IMF Issues Warning on Debt Risks and Energy Crisis in the Philippines

According to Philippine media reports, Krishna Srinivasan, Director of the IMF Asia-Pacific Department, stated at a recent Regional Economic Outlook press conference that the current Philippine public sector debt accounts for about 60% of GDP, higher than the pre-pandemic level of 41.5%. This constrains the government's ability to further expand economic support measures. Srinivasan noted that the Philippine government's fiscal buffer is limited, and, in the future, fiscal buffering tools need to be used more efficiently, especially to provide more economic support to vulnerable sectors. The report said that in the latest World Economic Outlook Report, the IMF lowered its economic growth forecast for the Philippines in 2026 to 4.1%, a significant reduction from the 5.6% predicted by the institution in January this year. This reflects the increasing external pressures and domestic constraints faced by the Philippine government.