WB exec notes growth becomes more inclusive

The World Bank (WB) has noted that growth in the Philippines is becoming more inclusive.

“The Philippines now has achieved macroeconomic stability. It has had high growth rates for quite a number of years and more recently, that’s the important point, it is starting to show the kind of growth which is more inclusive,” WB Philippines lead economist Rogier van den Brink said during a briefing on the sidelines of the Asia-Pacific Economic Cooperation (Apec) Senior Finance Officials’ Meeting, recently held at the Las Casas Filipinas de Acuzar.

Van den Brink cited that the high budget deficit, boom and bust growth, and current account deficit experienced by the country a few decades ago are no longer its concern.

He noted that growth in recent years has been put at more than 5 percent, current account has been in surplus for years, the prices of domestic products have been stable, and government finances are better.

This is partly due to reforms initiated by the current administration, such as improvements in tax collection, which has enabled the government to raise the funds needed to finance social protection programs and infrastructure, he said.

Van den Brink further said investors’ trust in the government and its policies have also helped increase foreign investments in the country, creating more jobs for Filipinos and partly helping eradicate poverty.

With these factors in place, he said, the multilateral lender maintained its growth forecast for the country at 6.5 percent for 2015 to 2016 and 6.3 percent for 2017.

When asked if these positive changes are sustainable, the WB official said, “It should be.”

He cited that the Philippines, being part of Asia, which has emerged as a major driver of global growth in recent years, has the backing of one of “the most dynamic regions of the world.”

He indicated that being part of the region’s supply chain, along with having the youngest, English-speaking, hard-working and dedicated labor force, and having a stable macroeconomic and political situation work best for the country.

“All these factors should make for a situation for this inclusive growth pattern to continue,” he said.

Van den Brink expressed hope that all these positive changes would be sustained, even with a change in administration after next year’s presidential elections.

“Whatever happens on the elections, we only hope that these changes continue,” he added.