Finance Secretary Ralph G. Recto believes that the economic growth forecast provided by multilateral organizations is the more realistic target range for the Philippines compared to the current government assumption.
During the Philippine Business Forum in Melbourne, Australia on Monday, March 4, Recto emphasized the 5.8 percent to 6.3 percent gross domestic product (GDP) growth forecast for 2024 projected by multilateral institutions.
Recto pointed out that this GDP growth band positions the Philippines as a frontrunner in economic expansion in the Southeast Asian region. However, the range is below the current target set by economic managers.
The Development Budget and Coordination Committee (DBCC) is currently working with a growth target range of 6.5 percent to 7.5 percent for 2024, which Recto did not mention during his address at the business forum.
Seeking clarification, Manila Bulletin reached out to Recto to inquire whether the 5.8 percent to 6.3 percent growth range is deemed more realistic compared to the DBCC's assumption.
"Yes I do," responded Recto to Manila Bulletin's query. “I expect Philippine economy to grow by at least six percent this year.”
Last February, the government’s chief economic manager said that the DBCC was reassessing its macroeconomic assumptions for 2024 and beyond after missing the economic target in 2023.
“Everybody is complaining that we missed our targets in 2023 … Don’t you think we need some adjustments there? I think we need to,” Recto said last month. “Something more realistic, but still high for 2024 and beyond.”
The economy grew by 5.6 percent in 2023, down from 7.6 percent in 2022, falling short of the six percent to seven percent growth target set by the Marcos administration for that year.
Despite the slowdown, Recto pointed out that the Philippines was still the fastest-growing economy in the ASEAN region in 2023.
“Multilateral organizations affirm the strength of the Philippine economy. They are expecting us to maintain our position as a frontrunner in ASEAN with a projected GDP growth of 5.8 percent to 6.3 percent in 2024,” the finance chief said.