Posted by: mulrickillion | December 29, 2011

Press Release: Statement at the Conclusion of IMF Staff Mission to the Philippines

Press Release No. 11/460
December 12, 2011

The following statement was issued in Manila today at the conclusion of an International Monetary Fund (IMF) staff mission to the Philippines for the 2011 Article IV Consultations:

The Philippines is being affected along with other countries in the region by the fragile global economic environment, but macroeconomic conditions remain generally sound. The authorities’ policy management is supporting confidence and has built up room for a strong response should further negative shocks occur. The key challenge now is to navigate through the period of global uncertainty to maintain macroeconomic stability while building the foundations for faster and more inclusive growth.

GDP growth slowed in the first three quarters of 2011 owing to a fall in semiconductor exports and a temporary fall in public investment as new practices are put in place to improve the transparency and efficiency of government expenditure. The staff team expects growth to average 3.7 percent in 2011 and rise to 4.2 percent in 2012 as public spending recovers and private demand remains resilient. The global environment remains a key risk to the outlook. Inflation is expected to remain within the target range this year and next, and the balance of payments to stay in surplus.

Monetary policy has responded well to changing circumstances. Policy tightening in early 2011 helped to forestall inflation pressures, while the pause in tightening in recent months has been justified by extreme global uncertainty and low core inflation. . . .

Press Release: Statement at the Conclusion of IMF Staff Mission to the Philippines

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