Publication: Philippines Economic Update: Bracing for Headwinds, Advancing Food Security
Loading...
Published
2022-12
ISSN
Date
2023-01-05
Author(s)
Editor(s)
Abstract
The Philippines economic update (PEU) summarizes key economic and social developments, important policy changes, and the evolution of external conditions over the past six months. It also presents findings from recent World Bank analyses, situating them in the context of the country’s long-term development trends and assessing their implications for the country’s medium-term economic outlook. The update covers issues ranging from macroeconomic management and financial-market dynamics to the complex challenges of poverty reduction and social development. It is intended to serve the needs of a wide audience, including policymakers, business leaders, private firms and investors, and analysts and professionals engaged in the social and economic development of the Philippines.
Link to Data Set
Citation
“World Bank. 2022. Philippines Economic Update: Bracing for Headwinds, Advancing Food Security. © World Bank. http://hdl.handle.net/10986/38363 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Philippine Economic Update : Accelerating Reforms to Meet the Jobs Challenge(Washington, DC, 2013-05)The Philippine economic update provides an update on key economic and social developments, and policies over the past 6 to 12 months. It also presents findings from recent World Bank studies on the Philippines. The Philippine economy expanded by 6.6 percent in 2012, exceeding most expectations, including the government's own target of 5 to 6 percent. The pace and efficiency of national government spending improved remarkably in 2012. Higher government spending was matched by a significant increase in revenue collection, with a strong contribution from improved tax administration. Total tax revenues grew by 13.2 percent and tax effort increased from 12.3 to 12.9 percent of Gross Domestic Product (GDP)-the highest increase in decades attributable to improved tax administration. The medium-term growth prospects for the Philippines are good. GDP growth is projected at 6.2 percent in 2013, driven by domestic demand. There is no silver bullet for creating more and better jobs, as it is linked to resolving deep-seated, structural issues in the economy. Only a comprehensive reform agenda implemented across sectors can foster a business environment conducive to private sector job creation by firms of all sizes. A unique window of opportunity exists today to accelerate reforms that will help create more and better jobs.Publication Philippines Economic Update, June 2020(World Bank, Washington, DC, 2020-06-01)A series of unforeseen events caused an abrupt halt to the Philippines' strong growth momentum in early 2020. The Philippine economy carried its strong growth momentum from the second half of 2019 into early 2020 thanks to positive consumer confidence, robust macroeconomic fundamentals, and an improvement in the external sector. However, the eruption of Taal Volcano in early January, the spread of the Coronavirus Disease 2019 (COVID-19) outbreak in the region, and the rise of COVID-19 infection cases in the Philippines in March, forced the economy to a near halt in the latter part of March due to severe disruptions in manufacturing, agriculture, tourism and hospitality, construction, and trade. The economy contracted by 0.2 percent year-on-year in the first quarter of 2020, the first contraction in over two decades, and was a sharp reversal from the 5.7 percent growth over the same period in 2019. Leading indicators that track economic activity in real time suggest that the contraction would be even more severe in the second quarter as most regions of the country entered an enhanced community quarantine (ECQ) in mid-March.Publication Philippines Economic Update, October 2018(World Bank, Washington, DC, 2018-10)The Philippines’ economic growth outlook remains positive, yet downside risks have increased. An expected slowdown in global trade in the medium term is likely to further dampen Philippine exports. Nevertheless, baseline economic growth is projected at 6.5 percent in 2018, 6.7 percent in 2019, and 6.6 percent in 2020. The baseline investment growth outlook is positive and planned senatorial and local elections in May 2019 are expected to lead to higher public spending and higher private consumption. However, persistent high domestic inflation could have a dampening effect on consumption and investment growth. Also, a faster normalization of monetary policy in the United States and an increase in global uncertainty, including trade tensions, could not only worsen external financing conditions for emerging market economies like the Philippines but also elicit additional domestic interest rate hikes that could raise domestic borrowing costs for businesses and households.Publication Philippine Economic Update, December 2012(World Bank, Manila, 2012-12)The Philippine economy has emerged as one of the fastest growing economies in East Asia, with growth accelerating to 7.1 percent in the third quarter. The acceleration of domestic demand since the first quarter of 2012 reflects the country's strong macroeconomic fundamentals, stronger government finances, and high confidence in the Aquino government's commitment to reform. Sound macroeconomic fundamentals, as seen in low inflation, and large current account surpluses and foreign exchange reserves, have continued to shield the economy from external headwinds, while a more diversified export basket allowed total exports to grow, despite the decline in electronics exports. Overall, the economy is expected to expand by over six percent this year, up from 3.9 percent last year. However, more structural reforms are needed to create more and better jobs, as the overall labor market outcome has been less responsive to the higher economic growth. The economy needs to shift from consumption towards investment, both public and private. The special focus sections of this update demonstrate that the implementation of such reforms can have high payoffs in terms of jobs and inclusive growth. Finally, by scaling-up and broadening several open government/open data initiatives in the country, the strengthening of inclusive institutions would be greatly enhanced, in line with the core principles of this government.Publication Philippines Economic Update, June 2024(Washington, DC: World Bank, 2024-06-04)The Philippines Economic Update (PEU) summarizes key economic and social developments, important policy changes, and the evolution of external conditions over the past six months. It also presents findings from recent World Bank analyses, situating them in the context of the country’s long-term development trends and assessing their implications for the country’s medium-term economic outlook. Global growth showed signs of stabilization in the first four months of 2024. The improvement in global economic conditions contributed to robust growth in the Philippines, as domestic demand moderated. Economic expansion led to strong job creation in the services and industry sectors but concerns about job quality remain. Both headline and core inflation returned to the central bank’s 2-4 percent target range, but prices of key staple commodities continued to surge. Sustaining the inclusive growth momentum in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is crucial for the entire country to achieve rapid, sustained, and inclusive growth. While the BARMM region accounts for 4 percent of the population, it makes up around 8 percent of the country’s poor population. Timely service delivery by both BARMM’s regional government and local government units (LGUs) is critical to sustain poverty reduction.
Users also downloaded
Showing related downloaded files
Publication Continental Drying: A Threat to Our Common Future(Washington, DC: World Bank, 2025-11-04)Grounded in new evidence from satellite data, “Continental Drying: A Threat to Our Common Future” presents the first global assessment of freshwater reserves over the past two decades. The findings expose an alarming trend of “continental drying,” a persistent long-term decline in freshwater availability across vast landmasses. Not only are droughts and deluges becoming more unpredictable, but the total amount of freshwater available for use has also significantly declined. Continental drying, driven by global warming, worsening droughts, and unsustainable water and land use, is a silent but accelerating crisis—largely unknown to the public—that reshapes the global water narrative. Continental drying raises profound risks. This report reveals new empirical evidence showing how freshwater depletion leads to major job losses, reduced incomes, wildfires, and biodiversity threats. In the long term, the combined effects of drying and warming could push societies toward a tipping point where damage accelerates rapidly and adaptation becomes increasingly difficult. Against the backdrop of continental drying, global water consumption rose by 25 percent between 2000 and 2019, with about a third of this increase occurring in regions already experiencing drying. Compounding the pressure, a substantial share of water use in drying regions remains inefficient. Continental Drying identifies hot spots where rising demand and declining supply converge and explores where and how water savings can be realized. This report recommends a three-pronged approach to address the crisis: managing demand, augmenting water supply, and improving water allocation. Five cross-cutting levers—strengthening institutions, reforming water tariffs and repurposing subsidies, adopting water accounting, leveraging data and technological innovations, and valuing water in trade—are essential for effective implementation and to attract private investment to finance the approach. Beyond water, addressing trade barriers, investing in education and skills development, and improving access to markets and financial services are critical for strengthening job and livelihood resilience amid a continental drying crisis.Publication Direct and Indirect Impacts of Transport Mobility on Access to Jobs: Evidence from South Africa(Washington, DC: World Bank, 2025-11-12)Access to jobs is essential for economic growth. In Africa, unemployment rates are notably high. This paper reexamines the relationship between transport mobility and labor market outcomes, with a particular focus on the direct and indirect effects of transport connectivity. As predicted by theory, wages are influenced by the level of commuting deterrence. Generally, higher earnings are associated with longer commute times and/or higher commuting costs. Local accessibility is also important, especially for individuals with time constraints. Both direct and indirect impacts are found to be significant in South Africa, where job accessibility has been challenging since the end of apartheid. For the direct impact, the wage elasticity associated with commuting costs is significant. Returns on commute are particularly high for women. Local accessibility to socioeconomic facilities, such as shops and health services, is also found to have a significant impact, consistent with the concept of mobility of care. To enhance employment, therefore, it is crucial to connect people not only to job locations but also to various socioeconomic points of interest, such as markets and hospitals, in an integrated manner. This integration will enable individuals to spend more time working and commuting longer distances.Publication Kyrgyz Republic Country Climate and Development Report(Washington, DC: World Bank, 2025-11-03)This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Taxes, Spending, and Equity: International Patterns and Lessons for Developing Countries(Washington, DC: World Bank, 2025-11-17)Taxes and public spending underpin the basic administration of government and finance the human capital and infrastructure investments needed for economic growth. They can also have a significant and immediate impact on poverty and inequality. The question of how public finance can support longer-term growth objectives while promoting equity has become even more important in recent years, given the high fiscal deficits and debt levels most countries emerged with in the aftermath of the COVID-19 pandemic. These included the increasing cost of debt and the need to restart environmentally sustainable growth while helping households address the learning losses and other social scars caused by the pandemic. This paper examines the global evidence on which households pay which taxes and who benefits from what spending, and critically, the net effect on different households across the income distribution. The aim is to identify the patterns and lessons that emerge for designing progressive fiscal policies. A global dataset of 96 countries is assembled, spanning all regions of the world and all national income levels, grounded in the Commitment to Equity (CEQ) approach to fiscal incidence.