The Asian Development Bank has revised slightly higher its growth projection for the Philippines to 6.5 percent this year on robust domestic demand, including higher public investments in infrastructure and social service.

This was contained in the Asian Development Outlook (ADO) 2017 Update, which also forecast gross domestic product growth to accelerate to 6.7 percent in 2018 through increased public investment and household consumption.

In April,m the Manila-based lending agency projected Philippine GDP growth to hit 6.4 percent.

"The concerted effort by the Philippine government to improve public project implementation is bearing fruit, as public investment programs help drive continued economic expansion," said Richard Bold, ADB Country Director for the Philippines during the ADO Update launch on Tuesday in Mandaluyong City.

He said that government's strong focus on infrastructure investment and implementation of tax reform will see the country continue its growth momentum through next year.

"Tax reforms are on schedule," he said as ADB expressed belief the first package of the tax reform is likely to be enacted by the last quarter of this year.

He said that tax reform is an "important step" to realize the Philippine government's ambitious public infrastructure and social service programs.

Bolt also noted steady foreign direct investment inflows, reaching $3.6 billion during the first half of the year.

ADB also revised its projection on Philippine inflation from 3.5 percent to 3.2 for 2017, well within the government's official target of 2-4 percent. For 2018, the lending agency also sees inflation to hit 3.5 percent from its initial forecast of 3.7 percent.

Bolt cited risks which could affect economic growth, such as financial market volatility and uncertain trade policies in major trading partners and their possible protectionism.

Further progress in the "Build, Build, Build" Program and advancing comprehensive tax reforms will be vital to sustain strong growth, he added. Celerina Monte/DMS