Philippines economy to contract in 2009: IMF

The International Monetary Fund on Wednesday forecast that the Philippine economy will shrink by 1.0 percent this year but rebound to post 2.25 percent growth in 2010.
In a report the IMF cut its earlier forecast of zero gross domestic product (GDP) growth for Manila this year.
Philippine economic officials are to meet with President Gloria Arroyo on Thursday to review GDP growth targets, which now stand at between 3.1 and 4.1 percent, after the economy grew by a slower than expected 0.4 percent in the three months to March.
The economy needs to do better than that in the three months to June to escape a technical recession.
The IMF had earlier projected GDP to remain flat this year before expanding 1.0 percent in 2010, when the Philippines is to elect a new president.
The IMF forecast remittances from expatriates to fall 4.0 percent this year compared with central bank projections of flat growth from 2008.