Illustrative image The World Bank has predicted that the Philippines’ economy will expand 6.7 percent in 2018 and 2019.
In the bank’s Philippines Economic Update (PEU) released recently, it forecast that the economy is growing to match its potential, while monetary and fiscal policy supported this growth performance.
Birgit Hansl, World Bank Lead Economist and Programme Leader for Equitable Growth, Finance and Institutions for Brunei, Malaysia, Philippines and Thailand held that there are several domestic risks facing the Philippines, including increasing inflation and an overheating of the economy as well as high fiscal deficits.
External risks consist of greater policy uncertainty related to growing trade protectionism and increasingly inward-looking sentiments in several advanced and emerging economies, and potential market volatility from faster-than-expected US Federal Reserve rate normalization, stated Hansl.
Meanwhile, low progress in the medium term to implement structural policy reforms that would increase investment and create quality employment could prevent the Philippines from achieving more inclusive growth.
Last year, the Philippines’ economy grew 6.7 percent, making it one of the fastest developing economies in Asia.
Earlier, the WB also predicted that Vietnamese economic growth will reach about 6.5 percent in 2018./.