Publication: Philippine Quarterly Update: Investing in Inclusive Growth amid Global Uncertainty
Date
2012-07
ISSN
Published
2012-07
Author(s)
World Bank
Abstract
The Philippine quarterly update provides
an update on key economic and social developments, and
policies over the past three months. Despite heightened
global economic uncertainty, the Philippine economy grew by
6.4 percent in the first quarter of 2012, a solid recovery
from the relatively low 3.9 percent outturn for 2011. Higher
growth was driven by a recovery in net exports and
government spending, and robust private consumption.
However, the ongoing European debt crisis and the slowdown
in China pose significant downside risks to growth. The main
channels of contagion to the Philippines are direct exports
and remittance linkages to Europe, and indirect impact
through regional production networks centered on China. The
challenge for policymakers is to cushion the economy from
potential external shocks, while ensuring that the
Philippines invest in inclusive growth. Political commitment
and strong macroeconomic fundamentals provide a window of
opportunity for investing in inclusive growth by
accelerating the implementation of reforms that improve the
business environment for firms of all sizes, and boosting
public investment in key infrastructure. Faster human
capital accumulation will enhance productivity and drive
growth in the medium term by enabling the country to shift
gears towards higher value-added activities and more innovation.
Citation
“World Bank. 2012. Philippine Quarterly Update : Investing in Inclusive Growth amid Global Uncertainty. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/26746 License: CC BY 3.0 IGO.”