PH Remains One of the Fastest Growing Economies in East Asia and Pacific, World Bank Says

The World Bank retains its positive outlook on the Philippine economy despite foreseen challenges.

According to their April 2024 East Asia and Pacific Economic Update, the World Bank projects a 5.8 percent economic growth for the Philippines this year — the East Asia and Pacific region’s second fastest-growing economy.

Moreover, the said update also adjusted their forecast for 2025 to 5.9%.

Aaditya Mattoo, the World Bank’s chief economist for East Asia and Pacific, says that the faster growth is attributed to consumption and service sector recovery due to the implementation of the Public Service Act.

However, Mattoo added that the optimistic economic growth of the country is still vulnerable to external factors like climate change and geopolitical tensions.

Mattoo emphasized that significant investments in adaptation measures are needed, especially early warning systems and resilient infrastructures.

Despite looming challenges, the World Bank’s Macro Poverty Outlook shows a positive trend in reducing poverty. The outlook indicates a 12.2% decline in 2024 and 9.3% by 2026.

Additionally, the country’s inflation is projected to be at 3.6% in 2024.

While the World Bank’s projections for Philippine economic growth fall below the government’s expectations, they still present a positive outlook for the country. (ASC)