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World Bank projects positive outlook for PHL

5.0 GDP growth rate expected for 2011
By Entrepreneur Staff |

Prospects for the Philippine economy remain favorable in 2011 as investments, private consumption and the services sector are expected to strengthen, the quarterly update released by the World Bank said.

“Prospects on the supply side remain favorable with manufacturing and construction projected to benefit from the end of the trade disruption linked to Japan’s post-disaster reconstruction, as well as the solid growth forecast for the business process outsourcing,” said World Bank Senior Economist Eric Le Borgne during the release of the quarterly economic update.

“Increasing mineral prices will provide incentive to fast track investment and increase production in the mining sector. The strong performance of the services sector in the first quarter is expected to remain robust throughout the year. The agriculture sector is projected to continue being a net contributor to growth,” Le Borgne added.

The Philippines Quarterly Update (PQU) maintains its forecast of 5.0 percent gross domestic product growth rate in 2011 and 5.4 percent in 2012. The report, however, says that growth could potentially be higher as the strong focus and early gains of the Aquino administration in tackling corruption and improving the investment climate could boost domestic investment.

The PQU says that net exports are projected to recover due to a combination of a technical rebound in exports that were affected by Japan’s earthquake-tsunami-nuclear event combined with a potential boost in exports of goods and services (including labor exports) to Japan as Philippine companies and workers contribute to the reconstruction of affected areas.

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