The International Monetary Fund or IMF expects the Philippines to post double-digit economic growth amid a steady improvement in public investment efficiency over the next 15 years.
In a report, IMF Economist Takuji Komatsuzaki said the improvement in public investment efficiency generates substantial additional benefits particularly through higher gross domestic product or GDP growth.
The IMF considered two scenarios in the working paper including a permanent increase in public investment by two percent of GDP financed by borrowing as well as the same increase in public investment financed by higher taxes.
It said a higher public investment spending can generate sustained output growth, and improving public investment efficiency could bring about substantial additional benefits.