Despite forecasts being below the government’s target GDP growth rate for 2018 to 2022, the Philippines’ economy is still seen to carry on its fast-paced progress in the next three years.
The World Bank expects a 6.7 percent growth in 2018 and 2019, followed by a modest slowdown to 6.5 percent in 2020, it stated during in its January 2018 Global Economic Prospects report revealed Wednesday.
This feat is also anticipated amidst the downshift of public investment.
“The Philippines will continue to be the fastest-growing economy in the Association of Southeast Asian Nations (Asean), despite some stabilization of investment growth,” it said in the report.
The forecasted rates, however, fall quite short of the government’s goal of 7 to 8 percent annual GDP growth from 2018 to 2022.
It was also noted that “supportive money policy” in a number of Asean economies, like the Philippines, “had spurred investment and, hence, capital accumulation in the wake of the global financial crisis”.
“Infrastructure upgrades” were counted as a reflection of the “rapid capital accumulation”.
“Improved macroeconomic policy management and the government’s public-private initiative” have also been credited for the boost in capital accumulation in the Philippines.
Still, the World Bank anticipates capital accumulation deceleration in the East Asia and Pacific that would lessen potential growth.
According to the lending bank, “the steepest slowdowns in capital accumulation are expected in China, where policy efforts to rein in credit growth continue, and the Philippines, where a surge in public investment is expected to fade”.
As part of the bank’s quarterly forecast exercises, the projection for the country’s 2017 GDP growth was raised 6.7 percent from 6.6 percent in December which is within the government target of 6.5 percent to 7.5 percent.
Story first appeared here.