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WORLDBANK-PHILIPPINES-GROWTH-FORECAST
World Bank downgrades Philippines growth forecast for 2018, 2019
MANILA, Dec. 21, 2018 (BSS/Xinhua) – The World Bank (WB) said on Friday
that it has downgraded its growth projections for the Philippines to 6.4
percent in 2018 and 6.5 percent in 2019 “to reflect recent economic trends.”
These new forecast numbers are slight revisions of the World Bank’s growth
projections of 6.5 percent for 2018 and 6.7 percent for 2019, released
through the Philippines Economic Update in October.
“A strong, consistent delivery of the infrastructure investment agenda
while sustaining improvements in health, education and social protection will
be key to maintaining the robust and inclusive growth outlook of the
Philippines,” Rong Qian, a World Bank senior economist, said in a statement.
While persistent high inflation may temper private consumption growth in
the fourth quarter of 2018, the World Bank said a moderation in inflation in
following quarters is expected to boost consumer confidence and raise private
consumption in 2019.
Also, it said the mid-term election next May is also expected to
strengthen consumption by temporary raising employment and disposable incomes
in early 2019.
“Investment growth however maybe be tempered in the first half of 2019 due
to the possible reenactment of the first-quarter 2019 budget following a
delay in the budget approval process,” the statement read.
Nonetheless, it said the Philippines remains one of the fast-growing
economies in East Asia and the Pacific region.
BSS/AFP/HR/1452