Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino
The economic growth outlook remains positive. The country’s economic growth is projected to reach6.4 percent in 2019 and slightly edge up to 6.5 percent in 2020 and 2021, as inflation is expected to decline, and spending due to the upcoming midterm...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/442801553879554971/Philippines-Economic-Update-Safeguarding-Stability-Investing-in-the-Filipino http://hdl.handle.net/10986/31505 |
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okr-10986-315052021-09-16T19:28:50Z Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino ECONOMIC GROWTH EXTERNAL TRADE MONETARY POLICY FISCAL TRENDS FISCAL REFORM INFLATION POVERTY POVERTY REDUCTION SHARED PROSPERITY HUMAN CAPITAL EDUCATION The economic growth outlook remains positive. The country’s economic growth is projected to reach6.4 percent in 2019 and slightly edge up to 6.5 percent in 2020 and 2021, as inflation is expected to decline, and spending due to the upcoming midterm elections is likely to boost private consumption growth. Public investment growth is expected to be tempered in the first half of 2019 due to delays in approving the public budget, and is projected to recover in the second half of 2019. Export growth will likely remain weak, as global economic and trade growth are projected todecelerate in the near term, due to persisting trade tensions. The further strengthening of the U.S. dollar, possible increases in U.S. interest rates, and geopolitical uncertainties continue to be the main external downside risks to the economic outlook. Key short-term priorities to sustain the Philippines’ rapid economic growth include prudently managing fiscal and current account balances and adopting policies to preserve consumer and business confidence. As the government continues to expand public investment to address the country’s infrastructure gap, it is crucial toraise additional revenue to preserve fiscal sustainability, particularly as financing conditions may tighten globally. In addition, the trade deficit is estimated to remain wide, as export growth will likely stay weak while import growth is expected to accelerate. Given that global financing conditions may tighten, the government needs to closely monitor the performance of remittances, service exports, and foreign direct investment to prevent an external funding gap. In the long term, in addition to sustained efforts to build human capital, initiatives to address structural constraints are needed to accelerate inclusive growth. Improved market competition, accelerated investment, and improved labor market conditions to boost both productivity and economic growth will be essential. This calls for urgent actions on a couple of policy initiatives including revisiting foreign participation in the domestic market, implementing reforms to improve doing business, and reducing non-tariff barriers to boost trade. For instance, passing the Public SectorAct Amendment bill will entice foreign investments and bring competition to the transportation andtelecommunications sectors that are key backbone services whose efficiency directly affects overall productivity. 2019-04-08T16:36:15Z 2019-04-08T16:36:15Z 2019-04 Report http://documents.worldbank.org/curated/en/442801553879554971/Philippines-Economic-Update-Safeguarding-Stability-Investing-in-the-Filipino http://hdl.handle.net/10986/31505 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work East Asia and Pacific Philippines |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH EXTERNAL TRADE MONETARY POLICY FISCAL TRENDS FISCAL REFORM INFLATION POVERTY POVERTY REDUCTION SHARED PROSPERITY HUMAN CAPITAL EDUCATION |
| spellingShingle |
ECONOMIC GROWTH EXTERNAL TRADE MONETARY POLICY FISCAL TRENDS FISCAL REFORM INFLATION POVERTY POVERTY REDUCTION SHARED PROSPERITY HUMAN CAPITAL EDUCATION Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino |
| geographic_facet |
East Asia and Pacific Philippines |
| description |
The economic growth outlook remains
positive. The country’s economic growth is projected to
reach6.4 percent in 2019 and slightly edge up to 6.5 percent
in 2020 and 2021, as inflation is expected to decline, and
spending due to the upcoming midterm elections is likely to
boost private consumption growth. Public investment growth
is expected to be tempered in the first half of 2019 due to
delays in approving the public budget, and is projected to
recover in the second half of 2019. Export growth will
likely remain weak, as global economic and trade growth are
projected todecelerate in the near term, due to persisting
trade tensions. The further strengthening of the U.S.
dollar, possible increases in U.S. interest rates, and
geopolitical uncertainties continue to be the main external
downside risks to the economic outlook. Key short-term
priorities to sustain the Philippines’ rapid economic growth
include prudently managing fiscal and current account
balances and adopting policies to preserve consumer and
business confidence. As the government continues to expand
public investment to address the country’s infrastructure
gap, it is crucial toraise additional revenue to preserve
fiscal sustainability, particularly as financing conditions
may tighten globally. In addition, the trade deficit is
estimated to remain wide, as export growth will likely stay
weak while import growth is expected to accelerate. Given
that global financing conditions may tighten, the government
needs to closely monitor the performance of remittances,
service exports, and foreign direct investment to prevent an
external funding gap. In the long term, in addition to
sustained efforts to build human capital, initiatives to
address structural constraints are needed to accelerate
inclusive growth. Improved market competition, accelerated
investment, and improved labor market conditions to boost
both productivity and economic growth will be essential.
This calls for urgent actions on a couple of policy
initiatives including revisiting foreign participation in
the domestic market, implementing reforms to improve doing
business, and reducing non-tariff barriers to boost trade.
For instance, passing the Public SectorAct Amendment bill
will entice foreign investments and bring competition to the
transportation andtelecommunications sectors that are key
backbone services whose efficiency directly affects overall productivity. |
| format |
Report |
| title |
Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino |
| title_short |
Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino |
| title_full |
Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino |
| title_fullStr |
Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino |
| title_full_unstemmed |
Philippines Economic Update, April 2019 : Safeguarding Stability, Investing in the Filipino |
| title_sort |
philippines economic update, april 2019 : safeguarding stability, investing in the filipino |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/442801553879554971/Philippines-Economic-Update-Safeguarding-Stability-Investing-in-the-Filipino http://hdl.handle.net/10986/31505 |
| _version_ |
1764474476119982080 |