WB: PH Economy Poised To Grow

The Philippines is poised to grow 5.7 percent in 2022 and 5.6 percent on average in 2023-24, despite intensifying global uncertainties, according to the recent World Bank's Philippines Economic Update (PEU).

Photo Insert: The reopening boosts services, particularly transportation, restaurant, food services, and wholesale and retail trade.

The Philippine economy expanded by 8.3 percent in the first quarter, owing to strong domestic demand and the recovery of the industry and services sectors.

This year's growth will be fueled by an improving domestic environment characterized by low COVID-19 cases, increased mobility, and a broader resumption of economic and social activities.

The reopening boosts services, particularly transportation, restaurant, food services, and wholesale and retail trade. Tourism prospects have improved as a result of the opening of the border to vaccinated individuals, the reopening of tourist attractions, and the relaxation of travel requirements for travelers.

Continued public investment, combined with recovering business activity, will boost the construction and manufacturing sectors.

“Continuity of reforms in the last six years promoting greater competition and attracting foreign investments will further boost the country’s growth outlook in the coming years,” said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand.

“In the context of narrowing fiscal space, the authorities can encourage public-private partnerships to sustain improvements in the country’s infrastructure assuming financial risks to the government are managed and the quality of services for the citizens are secured.”

Diop went on to say that developing measures to reduce the country's budget deficit and debt will ensure long-term fiscal sustainability.

To ensure that government allocations for education, health, other social services, and infrastructure are not jeopardized, these measures should focus on prudent spending, improved revenue collection through government procurement reforms, and increased private sector financing.

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