MANILA, July 13 (Xinhua) -- The World Bank (WB) said on Friday that it is maintaining its 6.7 percent growth forecast for the Philippines for 2018 and 2019 despite rising global uncertainty.
Considering recent economic data, the WB said the composition of expected growth was revised as compared to the April edition of the WB Philippines Economic Update.
Given recent fiscal trends, the WB said government consumption growth was revised upwards, while private consumption growth is expected to expand at 5.9 percent in 2018 and 6.2 percent in 2019.
The WB said investment growth was slightly upgraded due to higher public capital outlays, including increased infrastructure spending.
Overall, the WB sad it is anticipated that real gross domestic product (GDP) growth will increase towards the end of 2018 and into the first half of 2019 with higher election-related public spending.
"The government's ability to carry out its investment spending agenda will determine if the Philippines can achieve its growth target of 6.5-7.5 percent over the medium term," said Birgit Hansl, World Bank lead economist for the Philippines.
In addition, she said, "Higher private investment levels will be critical to sustain the economy's growth momentum as capacity constraints become more binding."
The WB said exports, a key driver of growth for the Philippines economy, are projected to moderate in the coming years as global growth is expected to decelerate.
The WB's June 2018 Global Economic Prospects projected a gradual global slowdown over the next two years, predicated on moderately higher commodity prices, strong but gradually moderating global demand, and incremental tightening of global financing conditions.?