IMF keeps growth forecast for PH

Posted at 10/09/12 3:49 PM

MANILA, Philippines - The International Monetary Fund kept its 2012 growth forecast for the Philippines even as it cut its outlook for the global economy to its slowest since the 2009 recession.

The IMF said the Philippine economy will grow 4.8%, the same as its forecast in July.

The IMF staff in July said the country's macroeconomic fundamentals are strong, and policymakers have leeway to support growth if the eurozone crisis worsens.

The IMF's forecast for the Philippines was less optimistic than its sister organization World Bank and Manila-based Asian Development Bank.

Both raised their growth outlooks for the Philippines while cutting most of Asia.

The IMF expects a global growth of 3.3%, slower than initial estimates.

It also cut its growth estimate for Asia to 6.7% this year, from July's forecast of 7.1%.

All 3 multinational lenders said weakening global demand could cool China and India's economies faster than earlier thought, dragging with them most of Asia.