Reduced GDP targets won't impact investor sentiment for PH — Marcos adviser

The Marcos economic team's decision to trim Philippine growth targets is unlikely to dampen investors' appetite for the country, President Ferdinand "Bongbong" Marcos Jr.'s investments adviser said Friday.

At the sidelines of a forum in Makati City, Presidential Adviser for Investment and Economic Affairs Frederick Go was asked if the Development Budget Coordination Committee's (DBCC) move to slash the medium-term gross domestic product (GDP) growth targets would impact investor sentiment.

Go replied: "I don't think so."

"Our growth last year was 5.6% so targeting [a minimum] 6% growth is an improvement from last year," the presidential adviser said.

The DBCC reduced the GDP growth target for 2024 to 6% to 7% range from the previous goal of 6.5% to 7.5%.

The economic managers also narrowed the growth goals for 2025 to 6.5% to 7.5% range from 6.5% to 8%.

For 2026 to 2028, the 6.5% to 8.0% growth target was retained.

"The revised targets for our headline indicators considered the country's recent economic performance in fiscal year 2023 and reflect the latest developments and expectations on external factors such as global demand and trade growth, oil price movements and expected exchange rate and inflation trends," National Economic Development Authority (NEDA) Secretary Arsenio Balisacan.

The Philippine economy as measured by GDP — the total value of goods and services produced in a period — grew by 5.6% in 2023, falling short of the government's target band as elevated interest rates resulting from high inflation environment dampened consumption.

Finance Secretary Ralph Recto earlier said the Marcos administration's economic managers were likely to trim their economic growth targets for this year all the way to 2028, noting that the target would be "something more realistic." — VDV, GMA Integrated News