World Bank raises Philippine growth forecast to 6.7%

MANILA, Philippines — The World Bank has upgraded its growth projection for the Philippines this year, citing growth in exports alongside global economic recovery.

As part of its quarterly forecasting exercise, the international finance institution raised its growth forecast for the Philippines to 6.7 percent for 2017 from its October forecast of 6.6 percent. It retained, however, its growth projection of 6.7 percent for 2018.

This follows a stronger than expected growth of 6.9 percent in the third quarter and an upward revision of GDP growth for the second quarter to 6.7 percent from 6.5 percent.

“Continued global economic recovery gaining steam has led to higher than expected export growth for the Philippines and an encouraging upturn for the third quarter of 2017,” said Birgit Hansl, World Bank lead economist for the Philippines.

World Bank said the simultaneous recovery in major advanced economies and developing economies are boosting global trade.

For the Philippines, it means stronger import demand from the country’s main trading partners, such as the United States, Japan and Europe.

The country’s total export earnings for the January to October period totalled $53.11 billion, growing 11.7 percent compared to $47.55 billion in the same period of the previous year, according to the Philippine Statistics Authority (PSA).

“If investment growth accelerates faster along with increased spending in public infrastructure, economic expansion can be even higher in 2017 and 2018 and exceed the current projection of 6.7 percent,” said Hansl.

The National Economic and Development Authority expects the economy to grow between 6.7 to 6.9 percent this year on the back of higher infrastructure spending, sustained growth in exports, strong household consumption and recovery in the agriculture sector.