According to the World Bank, the Philippines will sustain an economic growth of six percent and above from 2014 up to 2016. One of the factors identified for the continuous growth rate is the post-Yolanda reconstruction activities in some parts of the country.
However, for the growth path to be sustained, the local government should work on ensuring that rehabilitation programs are on schedule and risks and constraints for reform strategies are at bay.
The Philippine Economic Update report released by the World Bank stated that the country is expected to post 6.6% growth in gross domestic product (GDP). This is marginally higher than their 6.5% Global Economic Prospects report released in January. However, it is lower compared to the 6.7% growth forecast last October, before the super typhoon hit Central Visayas in November 2013.
Meanwhile, it is predicted that for 2015, growth will rise to 6.9%, which is lower from the financial institutionís initial 7.1% forecast in January, and higher from the 6.8% projection before the super typhoon occurred. For 2013, the economy expanded over the 6-7% goal with 7.2% growth.
From this year up to 2016, the governmentís growth targets are 6.5-7.5%, 7-8%, and 7.5-8.5%.
The bank also noted in the report that consumption growth could decline because of the typhoon, but GDP growth can be offset by continuous reconstruction spending. Growth will also be driven by strong infrastructure and stable political environment and reforms as these are supported by domestic demand and volatile external factors.