World Bank forecasts slower growth for Philippines in 2011, 2012
Manila, Metro Manila, Philippines (AHN) – The World Bank forecast Thursday a slower growth for the Philippines in 2011 and 2012, compared to 2010′s 6.8 percent growth of gross domestic product.
The bank predicted this year’s growth rate to reach 5 percent and 5.4 percent for 2012 based on assumptions of strong private investments and favorable consumer sentiment. Eric Le Borgne, World Bank senior economist for the Philippines, added the GDP growth are also hinged on reforms in governance and improvement in overall investment climate.
The economist pointed out that the 2010 growth rate was stronger than expected because of rapid recovery, election-related spending and strong external support. Because of these factors, ratings agency Standard and Poor’s upgraded the Philippine sovereign credit rating in November.
Compared to the global GDP growth rate projections of 3.3 percent expansion in 2011 and 3.6 percent in 2012, the Philippine GDP growth forecast is bigger. However, when compared to its East Asia and Pacific neighbors, the Philippine expansion would be lesser because the region’s growth rates are expected to reach 8 percent in 2011 and 7.8 percent in 2012.
Le Borgne forecast good performance for the Philippine electronic and semiconductor sectors and the business process outsourcing industry as well, but warned food prices shocks would pose some risks to the country’s economic expansion.
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