Growth prospects continue to be robust—Diokno
At A Glance
- The Department of Finance (DOF) has expressed confidence in the strong and positive prospects of the Philippine economy.<br>In 2022, the Philippine economy experienced significant growth, with a robust expansion of 7.6 percent. However, the growth rate moderated in the first half of the current year, recording an expansion of 5.3 percent.<br>Despite this slowdown, Finance Secretary Benjamin E. Diokno remains optimistic about achieving the government's growth target of six to seven percent for the year.<br>To attain the desired growth rate, Diokno said the government emphasizes the need to accelerate the implementation of its programs and projects.<br> Meeting the full-year growth target will require a minimum GDP growth rate of 6.6 percent in the second half of the year.
The Department of Finance (DOF) said the country's growth prospects continue to be robust despite the slowdown experienced in the first half of the year.
Depiste global headiwnds, Finance Secretary Benjamin E. Diokno said the government is committed to achieve a gross domestic product (GDP) growth target of six percent to seven percent for the year.
“The prospects of the Philippine economy remain strong and positive,” Diokno said at the 2023 Annual World Bank-International Monetary Fund (IMF) Meetings in Marrakech, Morocco.
While the Philippine economy posted a robust growth of 7.6 percent in 2022, the first half of the current year saw a slower expansion of 5.3 percent.
“To achieve the target growth rate of six to seven percent this year, one of the key strategies will be accelerating the implementation of government programs and projects,” Diokno said.
This includes the efficient delivery of public services within the framework of the national budget, he saud.
To meet the full-year target, the GDP would need to achieve a minimum growth rate of 6.6 percent in the second half of the year.
Earlier, Diokno said the Development Budget Coordination Committee (DBCC) will review the macroeconomic targets of the Marcos administration later this month, taking into account the challenging global economic conditions.
Diokno said the DBCC, which is responsible for setting the government's macroeconomic assumptions, will convene on Oct. 19 to re-evaluate its projections for GDP and inflation.
“We will review the growth targets, where we are on inflation, and then of course we will review the underspending,” Diokno told reporter last Sept. 29. “Also, we will review [global] prospects.”
For 2024 to 2028, the economy is projected to register growth ranging from 6.5 percent to 8.0 percent.
As of the first half of the year, the country's growth rate stood at 5.35 percent.
"We will review the performance of the first semester, and if necessary, we will modify the target," the finance chief said.
Diokno also said the growth assumptions for the Philippines have been revised by the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank (ADB).
On Sept. 20, the ADB lowered its GDP growth forecast for the Philippines to 5.7 percent for this year, down from the six percent projection announced in April.
If this projection materializes, it would fall below the government's target for the year and indicate slower growth compared to the 7.6 percent GDP expansion recorded in 2022.
"I think the general sentiment, based on the World Bank, globally, there have been downgrades. The good news is that the Philippines will continue to be the fastest-growing economy in this region. We are ahead of China and Vietnam," said Diokno.
"While there is a tendency for downgrades, we still maintain our position as the fastest-growing economy," he added.
Meanwhile, the DBCC has set an inflation target range of 2.0 percent to 4.0 percent for this year.
However, the Bangko Sentral ng Pilipinas is already forecasting an average inflation rate of 5.4 percent for this year, and 2.9 percent for the following year.
The average rate of consumer price increase stood at 6.6 percent from January to August.