THE World Bank has upgraded its forecast on Philippine economic growth to 3.5 percent this year due to a stronger outlook for the world economy, rising deployment of overseas workers that will boost remittances, recovery in private consumption and robust public spending.
In its Philippines Quarterly Update issued Monday, the World Bank said the growth forecast for 2010 represents an upward adjustment from the previous forecast of 3.1 percent. The World Bank forecast the Philippine GDP to expand 3.8 percent in 2011.
World Bank Senior Economist Eric Le Borgne said in a statement that the rising precautionary savings that dampened spending in 2009 will likely diminish as consumer expectations gradually improve over the next twelve months.
Other important growth drivers for 2010 include a replenishment of depleted stocks by private companies, and the strong short-term outlook for the Business Process Outsourcing (BPO) sector, the report said.
But Le Borgne said El Nino-induced dryspell can hurt poor Philippine households.
“A worse-than-expected El Nino could pose serious risks to the country’s growth prospects and trigger larger increases in hunger incidence,” he said. (PIA-Bohol)
