World Bank, ADB, S&P revise GDP forecasts for Asia
With its revised growth prospects despite a declining global economy, is the Philippines set to finally realize its status as one of Asia’s next tiger economies?
Possibly, as seen by upward revisions on the country’s GDP forecasts by three international lending and credit rating agencies.
Gross Domestic Product or GDP is the market value of all final goods and services produced within a country during a certain period. It is a measure of economic activity, which means that a growing GDP signals economic growth. (See also: Top 10 Countries in terms of GDP)
In the past weeks, the Philippines received three upward growth revisions from the World Bank, Asian Development Bank, and Standard & Poor’s — a sign that better days are ahead for Filipinos.
World Bank, ADB, S&P revise Philippines GDP forecast
The World Bank on October 9 raised the Philippine growth forecast for 2012 from 4.6% to 5.0%. This is actually the second time this year that the international lending agency revised upward its Philippine outlook. In July 2012, World Bank announced it is raising the country’s expected Gross Domestic Product (GDP) growth from 4.2% to 4.6%.
Asian lender Asia Development Bank (ADB) also raised the country’s economic prospects last week. In its updated Asian Development Outlook 2012 released on October 3, the ADB said it is revising the Philippine growth outlook from 4.8% to 5.5% this year.
Meanwhile credit rating agency Standard & Poor’s (S&P) also upgraded in late September its GDP forecast for the Philippines from 4.3% to 4.9%.
The Philippines itself forecast its own growth to reach 5-6% this year.
The three agencies said the country’s growth outlook revisions are due to increasing tax revenues, manageable deficit, rising consumption, and economic resilience due to strong fundamentals despite a slowdown in other global markets.
In fact, the Philippines together with Indonesia bucked the trend of growth downward revisions in the rest of Asia.
Rest of Asia face declining GDP growth
The World Bank cut the economic growth outlook for East Asia and the Pacific from 7.6% to 7.2%. This is a sharp decline from the region’s growth of 8.3% in 2011. The international lender cited slowdown in China, which is expected to grow at “only” 7.7%, the slowest in the past 13 years. Last year, China’s GDP growth was 9.3%.
Similarly the ADB expects a slowdown in Asia. Expected 2012 growth for the region is reduced from 7.3% to 6.7%. Asia expanded 7.2% in 2011, according to the ADB.
Here are the revised GDP growth forecasts of select countries in Asia.
2012 Revised GDP Forecasts – Asian Countries