World Bank optimistic about PH growth

PH growth could hit 6% – WB economist

Story by Niña Myka Pauline Arceo
Manila Times
08 April 2024

THE Philippines could grow by 6.0 percent this year, a World Bank economist said, given significant investments and reforms to boost productivity.

"[If] we look at the regional perspective, the Philippines is doing quite well," World Bank lead economist Gonzalo Varela told reporters last week. "But there are factors that could increase growth further."

The Washington-based World Bank expects the country to grow by 5.8 percent in 2024, missing a just-revised target of 6.0-7.0 percent.

Varela said that if geopolitical tensions ease and oil prices decrease, among other factors, these could positively impact the local economy and potentially boost growth.

Domestically, if inflation pressures ease and the central bank starts cutting interest rates, these could stimulate investment and consumer demand.

"If you consider these alternative ways, what you get is a range of potential output growth that goes from 5.5 to 6 percent," Varela said.

"[O]ver the past few years, what you see is that the economy has been very close to that potential output growth. So it has been above or below, but very close to that range," he added.

Varela highlighted the importance of increasing investments and implementing reforms, saying these would sustain the economy and create high-quality jobs.

Economic growth slowed to 5.6 percent last year, missing the 6.0- to 7.0-percent target, but was still among the highest in the region.