Philippines: 2010 Article IV Consultation Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; And Statement by the Executive Director for Philippines (Electronic book text)

1. The Philippine economy is poised at a key moment as the recovery from the global downturn and positive sentiment in the country provide a window of opportunity for moving ahead decisively with reforms to raise inclusive growth. After slowing sharply in 2009, economic growth recovered to 71/2 percent (year/year) during the first three quarters of 2010. The smooth passage of the presidential and legislative elections in May 2010 and transition to a new administration in July 2010, as well as the government's resolve to address longstanding impediments to investment and growth, have buoyed confidence. Meanwhile, inflation has remained low and burgeoning external inflows have contributed to a sizable balance of payments surplus. In November 2010, Standard and Poor's upgraded to BB its rating of Philippine long-term foreign currency debt in recognition of the country's stronger financial position.