Money

Razon scoffs at IMF’s shoddy forecasting: It rarely knows what it’s talking about

Bilyonaryo Ricky Razon doesn’t put too much weight on the International Monetary Fund’s (IMF) gloomy forecasts on the Philippine economy.

“The IMF is always revising their forecast and more often than not, they get it wrong,” said Razon in a GoNegosyo forum.

“They revise their forecasts to make it look like they know what they are talking about, but they rarely do in my opinion,” said Razon.

Razon was reacting to the IMF’s World Economic Outlook in which it projected the Philippines to suffer the biggest hit among economies in Southeast Asia.

IMF projected Philippines’ gross domestic product (GDP) to contract by 8.3 percent in 2020, or more than double the 3.6 percent forecast made last June.

This is much worse than the 6.9 percent and 7.3 percent drop predicted by the World Bank and the Asian Development Bank, respectively.

The IMF has been widely criticized for its dismal record in forecasting, specifically predicting recessions, despite the availability of more economic data.

The IMF had originally projected a 6.3 percent growth for the Philippine economy in 2020.

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