Screengrab from www.worldbank.org
MANILA, Philippines—The Philippine economy’s growth is expected to slow down by six-tenths of a percent this year as damage to key provinces caused by super typhoon “Yolanda” (international name: Haiyan) late in 2013 weighs on business activity and consumer demand.
In a report published Monday morning Manila time, the World Bank said the Philippine economy would likely grow by 6.6 percent in 2014, slower than last year’s 7.2 percent. The Bank’s projection was the same as its previous forecast, which was published in March.
The World Bank previously revised its projection for the Philippines downwards from 6.7 percent for 2014. The updated forecast is still within the government’s growth target of 6.5 to 7.5 percent for 2014.
“Accelerating reconstruction spending would offset the drag on consumption from the effects of natural disasters in 2013,” the Bank said.
Growth in Developing East Asia is expected to average at 7.1 percent this year, mainly on the back of China’s expected expansion of 7.6 percent this year. Developing East Asia excludes rich markets such as Japan. “East Asia remains the fastest growing region in the world, despite a slowdown from the average growth rate of 8.0 percent from 2009 to 2013,” the World Bank’s East Asia Pacific Economic Update read.
Excluding China, the region’s largest economy, East Asia’s growth is expected to average at 5 percent, slower than last year’s 5.2 percent.
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