According to an IMF official the general optimism for the Philippines investor confidence should buoy growth prospects.
Yang Yongzheng, IMF’s new country representative in Manila said in an interview that “Our sense is that investor confidence remains strong, as the growth outlook for the Philippines is favorable both in the short and medium term (in line with potential growth we have recently updated),” Yang Yongzheng said.
Mr. Yang stated in an interview with BusinessWorld that business confidence will remain intact amid heightened political issues in the local scene. The second year under Pres. Duterte has been marked by conflict with militants in Marawi City that has dragged for nearly five months, a string of impeachment complaints against heads of Constitutional bodies and the Judiciary.
Despite the challenges of the Duterte administration, the IMF Official said that prospects are bright for the Philippines.
“This outlook is supported by strong macroeconomic fundamentals and policy buffers, including a low level of public debt and high level of foreign reserves. Ongoing efforts on tax reforms will also growth over the medium term,” Mr. Yang said.
The multilateral lender forecasts a a 6.6% growth for Philippine gross domestic product (GDP) this year under its World Economic Outlook published last week, which will allow the country to remain a growth leader in Southeast Asia. This renders the government’s 6.5-7.5% goal doable. The IMF expects a 6.7% expansion in 2018, which is below the state’s 7-8% goal.