World Bank trims 2019-2021 growth outlook for Philippines

MANILA, Oct 10 (Reuters) - The World Bank on Thursday cut
its forecasts for economic growth in the Philippines for 2019
and the next two years, citing external problems, including the
U.S.-China trade war, and a slowdown in public investments.
The global lender projected the Philippine economy would
grow 5.8% this year and 6.1% next year, slower than the
forecasts of 6.4% and 6.5% announced in April, which were also a
reduction. The bank also lowered its 2021 growth forecast to
6.2% from 6.5% previously.
"Given the global environment, resuming the fast pace of
expansion in infrastructure and human capital spending will be
key for the Philippines to regain higher growth momentum while
continuing to lay the foundation for greater inclusion," said
Mara Warwick, the World Bank country director for Brunei,
Malaysia, Thailand and the Philippines.
In April, the bank also cut its 2019 and 2020 GDP growth
forecasts for the Philippines because of a delay in approval of
this budget and a slowdown in global trade.
"Timely passage of the 2020 budget and decisive action on
the country's tax-reform program will remove uncertainties and
help the private sector make timely decisions, boosting job
creation," Warwick said in a statement.
Despite the projected slowdown, the World Bank expects the
Philippines to continue making progress in reducing poverty.
"In the medium term, accelerating implementation of
high-impact infrastructure projects and the recently approved
critical reforms like the Ease of Doing Business Law and
liberalization of the rice trade will help the country sustain
inclusive growth that generates high-paying jobs and reduces
poverty," said World Bank Senior Economist Rong Qian.
Last week, Philippine central bank Governor Benjamin Diokno
said he remained confident 2019 growth would reach 6%, the lower
end of its 6% to 7% forecast, but acknowledged it might just
miss the mark. The Philippine government's proposed 2020 budget of 4.1
trillion pesos ($79.3 billion) is 12% higher than this year's
spending plan, with the largest chunk, 24%, allotted for
infrastructure development. = 51.7 Philippine pesos)