World Bank maintains bullish projection for PH

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Metro Manila (CNN Philippines, July 13) - The Philippine economy will still experience steady growth while key indicators are seen to rise due to recent economic trends, the World Bank said Friday.

In a statement, World Bank said the country will sustain a 6.7 percent gross domestic product (GDP) growth this year until 2019, steady from its April projection.

Government consumption is seen to increase while private consumption growth is expected to go up by 5.9 percent in 2018 and 6.2 percent next year.

World Bank slightly adjusted upwards its previous forecast for investment growth due to companies' higher capital expenditures, including bigger infrastructure spending.

The multilateral lender is expecting the country's GDP growth pace to pick up by year-end and into the first half of 2019 due to anticipated higher election-related public spending.

World Bank Lead Economist for the Philippines Birgit Hansl said the country can attain its 6.5-7.5 percent medium term target depending on the implementation of the government's investment spending agenda.

"Higher private investment levels will be critical to sustain the economy's growth momentum as capacity constraints become more binding," Hansl added.

However, World Bank also said Philippine exports will decrease in the coming years amid the expected slowdown in the global economic growth.

According to World Bank's June 2018 Global Economic Prospects, the global economy will slow down over the next two years due to rising commodity prices, decreasing global demand, and tightening of global financing conditions. It added that uncertainty around global growth conditions can lead to trade and other policy shocks among major economies. It added that trade and other policy shocks can possibly emerge from major economies amid rising uncertainty around global growth conditions.