The IMF said in a statement that growth would be fuelled by strong domestic demand and higher public spending. It also said potentially volatile capital flows were placing upward pressure on the peso exchange rate.

The Fund had projected growth of 4.8 percent for the Philippines in 2013, based on its forecast as of October, though IMF Managing Director Christine Lagarde said in November during a visit to Manila that the economy may grow around 5 percent this year after projected growth of more than 5 percent in 2012.

The government expects growth at 6 to 7 percent this year, before rising to 6.5 to 7.5 percent in 2014.