The World Bank (WB) expects the Philippines and other East Asia and Pacific economies to post slower 2008 growth rates, skid further in 2009, before exports pick up and credit and investments start flowing again in 2010.
In its Global Economic Prospect (GEP) 2009 report released Wednesday, the World Bank said the Philippines will grow by only 3 percent in 2009, slower than its 4 percent forecast for this year.
These projections are lower than the Philippine government’s own economic growth targets of between 4.1 to 4.8 percent this year, and 3.7 and 4.7 percent in 2009.
World Bank’s projections showed the Philippines lagging behind peer countries’ growth prospects in 2008 up to 2010.
This year’s 4 percent growth forecast for the Philippines is lower than South East Asian countries, like Thailand (4.6 percent), Malaysia (5.5 percent), Indonesia (6 percent).
Even previous laggards in the neighborhood, like Vietnam (6.5 percent), Lao (7 percent), and Cambodia (6.7 percent) will also slowdown in 2008, but their growth rates still outpace the Philippines’.