MANILA: The International Monetary Fund (IMF) has called on the Philippines to adopt a more targeted fiscal response to its ongoing energy crisis, warning that limited budget buffers constrain the government's ability to provide broad economic support, especially to the vulnerable sectors, local media reported on Saturday (April 18).
According to local media reports on Saturday, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, said at a press conference recently that rising public debt, now around 60 per cent of gross domestic product, up from 41.5 per cent before the Covid-19 pandemic, has reduced fiscal flexibility.
Srinivasan suggested that the Philippines should use the fiscal buffers efficiently, emphasising the need to prioritise aid for the most vulnerable sectors.
He stressed the need for the Philippines and other import-dependent economies with limited oil and gas reserves to carefully manage resources amid global fuel volatility.
In its latest World Economic Outlook, the IMF downgraded its 2026 growth forecast for the Philippines to 4.1 per cent, sharply lower than the 5.6 per cent projection issued in January, reflecting mounting external pressures and domestic constraints. - Xinhua
