Makati city: The International Monetary Fund (IMF) forecasts that the Philippine economy will grow at a faster rate than the average for the Association of Southeast Asian Nations (ASEAN), driven by key reforms that may unlock stronger long-term growth potential. In an exclusive interview with the Philippine News Agency, IMF Managing Director Kristalina Georgieva highlighted the Philippines' standout performance within the ASEAN region.
According to Philippines News Agency, Georgieva noted that ASEAN countries are outperforming the global growth average, with projections of 3.3 percent for this year globally, 4.3 percent for ASEAN, and an even higher growth rate for the Philippines within the region. The IMF's latest World Economic Outlook projects Philippine growth at 5.6 percent for this year, increasing to 5.8 percent by 2027.
Georgieva acknowledged a slight slowdown in the Philippine economy last year but expressed optimism that ongoing reforms could help the nation catch up. She cautioned that geopolitical tensions in the Middle East could pose risks to the global economy by impacting energy prices and inflation expectations.
The IMF chief emphasized the importance of reducing reliance on imported oil by accelerating investments in renewable energy. She praised the Philippine government's efforts to ease regulations for solar projects and encouraged further investments to enhance the grid's capacity to integrate renewable energy sources.
Georgieva urged the Philippines and other ASEAN nations to remove investment barriers, improve governance, invest in human capital, and embrace digitalization. She emphasized the importance of preparing the workforce for the era of artificial intelligence and strengthening resilience against climate-related shocks.
She commended the Philippines' strong institutional foundations, such as its independent central bank and prudent fiscal policies, which she identified as essential for sustained economic growth. Georgieva advised the country to continue focusing on productivity growth and learning from other nations' successes in this area.
