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By Lee C. Chipongian
Despite a worrying global uncertainty, the World Bank has maintained its growth forecast for the Philippines thanks to solid public investment WB LOGO "width =" 654 "height =" 587 "/>
WB said that the country's economy, as measured by its gross domestic product (GDP), could grow by 6.7 percent this year and in 2019 in the middle of the year.However, the Washington-based multilateral banking institution pointed out that to maintain medium-term average growth of seven percent, the Philippines must maintain an investment program high spending despite capacity constraints, according to the World Bank. "The government's ability to carry out its investment spending program will determine whether the Philippines can reach its growth target of 6.5% to 7, 5% to mo yen term, "said the chief economist of the World Bank. For the Philippines, Birgit Hansl
Hansl said that maintaining high levels of private investment and state spending is essential to ensure a growth dynamic even as "capacity constraints become more restrictive . "
The authorities expect to maintain double-digit growth in the coming years after the launch of the "Build, Build, Build" initiative last year, which will require up to a full year. $ 170 billion in investments.
The export-oriented economy will face a tougher time with global growth that is expected to slow down and slow down in the future, according to Hansl.
According to the World Bank's World Economic Outlook, June 2018, global growth is expected to slow gradually. the next two years due to rising commodity prices which, up to now, is considered moderate, and because of 'strong but moderately gradual global demand'.
She also cited the gradual tightening of global financing conditions "that would have an impact of the global economy. "Uncertainty around global growth conditions has increased, with the potential for trade and other shocks emerging from major economies," said the World Bank
Public consumption growth has also been revised upward . Percentage in 2018 and 6.2% in 2019. "Investment growth has been slightly improved due to higher public capital spending, including increased infrastructure spending. [19659004] Overall, real GDP growth is expected to increase by the end of 2018 The June report reports a generally moderate slowdown in global regional growth for developing countries. East and Pacific Asia, which is expected to grow by 6.3% this year and 6.1% in 2019. Nevertheless, growth in the region is expected to remain positive for this year, supporting strong exports and demand 2017. [19659006] Last year, the GDP of the Philippines grew by 6.7%, it was one of the fastest growing countries in Asia.The World Bank estimates for 2018 and 2019 are below the growth estimates of seven to eight for
In the meantime, the World Bank forecasts global growth of 3.1 per cent in 2018 despite "declining" economic growth. It expects global growth to slow further over the next two years as "the growth of the advanced economy decelerates and the recovery in the main emerging commodity exporters and exporters stabilizes
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