MANILA: The Philippine economy is expected to expand by 6.8 percent this year, the World Bank said Saturday.
The organization attributed the country’s expected growth to strong exports, high private consumption, and robust remittance flows.
The forecast was slightly lower than the 6.9 percent growth rate the organization had projected in April.
“In the medium-term, supporting higher investment levels will be critical to sustain the economy’s growth momentum,” said Birgit Hansl, World Bank Lead Economist for the Philippines.
“The government’s ability to realize its infrastructure spending agenda will determine if the Philippines can achieve the growth target of 6.5-7.5 percent for 2017,” he said.
The World Bank maintained its 6.9 percent growth forecast for 2018.
The government recently launched an ambitious P8-trillion infrastructure development plan covering 75 major projects seen to generate 2 million jobs annually.
World Bank data showed private consumption is expected to grow at 5.6 percent, a rise seen to be sustained by high remittance flows. Remittances increased by eight percent in the first quarter of 2017, a five-point jump from three percent in the same period last year.
Steady economic growth is expected to “lead to increased job opportunities, and sustained economic expansion has already begun to contribute to increasing incomes across all income groups.”
The organization noted that between 2012 and 2015, “household income among the bottom 40 percent of the income distribution rose by an average annual rate of 7.6 percent.”
Demand for Philippine exports is expected to increase as the economy of Manila’s main trading partners are also enjoying “robust growth.”
