World Bank leaves growth forecast for Philippines unchanged

World Bank building

The World Bank expects the Philippine economy to sustain its robust growth in the near term as previously forecast, although it is warning that the economy remains at risk of overheating. The World Bank said in its latest report titled Global Economic Prospects: The Turning of the Tide? that the Philippines is expected to grow 6.7% in 2018 and another 6.7% in 2019. The Washington-based lender’s projections, however, fall below the Philippine government’s 7-8% goal set for 2018 until the end of President Rodrigo Duterte’s six-year term. The economy grew 6.7% last year. The World Bank said economic growth in the Philippines, Vietnam and Cambodia remains robust, but noted that capacity constraints, such as high capacity utilization rates, limit further acceleration, especially in the Philippines. In the Asian region, only Vietnam and Cambodia are expected to grow faster than the Philippines this year at 6.8% and 6.9%, respectively.

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