The Philippine economy will be the fastest-growing in Southeast Asia this year on the back of more proactive government spending, the International Monetary Fund (IMF) said.

The country’s 6.1 percent growth last year was one of the highest in the region, buoyed by household consumption, fixed capital formation and net exports.

IMF forecast the economy will expand 6.7 percent in 2015, higher than the earlier prediction of 6.3 percent while the inflation rate is projected to stand in the range of 2-4 percent.

In addition, current account surplus will be scaled up thanks to lower oil price, tourism inflows and foreign remittances.

Consumption in the country is expected to remain high, spurred by cheap fuel.

However, IMF saw risks in sudden shifts in financial asset prices and external demands and recommended that the Philippine Government should focus on an overhaul of tax system to enlarge tax revenue and encourage private sector’s investment in facilities, education, medical and other staple fields.-VNA