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The Philippine growth target has been downgraded for 2024 and 2025
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The Development Budget Coordination Committee revised its goal for the Philippine economy to 6% to 7% in 2024 from the previous forecast of 6.5% to 7%
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The 2025 target was also adjusted to 6.5% to 7.5% from 6.5% to 8%
The Philippine economy is expected to grow less than initially expected in 2024 and 2025.
The Development Budget Coordination Committee (DBCC) revised its growth target for the Philippine economy to 6% to 7% in 2024 from the previous forecast of 6.5% to 7%.
The 2025 target was likewise downgraded to 6.5% to 7.5%, from 6.5% to 8% previously. The 2026-2028 growth goal of 6.5% to 8% is unchanged.
Despite the downgrade, the Philippine economy will still be one of the best-performing in the Asia-Pacific region.
The revised targets 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, Socioeconomic Planning Secretary Arsenio Balisacan said in a statement following the DBCC’s latest review of the medium-term macroeconomic assumptions and fiscal program.
READ: PH economy grows 5.6% in 2023, misses government target
He said the growth targets will be supported by “robust macro-economic fundamentals” and will sustain the country’s position as one of the fastest growing emerging economies in the Asia-Pacific Region.
“Moreover, at this pace of growth, we are still on track to achieving or to reducing poverty incidence from 18% in 2021 to single digit level in 2028,” Balisacan said.
The target range for inflation was retained at 2% to 4% for 2024 to 2028 following the government’s assessment of recent internal and external developments that impact the prices of major commodity groups.
Revenue forecast for 2024 is projected to reach P4.27 trillion or 16.1% of GDP, and rise to P6.078 trillion or 16.4% of GDP by 2028.
The government disbursement program will remain at about 20% of GDP or an expected P5.7 trillion in 2024, and P7.45 trillion by 2028.
The DBCC proposes a national budget of P6.2 trillion for fiscal year 2025, with spending to remain focused on public infrastructure projects and essential social services especially for the poor and vulnerable. This is 7.5% higher than the P5.768 trillion national budget for 2024.
Balisacan said the proposed budget will support the administration’s “Build Better More” infrastructure program to stay on course and maintain infrastructure spending between 5-6% of GDP from 2024 to 2028.
