World Bank Revised PH Growth Forecast
In October of 2018, the World Bank’s forecast on the Philippine economy was 6.5 percent for 2018 and 6.7 percent for 2019. Due to the recent economic trends which were greatly impacted by the runaway inflation seen in the middle and towards the end of this year, the World Bank revised its forecast to 6.4 and 6.5 percent respectively. It expects the economy to grow slower than initially forecasted.
Despite a tiny dip in the forecast, the Philippines still remains to be one of the fastest growing economy in the world. It also forecasts continued high inflation for the fourth quarter of 2018, which will moderate in the following quarters.
The moderate inflation will boost consumer confidence and raise private consumption for the next year. Consumption will also be strengthened by the upcoming May 2019 elections. However, Global trade is also expected to remain weak along with Philippine exports. Also, the delay in passing the 2019 national budget could dampen investment growth, the bank added.
In a statement, World Bank Senior Economist Rong Qian said:
“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 World Bank statement added that the Philippines is expected to be one of the fast-growing economies in East Asia and Pacific Region.