pose important macroeconomic risks.