In its latest World Economic Outlook report, the International Monetary Fund (IMF) predicts that the Philippines shall be the fastest-growing economy in Southeast Asia and the second-fastest in Asia for the subsequent two years.
The Philippines’ gross domestic product (GDP) is anticipated to grow by 6% this 12 months, outpacing other ASEAN countries and ahead only of India, which is forecast to grow by 7.5%.
The Philippines is anticipated to overtake several countries in GDP growth this 12 months, including China (5%), Indonesia (5%), Malaysia (4.4%), Kazakhstan (3.5%), Iran (3.5%), 3%), Thailand (2.9%). %), Egypt (2.7%), South Korea (2.5%), Pakistan (2%), Saudi Arabia (1.7%) and Japan (0.7%).
In 2025, the IMF forecasts that the Philippine economy will proceed to grow at a rate of 6.2%, just behind India, which is projected to grow at 6.5%. This growth is higher than IMF forecasts for the ASEAN-5 region (Philippines, Vietnam, Indonesia, Thailand and Malaysia).
The IMF forecasts global growth at 3.2% in 2024 and three.3% in 2025, which doesn’t differ significantly from previous estimates. For the ASEAN-5 region, the IMF forecasts growth of 4.5% in 2024 and 4.6% in 2025.
Additionally, the IMF raised its growth forecasts for emerging and developing Asia. The region is anticipated to grow by 5.4% in 2024 and 5.1% in 2025.
Emerging Asia, especially India and China, is anticipated to be a serious driver of the worldwide economy this 12 months, contributing half of worldwide growth.
However, the prospects for the subsequent five years seem weaker, mainly on account of the slowdown in dynamics in emerging Asian countries. The IMF revised its growth forecast for the Philippines this 12 months to six% from 6.2% previously, partly on account of slower-than-expected growth in the primary quarter.
Nevertheless, Philippine GDP growth is anticipated to get well in 2025, supported by rising domestic demand, investment and consumption, in addition to stable inflation and monetary easing.
Despite weaker long-term prospects, Asian economies will remain the principal engine of worldwide growth within the near term.
