MANILA, Philippines — The country’s economic growth is expected to remain subdued this year amid the heightened Middle East conflict, the World Bank said.
In its East and Asia Pacific outlook, the World Bank trimmed its growth outlook for this year to 3.7 percent, down from the previous forecast of 5.3 percent. This is below the 5.0 to 6.0 percent target of the government for this year.
“Philippines is exposed to the conflict not only through energy and fertilizer imports but also through remittances,” World Bank East and Asia Pacific senior economist Ergys Islamaj told reporters in a briefing on Wednesday.
“Longer conflict will hurt the economy further,” he added.
For next year, World Bank raised its growth forecast to 5.6 percent from the previous 5.4 percent.