The World Bank reduced its growth forecast for the Philippines to 5.6 percent for 2023 from 5.9 percent it earlier estimated.

In an online forum, World Bank East Asia Pacific Region Chief Economist Aaditya Mattoo said: “Philippines' growth is going to be anchored on domestic demand, an increase in private investment due to recent reforms, and sustained public investment.”

“But you know, hopefully, it is going to see a revival in tourism which is going to help soften the effect that exports are going to suffer from the fact that there is slowing global demand,” he added.

Mattoo said that two of the Philippines’ biggest challenges are its declining manufacturing sector and its “high levels” of learning poverty.

“In the charts that we have in the report, the Philippines’ manufacturing share has been declining. Other countries saw an increase and then a plateau. The Philippines (manufacturing sector) has been on a steady decline. But it has done remarkably well in services. So how it can consolidate its strength to creating more stronger human capital as well as now finding ways to truly stimulate its manufacturing sector. I think you have two big challenges for the country,” Mattoo said.

Other challenges, he said, the Philippines has to address include inflation and improving tax administration and policy. Jaspearl Tan/DMS