WB and ADB sees 6.2% expanded growth for the Philippine economy in 2013, 2014

World Bank and Asian Development Bank's forecast for the Philippine economic growth for 2013 and 2014

The World Bank expects the Philippine economy to expand by 6.2 percent this year and 6.4 percent in 2014, with the growth to be supported by the country's strong economic fundamentals.

The WB estimate is higher than the ADB forecast of 6 percent for this year and 5.9 percent for next year.

In its "East Asia and Pacific Economic Update" report released yesterday, World Bank cited the Philippines as one of the middle-income countries in the East Asia and Pacific region that outperformed expectations last year.

"The Philippines led the ASEAN-4, accelerating from 3.9 percent GDP growth in 2011 to 6.6 percent in 2012, spurred by robust private consumption, a recovery in government spending, strong performance of the construction sector and of exports," World Bank said.

With the country's robust performance last year, World Bank maintained its outlook for the Philippines, unchanged from the forecasts it made in December 2012.

The World Bank's 6.2 percent forecast for this year is within the national government's 6 to 7 percent growth target for this period.

"In the Philippines, the fundamentals remain strong, policy responses have been appropriate so far, and reform efforts by the government appear sustainable," the report said.

The Asian Development Bank earlier revised upwards its forecast for the Philippines to 6 percent for 2013 from its previous outlook of 5 percent.

For 2014, ADB expects the Philippine economy to expand at a slower pace of 5.9 percent.

ADB said that strong consumption and rising investments are expected to boost the Philippine economic performance this year.

It added that the upbeat business and consumer sentiment will support growth. Fiscal spending will remain robust, along with construction activity, driven by the strong demand for housing and office space.

Both the World Bank and ADB also cited the first investment grade credit rating recently given by Fitch Ratings for the Philippines, which is expected to improve the investment climate.

However, World Bank said that to sustain and increase inclusive growth in the developing East Asia and Pacific region over the medium-term, investments in both infrastructure and in skills must be increased.

The agency said that raising the levels of investment would raise growth prospects in the region.

"In the Philippines, lagging infrastructure development is a long-standing impediment to private investment," the report said.

"Catching up on government infrastructure spending will provide the fiscal spark that is still missing in the country's growth path, although infrastructure spending is gearing up recently. In 2012 it was equivalent to 2.4 percent of GDP, up from 1.6 percent of GDP in 2011," World Bank said.

Presidential Spokesman Edwin Lacierda yesterday said while the World Bank's growth forecast of 6.2 percent for the Philippines is at the lower end of the country's own growth forecast of six to seven percent, it still recognizes that correct measures are being done by the Aquino government to continue to improve and grow the economy.

Lacierda said Malacanang still welcomes the growth forecast of the World Bank but the Aquino government will continue to hope and strive to reach its target of six to seven percent growth this year.

"Certainly, we welcome that. I think that's a lowside of our forecast. Our forecast is around six to seven percent. But, certainly, it's a welcome recognition on the part of World Bank that the Philippines has been taking the correct steps in improving the economy and also in having equitable progress for the—for our countrymen," he said.

The World Bank has maintained its GDP forecasts of 6.2 percent for the Philippines citing that the country continues to show signs of sustained growth.

It also forecasted growth of 6.4 percent and 6.3 percent for the Philippines in 2014 and 2015 respectively.

World Bank also projected that regional growth would rise moderately to 7.8 percent in 2013 and ease to 7.6 percent in 2014.

With report from Malaya Business Insight

Continue reading

Philippine Coast Guard discovered Butchered pangolins on Chinese poacher boat

This undated handout photo received on April 10, 2013 and released by the Philippine coast Guard (PCG) shows coast guard personnel inspecting the Chinese fishing vessel which ran aground off Tubbataha reef in Palawan island, western Philippines. A Chinese fishing boat has run aground on a World Heritage-listed coral reef in the Philippines, roughly 1,600 kilometres (1,000 miles) from China's nearest major landmass, authorities said April 9. AFP PHOTO/PCG

The Philippine coast guard said Monday it had found hundreds of frozen scaly anteaters, or pangolins, in the cargo hold of a Chinese boat that ran aground in a protected marine sanctuary last week.

Wildlife officials have been informed of the surprising discovery, which could lead to more charges for the 12 Chinese men arrested on charges including poaching after their boat was stranded in Tubbataha Reef last week.

"We found 400 boxes containing anteaters aboard the vessel, and we are now determining where these came from," coast guard spokesman Lieutenant Commander Armand Balilo told AFP.

He could not say whether the pangolins were frozen alive, or had already been butchered as meat.

A protected species, pangolins are widely hunted in parts of Asia for their meat, skin and scales. In China, they are known as a delicacy and are purported to have medicinal qualities.

According to the International Union of Conservation of Nature, all eight species of the insect-eating mammals are protected by international laws around the world.

Two – the Malaysian and Chinese pangolins – are in its "red list" of endangered species.

Pangolins are also found roaming in the wild in the western Philippine island of Palawan, the nearest land area to Tubbataha Reef where the Chinese boat had been marooned.

Balilo said the vessel remained stuck in Tubbataha, while the coast guard awaited arrival of a salvage ship to tow it away.

Prosecutors charged the 12 Chinese fishermen last week with illegal poaching and with corruption for attempting to bribe Filipinos officials, and if convicted they could face long jail terms.

It was not immediately clear however what additional charges, if any, are to be filed against them with the discovery of the pangolins, Balilo said.

The grounding of the 48-metre (157-foot) boat came amid deep tensions between the Philippines and China over competing territorial claims to the neighboring West Philippine Sea (South China Sea).

China claims virtually all of the South China Sea on historical grounds, including waters close to the shores of its neighbors.

The Philippines, as well as Vietnam, have accused China of bullying other claimants as it aggressively stakes out its claims.

INQUIRER Global Nation

Continue reading