On account of lower fuel prices in the world market, the Philippine economy is in a position to recover this year, according to a report from global lending agency, the International Monetary Fund (IMF). The IMF said that lower fuel prices will boost the country’s economy by allowing producers to spend in other areas.
The report also indicates that the Philippines surpassed its Southeast Asian peers, particularly Malaysia and Indonesia, as many of these countries’ economies are dependent on the oil they produce.
Global oil prices have dropped by over 50-percent since September 2014; to the advantage of nations which import their fuel.
IMF resident representative for the Philippines Shanaka Jayaneth Peiris said that the forecast boost in economic growth for the Philippines this year and in 2016 “reflects the boost from lower global oil prices and anticipated pickup in government spending from the low base in 2014.”
The IMF projects that the Philippine economy will grow by 6.6 percent in 2015; up from the agency’s previous estimate of 6.3 percent. Growth is pegged at 6.4 percent in 2016.