Philippines defies disasters, leads Asia growth

A new report by the International Monetary Fund (IMF) suggests that while growth in Southeast Asia is expected to be minimal at best this year, the Philippines remains a bright light, despite the devastating typhoon and earthquake that hit the country in 2013.


leads Asia growth Philippines defies disasters


A new report by the International Monetary Fund (IMF) suggests that while growth in Southeast Asia is expected to be minimal at best this year, the Philippines remains a bright light, despite the devastating typhoon and earthquake that hit the country in 2013. In its World Economic Outlook released in early April, the IMF said that combined, Indonesia, Thailand, Malaysia, Philippines and Vietnam, are expected to grow by an average 4.9 per cent for 2014 – slower than Asia’s overall anticipated growth of 5.4 per cent. However, growth in the Philippines alone is expected to be higher at 6.5 per cent for the year.

In a separate report in late March following an IMF staff mission to the Philippines, the global monetary body said the Philippines delivered “another impressive macroeconomic performance in 2013”. Growth accelerated to 7.25 per cent on account of robust domestic demand including higher public spending and private investment. “Despite a series of natural calamities, growth was also sustained in line with resilient growth in Asia,” it said, adding that progress had been made in “strengthening external and fiscal positions, adopting sound policy frameworks and raising growth while keeping inflation moderate.” The three major rating agencies also elevated the Philippines to investment grade during 2013.