The World Bank (WB) is expecting a 1.4 percent growth of the Philippine economy this year and 3.1 percent in 2010 despite the impact of the recent typhoons.

In its Philippine quarterly update, WB noted that the country has avoided a recession this year due to the renewed consumer spending and the timely monetary and fiscal stimuli by the government.

WB country director Bert Hofman said: “Remittances are staying strong. Government consumption and public construction will continue to benefit from the national government's spending in the remaining months of 2009. We believe the government growth forecast for 2009 to be entirely feasible."

Eric Le Borgne, WB senior economist in the Philippines, said that the export and the corporate sectors are showing signs of recovery. Exports to developed countries like the United States and Germany have improved since August.

"While SMEs, especially those which are export-oriented, are still reeling from the crisis, the corporate sector focusing on the domestic market is showing improved profitability. With financial markets also on the rebound, banks are able to turn around losses experienced in the last quarter of 2008," said Le Borgne.

The property sector remained strong owing to the continuing demand for condominiums and houses from expatriate Filipinos as well as office spaces from the bourgeoning business process outsourcing industry.