World Bank hikes Philippine growth forecast to 5 pct

MANILA, Oct. 8 (Xinhua) -- The World Bank on Monday upgraded this year's growth forecast for the Philippines to 5 percent on the back of strong domestic demand and an increase in government spending on infrastructure.

The latest growth forecast for the Philippines is higher than the 4.6 percent projected for the country in a report titled " Philippine Quarterly Update" released by the Washington-based lender in July.

The World Bank cited the strong performance of the country's economy in January to June this year, when gross domestic product (GDP) grew by 6.1 percent due to higher government spending and increases in revenue collection.

The latest projection, however, is at the low end of the Philippine government's GDP growth target of 5 to 6 percent this year.

For 2013, the World Bank said strong domestic demand will enable the Philippines to post an economic growth of 5 percent.

Last week, the Asian Development Bank also raised its 2012 growth forecast for the Philippines to 5.5 percent from 4.8 percent on the back of its robust first half growth.

The Manila-based lender said in a report that the strong performance of the Philippines in January to June shows the resiliency of the country's resiliency amid a global slowdown. Enditem

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