The Philippine quarterly update providesan update on key economic and social developments, andpolicies over the past three months. Despite heightenedglobal economic uncertainty, the Philippine economy grew by6.4 percent in the first quarter of 2012, a solid recoveryfrom the relatively low 3.9 percent outturn for 2011. Highergrowth was driven by a recovery in net exports andgovernment spending, and robust private consumption.However, the ongoing European debt crisis and the slowdownin China pose significant downside risks to growth. The mainchannels of contagion to the Philippines are direct exportsand remittance linkages to Europe, and indirect impactthrough regional production networks centered on China. Thechallenge for policymakers is to cushion the economy frompotential external shocks, while ensuring that thePhilippines invest in inclusive growth. Political commitmentand strong macroeconomic fundamentals provide a window ofopportunity for investing in inclusive growth byaccelerating the implementation of reforms that improve thebusiness environment for firms of all sizes, and boostingpublic investment in key infrastructure. Faster humancapital accumulation will enhance productivity and drivegrowth in the medium term by enabling the country to shiftgears towards higher value-added activities and more innovation.
PDF
download
878987797
028-85220240
