IMF Sees RP Growth at 6% in 2010 and 4.5% in 2011 amid Low Inflation

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The International Monetary Fund (IMF) sees the economy growing by 6.0 percent this year and 4.5 percent in 2011, adjusting higher previous forecasts on expectations that inflation will remain stable at low levels and external accounts will continue to be strong.

"The near-term outlook is favorable," said IMF in a statement released. Inflation is expected to remain comfortable within the target range this year and the next, and the balance of payments to remain in surplus. However, global risks, particularly downside risks from the European turmoil, appear to have intensified."

The latest IMF Philippine economy assessment, which was presented by IMF staff team head Vivek Arora, was the conclusion of a week-long exchange of views with local economic authorities on the local situation and outlook.

"The Philippines has emerged relatively well from the global financial crisis," said the IMF report. "The monetary and fiscal policy stimulus in response to the global crisis of 2008-2009, as well as resilient remittances, helped to cushion the downturn and is now supporting a strong recovery."

The IMF's six percent GDP forecast is lower than government's seven percent, also adjusted from an earlier projection of 2. …