World Bank raises Philippines' 2010 growth forecast to 6.2%

From its original growth forecast of 4.4% in terms of local output or the gross domestic product this year, the World Bank increased on Tuesday the country’s growth outlook to 6.2%.

Bert Hofman, World Bank country representative to the Philippines cited the bullish outlook as he announced the doubling of its plan and project loans to the country this year.

Hofman said real growth in the first half was driven by a rebound in exports and by domestic consumption that allowed the economy to increase by 7.9% in the second quarter from 7.8% in the first.

At its Philippine Quarterly Update released on Tuesday, the World Bank said consumption, investments and remittances from millions of overseas Filipinos were to “further buoy domestic demand during the remainder of the year.”
“The global recession has demonstrated improvements in the Philippines’ macro financial resiliency, thanks to a extraordinarily robust external position. This is attributed to sound macro fundamentals - particularly the banking system, corporate sector, balance of payments and fiscal and monetary space - coupled with growing remittance flows,” Le Borgne said.