World Bank retains 2016 Phl growth fore­cast at 6.8%

The Philippine Star - - BUSINESS - By CZERIZA VA­LEN­CIA

The World Bank has re­tained its growth pro­jec­tion for the Philip­pines at 6.8 per­cent for 2016, an­chored on in­vest­ments in in­fra­struc­ture and strong do­mes­tic con­sump­tion.

In the lat­est is­sue of its Global Eco­nomic Prospects re­leased yes­ter­day, the mul­ti­lat­eral bank said growth in the Philip­pines is seen to re­main at around 6.8 per­cent this year, boosted by sus­tained in­fra­struc­ture in­vest­ment, pri­vate con­sump­tion and rev­enue from ser­vice ex­ports.

Growth in 2018 is ex­pected to rise to seven per­cent, be­fore tam­ing to 6.7 in 2019.

The Philip­pine Sta­tis­tics Author­ity( PSA) is ex­pected to announce re­sults of the fourth quar­ter and 2016 growth per­for­mance on Jan. 26.

In the coun­try’s im­me­di­ate neigh- bor­hood, growth in East Asia and the Pa­cific re­gion is pro­jected to ease to 6.2 per­cent this year from 6.3 per­cent in 2016 due to slow­ing growth in China, whose eco­nomic per­for­mance is ex­pected to slow down to 6.5 per­cent this year from 6.7 per­cent in 2016.

World Bank said growth among com­mod­ity ex­port­ing coun­tries like In­done­sia and Malaysia are ex­pected to ac­cel­er­ate be­cause of rise in pri­vate in­vest­ment. Growth out­look, how­ever, has de­te­ri­o­rated in sev­eral small com­mod­ity ex­porters such as Mon­go­lia and Pa­pua New Guinea.

Among com­mod­ity im­porters like Thai­land, Viet­nam and Philip­pines, growth is ex­pected to re­main steady be­cause of im­proved in­vestor con­fi­dence, ac­com­moda­tive poli­cies and strong con­sump­tion.

World Bank said risks in the re­gion “have tilted fur­ther to the down­side since mid-2016” be­cause of height­ened pol­icy un­cer­tain­ties in ad­vanced economies such as Europe and the US where there is ris­ing sup­port for pro­tec­tion­ist poli­cies.

“Fi­nan­cial mar­ket dis­rup­tion and weak growth in ad­vanced economies would pose fur­ther risks to growth,” said the bank.

“Ris­ing po­lit­i­cal op­po­si­tion to trade has con­trib­uted to a post-cri­sis high in new trade re­stric­tions in the past year. The im­po­si­tion of trade bar­ri­ers by ma­jor trad­ing part­ners would dis­pro­por­tion­ately af­fect the rel­a­tively more open economies of East Asia and the Pa­cific,” the bank added.

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