Country still “remains one of the fastest-growing economies in East Asia and Pacific Region,” though, WB says
(Eagle News) — The World Bank has downgraded the Philippines’ economic outlook for 2019, even as it noted that the Southeast Asian country remains “one of the fastest-growing economies in the East Asia and Pacific Region.”
In a statement, the WB forecast the country’s economic growth for next year at 6.5 percent, from the previous outlook of 6.7 percent.
The WB also downgraded the country’s economic outlook for 2018, from 6.5 percent to 6.4 percent.
“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,” the multilateral lender said.
According to the WB, investment growth, however, “may 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.”
It added “global trade is expected to remain weak, thus dampening exports.”
“While persistent high inflation may temper private consumption growth in the fourth quarter of 2018,” a “moderation in inflation in following quarters is expected to boost consumer confidence and raise private consumption in 2019,” it said.
It added the mid-term election in May is “expected to strengthen consumption by temporarily raising employment and disposable incomes in early 2019.”
