IMF: PH economy performed strongly in 2023 despite challenges
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00:00 Over the years the Philippine government has been up to the task in keeping a tight fiscal policy to rein in inflation
00:07 Pay its debts dutifully maintain a good international credit rating and ultimately post respectable numbers in GDP growth
00:15 Little wonder the nation's international creditors have always been bullish and rosy about the country's inflation prospects moving forward
00:23 Our Soojin Kim has the latest report from the International Monetary Fund or IMF
00:29 The International Monetary Fund reported the Philippine economy performed strongly in 2023 in spite of a challenging external environment
00:38 GDP growth moderated in 2023 to 5.5%
00:44 Inflation is projected to go down in the second half of this year towards the target of 3%
00:54 Credit growth remains healthy and gross domestic product is expected to reach 6% in 2024 supported by a pickup in domestic demand and exports
01:03 Growth is expected to rebound on the back of stronger consumption demand, higher public and private investment and a recovery in exports
01:13 The IMF sees inflation to decline to 3.4% this year from the previous 3.6%
01:20 It reflects our view that in the second half food price inflation will come down faster including due to the recently announced lower import tariffs on rice
01:37 While inflationary risks have moderated recently they remain tilted to the upside with monetary policy stance remaining sufficiently restrictive to firmly anchor inflation within the target band
01:49 Revenue mobilization remains critical to support inclusive growth and strengthen debt sustainability over the medium term
01:58 The revised consolidation path remains ambitious implying a reduction in the fiscal deficit
02:04 This is important to ensure that social protection programs, universal health care coverage and higher education outlays are appropriately enhanced
02:13 It has likewise enhanced competitiveness. Still the IMF recommends additional efforts be taken to upskill the labor force and widen capacities of local government units
02:23 Several policy recommendations could be considered for the Philippines including improving spending efficiency and solidifying fiscal frameworks
02:31 Furthermore, it's very important for the PSP to monitor what's happening domestically and to adjust its monetary policy
02:40 Moreover, continued progress against money laundering and recent reforms to improve the business environment have encouraged the inflow of foreign direct investments
02:48 Soojin Kim from the National TV Network for the New and Better Philippines