Philippine economic growth to hit 6.5% in 2015-2016

The Philippine economy is expected to grow 6.5 percent this year and next year, the World Bank said Monday.

"In the Philippines, growth will rise by 0.4 percentage points in 2015-2016, assuming implementation of the Typhoon Yolanda ( international name: Haiyan) reconstruction plan and other public spending plans, including public-private partnerships," the Washington-based lender said on its East Asia and Pacific Economic Update.

The Philippine economy grew 6.1 percent in 2014.

The 2015 World Bank projection was 0.2 percentage points lower from an earlier estimate of 6.7 percent made in October 2014.

The lending agency also sees consumer spending to boost Philippine economic growth.

"Upbeat consumer sentiment, falling oil prices, and higher incomes will support consumption in 2015, while election-related spending and transfers will provide a transitory boost in 2016," it said.

The World Bank's economic growth projections are much lower than the Philippine official targets of 7 percent to 8 percent for this year and next year.