World Bank Group2014-09-082014-09-082014-08-01https://hdl.handle.net/10986/19974After 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.en-USCC BY 3.0 IGOACCOUNTINGADVERSE IMPACTSAGRICULTUREAUDITSBALANCE OF PAYMENTSBANKING INDUSTRYBANKING SECTORBANKING SECTOR REFORMSBENCHMARKBIDBONDBOND PRICEBOND PRICESBONDSBUSINESS ENVIRONMENTCAPITAL ADEQUACYCAPITAL FLOWCAPITAL FORMATIONCAPITAL INFLOWCAPITAL INFLOWSCAPITAL OUTFLOWCAPITAL OUTFLOWSCAPITAL OUTLAYSCASH TRANSFERSCENTRAL BANKCOMMERCIAL BANKSCOMMODITIESCOMMODITYCOMMODITY PRICESCOMPETITIVENESSCONSUMER GOODSCREDIT EXPANSIONCREDIT GROWTHCREDIT RATINGCURRENCYCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITCURRENT ACCOUNT SURPLUSDAMAGESDEBTDEBT MANAGEMENTDEBT SECURITIESDEFAULT RISKDEPOSITDEPOSIT ACCOUNTDEPOSITORYDEVALUATIONDEVELOPING COUNTRIESDEVELOPMENT POLICIESDOMESTIC BANKINGDOMESTIC BORROWINGSDOMESTIC ECONOMYDOMESTIC INFLATIONDURABLEDURABLE EQUIPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC REFORMECONOMIC REFORMSECONOMIC STRUCTUREELECTRICITYEMERGING MARKETSEQUITIESEQUITY INVESTMENTEXCHANGE RATEEXCHANGE RATESEXCISE TAXESEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT MARKETSEXPOSUREEXPOSURESEXTERNAL DEBTFINANCIAL CRISISFINANCIAL FLOWSFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL MARKET PARTICIPANTSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFISCAL DEFICITFISCAL MANAGEMENTFISCAL POLICYFOREIGN ASSETSFOREIGN BANKSFOREIGN CURRENCYFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTFOREIGN INVESTORSFOREIGN OWNERSHIPFOREIGN PORTFOLIOFOREIGN PORTFOLIO INVESTMENTSGDPGDP PER CAPITAGLOBAL ECONOMIC PROSPECTSGLOBAL ECONOMYGOOD GOVERNANCEGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROSS NATIONAL SAVINGSGROWTH PROJECTIONSGROWTH RATEGROWTH RATESHORIZONTAL EQUITYHUMAN CAPITALINCOME TAXINCOMESINDEXATIONINELASTIC DEMANDINFLATIONINFLATION RATEINFLATIONARY PRESSURESINFORMATION TECHNOLOGYINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE PROJECTINSURANCEINTELLECTUAL PROPERTYINTEREST PAYMENTINTEREST PAYMENTSINTEREST RATESINTERNATIONAL RESERVESINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVENTORIESINVESTINGINVESTMENT FUNDSINVESTMENT MANAGEMENTINVESTOR CONFIDENCEJOB CREATIONLABOR MARKETLEASE AGREEMENTSLEVYLIABILITYLIBERALIZATIONLIQUIDITYLIVING STANDARDSLOCAL BUSINESSLOCAL GOVERNMENTLONG-TERM LOANSM3MACROECONOMIC INSTABILITYMACROECONOMIC STABILITYMACROECONOMICSMARKET PERFORMANCEMARKET REFORMSMATURITYMIDDLE-INCOME ECONOMIESMONETARY FUNDMONETARY POLICIESMONETARY POLICYMONEY SUPPLYNATIONAL SAVINGSNATURAL DISASTERSNET EXPORTSOUTPUTOUTPUT GAPOUTSOURCINGPER CAPITA INCOMEPERSONAL INCOMEPOLITICAL STABILITYPORTFOLIOPORTFOLIO INFLOWPORTFOLIO INVESTMENTPORTFOLIO INVESTMENTSPOTENTIAL OUTPUTPRIVATE SECTORPRIVATIZATIONPRODUCTION COSTSPROPERTY MARKETPROPERTY RIGHTSPUBLICPUBLIC FINANCEPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SECTORPUBLIC SPENDINGPUBLIC USEPUBLIC UTILITYPUBLIC-PRIVATE PARTNERSHIPREAL ESTATEREAL GDPREAL INCOMEREFORM PROGRAMREMITTANCEREMITTANCESRESERVERESERVE REQUIREMENTRESERVESREVENUE COLLECTIONSMALL ENTERPRISESSOCIAL DEVELOPMENTSSOCIAL PROTECTIONSTOCK EXCHANGESTOCK MARKETTARIFF BARRIERSTAXTAX CODETAX COLLECTIONTAX EXPENDITURESTAX INCENTIVESTAX POLICIESTAX POLICYTAX RATETAX RATESTAX REGIMETAX REVENUESTAX SYSTEMTELECOMMUNICATIONSTOTAL COSTSTOTAL FACTOR PRODUCTIVITYTOTAL REVENUETRADE DEFICITTRANCHESTRANSPARENCYTREASURYTURNOVERUNEMPLOYMENTVOLATILITIESVOLATILITYWAGESWORLD DEVELOPMENT INDICATORSWORLD TRADEWORLD TRADE ORGANIZATIONWTO10.1596/19974