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World Bank Predicts 5% Growth for the Philippine Economy

by: Sarah Joson

Thursday, July 7, 2011 |

According to the Philippines Quarterly Update (PQU) released by World Bank, "growth could potentially be higher as the strong focus and early gains of President Aquino's administration in tackling corruption and improving the investment climate could boost domestic investment."

The much anticipated increase in exports to Japan and the rise of jobs in the outsourcing sector will also strengthen the economic growth of the Philippines.

World Bank Senior Economist Eric Le Borgne stated, "Prospects on the supply side remain favorable with manufacturing and construction projected to benefit from the end of the trade disruption linked to Japan's post-disaster reconstruction, as well as the solid growth forecast for the business process outsourcing."

However, the Philippines needs to persevere in creating a comprehensive improvement aimed at reducing 30 percent of the poverty rate. The World Bank added that the Philippine government should also take action in creating sources of income for the poor, and fund education, health and social protection services.

Another factor pointed out by the World Bank is to improve tourism in the country that can provide work for the less fortunate and more opportunities for small enterprises.

On the other hand, Benjamin Diokno, Economics professor at the University of the Philippines, said, the targeted growth forecast should be scaled back at around five to six percent, and predicts that it will dwindle to 4.9 percent due to the disaster in Japan and conflicts between the Middle East and North Africa.  


Source:
http://www.philstar.com/

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