World Economy

Philippines to Grow 6.8%

Philippines to Grow 6.8% Philippines to Grow 6.8%

The Philippine economy is expected to expand by 6.8% this year, the World Bank said Saturday, ABS/CBN reported. 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% 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% for 2017,” he said. The World Bank maintained its 6.9% growth forecast for 2018. World Bank data showed private consumption is expected to grow at 5.6%, a rise seen to be sustained by high remittance flows. Remittances increased by 8% in the first quarter of 2017, a five-point jump from 3% in the same period last year. The organization noted that between 2012 and 2015, “household income among the bottom 40% of the income distribution rose by an average annual rate of 7.6%.”


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