World Bank says Philippines urgently needs reforms

Filipino children wait in line to receive porridge during a free feeding program by a local NGO at a community of illegal settlers in suburban Quezon City on Sunday, March. 18, 2012. Poverty afflicts about a third of the Philippines' 94 million people. According to the World Bank, the Philippines has to have sustained economic growth of over 5 percent to reduce povery. AP PHOTO/AARON FAVILA

MANILA, Philippines — The World Bank says the Philippines needs to accelerate reforms to allow for sustained growth of above 5 percent a year to improve the lives of the poor.

The bank’s report released Monday says inflation is low and stable and government finances are manageable.

It also says the central bank is awash with dollars, and the popular government in place is committed to improving governance and reducing poverty.

The report forecasts economic growth of 4.2 percent in 2012 and 5 percent in 2013, up from 3.7 percent last year.

It says strengthening public finances and competitiveness are needed for rapid growth of above 5 percent — the same level achieved by neighboring countries that led to greater poverty reduction.