Philippines Economic Update, October 2018 : Staying in the Course Amid Global Uncertainty
The Philippines’ economic growth outlook remains positive, yet downside risks have increased. An expected slowdown in global trade in the medium term is likely to further dampen Philippine exports. Nevertheless, baseline economic growth is projecte...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/209201538533339474/Philippines-Economic-Update-Staying-in-the-Course-Amid-Global-Uncertainty http://hdl.handle.net/10986/30564 |
| Summary: | The Philippines’ economic growth outlook
remains positive, yet downside risks have increased. An
expected slowdown in global trade in the medium term is
likely to further dampen Philippine exports. Nevertheless,
baseline economic growth is projected at 6.5 percent in
2018, 6.7 percent in 2019, and 6.6 percent in 2020. The
baseline investment growth outlook is positive and planned
senatorial and local elections in May 2019 are expected to
lead to higher public spending and higher private
consumption. However, persistent high domestic inflation
could have a dampening effect on consumption and investment
growth. Also, a faster normalization of monetary policy in
the United States and an increase in global uncertainty,
including trade tensions, could not only worsen external
financing conditions for emerging market economies like the
Philippines but also elicit additional domestic interest
rate hikes that could raise domestic borrowing costs for
businesses and households. |
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