The World Bank has downgraded its 2024 growth forecast for the Philippines to 5.3% from 5.6%, citing ongoing global uncertainty that is impacting exports.
The revision highlights the economic headwinds facing Southeast Asia’s Philippines, which remains below the government’s targeted 6-7% growth range.
“Significant challenges remain,” the bank said in its latest report. “Despite a recent rebound in consumer spending, uncertainty in global markets has caused exports and foreign direct investment to slow.”
Private consumption is projected to increase modestly to 3.8% from 3.5% last year, still below the 4.1% recorded in 2022.
Export growth is expected to slow sharply to 0.2% from 0.9% in 2023, while investment growth may ease to 1.5% from 1.8%.
Agriculture could see a small recovery, expanding by 0.1% after contracting last year. The services sector is forecast to remain steady at 4.2%, but industrial growth is expected to weaken to 1.1% from 1.6%.
The World Bank called for structural reforms, including increased infrastructure investment, regulatory simplification, and greater private sector involvement—especially through public-private partnerships—to improve competitiveness.
