IMF cites improvement in Phl economy

MANILA, Philippines - The Philippine embassy in Washington reported that the International Monetary Fund (IMF) has acknowledged the improvement in the Philippine economy, fiscal consolidation and quality of growth.

Philippine Ambassador Jose Cuisia, Jr. met yesterday with IMF Deputy Managing Director Naoyuki Shinohara and discussed the government’s ongoing efforts toward fiscal consolidation.

The embassy reported that Shinohara told Cuisia that the Philippine economy is doing well, the fiscal consolidation has clearly improved, and that the quality of growth is changing.

The IMF projects the Philippines to grow by six percent this year, up from the revised forecast of 3.6 percent last April 2011.

Cuisia expressed appreciation for the successful IMF staff visit to the Philippines in July 2011 which concluded that “the near-term outlook for the Philippines is favorable” and that “the Philippine government’s steadfast moves to achieve fiscal consolidation are very appropriate in light of the maturing recovery and the need to create space for priority spending.”

He also conveyed the government’s congratulations to the IMF’s new Managing Director Christine Lagarde.

Prior to his appointment to the IMF in March 2010, Shinohara had occupied various senior positions, including as vice minister of finance in Japan and the country’s executive director at the Asian Development Bank.

Meanwhile, the embassy said that a Partnership for Growth (PFG) Joint Country Action Plan would be drafted that aims to be “collaborative, inclusive and sustainable for the Philippines to achieve broad-based economic growth.”

Cuisia met with US Agency for International Development (USAID) Mission Director for the Philippines Gloria Steele last Aug. 15 and discussed the progress of the Partnership for Growth (PFG) initiative.

He congratulated Steele for her leadership in convening a joint technical team that identified constraints to economic growth in the Philippines.

Steele informed Cuisia that planning teams are currently working on specific requirements under the PFG priorities framework.