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Philippine growth to reach 5.8 pct in 2015: World Bank

Xinhua, October 5, 2015 Adjust font size:

The Philippine economic growth is expected to reach 5.8 percent in 2015, according to a World Bank report released on Monday.

The report said "lower 2015 growth takes into account the relatively weak first half growth brought about by slow government spending, negative net exports, and the initial impact of El Nino. "

However, the report projects the country's economic growth to improve in 2016, reaching 6.4 percent.

The Philippines continues to be among the strongest performers in the region, according to the report.

On the demand side, private domestic demand grows at 8.1 percent, supported by record low inflation and robust remittances. On the supply side, acceleration in government spending was spotted in the third quarter, according to the report.

But the country also suffers from slow pace of public spending and the contraction in net exports, as well as stagnant agriculture growth, according to the report.

Karl Kendrick Chua, Senior country economist with the World Bank, said business regulations in the Philippines remain a cumbersome process. They limit the growth of innovative entrepreneurship and investments, contribute to large scale informality and hence prevent the country from creating more and better jobs and reducing poverty at a faster rate.

The report suggests government priority to be given to three major hindrances that affect small businesses the most, namely starting and maintaining a business, paying taxes, and accessing finance. Endi