Speed up reforms, World Bank tells PH
High power rates and limited access to financing for small
enterprises are among the structural problems that the Philippine
government should address so that economic growth can translate into
poverty reduction, the World Bank said on Monday.
In its latest quarterly report on the Philippines, the World Bank
said the country had achieved low inflation, a sustained economic
growth, a declining debt burden, a stable banking sector and a
comfortable level of foreign exchange reserves.
But the country should work on graduating from merely achieving
and sustaining macroeconomic stability to spreading prosperity to most
Filipinos, the multilateral agency said.
“The government has done a really good job in achieving
macroeconomic stability. But there are structural impediments that have
to be addressed … to achieve a more inclusive growth and to reduce
poverty at a faster pace,” Karl Kendrick Chua, World Bank country
economist for the Philippines, said at a press conference.
Besides high power rates and lack of financing for small
enterprises, Chua enumerated other impediments to poverty
reduction—unpredictable regulations, uneven playing field for businesses
in terms of taxation, high cost of and a tedious process in starting a
business, and limited access to education and skills training.
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