PH economy seen to expand fastest in East Asia and Pacific in 2023

enablePagination: false
maxItemsPerPage: 10
maxPaginationLinks: 10

Metro Manila (CNN Philippines, October 3) — The Philippine economy is expected to post the quickest growth among developing countries in East Asia and the Pacific this year, the World Bank said in its latest report.

Based on its growth outlook for the region released Monday, the Philippines now leads as its 5.6% growth has been maintained for 2023, faster than Vietnam’s 4.7%—a drop from the 6.3% forecast for 2023 in the April edition of the report.

For 2024, the Philippines may grow by 5.8%.

The Washington-based multilateral lender noted that the country’s adoption of software and data analytics boosted the productivity of firms.

It also said that the state of internet connections in the Philippines has booked “a strong increase in the speed” from end-2019 to early this year.

“Services reform and digitalization can generate a virtuous cycle of increasing economic opportunity and enhanced human capacity, powering development in the region,” World Bank East Asia and Pacific Vice President Manuela Ferro said in a statement.

As the local tourism sector has been also realizing a rebound, the World Bank said it has helped the country’s services exports.

The group said the services sectors “play an increasing role in driving development in a region known for manufacturing-led growth.”

Other countries covered by the forecast include China, Indonesia, Malaysia, Thailand, Cambodia, Lao PDR, Mongolia, and Myanmar.

Meanwhile, the region’s growth is seen to “remain strong” at 5% this year, which the World Bank said is higher than the average growth forecasted for other emerging markets and developing economies.

“The East Asia and Pacific region remains one of the fastest growing and most dynamic regions in the world, even if growth is moderating,” Ferro said.

“Over the medium term, sustaining high growth will require reforms to maintain industrial competitiveness, diversify trading partners, and unleash the productivity-enhancing and job-creating potential of the services sector,” the World Bank official added.