MANILA - Just like the World Bank, the International Monetary Fund (IMF) raised its growth forecast for the Philippine economy this year.

On Wednesday, the multilateral lender said it is expecting the country to post a gross domestic product (GDP) growth of 1.5% this year, higher than its previous forecast of 1%. In June, the IMF projected a -1% growth.

GDP data for the third quarter are set to be released on Thursday.

The IMF did not cite key drivers for growth, but said that the country's remittance inflows are likely to rise by 4% this year. For 2010, the multilateral lender is looking at a 6% growth in remittances.

The Philippines has long banked on the strength of remittances to keep the economy afloat. Accounting for about 10% of economic output, remittances drive consumption, stabilize the peso, and keep the balance of payments in surplus.

Earlier, the World Bank said the economy was ikely to expand by 1.4% this year, taking back its previous -0.5% GDP growth projection.

The multilateral lender said this would be driven mainly by "better-than-expected" remittance inflows.

Money sent home by OFWs grew 8.6% in September, with the central bank expecting further growth in the coming months due to the impact of recent typhoons. With a report from Reuters