In its East Asia-Pacific Economic Update released on Thursday, the bank said the growth is projected to rise further in the short run, if the global recovery remains intact. According to the report, while inflation is predicted to remain moderate thanks to a benign global price environment, strong wage growth may ultimately lift core inflation. External balances are projected to benefit from robust exports and FDI inflows. However, the report stressed that there are significant challenges, despite the generally favorable medium-term outlook.
The Work Bank called for further steps to implement deeper revenue and expenditure reforms and solidify macroeconomic stability accompanied by progress on structural reforms, to raise productivity and potential growth.