The slower increase in the prices of consumer goods coupled with more robust manufacturing activities augur well toward achieving the economic growth goal for 2015, according to the National Economic and Development Authority (Neda).
On the sidelines of a forum spearheaded by the Angara Centre for Law and Economics Friday, Economic Planning Secretary Arsenio M. Balisacan told reporters that the lower inflation rate of 3.7 percent posted last November was “very favorable” in terms of hitting the government’s gross domestic product (GDP) targets. The GDP measures the total value of goods and services produced in a country.
The slower November inflation “should help boost growth in the fourth quarter,” Balisacan said, noting that inflation directly affected consumption, especially personal purchases.
The inflation rate in October was 4.3 percent, also slightly lower than the 4.4 percent registered last September.
During the third quarter, the increase in household consumption slowed to 5.2 percent from 5.7 percent in the second quarter and 6.2 percent in the third quarter of last year, mainly on the back of the port congestion problem, which had jacked up the prices of a number of basic goods.
For the first two quarters of next year, Balisacan said he expected them to be “quite good,” even as the country might face a power shortage.
“[B]ecause there already are some solutions being put in place [to address the impending power crisis], then we should be in for a better 2015. I’m really quite optimistic about next year,” said Balisacan, who is also director-general of Neda.
He said that “there is no need” to revise the GDP growth target for 2014 of 6.5-7.5 percent as well as next year’s goal of economic expansion hitting 7-8 percent.