The International Monetary Fund has projected the Philippine economy to grow at 5.7 percent this year, lower than the government's low-end full-year target.

The interagency Development Budget Coordination Committee is eyeing 6-7 percent gross domestic product growth for this year.

Despite the lower growth projection for 2019, IMF said that the Philippines remains one of the best performing economies in the region.

"After a soft patch in the first half of the year, economic growth is now recovering. Inflation has declined, reflecting lower oil prices, rice tariffication, and a decisive monetary policy response to the inflation spike in 2018," said Thomas Helbling, head of the IMF staff team that visited the Philippines from November 5-18 for the 2019 Article IV consultation.

"Growth is projected at 5.7 percent in 2019, unchanged from the October 2019 World Economic Outlook, and to strengthen 6.3 percent in 2020, underpinned by an increase in government spending and the recent monetary policy easing. The medium-term economic outlook remains favorable, especially if the strong structural reform momentum continues," he added.

IMF projected Philippine inflation at 1.6 percent by end-2019 and at 3 percent by end of 2020, within the government's target range of 2-4 percent.

"Prudent macroeconomic management and a strong structural reform momentum have made the Philippine economy more resilient, reinforced growth, and helped to reduce poverty," Helbling said. Celerina Monte/DMS