IMF sees narrower current account, lower fiscal deficit for Phl

The International Monetary Fund (IMF) expects the Philippines to narrow its current account shortfall and trim its fiscal deficit this year, even as economic growth is projected to remain below pre-pandemic levels.

- By KEISHA TA-ASAN

In a statement following a weeklong visit to Manila, IMF mission chief Elif Arbatli Saxegaard said the country's current account deficit is projected to shrink to 3.4 percent of gross domestic product (GDP) in 2025 from 3.8 percent last year, helped by weaker global commodity prices.

The IMF also noted continued progress in fiscal consolidation, with the budget deficit falling to 5.7 percent of GDP in 2024 from 6.1 percent in the previous year. This brings the deficit in line with the government's latest fiscal program, with the IMF describing the overall stance as "broadly neutral" for 2025.

The multilateral lender said sustaining the consolidation would require new tax measures and spending reforms.