GLOBAL and domestic headwinds will weigh on Philippine economic growth this year, but the country could still perform much better than initially expected given its fundamentals and better-than-expected results last year, experts said Tuesday.
Speaking at an economic forum organized by The Manila Times, International Monetary Fund (IMF) Resident Representative Ragnar Gudmundsson said the Washington-based multilateral was now looking to raise its 2023 Philippine growth forecast to 5.5 percent from 5.0 percent.
“[W]ith the strong Q4 (fourth quarter) numbers for 2022, we’re going to revise our projections,” he said.
The country’s medium-term potential growth remained close to 6.5 percent, Gudmundsson said, reflecting dividends from recent structural reforms. An improvement in foreign investments, continued reforms and productivity gains could raise this closer to government targets.
Gross domestic product (GDP) growth averaged 7.6 percent last year, exceeding the government’s 6.5- to 7.5-percent target, due to strong consumer spending, employment gains, and a continued economic re