Makati City skyline on Feb. 20, 2024. Mark Demayo, ABS-CBN News

Makati Skyline

Lady Vicencio

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:845px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/171749051939520240220-makati-skyline-MD-2.jpg" style="width:845px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left"><span id="isPasted" style="color:rgb(51, 51, 51);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:pre-wrap;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Makati City skyline on Feb. 20, 2024. Mark Demayo, ABS-CBN News</span> </span></span></span></div><p>MANILA -- <span dir="ltr" id="isPasted">The Philippine economy is projected to grow by 5.8 percent in 2024 on the back of the manufacturing sector’s recovery and the improving services sector, the World Bank said Tuesday. </span><span dir="ltr"></span></p><div><span dir="ltr">In a briefing held Tuesday in Taguig City, the World Bank said the Philippines’ growth outlook remained positive due to robust domestic demand and recovery of global trade demand. <br/></span></div><div><span dir="ltr">Fiscal deficit also slightly narrowed with higher tax revenues compared to the first quarter of 2023.<br/></span></div><div><span dir="ltr">World Bank Senior Economist Ralph van Doorn noted that the Philippines appeared to have sustained growth momentum in the first quarter of 2024.</span></div><div><span dir="ltr"><a href="https://news.abs-cbn.com/business/2024/5/9/philippine-gdp-grows-5-7-percent-in-first-quarter-of-2024-834">Philippine GDP grows 5.7 percent in first quarter of 2024</a></span><span dir="ltr"><br/></span></div><div><span dir="ltr">“Some initial data suggests that things have looked up. The goods trade deficit has narrowed further. We see that tourist arrivals are still increasing compared to last year,&quot; he said.</span></div><div><span dir="ltr">&quot;We also see that net investment inflows are higher in January and February 2024 compared to the same period last year,” he added.<br/></span></div><div><span dir="ltr">The World Bank, however, sees domestic demand slowing as high inflation persists, despite settling within the government’s target range.<br/></span><span dir="ltr"></span></div><div><span dir="ltr">Despite seeing lower growth prospects than the government’s target growth of </span><a href="https://news.abs-cbn.com/business/2024/4/4/philippine-gov-t-lowers-economic-growth-target-1928"></a><span dir="ltr"><a href="https://news.abs-cbn.com/business/2024/4/4/philippine-gov-t-lowers-economic-growth-target-1928">6 to 7 percent this year</a></span><span dir="ltr">, Van Doorn said addressing the country’s infrastructure gap could lead to more investments and increase productivity.<br/></span></div><div><span dir="ltr">But Van Doorn said it was important to avoid tight labor market conditions for <span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">sustainable growth. </span><br/></span></div><div><span dir="ltr">“The Philippines is growing close to its potential growth rate meaning in this state with its current productive capacity, this is roughly what we can expect the Philippines. It means that pushing the country to grow faster, it could lead to increased inflation,” Van Doorn said. <br/></span></div><div><span dir="ltr">“The country’s infrastructure gap compared to its neighbors is still very large. If you close that infrastructure gap in terms of roads and bridges and highways and trains, water supply… it will make the country much more attractive to investments,&quot; he said.</span><span dir="ltr"></span></div><div><span dir="ltr">The World Bank added that the balance of risks is tilted to the downside, with geopolitical tensions possibly leading to high energy prices and disruptions in global trade and investment activity.<br/></span></div><div><span dir="ltr">Extreme climate conditions like El Niño and La Ñina could also lead to higher inflation if domestic food supply is affected, the World Bank said.</span></div><div><span dir="ltr"><a href="https://news.abs-cbn.com/news/2024/5/28/philippines-has-enough-rice-supply-for-la-ni-a-nfa-says-1658">Philippines has enough rice supply for La Niña, NFA says</a><br/><br/>Private domestic demand may also dampen if monetary policy remains tight due to high inflation. The Bangko Sentral ng Pilipinas kept the country&#x27;s benchmark borrowing rate.<br/></span></div><div><span dir="ltr">To achieve growth targets, the World Bank still sees the need to address inflation with better supply management and providing social assistance to the vulnerable sector.</span><span dir="ltr"></span></div><div><span dir="ltr">It also called for the strengthening of disaster mitigation as the country is forecasted to experience La Niña phenomenon this year.<br/></span></div><div><span dir="ltr">The World Bank sees the Philippine economy expanding by an average of 5.9 percent between 2024 to 2026.</span></div><div><span dir="ltr"><a href="https://news.abs-cbn.com/business/2024/4/11/ph-economy-to-grow-6-percent-in-2024-adb-1238" id="isPasted">ADB lowers PH growth forecast for 2024 to 6 pct from 6.2 pct</a></span><span dir="ltr"><a href="https://news.abs-cbn.com/business/2024/4/8/ph-growth-in-2024-seen-among-highest-in-asean-region-1349"></a></span><span dir="ltr"><a href="https://news.abs-cbn.com/business/2024/4/8/ph-growth-in-2024-seen-among-highest-in-asean-region-1349"></a></span><br/><span dir="ltr"><a href="https://news.abs-cbn.com/business/2024/4/8/ph-growth-in-2024-seen-among-highest-in-asean-region-1349">PH growth in 2024 seen &#x27;among highest&#x27; in ASEAN region</a></span></div><div><br/></div><div><span dir="ltr"></span><strong>RELATED STORY:</strong></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/Fr9EpJuI80Y?&amp;t=49s&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The Philippine economy is projected to grow by 5.8 percent in 2024 on the back of the manufacturing sector’s recovery and the improving services sector, the World Bank said Tuesday.</p>

The Philippine economy is projected to grow by 5.8 percent in 2024 on the back of the manufacturing sector’s recovery and the improving services sector, the World Bank said Tuesday.

World Bank retains 5.8 pct Philippine economic growth forecast | ABS-CBN

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World Bank retains 5.8 pct Philippine economic growth forecast

World Bank retains 5.8 pct Philippine economic growth forecast

Lady Vicencio,

ABS-CBN News

Published Jun 04, 2024 04:50 PM PHT

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