The National Economic and Development Authority (NEDA) has expressed confidence in attaining this year's growth target, citing the deceleration in consumer price inflation and the government's concerted efforts to stimulate spending in the second half.

During the Senate briefing on the Proposed 2024 National Expenditure Program with the Development Budget Coordination Committee, NEDA Secretary Arsenio M. Balisacan said the minimum six percent gross domestic product (GDP) rate is “very achievable.”

Despite existing overseas growth risks, Balisacan cited several favorable factors that have the potential to bolster the country's growth in the coming months.

Specifically, Balisacan said the decline in inflation, achieved through intensified supply-side interventions and demand-side management, could contribute an additional 0.1 percentage point to the overall growth rate.

For the sixth consecutive month, inflation showed signs of easing, although it remained higher than the government's target range of two percent to four percent. In July, the consumer price index settled at 4.7 percent.

“Inflation is seen to go back to the 2.0 percent to 4.0 percent percent target range in the second semester,” the NEDA chief said.

Furthermore, Balisacan said the national government is committed to expediting the implementation of its programs and projects.

He said this includes prioritizing the delivery of public services and formulating strategies to make up for any spending delays experienced during the first half of the year.

“We estimate that the catch-up spending for public construction activities may add up to 0.3 percentage points in our economic growth in the second semester,” Balisacan said.

Finally, Balisacan said the implementation of the catch-up plan for maintenance and other operating expenses as well as personnel services would contribute a boost of 0.5 percentage points to the country's growth.

“Notwithstanding these [external] risks, we believe the GDP growth targets—i.e., 6.0 to 7.0 percent in 2023 and 6.5 to 8.0 percent in 2024 to 2028—remain achievable,” Balisacan said.

External risks to consider include the potential impact of elevated international commodity and input prices, a weakened global economic outlook, and geopolitical tensions along with trade disputes.

“For 2023, we need to grow by 6.6 percent in the second semester to achieve the year’s 6 to 7 percent growth, or an additional 0.4 percentage points from the baseline forecast of 6.2 percent for the second semester,” Balisacan said.

Meanwhile, domestic risks include inadequate food supplies, typhoons, and natural disasters, the ongoing El Niño until the first quitter pf 2024, and the potential spread of highly contagious animal diseases.