World Bank expects RP to dodge recession


Posted at Oct 20 2009 10:51 PM | Updated as of Oct 21 2009 06:51 AM

MANILA - World Bank now believes that the country would post positive growth this year.

In a speech before members of the business community on Tuesday, World Bank country director for the Philippines Bert Hofman said "The government's growth projection of between 0.8% and 1.8% seems to be feasible."

Previously, the multilateral lender projected that the Philippines would contract by 0.5% this year due to drop in remittances and sluggish exports due to the global economic slowdown.

Hofman, who spoke at the Philippine Business Conference organized by the Philippine Chamber of Commerce and Industry and held at the Manila Hotel, said the World Bank has yet to come up with a new economic growth forecast for the Philippines.

But he noted that it would be a positive figure.

"The Philippines has performed better than expected [in the first half]," he said.

Hofman added that World Bank’s projection on growth of remittances sent by Filipinos working overseas would also be revised to a positive figure as well.

World Bank earlier said remittances would contract by 4% this year.