World Bank projects PH economic growth but warns of risks

The World Bank projects the Philippine economy to grow by 5.7 percent in 2022 and forecasts 5.6 percent growth for 2023 and 2024.

Despite this projected growth, which is among the highest in Asia, the World Bank warns of significant downside risks.

These risks include the geopolitical uncertainty from Russia's invasion of Ukraine, tightening global financial conditions, and weakening growth in major trading partners like the US and China.

Rising inflation, which reached 5.4 percent in May, poses a threat to household spending, with a potential 10 percent increase in global cereal prices possibly pushing an additional 1.1 million Filipinos into poverty.

Additionally, higher energy prices could lead to 329,000 more Filipinos living in poverty.

The World Bank also highlighted the need for the Philippines to reduce its budget deficit and debt, which is projected to breach P13 trillion in 2022, to ensure fiscal sustainability.

The country director for the Philippines, Ndiame Diop, suggested encouraging public-private partnerships to sustain infrastructure improvements, provided financial risks to the government are managed and service quality is secured.