Economic managers set to revisit growth targets

MANILA, Philippines — The economic team of the Marcos administration will revisit its growth targets for the year after inflation eased to a six-month low in March and with expectations of its continued downtrend.

During the Philippine Economic Briefing in Washington late Wednesday evening, Budget chief and head of the Cabinet-level Development Budget Coordination Committee (DBCC) Amenah Pangandaman said the economic team would look into the government’s macroeconomic assumptions for 2023.

“When we return (to Manila) we are going to sit down (for this),” Pangandaman said.

“Maybe we will revise our figures and estimates by then,” she said.

She issued the statement after headline inflation cooled to 7.6 percent in March, the lowest in six months. The DBCC is set to meet on April 24.

The DBCC last met to update the macroeconomic targets for the medium-term in December 2022.

For this year, the country’s gross domestic product (GDP) is expected to grow by six to seven percent.

This is a significant slowdown from the 7.6 percent actual expansion recorded in 2022.

Nonetheless, Finance chief Benjamin Diokno expressed confidence that the Philippines would continue to grow on the back of firm macroeconomic fundamentals.

This year, the government expects the economy to grow between six to seven percent. And while slightly lower in recognition of the expected global slowdown, this target remains high, but doable,” Diokno said.

“This is supported by continued growth, a favorable demographic profile, and an economic environment that is open for an even wider range of foreign investments,” he said.

The Finance secretary emphasized that the current business environment indicates that the economy is on track to achieving this goal.

Diokno said overall business outlook is more upbeat despite inflation and external headwinds.

“The more buoyant business confidence is attributed to optimism about higher demand and sales, a fully reopened economy, better business conditions, and new business opportunities, particularly in the healthcare, manufacturing, and construction subsectors,” Diokno said.

To ensure that economic targets will be met, House Speaker Ferdinand Romualdez assured that the lower chamber would continue to pass measures that will be beneficial for the economy.

“We are committed to passing more measures that the administration may need to further enhance investment in the Philippines aimed at improving the lives of Filipinos,” Romualdez said.