In yet another direct endorsement of the soundness of the financial policies being followed by the Philippines, the International Monetary
Fund (IMF) announced on Tuesday that the Filipino fiscal scenario will continue to sustain its economic growth in a robust manner which will be spurred by
the ever-growing domestic demands that will continue to reflect its resilience and strength.
This is the gist of the latest report that the IMF released as a part of the Regional Economic Outlook for Asia and the Pacific region; it clearly stated that, in
comparison to the previous year’s economic growth which was pegged at 5.8 percent, the forecast expansion of growth would be 6.1 percent in 2016 while
the growth will further expand slightly to 6.2 percent in 2017.
This is definitely just a marginal growth but it shows that the growth is not dipping and it is able to maintain a positive outlook riding on the consistent
domestic demand which will adequately offset the negative effects of the drop in net exports.
The positive factors supporting the domestic demands over the next couple of years will be better growth in investments and enhanced public consumption
while the private demands will also be quite high riding on lower oil prices and increased remittances by the workers as stated by the IMF.
The IMF further explained that the infrastructure needs of the country would be bolstered by the introduction of quite a few Public Private Partnership projects
(PPP) projects; these will have the effect of enhancing the public infrastructure of the Philippines which has been lagging behind while private investments will also be bolstered.
It was also clarified by the IMF that the outlook for the shorter term will see the external trade and net exports maintaining low returns and that the impact of
the slowing down of the Chinese economy on the economy of the Philippines will be minimal at best.
Further, extolling on the negative impacts that the slowdown of Chinese economy has been having on the world and regional economies, the IMF elaborated
that with particular reference to Philippines, the negative effects have been quite low and it is expected that they will not be a matter of concern.
It also elaborated that the real growth in GDP was sound in the Philippines in spite of the fact that the net exports were quite low but it was
the favorable terms of the trade that spurred the domestic demand.
Author: Umrao Singh Umraoz.wordpress.com
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