MANILA, Philippines – According to the new report of International Monetary Fund or IMF, the Philippines’ status as Asia’s growth leader will remain unchanged until 2018 due to its high domestic demand and the regain in the regional trade. The country’s workforce is a key factor to this.
The report released on Tuesday was entitled “Preparing for Choppy Seas.” The report said that the trade in the Asian region is expected to regain its pace while net exports will not be too much of concern on the growth of many economies in the area which is due to the high projections on the growth of global economy and the increase in commodity prices.
The projected growth in the country’s gross domestic product or GDP by the IMF is 6.8%. This assessment is an upward-revise from the 2016’s record which is 6.9%. It is also within the government’s target for this year which is between 6.5 to 7.5%.
If this assessment were reached, it would make the Philippines as one of the fast-performing economies in the South East Asia next to Cambodia’s 6.9% and Myanmar’s 7.5%. IMF is also looking at India’s progress and estimates that will also be another growth leader with a projected 7.2% growth.
According to the Philippine Statistics Authority, the first two months of 2017 gave way to better merchandise export to the country which rose 17.4%. This improvement offsets the bad record in last year of the same period.
IMF also said earlier reports that the global economy would grow more with the help of faster progress in advanced economies which will increase the demand for goods and services.
IMF has projected that the Philippines’ GDP will grow 6.9% next year and will outpace many neighboring countries in Asia.
The report gave an emphasis on the young workforce that the country has which will be a key factor in its growth. However, it will entirely depend on creating good jobs and the growth of productivity.
Pointing out that it has a growing working-age population; IMF said that the demographics of the Philippines is not enough to spur economic advancement. The country also needs effective policies that would ensure productivity among the workforce.
However, IMF also warns the country about the possible effects of protectionist agenda in other nations which could slow down the labor flow and remittances given the country’s dependence in this area.
Remittances in 2016 contributed 10% of the country’s economy which is 26.9 billion dollars in total.