MANILA,: The Philippine economy will grow 5.8% in 2024, the International Monetary Fund (IMF) said on Wednesday (Oct 2), down from its July forecast of 6.0%.
Next year, the IMF said the Philippines could grow by 6.1%, compared to its previous 6.2% projection.
The Philippine government has set a 6% to 7% growth target this year and a 6.5% to 7.5% goal in 2025.
The Philippines' current account deficit is seen settling at 2.0% of the economy, compared to the 2.1% forecast shortfall in June, the IMF said.
It expects that deficit to be 1.9% of GDP next year.
The IMF said a gradual reduction of interest rates was appropriate and a data-dependent approach and careful communication on policy settings was necessary in the Philippines to help manage uncertainty.
The central bank's governor on Monday said it has scope to do a 50-basis-point rate cut in one policy meeting, but such a big reduction would only happen if there were worries about a hard landing. - Reuters
