Today, the International Monetary Fund (IMF) revised its growth forecast for the Philippines to 5.3 percent for 2023, positioning the country as one of the fastest-growing economies in Asia. The IMF report underscored the nation's post-pandemic recovery and the potential of the Maharlika Investment Fund, public-private partnerships, and their alignment with the Marcos administration's policy roadmap and Agenda for Prosperity.
The IMF mission team, led by Shanak Jay Peiris, lauded the Philippines' Medium-Term Fiscal Framework (MTFF) under the Marcos administration, including public financial management (PFM) reforms. These measures have led to a robust revenue performance and curtailed current spending while ensuring infrastructure outlays stay at or above 5% of GDP.
The fiscal consolidation is progressing steadily to bring the national government debt-to-GDP ratio to less than 60 percent. The Department of Budget and Management (DBM), represented by Budget Secretary Amenah Pangandaman, showed commitment to their Agenda for Prosperity and welcomed the IMF's positive outlook.
In response to the IMF's call for a more ambitious revenue mobilization strategy for enhanced social spending and disaster response without altering the deficit path, The Department of Finance (DOF) agreed. This increased revenue mobilization is expected to support social spending initiatives.
Looking ahead, an upswing in government spending and rising demand for Philippine exports are projected to drive a six percent growth rate in 2024. The IMF team's recommendations and the country's economic strategies appear to align well, setting a positive course for future growth in the Philippines.
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