BAGUIO CITY—The economic growth, as measured by the gross domestic product (GDP), should grow by 6.1 percent for the next three quarters to achieve the lower end of the target, a chief economist said.
Department of Finance Undersecretary Domini S. Velasquez said that the positive outlook may be attributed to the possible increase in household consumption and the growing job market.
"I think for the government our target is 6 to 7 percent. It looks still very achievable. So likely you grow a little bit faster in Q2 this year. Also we need 6.1 percent for the rest of the year to actually reach that 6 percent. I think that's very achievable," Velasquez said during the Economic Journalists of the Philippines-San Miguel Corporation Business Journalism Seminar.
In the first quarter, the GDP growth slowed down to 5.7 percent from the 6.4 percent recorded in the same period a year earlier.
Household consumption grew by 4.6 percent growth during the period, which is the slowest quarterly figure since the 2.6 percent recorded in the third quarter of 2010, excluding the decline of consumption during the pandemic.
Velasquez also added that government consumption is expected to grow at a faster pace in the coming months.
Government spending only grew by 1.7 percent during the first quarter, compared to 6.3 percent in the same period of last year, as fiscal consolidation efforts constrained spending.
However, spending on public infrastructure projects recorded a substantial double-digit growth of 12.4 percent.
On the other hand, the DOF official sees potential in the manufacturing sector, which expanded by 4.5 percent on the back of increased production of food, electronics, and chemical products.
However, Velasquez noted that one of the issues for manufacturing sector is the power cost. "But I think that will be addressed by CREATE MORE. Proposal is to increase incentives for power cost," she added.