💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Philippines sticks to its 5-year GDP growth targets on economic momentum

Published 04/24/2023, 03:47 AM
Updated 04/24/2023, 03:50 AM
© Reuters. FILE PHOTO: Onions are displayed at a stall at a public market in Manila, Philippines, January 28, 2023. REUTERS/Lisa Marie David

By Neil Jerome Morales

MANILA (Reuters) - The Philippines on Monday maintained its economic growth targets over the next five years, citing momentum from increased domestic demand and better labour conditions that would allow its economy to withstand external challenges.

Gross domestic product (GDP) is targeted to grow by 6.0% to 7.0% this year, slower than the 7.6% uptick in 2022, according to the Development Budget Coordination Committee (DBCC), an inter-agency panel that includes top central bank, finance, budget and economic planning officials.

The committee said GDP would pick up to 6.5% to 8.0% annually for the period between 2024 and 2028.

"There is scope for continuing to grow robustly despite the external headwinds," said Economic Planning Secretary Arsenio Balisacan. "The economy is quite robust at this point."

The panel took into consideration risks posed by geopolitical and trade tensions, a possible global economic slowdown, as well as weather disturbances in the Philippines.

It expects inflation to register at 5% to 7% this year, returning to within the government's 2% to 4% target by the fourth quarter, adding it was committed to taking proactive measures to bring inflation down.

Inflation slowed for a second straight month in March to 7.6%.

The DBCC expects the peso currency to move between 53 and 57 to the dollar this year, from 55 to 59 estimate in December, and to continue at that level until 2028, it said.

© Reuters. FILE PHOTO: Onions are displayed at a stall at a public market in Manila, Philippines, January 28, 2023. REUTERS/Lisa Marie David

Balisacan said service exports were seen growing 17% in 2023 and 16% in 2024, from 12% and 6.0%, respectively, will lend further strength to the peso.

On the fiscal side, the deficit-to-GDP was expected to decline annually from 6.1% this year to 3.0% in 2028.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.