IMF: Phl faces challenges in business, demographics

The Philippines is grappling with critical gaps in its business environment, infrastructure and labor market, which threaten its potential to attract private investment and boost productivity growth, according to the International Monetary Fund.

- KEISHA TA-ASAN

In a report, the IMF said that the Philippines has room to improve its business environment and infrastructure relative to its Association of Southeast Asian Nations (ASEAN) peers.

"While the Philippines is comparable to peers on complexity and diversification, it lags on economic openness, business regulation reform, electricity access and logistics," the multilateral lender said.

"These are key to private investment and productivity growth in sectors which the Philippines wishes to expand capacity, including the industrial and manufacturing sectors," it said.

The IMF also noted that Philippine Development Plan 2023-28 highlights infrastructure gaps beyond conventional measures, including education facilities and equipment shortages that limit learning opportunities for students, particularly in underfunded areas.