PHL to grow fastest among ASEAN-5 nations in 2014, 2015 – IMF

The Philippine economy will likely grow the fastest among the ASEAN-5 nations this year and next, the International Monetary Fund (IMF) said in a regional economic report.

Asean-5 includes Indonesia, Malaysia, Philippines, Singapore and Thailand.

Philippine output is expected to grow by 6.5 percent this year and in 2014, according to the IMF report, “Sustaining the Momentum: Vigilance and Reforms.”

IMF also noted: Indonesia would grow by 5.4 percent this year and 5.8 percent next year; Malaysia by 5.2 percent and 5 percent; Singapore by 3.6 percent and 3.6 percent; and Thailand by 2.5 percent and 3.8 percent.

“Official goals of rapid and inclusive growth will likely provide a boost to growth, as infrastructure spending is ramped up in a context where the near-term fiscal deficit target remains manageable,” the report read.

Philippine economy, as measured by the gross domestic product, grew by 7.2 percent last year. It was the fasted among among the ASEAN-5 nations compared with 5.8 percent for Indonesia, 4.7 percent for Malaysia, 4.1 percent for Singapore, and 2.9 percent for Thailand.

Even if supply problems that ensued in the aftermath of Typhoon Yolanda in November did not really impact on Philippine growth prospects, the Fund, however, noted escalating food prices posed risks to monetary policy, while the weakening of the peso could also put pressure on core inflation in the face of strong demand in the domestic domestic market.

Growth in the ASEAN region, except in the Philippines, was influenced by cyclical factors, according to IMF. “These have been mostly domestic, but external factors have also played an important role.

“Going forward, the anticipated upturn in global demand conditions should become more of a supportive factor, particularly in Malaysia and Singapore,” the Fund said. – VS, GMA News