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Philippines to weather external headwinds - minister
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Government committed to battle inflation
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Deficit-to-GDP to continue decline until 2028
(Releads, adds quote from economic planning minister,
background)
By Neil Jerome Morales
MANILA, April 24 (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.
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.
(Reporting by Neil Jerome Morales; Editing by Martin Petty)
