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World Bank sees PHL economy overtaking regional powerhouses —DOF

The World Bank expects the Philippine economy to grow at a faster pace than other regional “powerhouses” until 2021, the Department of Finance (DOF) reported Wednesday.

In an emailed statement, the DOF cited a World Bank forecast on the Philippine gross domestic product (GDP) growing by 6.4% this year, second to Vietnam’s 6.6%.

This is, however, higher than China’s 6.2%, Indonesia’s 5.2%, and Malaysia’s 4.6%.

The Philippine economy is seen growing by 6.5% in 2020 and 2021, same as the projected growth rate for Vietnam in the same period.

This is higher than China’s growth rate of 6.1% in 2020 and 6.0% in 2021; Indonesia’s 5.3% in 2020 and 2021, and Malaysia’s 4.6% in the same two-year period.

“The Philippines is also expected to remain as an attractive destination for foreign direct investments (FDIs). We are pushing to further liberalize investment ownership in the country,” the department quoted Finance Undersecretary Gil Beltran having said.

“Moreover, the Philippines has implemented monetary and non-monetary policies to keep inflation manageable and bring it back to the government’s target range of 2 to 4% this year,” he added.

Inflation clocked in at 3.2% in May, slower year-on-year but faster than the previous month, according to the Philippine Statistics Authority.

The World Bank in April announced a 6.4% growth forecast for the Philippines, with elevated downside risks to growth.

The Washington-based multilateral lender has said it was expecting the economy to grow by 6.5% this year in light of downside risks such as the reenacted budget and the El Niño phenomenon.

“Perceived overheating risks have abated, driven by government measures and policies,” Beltran said. —Jon Viktor Cabuenas/VDS, GMA News