World Bank keeps forecast for PHL despite cutting global growth projection

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

MANILA – The World Bank has maintained growth forecast for the Philippines despite downgrading global growth projection in its latest report.

In its Global Economic Prospects published in Washington Tuesday evening (Wednesday morning, local time), World Bank has kept growth projection for the Philippines at 6.4 percent this year and at 6.2 percent for 2017 and 2018.

This is despite the World Bank has cut global growth forecast by end-2016 to 2.4 percent from the 2.9-percent growth projected at the start of the year.

Growth projections for 2017 and 2018 were also downgraded to 2.8 percent and 3 percent, respectively, from its initial forecast in January at 3.1 percent for the next two years.

According to World Bank, slower global growth is projected due to the struggle of commodity-exporting market and developing economies to adapt to lower prices of oil and other key commodities.

“This sluggish growth underscores why it’s critically important for countries to pursue policies that will boost economic growth and improve the lives of those living in extreme poverty,” said World Bank Group President Jim Yong Kim.

“Economic growth remains the most important driver of poverty reduction, and that’s why we’re very concerned that growth is slowing sharply in commodity-exporting developing countries due to depressed commodity prices,” he added.

World Bank data also showed that Philippine growth projection this year is stable compared to its neighboring ASEAN countries such as Indonesia, Malaysia, and Vietnam.

For this year, World Bank’s growth forecast for Indonesia declined to 5.1 percent from 5.3 percent in January; Malaysia to 4.4 percent from 4.5 percent; and Vietnam to 6.2 percent from 6.6 percent.