The International Monetary Fund (IMF) Mission Team, led by Mission Chief Shanak Jay Peiris, commended the Department of Budget and Management (DBM) for introducing key structural reforms that are crucial in sustaining the country’s growth gains, following the conclusion of the IMF Article IV Consultation Mission held at the Bangko Sentral ng Pilipinas on October 3, 2023.

“Fiscal reforms, including the Military and Uniformed Personnel Pension Bill and the Progressive Budgeting for Better and Modernized Governance Bill are critical and should be complemented by ongoing efforts to strengthen the oversight of government-owned and controlled corporations. The renewed emphasis on financing the country’s infrastructure gaps through Public Private Partnerships (PPPs) is well placed and the new PPP Code is welcome in this regard,” the IMF said in a statement.

Moreover, the IMF cited that other reforms focused on digitalizing Public Financial Management (PFM) systems and enhancing bureaucratic efficiency have gained momentum including the Integrated Public Financial Management Information System (IFMIS) and the National Government Rightsizing Program (NGRP).

The proposed amendments to the Government Procurement Reform Act (GPRA) were likewise cited as a crucial initiative to further enhance the legal and institutional framework for transparent and competitive public procurement. These include the implementation of the modernized Philippine Government Electronic Procurement System (mPhilGEPS) and the adoption of a Green Public Procurement Strategy.

With the implementation of these structural reforms that are geared towards raising long-term growth, the Philippine economy was able to emerge strongly from the pandemic. The country’s growth outlook also remains robust despite global headwinds and local developments. 

“Having bottomed out at the end of the second quarter, growth is projected to bounce back by year-end to 5.3 percent in 2023 and reach 6.0 percent in 2024, supported by an acceleration in public spending and improved external demand for Philippines exports,” Peiris said. This is higher than the average ASEAN-5 growth outlook of 4.6 percent and 4.5 percent for 2023 and 2024, respectively.

The IMF Mission Team also affirmed that the Philippine economy is on track in bringing down the country’s deficit and debt levels to pre-pandemic levels and in achieving the goals set under the administration’s Medium-Term Fiscal Framework.

DBM Secretary Amenah F. Pangandaman welcomed the positive outlook and thanked the IMF Mission Team for the policy recommendations to boost the nation's economic health and stability.

“We welcome this report of the IMF acknowledging our PFM reforms and we will work even harder to achieve our economic targets and stay on track with our Agenda for Prosperity,” the Budget Chief said.

The IMF Article IV Mission is an annual bilateral consultation with member countries where an IMF Mission Team meets with government and central bank officials to discuss and assess economic and financial developments. (DBM/PIA-Caraga)