Gov't lowers growth targets for 2024, 2025

The Marcos administration has lowered its growth targets for this year as the country grapples with inflation-related risks, a global economic slowdown and the impact of natural disasters.

- ALEXIS ROMERO

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said economic managers have adjusted the gross domestic product (GDP) growth target for 2024 to six to seven percent from the original target of 6.5 to 7.5 percent.

The government also revised its economic growth target for next year to 6.5 to 7.5 percent from 6.5 to eight percent, but retained the 6.5 to eight percent goal for 2026 to 2028.

The GDP is the sum total of all goods and services produced in an economy in a given period. It is an indicator of the size of an economy.

"The revised targets for our headline indicators considered the country's recent economic performance in fiscal year 2023 and reflect the latest developments and expectations on external factors such as global demand and trade growth, oil price movements, and expected exchange rate and inflation trends," Balisacan said.

"We have seen (the) continuing slowdown of the global economy, and also taking into account the uptick in oil prices and as well the trends in inflation, interest rates not just in the Philippines but also in other countries, particularly all major trading partners such as the United States," he added.

President Marcos and members of his Cabinet confirmed the macroeconomic targets approved by the Development Budget Coordination Committee (DBCC) during the 16th full Cabinet meeting yesterday.

Balisacan said economic risks on the horizon include climate change and extreme natural disasters such as El Niño, which may affect food security and price stability.

Risks related to inflation, such as the possible adjustments in transport fares, wages, and service utility fees that are higher than expected, could dampen household consumption.