IMF sees RP growth at 3%<\/p>\n
WASHINGTON, July 9 (AFP) - The IMF on Monday forecast economic
\ngrowth in the Philippines this year of three percent -- slightly
\nbetter than some recent international forecasts, but below last
\nyear's pace of 3.9 percent.<\/p>\n
The International Monetary Fund, in a statement following
\nconsultations with Manila, said it sees "a modest pickup in
\ndomestic demand" as a result of improved consumer confidence.<\/p>\n
But it also said the Philippine economy is subject to risks of
\na global slowdown, which could hurt the country's electronics
\nexports, and higher interest rates from the country's budget
\ndeficit.<\/p>\n
The IMF figures are slightly different from those of the
\ngovernment, which said it posted four percent gross domestic
\nproduct growth last year, and is projecting expansion of 3.3
\npercent to 3.8 percent for 2001.<\/p>\n
But multilateral lending agencies were recently forecasting
\nthe economy will grow 2.6 percent this year, or barely above the
\nnational birth rate of 2.36 percent.<\/p>\n
The IMF said President Gloria Arroyo "inherited a challenging
\neconomic situation, with heightened vulnerabilities in the
\nfiscal, banking and external sectors."<\/p>\n
The IMF said inflation should moderate from about 6.7 percent
\nin April to five percent by the end of the year, which should
\nallow the central bank to cut interest rates.<\/p>",
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