In its most recent East Asia and Pacific (EAP) Economic Update, the World Bank has maintained its 6.2% and 6.4% growth forecasts for the Philippines in 2013 and 2014, respectively. This projection is within the Philippine government’s growth target of 6% to 7%.
“The fundamentals remain strong, policy responses have been appropriate so far, and reform efforts by the government appear sustainable,” the World Bank said.
According to the Washington-based lender, indicators of the Philippines’ projected economic growth include the country’s strong domestic demand, as well as its recent upgrade to investment grade status by Standard & Poor and Fitch Ratings.
The World Bank added that the Philippines’ industrial activity continues to expand due to the country’s strong trade ties with Japan. It noted that the Philippines is expected to make significant gains through increased Japanese FDI (Foreign Direct Investments).
The latest World Bank report also predicted regional growth of 7.8% in 2013 and 7.6% in 2014.