Publication: Philippine Economic Update, August 2014 : Investing in the Future, Sharing Growth and Job Opportunities for All
Date
2014-08-01
ISSN
Published
2014-08-01
Author(s)
World Bank Group
Abstract
After recording strong growth in the
last two years, Philippine economic growth decelerated to
5.7 percent in the first quarter of 2014 (Q1 2014). After
many years of slow poverty reduction, poverty incidence
declined by 3 percentage points (PPT) between 2012 and 2013
to 24.9 percent, uplifting 2.5 million Filipinos out of
poverty. Given the slow start in Q1 2014, lower government
spending in second quarter of 2014 (Q2 2014), and monetary
policy tightening, baseline growth projections is revised
downwards from 6.6 to 6.4 percent for 2014 and from 6.9 to
6.7 percent for 2015. Strong liquidity and credit growth, as
well as higher food and energy prices, continue to exert
some risks to price and financial stability. In the
medium-term, growth can be sustained and made more inclusive
by pursuing structural reforms and investing more in human
and physical capital. The Aquino administration has
successfully raised tax effort by 1.2 PPT of gross domestic
product (GDP) in the last 3 years through the sin tax
reform, improved tax administration, and higher growth.
These reforms can help the country become more competitive,
and in the process create more and better jobs, and
accelerate poverty reduction. The Philippine economic update
provides an update on key economic and social developments
as well as policies over the past 6 months. It also presents
findings from recent World Bank studies on the Philippines.
Citation
“World Bank Group. 2014. Philippine Economic Update, August 2014 : Investing in the Future, Sharing Growth and Job Opportunities for All. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/19974 License: CC BY 3.0 IGO.”