Government Urged to Respond to Economic Challenges Amidst IMF Forecasts
In the given scenario, Dean Philip Arnold Tuño of our Ateneo School of Government has emphasized the critical need for the government to enhance its strategic response to the economic and social obligations of the nation, with special regard to the underprivileged sectors. This timely move is aimed towards achieving balanced growth, becoming incredibly significant considering the perpetual prognosis of the country’s GDP growth by the International Monetary Fund (IMF).
The Projections of IMF Versus Government’s Growth Goal
The IMF consistently stands firm on its forecast for this year’s GDP growth of the country at a regular undertone of 6.0 percent. Although this projection highlights an improvement from the previous year’s approximation, it misses somewhat the goal range set by the government for the year 2024. This projection by the IMF, places the Philippines in a noteworthy position among the countries achieving quickest economic growth in Southeast Asia, with India as the single nation predicted to outperform it.
Threats and Challenges to the Economy
Ragnar Gudmundsson, the Resident Representative of IMF, underscored potential threats that may act as growth impediments. The risks comprise global economic slowdown due to political issues worldwide and geo-economic division, a weaker than anticipated comeback in the economies of China, or an abrupt constriction in global economic circumstances, all of which could have a potential adverse effect on the economy of the Philippines.
A Hopeful Stance Amidst Economic Hurdles
In the face of these impending challenges, Tuño holds a hopeful view regarding the economic performance of the Philippines for the year 2024. Alongside Tuño, the Bangko Sentral ng Pilipinas (BSP) also predicates that the inflation of January will continue to remain within their target due to a decline in specific food prices. Nonetheless, BSP also envisages an inflation surge exceeding 4.0 percent in the second phase of the year before it settles down for the remaining part of the year. This prediction follows the increase of 5.6% observed in 2023, which unfortunately missed the government’s growth target of 6-7% due to high inflation and elevated interest rates that impacted household expenditures.
