IMF: Strengthen virus containment, ensure macroeconomic support

An IMF executive emphasized the importance of strengthening virus containment measures and ensuring macroeconomic support to address the pandemic's impact on the Philippine economy.

The IMF raised its 2021 growth projection for the Philippines to 6.9%, attributing this increase to stronger-than-expected fourth quarter growth.

Higher fiscal stimulus under the current national budget, including additional funds from unused Bayanihan 2 funds, is expected to boost economic activity.

However, the latest forecast remains subject to substantial uncertainty due to risks such as tightening quarantine measures and slower vaccination rollouts.

The IMF recommends targeted support for vulnerable households, addressing solvency issues rather than just providing liquidity, and implementing structural reforms to reduce restrictions on foreign investment.