The Philippine Chamber of Commerce and Industry (PCCI) said that a seven percent GDP growth in the domestic economy this year is attainable following encouraging oil price situation and China’s positive outlook in 2023.

“Given the stability in oil price and China's positive outlook of five percent growth due to its reopening, the figure of closer to seven percent is attainable,” PCCI President George T. Barcelon said.

The PCCI projection is closer to Finance Secretary Ben E. Diokno’s projection of a 6-7 percent growth rate this year.

“Despite interest hike to mirror the US and European’s action and mitigate inflation, our dollar remittance and local rebounding economy can weather it,” he said.

While Barcelon expects sustained growth this year, particularly in the first semester of 2023, he also noted that headwinds will hamper growth prospects. He said that the continued rise in prices of goods is expected to fuel clamor for wage hikes and eventually dampen the domestic economy.

One issue of concern though is the seemingly no solution in sight on high food prices which will “heighten the clamor for big wage adjustment.”

He said the wage adjustment is a concern because “This will have a vicious cycle on inflation and impact our competitiveness in export sector. As such, the outlook on both job creation and sustainability during the second half business may encounter headwind.”