The World Bank expects the Philippines to sustain its strong economic growth in the next three years and outperform most of its Asian neighbors.
“In the Philippines, growth, led by accelerated public and private investment, is expected to remain at just under 7 percent in 2017-2019—significantly higher than the long-term average of 4.3 percent,” the World Bank said in its June 2017 Global Economic Prospects report released yesterday.
Last April, the World Bank forecast the Philippines’ gross domestic product (GDP) to grow 6.9 percent this year, or within the government’s target range of 6.5-7.5 percent.
For 2018, the World Bank projected a 6.9-percent GDP growth, before slightly slowing to 6.8 percent in 2019.
The bank’s forecasts for 2018 and 2019 were below the government’s target of 7-8 percent from 2018 to 2022.
In the East Asia and Pacific region, the 2018 6.9-percent growth forecast for both the Philippines and Cambodia was the second-fastest after Laos’ 7 percent.
“In the Philippines, expansionary fiscal policy has boosted capital formation, while robust remittances, credit growth and low inflation have supported private consumption,” the World Bank said.
“Policies in the Philippines remain accommodative, despite rapid credit growth, accelerated inflation, widening fiscal deficits and falling current account surpluses,” it added. —BEN O. DE VERA