PH economy to grow 6.7 pct in 2018, 2019, says IMF

Reuters

Posted at Jul 25 2018 12:02 PM

PH economy to grow 6.7 pct in 2018, 2019, says IMF 1
Work continues on the Skyway extension in Manila. Mark Demayo, ABS-CBN News/File

MANILA -- The Philippines is likely to sustain economic growth of 6.7 percent this year and in 2019, underpinned by strong consumption and investment, the International Monetary Fund said on Wednesday.

However, it noted that near-term risks from rising inflation and a changing external environment had increased.

"To strike the right balance between growth and macroeconomic stability, policies need to be adjusted to reduce inflationary pressures, while structural reforms should continue to support inclusive growth," the IMF said in a statement issued following its regular "Article 4" review of the Philippines' economy.

In an interview with ANC, Asian Development Bank chief economist Yasuyuki Sawada said the Philippines remained on a "healthy trajectory" when asked about possible overheating risks.

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The peso's depreciation against the dollar is due to rising imports, driven largely by infrastructure development, the ADB official said.

Faster inflation is due to higher oil prices, with higher duties under the first tranche of tax reforms having only a "minimal role," he said.