Another key factor that lends support to the higher growth potential of the Philippine economy is the country’s demographic profile. The IMF predicts the country’s dependency ratio to decline steadily until 2050, considerably lower than its regional peers. This implies that the expanding Philippine economy will not fall short of supply of young, skilled, and educated workers.
It is important to note that policymakers should not target the level of equity prices on the way down any more than on the way up but, in both directions, should take the movement in equity prices into account in their forecast and hence in the setting of monetary policy. II. Monetary policy Q&A  1.