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Washington, D.C. – Hours after The World Bank predicted a 7% economic growth for the Philippines, the international monetary body withdrew its forecast, saying that interns committed an embarrassing data error. The earlier prediction would have made the Philippines a standout as the bank cut its projections for most of the rest of Asia. The bank attributed the Philippine growth forecast to increased infrastructure spending, consumer spending, remittances and business process outsourcing.
Background: Makati skyline; foreground: slums by the Pasig River
In withdrawing the forecast, World Bank officials said that interns working at the bank’s Washington, D.C. headquarters misinterpreted some of the data they were reviewing. “They thought they were looking at financial data when in fact, they were reviewing the Philippines’ population growth rate,” they said.
Economic experts familiar with the actual situation in the Philippines have been skeptical of the investment-grade rating received by the country from Moody’s Investment Service, Fitch Ratings, and Standard & Poor in recent months, as they have with The World Bank’s forecast. “The ratings and forecast are simply not consistent with the ever-increasing gap between the rich and poor in this country of almost 100 million, as well as the massive political corruption and financial scandals that have pervaded many levels of the Philippine government,” the experts said.
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