Philippine's economy, which has maintained its strong growth momentum despite being exposed to the fragile global economic environment, is set to record stable growth this year and the next, a report from the International Monetary Fund (IMF) said Friday.
According to the IMF, Philippines' economic growth is expected to stabilize around 4.8 percent and 4.9 percent in 2012 and 2013, respectively. The economy had rebounded strongly with 6.4 percent growth in the first quarter after logging subdued growth in 2011.
The report said that Philippines' financial system has enough policy space to support growth if tail risks from the global economy materialize. The country's macroeconomic conditions remain generally sound and the authorities' policy management is supporting confidence.
The Asian country's current account and the overall balance of payments are forecast to remain in surplus and inflation is expected to remain well within the target. Public finance continues to improve while the financial system has sustained its resiliency notwithstanding the more challenging external markets, the IMF said.
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