PHL’s Expansion Now Becoming More Inclusive – WB Exec

An executive of the World Bank (WB) on Thursday noted that growth in the Philippines is becoming more inclusive.

“The Philippines now has achieved macroeconomic stability. It has high growth rates for quite a number of years and more recently, that’s the important point, it is starting to show the kind of growth which is more inclusive,” WB Philippines Lead Economist Rogier van den Brink said in a briefing at the sidelines of the two-day Asia-Pacific Economic Cooperation (APEC) Senior Finance Officials Meeting being held in Las Casas Filipinas de Acuzar in Bagac, Bataan from June 11-12 2015.

The WB economist cited that high budget deficit, boom and bust growth and current account deficit among others that the country experienced a few decades ago is not its concerns anymore.

This after growth in recent years have been posting above five percent, current account has been in surplus for years now, domestic prices of goods has been stable and government finances is now better and stable.

This is partly due to reforms initiated by the current administration such as improvements in tax collections, which in turn enabled the government to have the needed funds to finance social protection programs and the necessary infrastructures.

Investors’ trust on the government and its policies also helped increase foreign investments in the country, which has opened more job opportunities for Filipinos and partly helped in the eradication of poverty.

With these factors in place, the multilateral lender maintained its growth forecast for the country for 2015-16 at 6.5 percent and 6.3 percent for 2017.

When asked for his projection on whether these positive changes are sustainable, the WB official said: “it should be.”

He cited that the Philippines, being part of Asia, which has emerged as a major global growth driver in recent years, has the backing of one of “the most dynamic regions of the world.

He said also that being part of the supply chain in the region along with having the youngest labor force, english-speaking people, hard-working and dedicated labor force, and stable macroeconomic and political situation work best for the country.

“All these factors should make for a situation for this inclusive growth pattern continue,” he said.

Van den Brink also expressed hope that even with the change of the administration in 2016, because of the 2016 national polls, all these positive changes would be sustained.

“Whatever happens on the elections we only hope that these changes continue,” he added. (PNA) CTB/JS/PJN