The World Bank is projecting a 6.4 % expansion for the Philippine economy in 2016, mainly due to expected robust government spending and private consumption around the May national elections.
World Bank Philippines Senior Country Economist Karl Chua explained the faster growth projection saying it will be “aided by low inflation and spillovers from increased spending due to the upcoming general elections.”
The Washington-based multilateral lender said the Philippines had one of the stronger growth prospects among the developing Southeast Asian economies.
“Growth this year will be supported by stronger government spending related to the election which could stimulate private consumption and in turn increase GDP growth by 1 percentage point in first half of 2016,” the World Bank projected.
Chua projected that investments would likely support growth in the Philippines as the implementation of the key public-private partnership projects accelerated.
The World Bank also said it expected the country’s gross domestic product growth rate to ease to 6.2 percent in 2017 and 2018.