MANILA, Philippines - The International Monetary Fund (IMF) has raised its growth forecast for the Philippines this year, in line with the improving outlook for the global economy.

In its latest World Economic Outlook, the multilateral lender said it expects the Philippine economy to grow 3.6% in 2010, higher than its initial forecast of 3.2% and equivalent to the high end of the government's projection of between 2.6% and 3.6%.

The Philippines, along with other developing Asian countries, is expected to benefit from the recovery of the world economy. With improved demand and more employment opportunities, the Philippines will see higher exports and remittances.

"The Asean economies are projected to grow by 5.5% in 2010. Private domestic demand is expected to be the main driver of growth, with net exports playing a lesser role than in the past, reflecting stronger imports relative to historical standards," the IMF said.

For 2011, the IMF sees Asean countries posting faster growth. It said the Philippine economy may expand by 4%, and the Asean region by 5.6%.

As a result of higher growth, the lender said inflation may accelerate. The country's inflation rate is seen to come in at 5% this year, up from last year's 3.9%.