World Bank Sees Further Economic Growth for PH

The World Bank sees positive growth in the country’s economy in the next few years.

According to the World Bank, they expect the average growth will be at an average of 5.9% annually between 2024 and 2026. The World Bank said that the growth rate in 2024 will be at 5.8%, while 5.9% in 2025. Additionally, in 2026 expected to be at 5.9%.

In a PNA article, World Bank Senior Economist Ralph Van Doorn noted that the key drivers for the economic growth were mainly caused by strong domestic demand, the services sector, and improved trade.

“For the Philippines, we project growth to average to about 5.9 percent between 2024 [and] 2026 supported by robust domestic demand, strong services growth, and improved trade,” Doorn said.

The World Bank sees the inflation rate to slow down, staying within the Bangko Sentral ng Pilipinas (BSP) comfort zone, specifically 3.6% in 2023, 3.2% in 2025, and 3.0% in 2026.

There are risks to economic growth, according to the World Bank. External risks such as geopolitical tensions that could lead to higher energy costs, trade disruptions, increased trade protectionism, and a slowdown in China’s property sector could negatively impact regional growth.

The World Bank also noted domestic risks that could affect growth are climate-related issues, including the prolonged El Niño and La Niña phenomena that could disrupt the agricultural output in the country and increase food prices.

Another one is if the increase in inflation persists, it could delay monetary policy normalization, reducing private domestic demand.

The World Bank recommends managing inflation through the continued utilization of non-monetary measures to manage supply and demand and ensure timely food imports.

Improve efficiency, transparency, and inclusivity in using public resources for climate-related efforts.

And strengthen revenue collection to support fiscal consolidation and sustainable inclusive development. (ASC)