World Bank lowers Philippines’ growth forecast for 2018, 2019
The World Bank (WB) said on December 21 that it has revised down its growth projections for the Philippines to 6.4 percent in 2018 and 6.5 percent in 2019 as persistently high inflation affects consumer spending.
A worker installs steel rods at a construction site in Paranaque city, metro Manila, the Philippines. (Photo: REUTERS/Romeo Ranoco)
Hanoi (VNA) - The World Bank (WB) said on December 21 thatit has revised down its growth projections for the Philippines to 6.4 percentin 2018 and 6.5 percent in 2019 as persistently high inflation affects consumerspending.
These new forecast numbers are slight revisions of the bank’s growth forecastsof 6.5 percent for 2018 and 6.7 percent for 2019, released through thePhilippines Economic Update in October.
“A strong, consistent delivery of the infrastructure investment agendawhile sustaining improvements in health, education and social protection willbe key to maintaining the robust and inclusive growth outlook of thePhilippines,” Rong Qian, a WB senior economist, said in a statement.
While persistent high inflation may temper private consumption growth inthe fourth quarter of 2018, the WB said a moderation in inflation in followingquarters is expected to boost consumer confidence and raise private consumptionin 2019.
The country’s annual inflation, coming off its highest in nearly adecade, slowed to a four-month low in November amid slower growth in process offood and utilities. It allowed the central bank last week to keep its benchmarkinterest rates unchanged, pausing after five straight hikes.
The WB also said the mid-term election next May is also expected tostrengthen consumption by temporary raising employment and disposable incomesin early 2019.
However, the Philippines could face headwinds from possibly weakerinvestment given a delay in approving the budget for 2019, while weak globaltrade could dampen exports.
Nonetheless, the WB said the Philippines remains one of the fast-growingeconomies in East Asia and the Pacific region.
The Philippine Government targets GDP growth of 6.5-6.9 percent thisyear, down from the previous 7-8 percent growth goal. The annual growth target for2019-2022 has been kept at 7-8 percent.-VNA
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A worker installs steel rods at a construction site in Paranaque city, metro Manila, the Philippines. (Photo: REUTERS/Romeo Ranoco)
