Philippines Economic Update, October 2017 : Preserving Consistency and Policy Commitment
The Philippines Economic Update (PEU) summarizes key economic and social developments, important policy changes, and the evolution of external conditions over the past six months. It also presents findings from recent World Bank analysis, situating...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/109431507121621231/Philippines-economic-update-preserving-consistency-and-policy-commitment http://hdl.handle.net/10986/28561 |
| Summary: | The Philippines Economic Update (PEU)
summarizes key economic and social developments, important
policy changes, and the evolution of external conditions
over the past six months. It also presents findings from
recent World Bank analysis, situating them in the context of
the country’s long-term development trends and assessing
their implications for the country’s medium-term economic
outlook. The PEU covers issues ranging from macroeconomic
management, financial-market dynamics to the complex
challenges of poverty reduction and social development. It
is intended to serve the needs of a wide audience, including
policymakers, business leaders, private firms and investors,
and analysts and professionals engaged in the social and
economic development of the Philippines. Policymakers need
to confront downside risks while fostering long-term growth.
The short-term risks to the country’s outlook include
increased trade protectionism, the possibility of financial
market disruptions, and elevated economic policy
uncertainty. In the longer term, weaker growth potential
remains the main risk. Consistency in the government’s
policies to achieve stable inflation, fiscal stability, and
security will help preserve consumer and business
confidence. For the Filipino consumer, it will be important
that inflation remains at moderate levels. This will warrant
careful inflation management by the central bank authorities
to anchor expectations. As long as it is consistent with
medium-term fiscal sustainability, an expansionary fiscal
policy could support short-term growth. The successful and
timely implementation of the government’s fiscal program,
including its ambitious infrastructure plan and efforts to
generate more revenue, would signal a strong commitment to
the government’s policy priorities. Key issues, such as
mining regulations and regional development in Mindanao,
will require policy certainty to preserve both external and
domestic confidence in the Philippine economy. Implementing
structural policies that support investment and trade will
be critical to boost productivity and potential growth in
the long-term. These policies would require the government’s
commitment to reforms that promote competition in key
sectors, secure property rights, lessen regulatory
complexities, and improve doing business in the country.
Longer-term policy priorities also include training and job
search programs and other measures to support workers most
affected by sectoral shifts in employment and share the
dividends of growth and gains from globalization more
widely. Sustained investment in human capital development
and in sectors that create quality employment are needed to
safeguard the country’s progress on delivering inclusiveness. |
|---|