IMF Commends BBM Administration's Actions

The International Monetary Fund (IMF) has praised the swift policy actions of the Marcos, Jr. administration through the Medium-Term Fiscal Framework (MTFF) in response to challenges arising from global shocks, including ongoing geopolitical tensions.

This commendation was highlighted by the IMF in its Staff Report on the recently concluded Article IV Mission to the Philippines. I Photo: Bongbong Marcos

This commendation was highlighted by the IMF in its Staff Report on the recently concluded Article IV Mission to the Philippines, conducted from September 21 to October 3, 2023.

Led by Mission Chief Shanaka Jayanath Peiris, the IMF team outlined in its report a comprehensive analysis of the economic and financial health of the Philippines.

According to the report, the Philippine government was able to promptly execute policy actions in response to disrupted global markets, resulting in supply chain bottlenecks and elevated inflation rates worldwide.

The IMF particularly praised the Marcos, Jr. administration’s contractionary monetary policy, characterized by decisive interest rate hikes to curb inflation, supported by a fiscal consolidation plan through the MTFF.

The MTFF aims to bring down the country’s debt-to-GDP ratio to less than 60 percent by 2025 and cut the deficit-to-GDP ratio to 3.0 percent by 2028.

The IMF expresses confidence that the Philippines will achieve its deficit-to-GDP ratio target for 2023 of 6.1 percent, projecting that the deficit will fall below the ceiling despite increased public spending in the second half of 2023.

Moreover, the IMF sees the country’s fiscal path closely on track to achieving the targets outlined in the MTFF. For 2024, it anticipates a deficit-to-GDP ratio close to the MTFF target of 5.1 percent, as the IMF projects higher non-tax revenues.

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