Philippines: Macroeconomic Frameworks Technical Assistance: Scoping Mission

The International Monetary Fund (IMF) conducted a scoping mission in the Philippines to assess the macroeconomic forecasting capacity of the Department of Finance (DOF) and identify areas for capacity development. The mission found that the DOF lacks a comprehensive macroeconomic framework for consistent policy analysis and forecasting. Despite having a version of the IMF's Globally Integrated Monetary and Fiscal (GIMF) model, the DOF staff lacks the training to recalibrate or modify it. The mission recommends developing a simpler, customizable macroeconomic framework based on the Comprehensive Adaptive Expectations Model (CAEM) to enhance the DOF's analytical capabilities. This framework will support the DOF in conducting policy analysis, improving fiscal planning, and ensuring sustainable capacity development.