Publication: Philippines Economic Update, June 2025: Small Business, Big Impact - Catalyzing Philippine Growth
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2025-06-30
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2025-06-30
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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.
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“World Bank. 2025. Philippines Economic Update, June 2025: Small Business, Big Impact - Catalyzing Philippine Growth. © World Bank. http://hdl.handle.net/10986/43395 License: CC BY-NC 3.0 IGO.”
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Publication Philippines Quarterly Update, June 2010(Washington, DC, 2010-06)The Philippines economy posted robust growth in early 2010, in part due to large one-off factors. As did many countries in the region, the Philippines benefited from a strong rebound in global trade. Manufacturing and investment activity expanded briskly as a result. Private consumption continued to expand, as consumer confidence improved. Growth also benefited from election-related spending. Expansionary (and now pro-cyclical) fiscal policy continued to support growth. Despite a withdrawal of liquidity-enhancing measures and a stronger peso, a closing output gap meant that monetary policy remained accommodative. A World Bank study of Philippines migration pattern during the global recession reveals that deployment of overseas foreign workers (OFWs) actually accelerated during the crisis. Partly this reflected the fact that the top OFW destinations were not as affected as the rest of the world. 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Notwithstanding the impressive gains thus far, the magnitude of remaining development challenges is enormous. In June 2003, the Government adopted its first ever medium-term macroeconomic framework, which underpins its poverty reduction strategy, and should contribute to high growth, and fast-paced poverty reduction. The path of the fiscal policy in the medium-term framework, is consistent with Bangladesh's reform needs, and public debt sustainability. And, despite recent deterioration, the public debt stock appears sustainable. However, Bangladesh remains vulnerable to the scheduled phase out of the Multi-Fiber Arrangement (MFA) quotas from January 2005. The report estimates GDP growth rates would be needed if the stated poverty reduction objectives are to be achieved, and, analytical work suggests that higher growth is likely to come mainly from productivity increases. 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On the supply side, the resilient services sector was the main source of growth. The Philippines' external position and macroeconomic fundamentals remain strong. Monetary policy remains accommodating, while the fiscal deficit is likely to fall below target. After a strong rebound in 2010, economic growth in 2011 is likely to remain around 5 percent with downside risks. The challenge for policymakers is to ensure that the Philippines continues to improve its competitiveness, while cushioning the economy from adverse external shocks.Publication Philippine Economic Update : Pursuing Inclusive Growth through Sustainable Reconstruction and Job Creation(Washington, DC, 2014-03)Despite typhoon Yolanda and a string of natural disasters throughout 2013, Philippine economic growth accelerated to 7.2 percent in 2013. Higher growth was underpinned by the robust performance of consumption and services, and supported by the expansion of investments and manufacturing. Like other emerging markets, Philippine financial markets experienced large volatilities as investors responded to the tapering of the United States (U.S.) stimulus program. Monetary and fiscal policy remained supportive of growth. Amid the challenging global environment and the impact of typhoon Yolanda, the Philippines are likely to sustain high growth in the medium-term. Risks to growth include a slower global recovery, financial market volatilities following the tapering of the U.S. stimulus program, potential bubbles in the real estate sector, slower post-typhoon reconstruction, and domestic reform lags. The government responded quickly to the typhoon by rolling out immediate humanitarian aid and preparing the reconstruction assistance on Yolanda (RAY), a strategic plan to guide recovery and reconstruction in the affected areas. The Philippines will also need to prepare more broadly for the increased risk of disasters brought about by climate change. The Philippine economic update provides an update on key economic and social developments, and policies over the past six months. It also presents findings from recent World Bank studies on the Philippines.
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