MANILA, April 18 (Xinhua) -- The International Monetary Fund (IMF) has called on the Philippines to adopt a more targeted fiscal response to its ongoing energy crisis, warning that limited budget buffers constrain the government's ability to provide broad economic support, especially to the vulnerable sectors, local media reported on Saturday.
According to local media reports on Saturday, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, said at a press conference recently that rising public debt, now around 60 percent of gross domestic product, up from 41.5 percent before the COVID-19 pandemic, has reduced fiscal flexibility.
Srinivasan suggested that the Philippines should use the fiscal buffers efficiently, emphasizing the need to prioritize aid for the most vulnerable sectors.
He stressed the need for the Philippines and other import-dependent economies with limited oil and gas reserves to carefully manage resources amid global fuel volatility.
In its latest World Economic Outlook, the IMF downgraded its 2026 growth forecast for the Philippines to 4.1 percent, sharply lower than the 5.6 percent projection issued in January, reflecting mounting external pressures and domestic constraints. ■