IMF flags trade, climate risks

Trade tensions, climate shocks to weigh on Phl growth

- By KEISHA TA-ASAN

In a statement to The STAR, the multilateral lender warned that growth momentum could be dampened by both external and domestic headwinds over the next two years.

"The main downside risks to growth include an escalation of trade measures, prolonged uncertainty and geopolitical tensions. Extreme climate events and other natural disasters also constitute downside risks," the IMF said.

"On the upside, accelerated implementation of structural reforms and a reduction in infrastructure gaps can contribute to higher growth over the medium-term," it added.

The IMF maintained its 2025 gross domestic product (GDP) growth projection at 5.5 percent for the Philippines, slightly slower than the 5.7 percent expansion seen in 2024.