WB trims 2024 Phl GDP target to 5.9%

The World Bank has downscaled its economic growth forecast for the Philippines this year following the slower-than-expected gross domestic product growth in the third quarter, but expects the economy to post faster economic growth next year.

- By Louella Desiderio

In its latest Philippine Economic Update, the World Bank said it revised downward the growth forecast for the country to 5.9 percent this year from the earlier forecast of six percent.

Gonzalo Varela, World Bank lead economist and program leader of the equitable growth, finance and institutions practice group for the Philippines, Malaysia and Brunei, said in a press briefing yesterday that the revised forecast reflects the impact of adverse weather events that led to lower than expected growth in the third quarter of 2024.

The Philippine economy grew by 5.2 percent in the third quarter, slower than the 6.4 percent growth in the previous quarter and six percent expansion in the third quarter in 2023.

The World Bank's new growth forecast for the Philippines for 2024 is below the government's revised six to 6.5 percent growth target for this year.

Despite the downward adjustment in the 2024 growth forecast for the Philippines, the World Bank expects the economy to expand at a faster 6.1 percent next year and six percent in 2026.