World Bank: PH economy to maintain growth until next year
International financial institution World Bank has projected a growth rate of 6.7 percent for the PH economy for the years 2018-2019. The growth is expected to moderate to 6.6 percent by 2020.
According to the World Bank, “The country is expected to benefit from the global recovery during 2018:”
However, this growth is below the Philippine government’s target of 7-8 percent this year until the end of the president’s term. One of the ways for the government’s ways to boost economic growth is to upgrade the country’s infrastructure via the “Build, Build, Build” program, which is geared to improve gross domestic product expansion until 2022.
Should the country wish to reach the government’s 7-8 percent growth, the World Bank said the country would need “vigorous investment in physical and human capital to push the economy beyond its current potential output.”
Hindrances to this steady growth are the unpredictable or sudden rising budget deficits, increasing financial costs, and the delivery of inclusive growth.
Hopefully, the National Economic and Development Authority (NEDA) is correct in projecting that foreign direct investments (FDI) this year may reach $12 billion this year. This is mainly due to the country’s strong macroeconomic fundamentals.