World Bank raises PH growth forecast...

Update.

“This upward revision reflects the latest global growth upgrade for 2023 and the continued strength in domestic demand,” it added.

“Private consumption growth will be supported by improved employment, steady remittances, and better consumer sentiments, amid an expected decline in headline inflation and winding down of pent-up demand.”

External risks to the outlook, the World Bank said, include the possibility of higher-than-expected global inflation, tighter global financing conditions and an escalation of geopolitical tensions.

Stubborn core inflation that could lead to larger-than-anticipated monetary tightening in many countries and the recent banking turmoil may unsettle global financial markets.

“From the domestic front, the threat of El Niño and supply chain bottlenecks may yet again raise food supply challenges and place upward pressure on food prices,” the World Bank added.

In an accompanying statement, the World Bank called for improvements in the efficiency of social protections, saying these were needed to protect the poor and the most vulnerable from economic shocks.

“It is essential to sustain improvements in social protection to help families, especially the poor and vulnerable, cope with economic difficulties as the country navigates the global slowdown, budget constraints, high prices of basic commodities, and climaterelated risks,” World Bank Country Director Ndiame Diop said.

Ralph Van Doorn, World Bank senior economist, said risks from inflation would have to be addressed via measures such as reduced tariff and non-tariff barriers, enhanced domestic supplies, and bolstering agriculture with extension services, seeds, and fertilizers.

“In the face of escalating prices, a comprehensive strategy is needed to guarantee sufficient food for everyone,” he said.

“This entails a more productive agriculture and food system that is resilient to climate risks, serves all consumers, and competes effectively in both the local and global markets.” n