US taper to persist in curbing PH growth

Further tapering by the United States Federal Reserve of its economic stimulus program will weigh on Asia’s growth, the World Bank said, warning that the Philippines may have to rely on its macroeconomic fundamentals to fight the effects of regional contagion.

The region may not escape the fallout from the US move to cut back on purchases of mortgage-backed assets and Treasuries as domestic growth gains momentum. Asian markets, including the Philippines, are particularly vulnerable given the large share of financial assets held here by foreigners.