MANILA - The International Monetary Fund (IMF) estimates remittance inflows from overseas Filipinos to rise 4% this year, a reversal of its previous forecast of 4% contraction.

The estimate, higher than the Philippine central bank's latest forecast of remittances growing more than 3%, would underpin economic expansion this year and support the current account surplus, the IMF said in its World Economic Outlook report.

"Resilient remittance flows, which are now projected to grow by 4%, have led to an upward revision in the current account surplus to 3.2% of GDP (gross domestic product)," the IMF said in a statement.

The IMF now expects the Philippine economy to grow 1% this year, instead of its June forecast of 1% decline.

It also expects inflation to average between 2.8% and 4.0% this year and the next, lower than previous estimates of 3.25% and 4.25%, respectively.