IMF Ups GDP Growth Forecast For Philippines

November 26, 2009 7:35 a.m. EST

Manila, Philippines (AHN) - After a weeklong review of the Philippine economy, the International Monetary Fund increased its gross domestic product growth forecast for the country to 1.5 percent for 2009.

The fund's basis for higher outlook is the first half's 1.05 percent growth and expected growth in the second half from holiday spending by consumers. The IMF prediction is within the Philippine government target of 0.8 to 1.8 percent GDP growth rate for this year.

Next year, the IMF foresees the Philippines' GDP growing by 3.5 percent, up from its previous forecast of 1 to 3.2 percent economic growth for 2010. It confirms the lead role that Asian economies will play in ushering in global economic recovery.

IMF Mission Leader Il Houng Lee pointed out the Philippine economy is gaining momentum, prompting the fund to revise its forecast from a contraction to a flat growth and a positive 1.5 percent forecast this year.

Aside from a rise in GDP, the IMF also foresees the country's inflation rate going up by an average of 3.1 percent in 2009 and 4.3 percent in 2010. Previous IMF forecast was a 2009 inflation rate of 2.8 percent and 2010 rate of 4 percent.