DBCC to review growth targets

MANILA, Philippines–Economic managers will meet Wednesday to discuss the viability of the country’s growth targets before the Aquino administration draws to a close, even as the country’s chief economist sees the reforms made thus far to spill over beyond 2016.

However, Economic Planning Secretary Arsenio M. Balisacan told reporters on Tuesday that the near-term gross domestic product (GDP) goals might prove to be difficult to achieve after a disappointing 5.3-percent economic expansion in the third quarter.

According to Balisacan, who is also the director-general of the National Economic and Development Authority (Neda), the government remained “hopeful” of at least a 6-7 percent full-year growth in 2014, albeit lower than the “very challenging” 6.5-7.5-percent GDP growth target.

The Neda chief said this year’s target might nonetheless be kept as only a few days remain before the year ends.

Balisacan said the Development Budget Coordination Committee (DBCC) comprised of himself, Budget Secretary Florencio B. Abad, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. and Finance Secretary Cesar V. Purisima would look at the economic growth assumptions for 2015 and 2016 in light of most recent global economic developments such cheaper oil prices.

The Philippines is in a “unique” position—integrated in the global value chain but still relatively more resilient to external shocks, Balisacan said, hence has become a new darling among investors who wanted to do business here for the long term.

He cited that manufacturing was fast becoming a major driver of the country’s growth.

Balisacan said he believed that more investors would continue to pour capital into the country as the groundwork of reforms has already been laid to further improve the business climate.