World Bank lowers Philippine growth forecast but still fastest in region after China

World Bank headquarters in Washington, D.C. (Wikimedia Commons)

MANILA — The World Bank has lowered its Philippine growth forecast to 6.4 per cent this year and 6.7 per cent next year but says the country remains one of East Asia’s fastest growing economies.

World Bank officials said Thursday that the revision reflects the economy’s sluggish takeoff in the first quarter of 2014 after the devastation of Typhoon Haiyan, slower government spending in the second quarter and tightening of monetary policy in the first seven months.

Thursday’s projection is down from the previous 6.6 per cent forecast for this year and 6.9 per cent for next year.

The bank says the government is on the right track, with recent data suggesting sustained high growth has begun to cause significant reductions in poverty.