The Philippine economy is forecast to grow 4.2 % for 2012 according to the International Monetary Fund (IMF). This growth is despite the risks to the world economy being posed by the sovereign debt crisis in Europe.

The IMF’s annual review of the country’s economy projected this modest 0.5 % increase for the current year; last year, the economy grew at a rate of 3.7 percent.

The review added that economic growth rise to about 5 % over the next couple of years; inflation, however, is most likely to remain between 3 to 5 %, which is actually the official target range.

The international organization added, as mentioned in a report published in the Philippine Daily Inquirer, that the Philippines must implement measures to help make the benefits of economic growth accessible to the poor.

The IMF recommended that the Philippine government improve collection of taxes to gain more resources for infrastructure and social services, particularly education and health, which are one of the ways to let the benefits of a growing economy trickle down to the rest of the population.

The government should also make additional investments in the improvement of human capital; this is particularly helpful for members of poor households, who would then be able to gain opportunities for employment and a way out of poverty.

According to the IMF, the government should also increase social safety nets like conditional cash transfers and should find more ways to make financing available to the poor.