World Bank retains 5.8 pct Philippine economic growth forecast | ABS-CBN
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World Bank retains 5.8 pct Philippine economic growth forecast
World Bank retains 5.8 pct Philippine economic growth forecast
Makati City skyline on Feb. 20, 2024. Mark Demayo, ABS-CBN News
Makati City skyline on Feb. 20, 2024. Mark Demayo, ABS-CBN News MANILA -- The Philippine economy is projected to grow by 5.8 percent in 2024 on the back of the manufacturing sector’s recovery and the improving services sector, the World Bank said Tuesday.
MANILA -- The Philippine economy is projected to grow by 5.8 percent in 2024 on the back of the manufacturing sector’s recovery and the improving services sector, the World Bank said Tuesday.
In a briefing held Tuesday in Taguig City, the World Bank said the Philippines’ growth outlook remained positive due to robust domestic demand and recovery of global trade demand.
In a briefing held Tuesday in Taguig City, the World Bank said the Philippines’ growth outlook remained positive due to robust domestic demand and recovery of global trade demand.
Fiscal deficit also slightly narrowed with higher tax revenues compared to the first quarter of 2023.
Fiscal deficit also slightly narrowed with higher tax revenues compared to the first quarter of 2023.
World Bank Senior Economist Ralph van Doorn noted that the Philippines appeared to have sustained growth momentum in the first quarter of 2024.
World Bank Senior Economist Ralph van Doorn noted that the Philippines appeared to have sustained growth momentum in the first quarter of 2024.
“Some initial data suggests that things have looked up. The goods trade deficit has narrowed further. We see that tourist arrivals are still increasing compared to last year," he said.
“Some initial data suggests that things have looked up. The goods trade deficit has narrowed further. We see that tourist arrivals are still increasing compared to last year," he said.
"We also see that net investment inflows are higher in January and February 2024 compared to the same period last year,” he added.
"We also see that net investment inflows are higher in January and February 2024 compared to the same period last year,” he added.
The World Bank, however, sees domestic demand slowing as high inflation persists, despite settling within the government’s target range.
The World Bank, however, sees domestic demand slowing as high inflation persists, despite settling within the government’s target range.
Despite seeing lower growth prospects than the government’s target growth of 6 to 7 percent this year, Van Doorn said addressing the country’s infrastructure gap could lead to more investments and increase productivity.
Despite seeing lower growth prospects than the government’s target growth of 6 to 7 percent this year, Van Doorn said addressing the country’s infrastructure gap could lead to more investments and increase productivity.
But Van Doorn said it was important to avoid tight labor market conditions for sustainable growth.
But Van Doorn said it was important to avoid tight labor market conditions for sustainable growth.
“The Philippines is growing close to its potential growth rate meaning in this state with its current productive capacity, this is roughly what we can expect the Philippines. It means that pushing the country to grow faster, it could lead to increased inflation,” Van Doorn said.
“The Philippines is growing close to its potential growth rate meaning in this state with its current productive capacity, this is roughly what we can expect the Philippines. It means that pushing the country to grow faster, it could lead to increased inflation,” Van Doorn said.
“The country’s infrastructure gap compared to its neighbors is still very large. If you close that infrastructure gap in terms of roads and bridges and highways and trains, water supply… it will make the country much more attractive to investments," he said.
“The country’s infrastructure gap compared to its neighbors is still very large. If you close that infrastructure gap in terms of roads and bridges and highways and trains, water supply… it will make the country much more attractive to investments," he said.
The World Bank added that the balance of risks is tilted to the downside, with geopolitical tensions possibly leading to high energy prices and disruptions in global trade and investment activity.
The World Bank added that the balance of risks is tilted to the downside, with geopolitical tensions possibly leading to high energy prices and disruptions in global trade and investment activity.
Extreme climate conditions like El Niño and La Ñina could also lead to higher inflation if domestic food supply is affected, the World Bank said.
Extreme climate conditions like El Niño and La Ñina could also lead to higher inflation if domestic food supply is affected, the World Bank said.
Philippines has enough rice supply for La Niña, NFA says
Private domestic demand may also dampen if monetary policy remains tight due to high inflation. The Bangko Sentral ng Pilipinas kept the country's benchmark borrowing rate.
Philippines has enough rice supply for La Niña, NFA says
Private domestic demand may also dampen if monetary policy remains tight due to high inflation. The Bangko Sentral ng Pilipinas kept the country's benchmark borrowing rate.
Private domestic demand may also dampen if monetary policy remains tight due to high inflation. The Bangko Sentral ng Pilipinas kept the country's benchmark borrowing rate.
To achieve growth targets, the World Bank still sees the need to address inflation with better supply management and providing social assistance to the vulnerable sector.
To achieve growth targets, the World Bank still sees the need to address inflation with better supply management and providing social assistance to the vulnerable sector.
It also called for the strengthening of disaster mitigation as the country is forecasted to experience La Niña phenomenon this year.
It also called for the strengthening of disaster mitigation as the country is forecasted to experience La Niña phenomenon this year.
The World Bank sees the Philippine economy expanding by an average of 5.9 percent between 2024 to 2026.
The World Bank sees the Philippine economy expanding by an average of 5.9 percent between 2024 to 2026.
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