RTTNews - The Philippine economy is forecast to shrink 1% this year, the International Monetary Fund said Wednesday. The IMF expects the economy to record a growth of 2.25% in 2010.

Further, the Washington-based lender said the budget deficit would rise to 3.5% of GDP and remittance from Filipinos abroad would fall 4% this year.

Meanwhile, Economic Planning Secretary, Ralph Recto reportedly said the economic growth would possibly range in between 0.8% to 1.8% in 2009. This was much lower than the government's earlier growth estimate of 3.1% to 4.1%.

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