PH ‘fastest-growing’ Asean economy in growth estimates-WB

PH ‘fastest-growing’ Asean economy in growth estimates-WB

Every investors, local and domestic alike are all excited for the Philippines.

The Philippine Stock exchange recently reached breaking records in history, PSEi inched up by 2.04 percent, or 178.60 points, to 8,923.72 points- a record high. There is a certain positivity, an upbeat in the way the Philippine economy is taking its small strides in achieving a positive and prosperous status for the common Filipino.

What was once perceived as the weakness of then Davao City Mayor and now incumbent President of the Republic Rodrigo Roa Duterte, is proving all his detractors wrong. The President economic  team headed by Trade and Industry Secretary Ramon M. Lopez, National Economic Development Authority (NEDA) Ernesto Pernia, and Secretary of Budget Benjamin Diokno, seems to be steering the country to the correct and right path.
Philippine economy on an upswing (photo credit to owner)

Last, Wednesday January 10, the World Bank projected that the Philippines will continue to outpace its Southeast Asian neighbors in terms of economic growth, based on its estimates for 2018 up to 2020.

The World Bank, a multilateral finance institution sees the Philippine economy as consistently growing by 6.7 percent from 2017 to 2019 before tapering off to 6.5 percent in 2020.

“The Philippines can sustain strong growth through several policy reforms such as lowering of non-tariff barriers and easing restrictions on foreign control and ownership of businesses, the World Bank said.

The World Bank also took note of the country’s rise in young working age population and should take advantage of this huge demographic base by strengthening the quality and flexibility of its education system and strengthening the ability of its workforce to adopt new technology.

On average, the World Bank expects Philippine GDP to grow by 6.6 percent from 2018 to 2020, higher than Thailand’s 3.5 percent, Vietnam’s 6.5 percent, Indonesia’s 5.3 percent and Malaysia’s 4.9 percent.

Higher growth was forecast for Cambodia (6.7 percent), Laos (6.8 percent) and Myanmar (6.8 percent).

Overall, the bank was very positive about economic growth in the entire Association of South East Asian (ASEAN) region.   *

The World Bank earlier upgraded its 2017 Philippine growth forecast to 6.7 percent from 6.6 percent, as it took into account a stronger than expected third quarter expansion.

The US, Eurozone and Japan which are considered as Growth in advanced economies – is projected to moderate to 2.2. percent in 2018 from 2.3 percent in 2017 as central banks move toward policy normalization post-financial crisis. Growth in emerging market and developing economies – which include the Philippines – as a whole is projected to strengthen to 4.5 percent in 2018, as activity among commodity exporters continue to recover.

Report from Manila Times


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