Global economic unpredictability continues to be an issue, yet it might be premature to adjust Philippine growth objectives, according to National Economic and Development Authority Secretary Arsenio M. Balisacan.<\/p>\n
\u201cWe’ll observe. Numerous events are unfolding, particularly with all this instability in the worldwide economy. We need to reassess. We have just updated the data,\u201d Mr. Balisacan informed journalists on March 7.<\/p>\n
The Development Budget Coordination Committee (DBCC) in December expanded the gross domestic product (GDP) growth objective to 6-8% for 2025 through 2028, owing to \u201cshifting domestic and global uncertainties.\u201d<\/p>\n
\u201cIt’s premature to modify at this stage, but we must remain vigilant and adaptable due to this unpredictability,\u201d he remarked.<\/p>\n
Budget Secretary and DBCC Chair Amenah F. Pangandaman mentioned that historically, the committee tends to keep its targets steady during the first and second quarters of each year.<\/p>\n
A DBCC gathering is planned for the end of March, while a technical working group will convene next week.<\/p>\n
When questioned if the lower range of the growth objective is still achievable this year, Mr. Balisacan stated: \u201cI\u2019m not suggesting it’s no longer feasible, but I believe we will allow ourselves to evaluate the numbers in May.\u201d<\/p>\n
The economy expanded by a less-than-anticipated 5.2% in the fourth quarter, resulting in a full-year GDP growth of 5.6% for 2024, falling short of the government\u2019s 6-7% target.<\/p>\n
Mr. Balisacan noted that \u201cuncertainty in the global landscape and any potential decline\u201d is a worry, but decreasing inflation and a strong labor market indicate a “promising” performance for the first quarter.<\/p>\n
The inflation rate decreased to 2.1% in February from 2.9% in January and 3.4% a year earlier. This figure was also below the 2.2%-3% prediction by the Bangko Sentral ng Pilipinas.<\/p>\n
Mr. Balisacan also expects inflation to remain within the target range in the upcoming months.<\/p>\n
\u201cNaturally, another aspect we are concerned about is exports, particularly the external sector of the economy,\u201d he stated.<\/p>\n
New tariffs imposed by the US government would indirectly impact the Philippines, as no nation would be exempt, according to Mr. Balisacan.<\/p>\n
\u201cIn the past two years, our economy’s exports sector, the external sector, has not performed well. As I mentioned, most of the growth we experienced was primarily domestic. While there is investment inflow, it remains quite weak,\u201d he added.<\/p>\n