World Bank raises 2014 Philippine growth estimate on typhoon rebuilding

MANILA, Mar 17 (Reuters): The Philippine economy could grow faster than previously thought this year, the World Bank said on Monday, but much depends on how fast the government can rebuild communities ravaged by a super typhoon that struck in November.

The World Bank raised its 2014 economic growth forecast for the Philippines to 6.6 per cent, with the economy seen expanding 6.9 per cent in 2015.

The World Bank predicted in December the Philippines would grow 6.5 per cent this year and 7.1 per cent next year.

Loss of output caused by typhoon Haiyan could pull down growth, but a successful reconstruction effort - costing 360 billion pesos ($8 billion) over four years - could partially offset the decline in consumption and keep gross domestic product strong, the World Bank said.

Typhoon Haiyan, one of the strongest storms to make landfall anywhere, reduced almost everything in its path to rubble when it swept ashore in the central Philippines on Nov. 8, killing at least 6,200 people and leaving 4 million either homeless or with damaged homes.

Philippine officials believe the reconstruction effort will ensure this year's growth target of 6.5 to 7.5 per cent will be achieved, after growth of 7.2 per cent in 2013, one of the fastest in Asia.

A slower global recovery, the end of quantitative easing in the United States, and an economic slowdown in China pose growth risks, the World Bank said.

"These strong fundamentals will continue to shield the economy from the impact of the global economic slowdown and financial market volatilities."