ADB raises PH growth forecast for 2013
ABS-CBNnews.com
Posted at 04/09/2013 12:56 PM | Updated as of 04/09/2013 1:00 PM
MANILA, Philippines - The Asian Development Bank (ADB) on Tuesday said it raised its economic growth forecast for the Philippines this year to 6% from the previous 5%.
The ADB expects the Philippine economy to sustain robust growth over the next two years, thanks to strong consumer spending and more investments.
Neeraj Jain, ADB country director for the Philippines said governance reform and prudent management have laid the foundation for strong economic growth.
For 2014, the ADB projects a growth of 5.9%. However, the ADB growth forecast for 2013 and 2014 are lower than the 6.6% GDP growth last year.
Jain noted the recent investment grade rating affirms the improved macroeconomic environment. "The recent investment grade rating affirms the improved macroeconomic fundamentals and investment environment," he said.
The Aquino administration is targeting 6% to 7% GDP growth this year and 6.5% to 7.5% in 2014.
Jain said it is vital for the country to have a stronger industrial base that will create inclusive and sustainable growth, as well as jobs. The Philippines has lagged behind Southeast Asian neighbors in the industrial and manufacturing sector.
He said the persistently high levels of unemployment and underemployment are still key areas of concern. He noted the continued deployment of overseas workers masks the severity of the problem.
Reviving the industrial sector would require a stronger push by policymakers to improve infrastructure and the business environment to encourage manufacturers to locate in the Philippines.
The ADB expects the Philippine economy to sustain robust growth over the next two years, thanks to strong consumer spending and more investments.
Neeraj Jain, ADB country director for the Philippines said governance reform and prudent management have laid the foundation for strong economic growth.
For 2014, the ADB projects a growth of 5.9%. However, the ADB growth forecast for 2013 and 2014 are lower than the 6.6% GDP growth last year.
Jain noted the recent investment grade rating affirms the improved macroeconomic environment. "The recent investment grade rating affirms the improved macroeconomic fundamentals and investment environment," he said.
The Aquino administration is targeting 6% to 7% GDP growth this year and 6.5% to 7.5% in 2014.
Jain said it is vital for the country to have a stronger industrial base that will create inclusive and sustainable growth, as well as jobs. The Philippines has lagged behind Southeast Asian neighbors in the industrial and manufacturing sector.
He said the persistently high levels of unemployment and underemployment are still key areas of concern. He noted the continued deployment of overseas workers masks the severity of the problem.
Reviving the industrial sector would require a stronger push by policymakers to improve infrastructure and the business environment to encourage manufacturers to locate in the Philippines.
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