Due to strong consumption and inflow of investments, the Asian Development Bank (ADB) has recently raised its growth outlook for the Philippines this year. Growth is also predicted to remain stable until next year, but will still be lower than official targets.
The finance institution released its 2014 Asian Development Outlook (ADO), where the 6.1% gross domestic product (GDP) growth projection it gave last year was changed to 6.4% this year. Expansion is also anticipated to go higher to 6.7% in 2015.
The government pegged the growth projections for last year at 6-7%, and was outdone by the actual result which was 7.2%. For this year and 2015, ADB’s estimates are also lower than the official targets which are 6.5-7.5% and 7-8%, respectively.
According to Richard S. Bolt, Country Director at ADB, the upbeat performance of the Philippine economy will continue because it is driven by strong private consumption and sustained growth in foreign direct investments. The changes in the country’s credit rating to investment grade, along with other key indicators based on global competitiveness, also helped improve the attractiveness of the country.