Philippine economy will grow 4.5% in 2011 – IMF

The Philippine economy will grow at a faster pace of 4.5 percent next year, the International Monetary Fund said Tuesday, revising its earlier forecast of 4 percent in terms of the gross national product for 2011.

“Higher growth is very possible. It can be achieved,” IMF head of mission Vivek Arora said in a briefing at the Bangko Sentral ng Pilipinas headquarters.

“The near-term economic outlook is favorable, and the staff team projects growth to be 6 percent in 2010 and 4.5 percent in 2011,” Arora said.

“Inflation is expected to remain comfortably within the target range this year and next, and the balance of payments to remain in surplus,” he added.

Arora noted the Philippines emerged relatively unscathed from the global economic downturn, having posted actual growth averaging 1.1 percent in 2009, or better than the preliminary report showing that the economy grew by only 0.9 percent.

The Philippines this year is on track towards growth, given that the economy grew at a faster-than-expected pace of 7.3 percent in the first quarter.

The government earlier said that the economy would likely expand within a range of 7 percent to 8 percent in GDP terms.

“When all the reforms shall have been in place and its effects become clearer, we will be in a better position to judge whether the reforms achieved [the] purpose,” Arora said. —VS, GMANews.TV