DBCC lowers growth target for 2024
MANILA, Philippines — The Development Budget Coordination Committee (DBCC) made a last-minute revision to the 2024 growth target, narrowing it from the original 6.0% to 7.0% range to a new goal of 6.0% to 6.5%.
The Philippine gross domestic product (GDP) growth slowed in the third quarter of 2024, decreasing from 6.4% in the second quarter to 5.2%. This brought the country’s economic growth for the first three quarters of 2024 to an average of 5.8%.
The DBCC acknowledged facing challenges in achieving the country’s set goals.
“Despite domestic challenges, we are optimistic that we can still attain our growth target for the year of 6.0% to 6.5%. In particular, we expect the Philippine economy to bounce back during the last quarter, given the anticipated increase in holiday spending, continued disaster recovery efforts, low inflation, and a robust labor market,” the DBCC said in a joint statement on Monday, December 2.
Apart from revising this year’s GDP target, the DBCC also adjusted the target for 2025, along with the projections for 2026 to 2028.
The new GDP from 2025 to 2028 is now 6.0% to 8.0%. The 2025 target GDP was 6.5% to 7.5%, while the 2026 to 2028 target was set at 6.5% to 8.0%.
The DBCC said this revision was in anticipation of several structural reforms, as well as domestic and global uncertainties.
The government must accelerate infrastructure investments, enhance the ease of doing business, and boost national competitiveness should it want to achieve its new goals, the DBCC said.
The DBCC also revised its inflation target for this year, going from 2.0% to 4.0%, to a narrower 3.1% to 3.3%.
The target inflation for 2025 to 2028 remained at 2.0% to 4.0%.
“Inflation is expected to average at 3.1 to 3.3%for the full year, significantly lower than the average inflation rate of 6.0% last year,” the DBCC said.
The DBCC also revised its peso-dollar exchange rate assumption. For 2024, the assumption is P57.00 to P57.50 from the previous target of P56.00 to P58.00.
The 2025 target is now at P56.00 to P58.00 from P55.00 to P58.00. The target for 2026 to 2028 remained the same at P55.00 to P58.00.
“The Philippine peso is anticipated to remain stable at an average of P57.00 to P57.50 against the USD for 2024, given sustained remittance growth, recovery in travel services, and growing BPO (business processing outsourcing) revenues. These favorable developments will support and keep the currency resilient against global headwinds,” the DBCC said.
The DBCC is composed of the Department of Budget and Management, the Department of Finance, National Economic and Development Authority, the Office of the President and the Banko Sentral ng Pilipinas.
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