Diokno says gov't may still revise growth target
At A Glance
- Finance Secretary Benjamin Diokno mentioned the possibility of revising this year's 6% to 7% gross domestic product (GDP) target if necessary.<br>The Development Budget Coordination Committee will review the 2023 growth target in September before the Annual Meetings of the World Bank Group and International Monetary Fund.<br>Diokno said any potential revision of the GDP target will be contingent upon the government's revenue generation and the actual growth performance.<br>The country's growth in the first semester was 5.3 percent. To meet the full-year growth target, the GDP needs to grow by at least 6.6 percent in the second half.
The Department of Finance (DOF) said the government's growth target is not set in stone, as economic managers will meet in September to evaluate whether the goal is still achievable.
Finance Secretary Benjamin E. Diokno said the 6.0 percent to 7.0 percent gross domestic product (GDP) target for 2023 will be reviewed by the Development Budget Coordination Committee (DBCC) next month.
Diokno said any potential revision of the GDP target will be contingent upon the government's revenue generation and the actual growth performance.
When asked if there is a likelihood the DBCC will revise this year's GDP target, Diokno responded “There is. If it really needs to be revised, we will revise.”
The DBCC an inter-agency body tasked to set the government’s macroeconomic assumptions.
“We will review the target before the IMF annual meetings, so that’s around September,” the finance chief said.
The upcoming 2023 Annual Meetings of the World Bank Group and the International Monetary Fund (IMF) are set to be held in Washington D.C. from October 9 to 15.
Earlier, Diokno said the national government was poised to exceed its revenue target for this year, primarily driven by strong collections from the Bureau of Internal Revenue and Bureau of Customs.
From January to June, the government had no problem with revenue collection, as it achieved a total of P1.86 trillion, surpassing the target of P1.811 trillion by 2.7 percent.
However, the economy is currently experiencing a slowdown, with a modest growth rate of 4.3 percent recorded in the second quarter.
In the first half of the year, the country's growth stood at 5.3 percent. To achieve the full-year target, the GDP would need to grow by at least 6.6 percent in the second half.
Last week, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan expressed confidence in achieving the growth target for this year.
Balisacan highlighted the decrease in consumer price inflation and the government's active efforts to stimulate spending as contributing factors to this optimism.
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.