Philippines is an outlier in Asia – IMF

The International Monetary Fund sees Philippines as an outlier as it forecasts a slow down of potential growth in the world and in Asia. Potential growth is a big issue for the world and in Asia “but Philippines in an outlier,” IMF Resident Representative to the Philippines Shanaka Peiris said in a press briefing April 7.

In statistics, an outlier is an observation point that is distant from other observations.

IMF forecasts that global economy will grow 3.5 percent this year and 3.8 percent next year. However, IMF sees 6.7 percent growth for the Philippines this year – the government aims 7 to 8 percent growth in gross domestic product (GDP).

“Economic growth is expected to rise to 6.7 percent in 2015 due to lower commodity prices, higher public spending, and continued strong private construction and export growth,” said IMF staff Chikahisa Sumi who had a mission visit in the country last March 25 to 31.

“Disruptive asset price shifts in financial markets due to asynchronous monetary policies in advanced economies remain a risk, although the Philippines’ strong fundamentals provide a cushion,” Sumi added.