Both these reform packages are intended to help make the domestic market more able to quickly adapt to any further changes in the global financial markets. Philippine economic outlook On the basis of these policy directions, the outlook for the macroeconomy continues to be favorable. Average inflation is expected to be within target in 2008 and 2009.
The volatility in world oil prices and uptrend in non-commodity prices remain the key risks to the inflation outlook. Nevertheless, these potential risks to inflation are seen to be tempered by some downside risks such as the firm peso and reduced dependence on imported energy sources.