THE World Bank says the Philippine economy will perform better this year, as private consumption helped by strong remittance flows continues to drive growth.

In its latest economic report for East Asia and the Pacific, the Washington-based lending agency said the Philippines is expected to grow by 5.3 percent this year, as measured in Gross Domestic Product or GDP. The Bank said the growth will be spurred by a recovery in agriculture and exports, two sectors which had, it said, “disappointing” outcomes last year.

The Bank’s 2006 projection is lower than the government’s own, which is pegged at a range from 5.5 to 6.2 percent.

“Notwithstanding the difficult political circumstances,” the report said, the country’s GDP grew by 5.1 percent in 2005, marking the first time that the economy had two successive years of growth higher than 5 percent.

The growth in 2005 was traced by the Bank largely to overseas remittances, which was valued at 13 percent of the Gross National Product or GNP.

However, the Bank also said, per capita income grew only by 2.9 percent in 2005, down from the 3.8-percent growth logged the previous year.

The Bank further noted that while the fiscal outlook is promising, more Filipinos are going hungry. The report referred to surveys by the Social Weather Stations that showed an increasing proportion of Filipino families rating themselves as impoverished.

The report also said unemployment remains high, at 10.7 percent; of those classified as employed, one of every five is underemployed. Of the 750,000 jobs created last year, the report said, only about 13 percent were in the formal sector with paid wages and salaries; 42 percent were for unpaid family workers, and the rest, self-employed.

The World Bank releases twice-yearly reports on the performance of economies in various regions. Overall, the Bank said, East Asia’s economies “delivered another solid performance in 2005, now surpassing Europe as the region most open for trade in the world.”

The report pointed to China, Vietnam and Indonesia as the region’s most impressive performers last year. “Strong growth in China, Vietnam and Indonesia helped pave the way for better than expected economic performance in East Asia economies in 2005,” the report said.

The Bank said the Philippines must improve tax administration to ensure that deficit and debt will be reduced. It also said public resources for infrastructure and social programs should be more effectively implemented.

The projections for this year’s economic performance show the Philippines will still trail its neighbors, Indonesia and Malaysia, both of which are expected to grow at a higher 5.5 percent.

Read the summary of the Philippines outlook here, and the detailed report here. And this is a table showing key economic indicators for the country.

8 Responses to RP economy will perform better this year — WB

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Toro

March 31st, 2006 at 10:14 am

Where else will it go when it has already reached the pit.

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polsjs

March 31st, 2006 at 11:04 am

“THE World Bank says the Philippine economy will perform better this year”.

Better for fewer and fewer; worse for more and more Filipinos.

“traced by the Bank largely to overseas remittances”
“while the fiscal outlook is promising, more Filipinos are going hungry”
“unemployment remains high”

Gloria economics is a deady combination of perverted policies and decadent management. Patrimony sellout to predatory ‘investors’, graft and corruption, …

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Coffee With Amee » Blog Archive » News updates

March 31st, 2006 at 3:17 pm

[…] Meanwhile, the Washington-based World Bank reports that while the RP economy will perform better this year, hunger is still at an all-time high. How ironic is that? Would you rather have a better economy but more hungry people? Or would you rather have people who can eat regular meals but a more sluggish economy (is this train of thought even possible)? The PCIJ, quoting from the WB report, points out that one in five in the country is unemployed. […]

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joselu

March 31st, 2006 at 3:44 pm

It will take years to solve our poverty problems.Nothing will ever fall on or laps over-night.
what is important is to be able to sustain the growth through so many years.

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Tom

April 1st, 2006 at 2:54 am

Wow, well on our way to becoming a “First World” country by the year 2026.

Malaki na nga ang asenso ng Pilipinas. Nuong early 70’s, nagbulakbol ako minsan at pumunta sa ABS-CBN at nakaswerteng maging contestant sa noon-time show. Mayroong 9 English words, each on a piece of cardboard, on an easel. My partner and I were supposed to arrange the words to form some meaningful phrase. Ni hindi nakatulong yung partner ko. Pero nabuo ko yung “Land of the morning, child of the sun returning.” Ang premyo ay P2 per word in the right order. Lahat naman ay tama kaya we got P18, pinaghatian pa namin. Lugi pa ako sa pamasahe at tanghalian. Ngayon ay million pesos ang mga premyo. Asenso nga . . . for a lucky few. For the rest, manigas na lang tayo.

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jr_lad

April 1st, 2006 at 3:54 pm

bragging rights for the govt.? it’s very obvious why the economy is still performing better despite the difficult political circumstances. a lot of filipinos are going out of the country as cited on the above post’s first paragraph. economic growth is above 5 percent and promising, yet, the same WB report mentioned the per capita income report in 2005 is down compared with the previous year as well as the contrasting report about more filipinos getting hungry and unemployed. indeed, what an irony.

and with more filipinos continuously going out of the country (it means more private spending due to remittances), the govt can afford to peg its projection at a range from 5.5 – 6.2 percent. it will be another solid performance for 2006.

well, the stronger economy can still be attributed to the govt. afterall, it’s the driving force why people are leaving the country. it’s the number 1 economic program of PGMA.

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schumey

April 3rd, 2006 at 2:07 pm

The WB needs to give a good outlook fo the Phils., so our government can acquire more foreign loans……continuesly sinking the Phils. in the quadmire of debt.

With more Filipinos leaving for abroad to seek employment, families are torn apart creating a more serious social problem. The government continues to push its citizens to work abroad. GMA has succeeded in tearing the country apart, now its destroying the very basic unit of society, the family. Conitnuing moral degradation win the long run will not help us. What we be left with are children of broken homes. Such a high price to pay for money.

DOLE and DTI secretaries have attributed unemployment to Filipinos being choosy with the jobs they apply for. Why put the blame on the inefficiency of government? We know for a fact that many factors cause unemployment. Dicrimination plays a big part.

1. Companies only hire people with experience.
2. Applicants not coming from a good school are usually turned down.
3 Overaged applicants are turned away.

With the proliferation of call-centers, the pay has continually gone down.
Farmers are eased out due to the influx of imported produce due to globalization. The gap between rich and poor continues to grow and the once formidable middleclass is sinking below the poverty line.

So much for government’s economic policies. BAGSAK PA RIN TAYO!

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schumey

April 3rd, 2006 at 2:10 pm

CORRECTION: “Why put the blame on the people and not on the inefficiency of government”

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