FORECAST. This Washington-based multilender raises its growth projections for the Philippines. File photo by AFP

MANILA, Philippines - Following the Philippines' better-than-expected economic growth in the first 3 quarters, the World Bank upgraded its forecasts for the country for this year and the next.

In its East Asian Economic Outlook Update released Wednesday, December 19, the multilateral lender said the Philippines will likely grow 6% in 2012, 1.8 percentage points higher than its May projection of 4.2%.

In 2013, an election year, the lender projected the local economy will expand by a faster 6.2%, against its previous estimate of 5%.

An even faster growth of 6.4% is expected in 2014.

Bert Hofman, World Bank Chief Economist for East Asia and Pacific, said growth will be seen across the region, which will "contribute almost 40% of global growth in 2012."

"The East Asia and Pacific is becoming increasingly important for the world economy," he said. "With high growth rates sustained in the region, we expect poverty to continue to decline."

Hofman said the share of people living under $2 a day in the region is forecast to reach 23.3% by the end of 2014, down significantly from 28.8% in 2010. - Rappler.com

Click on the links below for more about the Philippine economy:

• PH tips 2012 GDP growth to beat forecasts
• Hot money inflows hit 2-year high
• PH November dollar reserves exceed 2012 target
• Q3 growth surprising, but can it hold out?
• November inflation slows to 2.8%