Philippines: World Bank sees steady 6.9% Phl GDP growth

MANILA, Philippines – The World Bank expects a steady economic growth for the Philippines until next year, driven by public and private investment. 

Based on the World Bank’s June 2017 Global Economic Prospects report, the Philippines is expected to post a steady 6.9 percent growth this year and the next, led by a pickup in public and private investment.

The report noted continued growth in commodity-importing countries in Asia, such as the Philippines and Thailand, as accommodative policies support solid domestic demand growth.

“In the Philippines, expansionary fiscal policy has boosted capital formation, and remittances, credit growth, and low inflation have bolstered private consumption,” the World Bank said.

Despite the positive outlook, the World Bank noted the growth in East Asia and the Pacific region is projected to ease to 6.2 percent in 2017 and to 6.1 percent in 2018 as the gradual slowdown in China is offset by a pickup elsewhere led by a rebound among commodity exporters and accelerating growth in Thailand.

The report noted that growth in China is expected to slow to 6.5 percent this year and 6.3 percent in 2018.

“Excluding China, the region is seen advancing at a more rapid 5.1 percent rate in 2017 and 5.2 percent in 2018,” the World Bank said.

On the global front, the World Bank said economic growth is projected to strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.

Growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also benefit the trading partners of these countries.

“Global financing conditions remain favorable and commodity prices have stabilized,” the World Bank said. “Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016,” it said.

The report said growth among the world’s seven largest emerging market economies is forecast to increase and exceed its long-term average by 2018.

“Recovering activity in these economies should have significant positive effects for growth in other emerging and developing economies and globally,” the World Bank said.

World Bank Group president Jim Yong Kim expressed his optimism for the global growth, especially in developing countries, as this would help the fight against poverty.

“With a fragile but real recovery now underway, countries should seize this moment to undertake institutional and market reforms that can attract private investment to help sustain growth in the long-term,” Kim said.