IFC Urges For More Private Investments In Asia

The International Finance Corp. (IFC) urged for more private investments in Asia and the Pacific for job creation and growth boost, especially in the infrastructure sector so it could anticipate the impact of an expected global slowdown.

Asian economies, including the Philippines, continue economic recovery from the effect of COVID-19 disruptions, the Russian invasion of Ukraine, and tightening global financial policies.

According to the World Bank’s Global Economic Prospects report, weaker global growth and more disruptive weather conditions due to climate change could affect the region’s growth rate.

In line with this, the World Bank lowered its growth forecast for the Philippines in 2023 to 5.4% from its 5.6% forecast in June 2022.

The World Bank also said ongoing investment shortfalls in emerging markets and developing economies will also affect development and achieving climate objectives.

The report said slow investments weaken the growth rate of potential output which reduces the capacities of economies to increase incomes, promote shared prosperity and repay debts.

“With the right policies in place to attract and incentivize new investment, countries can leverage private sector financing to help meet their large unmet investment needs,” newly appointed IFC vice president for the Asia-Pacific region Riccardo Puliti said.

Source: Inquirer.net