Philippines' Economic Growth: A Shift Towards Inclusivity and Sustained Growth

The Philippines' economy is exhibiting a shift towards more inclusive growth, with a reduction in poverty rates, according to the World Bank (WB). Despite a downward revision in its 2015 GDP forecast to 6.5 percent, the bank remains optimistic about the country's economic prospects, citing its resilience and potential for sustained growth. The WB attributes this shift to the growing working population and improved economic resilience.

Key Takeaways:

• The World Bank has revised its 2015 GDP forecast for the Philippines to 6.5 percent, lower than its earlier estimate of 6.7 percent and below the government's target range of 7 to 8 percent.
• The bank's forecast for 2015 is lower than the 6.1 percent growth rate in 2014, which was due to public under-spending.
• The Philippine economy is expected to grow at 6.5 percent in 2015, slowing down to 6.3 percent by 2017 due to government under-spending and infrastructure constraints.
• The poverty rate in the Philippines is expected to reduce by 1 percent for every 1 percent increase in GDP growth, a significant improvement from previous trends.
• The growing working population is driving this shift towards more inclusive growth.
• The Philippine government has prioritized infrastructure development, with the Department of Public Works and Highways' budget increasing to over P570 billion this year.

Statistics:

• 2015 GDP forecast: 6.5 percent (down from 6.7 percent previously)
• 2014 GDP growth rate: 6.1 percent
• 2013 GDP growth rate: 7.2 percent (all-time high)
• Poverty reduction rate: 1 percent for every 1 percent increase in GDP growth
• Department of Public Works and Highways' budget this year: over P570 billion
• Target GDP growth rate by 2016: 5 percent

Sources:

• World Bank, "Philippines Economic Update"
• World Bank, "East Asia and Pacific Economic Update"
• "President Aquino assails shortcomings of RP's growth" by Maricar Cinco, Philippine Daily Inquirer