The World Bank projects sluggish global growth, insufficient for sustained economic development, particularly impacting developing countries like the Philippines. The report highlights risks from global policy shifts and weaker growth in China. The Philippines is projected to see modest growth improvement, but analysts warn of potential consequences from US trade policies.
The World Bank has expressed concerns about the sluggish global economic growth, projecting a rate of 2.7 percent for both 2025 and 2026. This stagnation, deemed insufficient for sustained development, particularly impacts developing countries like the Philippines . While developing economies are anticipated to grow collectively by 4.1 percent in 2024, this is projected to ease to 4.0 percent in 2026.
This growth rate, according to the World Bank, falls short of what's needed to alleviate poverty and achieve broader development objectives. The East Asia and Pacific (EAP) region, for instance, faces a projected growth of 4.6 percent in 2025, down from an estimated 4.9 percent in 2024, and further declining to 4.1 percent in 2026. This slowdown is attributed to China's economic deceleration, with growth projections of 4.9 percent in 2024, 4.5 percent in 2025, and 4.0 percent in 2026. The World Bank highlights risks to the EAP outlook, including unfavorable global policy shifts, particularly trade policies, and weaker-than-anticipated growth in China, which could ripple through the region. The Philippines, projected to have experienced a below-target 5.9 percent growth in 2024, anticipates an improvement to 6.1 percent in 2025, followed by a slight easing to 6.0 percent in 2026. The World Bank previously reduced its 2024 projection due to the impact of severe storms on the economy. Analysts warn that US President-elect Donald Trump's potential trade policies, including increased tariffs on imports and mass deportations of undocumented immigrants, could have significant consequences for the Philippines. The US is the country's largest export market and home to numerous Filipino migrant workers who send remittances back to their families. While trade officials emphasize the need for diversification, others argue that the Philippines is relatively less vulnerable to outbound merchandise shipments and could benefit from robust services exports.
Global Growth World Bank Developing Countries Philippines China Trade Policies Economic Outlook
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