PHL needs more reforms to achieve higher growth, says World Bank

The Philippines needs to sustain reforms toward competitiveness and in governance to reach a higher growth trajectory, a World Bank economist said.

“Continue doing what they are doing,” World Bank lead economist for the Philippines Rogier van den Brink told reporters over the weekend at the sidelines of a reception hosted by Bangko Sentral ng Pilipinas for bankers.

Van den Brink said “ramping up investment in infrastructure, health, education” is also needed, he added when asked what the Philippines must do to achieve a gross domestic product (GDP) growth of around 8 percent.

In its Global Economics Prospects 2014 report released last Wednesday, the World Bank forecasts PHL GDP to settle at 6.9 percent in 2013, the same projection it unveiled last month after taking into account the damage from Typhoon Yolanda.

The Philippine economy is also expected to slow down to 6.5 percent in 2014 before rebounding to 7.1 percent in 2015 and 6.5 percent in 2016.

The government targeted a GDP growth of 6 to 7 percent last year, 6.5 to 7.5 percent this year, 7 to 8 percent in 2015, and 7.5 to 8.5 percent in 2016.

“2013… It’s a bit of a though year because of the Yolanda event,” Van den Brink said.

“Now, as the recovery program takes off in 2014 that will slowly… basically start to provide a stimulus to the economy. And that will really come through in 2015,” he noted.

The World Bank’s 6.5 percent forecast for 2016 is the multilateral lender’s “long-term forecast for the Philippines,” which is likely to be revised, Van den Brink said.

But the World Bank economist noted the long-term projection – which covers three to four years – is “very good.”

Anti-corruption efforts

Van den Brink also took note of the anti-corruption drive and governance reforms President Benigno S. Aquino III has been pushing for in his administration. His campaign platform in 2010 was to end corruption, particularly in state contracts.

The World Bank economist said governance reforms, like the newly unveiled Philippine portal data.gov.ph, will improve the country’s competitiveness and could result in more investments.
http://www.gmanetwork.com/news/story/344119/scitech/technology/phl-gov-t-bids-for-transparency-with-new-open-data-website

“This is a great thing that would improve that (competitiveness),” Van den Brink said.

“It’s a huge thing, there are very few governments in the world that have done it. You’re leading your way… And that will increase governance a lot… and accountability…” he added.

Last year, the Philippines ranked 108th out of 189th in the World Bank Group’s Ease of Doing Business report, up 30 notches from 138th in 2012.

The leap placed the Philippines among the Top 10 economies in terms of efforts to enhance the business environment.

Guillermo Luz, National Competitiveness Council private-sector representative, said he wants the Philippines to at least match last year’s level in this year’s rankings. – VS, GMA News