The Report: Philippines 2018
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Sound fiscal and monetary policy-making should help prevent the economy from overheating, even as socio-economic challenges, rising income inequality and inflation pose as obstacles to inclusive growth. Public debt is low and fiscal buffers remain strong, although a shift away from public-private partnerships as the preferred model for new infrastructure projects will see government borrowing spike in 2018. Nonetheless, solid macroeconomic fundamentals, a diversified export base and growing domestic consumption should keep a steady upward trajectory into 2019 and beyond.