Philippine economy seen to exceed growth target in 2022 — Balisacan

Philippine economic growth is likely to exceed the government target range this year given the performance so far, Socioeconomic Planning Secretary Arsenio Balisacan said Monday.

Balisacan said the country has continued to record growth for six straight quarters, with the year-to-date average already exceeding the target range of 6.5% to 7.5%.

The economy grew by 7.6% in the third quarter, bringing the year-to-date average growth to 7.7%.

“I think given the indications that we are seeing in the fourth quarter, it’s likely that we are going to exceed,” he told reporters in a briefing in Pasig City.

Among the possible sources of growth Balisacan cited are more investments into the country, construction activities, utilities, and mining, on top of consumption which continues to drive the economy.

“We expect that to continue in the near term, next year, but as I said earlier, moving forward into the medium term, we need to expand and diversify sources of growth,” he said.

Balisacan said growth could have even been higher, but was partly offset by the high inflation in the country, which hit a fresh 14-year high of 8.0% in November.

Under the Philippine Development Plan (PDP) unveiled by the National Economic and Development Authority (NEDA) on Monday, the government expects economic growth to hit between 6.5% to 8.0% by 2028.

It also seeks to lower the unemployment rate to between 4.0% to 5.0% by then from 8.0% in 2021, and bring down inflation down to the 2.0% to 4.0% target range from the 5.4% year-to-date average inflation in October

The same plan aims to bring down the deficit-to-GDP ratio to 3.0%, the debt-to-GDP ratio to 51.1%, and the poverty incidence ratio down to 9.0%, while bringing the Philippine Global Innovation Index up to the top one third.

The inter-agency Development Budget Coordination Committee (DBCC), however, expects growth to slow down to between 6.0% to 7.0% in 2023, given external headwinds.

“Together, we must build on and sustain our hard-won gains as a nation. This imperative comes as we aim to recover and secure our position among the most dynamic economies of Asia and the world,” Balisacan said.

“Filled with hope for the coming year, we assure you of our unwavering commitment to stay the course and tirelessly work toward attaining our vision…” he added. — RSJ, GMA Integrated News