MANILA – In its latest World Economic Outlook (WEO), the International Monetary Fund (IMF) said this week that the Philippines will maintain its standing as that current growth leader in Southeast Asia until 2015.
The IMF said that the country’s growth is bolstered by strong demand for exports from advanced economies.
The lending agency likewise noted that the outlook for the global economy remains ambiguous as a result of worsening geopolitical tensions and a reversal of recent risk spread and volatility compression in financial markets. The targeted growth rate of world economy is set at 3.3% this year; slower by four-tenths of a percent than IMF forecast in April.
Growth rates forecast for Southeast Asia and other emerging markets are better, with the ASEAN economies projected to grow by 4.7 percent in 2014 and 5.4 percent in 2015.
“Asean-5 economies are expected to grow steadily, except Thailand, where a sharp slowdown driven by political tensions this year should be followed by a rebound next year,” the IMF said.
The Philippines is expected to maintain its position as leader of this growth, with its economy seen increasing by 6.2 percent in 2014, and 6.3 percent in 2015.
“Growth in Malaysia and the Philippines is forecast to remain strong in 2014–15, helped by favorable external demand and broadly accommodative policies and financial conditions,” the IMF added.