Manila Standard Today reported that the World Bank has projected a gross domestic product growth of 5% for the Philippines in 2011, moderating from a record 7.3% expansion in 2010, as the technical and temporary factors that generated record growth in 2010 disappeared.

The World Bank said in its quarterly update that "Economic growth is forecast to moderate to around 5% in 2011 and 5.4% in 2012, but could be higher if investment climate continues to improve."

The bank's growth forecast for the Philippines is lower than the government’s growth target of 7% to 8% for the year, as it embarks on massive infrastructure development program centering on the so called public private partnership framework.

The Philippine economy grew by 7.3% in 2010, the highest in 34 years, due to the rebuilding of inventories by firms after the global financial crisis, the recovery of exports and manufacturing, accommodative monetary and fiscal policies and election spending.

The World Bank said that "Record growth may moderate as some of these temporary factors disappear and the government’s policy stimuli are gradually withdrawn."

Mr Bert Hofman World Bank country director said that strong private investment in the fourth quarter of 2010 and bullish business confidence are encouraging signs that the economy could attract investments needed to boost potential growth and generate more jobs.

Mr Eric Le Borgne senior economist at World Bank said that "Outlook for both consumers and business is encouraging. Net exports are also projected to remain strong, thanks to exports diversification and robust outlook for the electronics industry."

(Sourced from www.manilastandardtoday.com)