MANILA (Xinhua): The World Bank has trimmed the Philippines' gross domestic product (GDP) growth forecast this year to 5.9 per cent from 6 per cent due to weaker-than-expected growth in the third quarter, its latest Philippines Economic Update has showed.
The report, released on Tuesday, attributed the downward growth forecast to several typhoons that slammed the country, affecting millions, destroying crops and property, damaging infrastructure, and disrupting economic activity, particularly in tourism and construction.
"The country remains vulnerable to extreme weather such as typhoons and heavy monsoon rains," said Zafer Mustafaoglu, World Bank country director for the Philippines, Malaysia, and Brunei.
Local and global risks such as geopolitical tensions and higher inflation could also hamper growth in the near term, said the report.
Nevertheless, the report said the Philippine economy is expected to remain "robust" amid heightened global geopolitical tensions.
The bank forecast that the Philippines' GDP will grow 6.1 percent in 2025 and 6 percent in 2026.
The positive outlook for the Philippines hinges on the country's ability to rein in inflation, implement a more supportive monetary policy to foster business growth, and sustain government spending on infrastructure to stimulate economic activities while safeguarding against increased global policy uncertainties, added the report. - Xinhua
