‘Revisit’ of 2023 growth targets possible, says Neda chief

MANILA, Philippines — External headwinds and the lagged impact of a tight monetary policy could build a “good case” to revisit the Marcos administration’s growth target for this year, the state’s chief socioeconomic planner said on Tuesday.

Speaking to reporters, Secretary Arsenio Balisacan of the National Economic and Development Authority (Neda) said a 6 to 7 percent growth target this year would be “very much achievable” against the current expansion goal of 6.5 to 7.5 percent.

“We are seeing that the world market is not growing as much as we or many development organizations think or had thought. In other words, it’s less robust. It’s more anemic,” Balisacan said.

“So there is a good case for revisiting the assumptions,” he added.

‘More realistic’ targets

The Inter-agency Development Budget and Coordination Committee (DBCC)—which sets the government’s macroeconomic targets and assumptions—has yet to disclose the date of its next meeting. The group last convened on Feb. 5 to discuss the state’s growth outlook.

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In February, Finance Secretary Ralph Recto said the DBCC would come up with “more realistic” growth targets for 2024 until the end of President Marcos’ term in 2028 to reflect current economic conditions and after growth fell below the state’s expectations last year.

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Data showed the economy grew 5.6 percent in 2023, easing from the 7.6-percent expansion in 2022, thus missing the Marcos administration’s 6 to 7 percent growth target for last year.

The last time the DBCC adjusted its economic outlook was in December last year, when the group tempered its previous gross domestic product growth target of 6.5 to 8 percent for 2024. —Ian Nicolas P. Cigaral