MANILA: The Philippines economy is expected to grow 5 percent this year and 5.4 percent in 2012, lower that government forecasts, and sustained economic and tax reforms could see the country expand at a faster pace, the World Bank said on Wednesday.
The World Bank said things are looking up for the Southeast Asian economy this year. The services and agriculture sectors were expected to stay robust, and an expected increase in mining investments could boost economic activity.
"Prospects for the Philippine economy remain favourable in 2011 as investments, private consumption and the services sector are expected to strengthen," the World Bank said.
The bank said the Philippines had to sustain reforms to achieve broad-based growth that would benefit the poor.
"To ensure inclusive growth, a steady focus on reforms will be needed but so will additional resources," the World Bank said, adding that included tax changes to complement current measures to improve collections.
The one-year old administration of President Benigno Aquino has a growth target of 7 to 8 percent this year, although its spending plan for 2011 had only assumed growth of at least 5 percent. The economy grew 7.6 percent in 2010.
Copyright Reuters, 2011
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