10:52 | 07/10/2016 Global Economy
The gross domestic product of the Philippines will expand by 6.4 percent in 2016, making the country become one of the fastest growing economies in East Asia and the Pacific, according to an updated report announced by the World Bank (WB) on October 3.
World Bank lead economist Birgit Hansl answers queries from the press after giving an economic update on the Philippines
The Philippines economy is forecast to increase by 6.2 percent in 2017 and 2018 with the services sector remaining a key growth driver – projected to grow at 7.0 percent in 2016 and 6.8 percent in 2017-2018.
In the agriculture sector, the report said increasing farm productivity would be important for improving the country’s growth prospects that lead to more inclusive growth.
The Philippine GDP is likely to surpass the forecast if local authorities can further ramp up spending on public infrastructure as planned.
In 2017, the Philippines plans to spend 40 percent of its budget on roads, railways, seaports and airports with a view to boosting growth in industry, real estate, construction and tourism.
If its economic growth is sustained and the spending on health, education, and social protection is expanded, the poverty rate is anticipated to decline from 10.6 percent in 2012 to 7.8 percent in 2016, 7.2 percent in 2017 and 6.7 percent in 2018./.