In a statement released on Friday, the IMF’s Executive Board commended the Philippine government for navigating external challenges, but flagged vulnerabilities in the real estate sector and risks to the broader economy.
The current consolidation plan was put in place to reduce the government’s deficit and debt, both of which grew due to massive spending during the COVID-19 pandemic.
An International Monetary Fund (IMF) team on Monday conducted meetings with Philippine economic managers and highlighted concerns about the slower-than-expected pace of the country’s fiscal consolidation.
Finance Secretary Ralph G. Recto highlighted the dire economic state of developing nations, noting that one in four is now poorer than before the start of the pandemic.