The National Economic and Development (NEDA) expects slower growth for next year due to substantial external and internal headwinds.
Socioeconomic Planning Secretary Arsenio M. Balisacan said the economy would likely grow above seven percent this year, but it is expected to expand at a much slower pace in 2023.
“We hear talks about the Philippine economy slowing down, along with the global economy, in 2023,” Balisacan said.
“After a likely over 7.0 percent growth in 2022, yes, we may slow down, given still elevated external headwinds and internal challenges, but the economy will remain comparatively strong in 2023,” he added.
The inter-agency Development Budget Coordination Committee (DBCC) targets a GDP growth of 6.5 percent to 7.5 percent in 2022 and 6.5 percent to eight percent from 2023 to 2028.
Earlier, Finance Secretary Benjamin E. Diokno said the country’s economic recovery was gaining traction with the better than expected growth seen in the third-quarter.
Diokno said the 7.6 percent GDP in July to September reflected the “many good news lately” under the Marcos administration.
For instance, Diokno cited the country’s rising foreign exchange buffer, or gross international reserves (GIR), which hit $94.1 billion in October from $93 billion in September.
The finance chief also said the peso is strengthening, hovering around 58 per US dollar from a record high of 60.
Moreover, Diokno said current account deficit was narrowing after imports season ended, while the seasonal flow of overseas Filipino remittances is rising.
In the first semester, the current account balance ballooned to a $12-billion deficit from the $1.3-billion in the same period last year.
On the other hand, money sent home by overseas Filipino workers grew three percent in the first eight-months of the year to $20.99 billion from the $20.38 billion a year earlier.
Lastly, Diokno said manufacturers production index remains positive and the highest in the region.
“Overall, the recovery is gaining strong traction,” Diokno said.
Earlier, the Philippine Statistics Authority reported that the economy grew 7.6 percent in the third-quarter, up from 7.5 percent previously and 7.0 percent in the same period last year.
At end-September, growth averaged at 7.6 percent.
“There is near certainty that our full year growth assumption of 6.5 to 7.5 percent in 2022 will be attained. We need a GDP growth rate of 3.2 percent in fourth-quarter to attain full year 6.5 percent growth, and 7.2 percent to attain 7.5 percent full year goal,” Diokno said.