World Bank retains 2016 Phl growth forecast at 6.8%
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.