WB sees Philippine economy to grow close to 7 pct in next three years

Philippine economy is likely to grow close to 7 percent in the next two to three years, with it growth becoming inclusive, the World Bank (WB) said Tuesday.

The Washington-based multilateral agency, in its Philippines Economic Update, has projected the Philippine gross domestic product growth to hit 6.9 percent in 2017 and 2018, and 6.8 percent in 2019.

"Strong growth in recent years has been accompanied by job creation and a declining number of people living in extreme poverty," said World Bank Country Director Mara K. Warwick. "That means growth is becoming more inclusive."

Birgit Hansl, WB Lead Economist, said the government's commitment to further increasing public infrastructure investment is expected to sustain the country's growth momentum through 2018 and reinforce business and consumer confidence.

She noted that the poverty incidence among Filipinos already dropped to 21.6 percent in 2015 from 25.2 percent in 2012 which means 1.8 million Filipinos were lifted out of poverty within three years.

Higher employment, low inflation and improved incomes contributed to the decline in the number of poor people, she added.

While growth outlook remains optimistic, Hansl warned of downside risks, such as rising global interest rates, which could weaken the peso, adversely affecting capital flows to the Philippines and driving up domestic inflation. Endit