Gov’t cuts economic growth target for 2024

MANILA, Philippines — The government has scaled down its economic growth target for 2024  to a range of 6 percent to 7 percent from 6.5 to 7.5 percent,  said National Economic and Development Authority (Neda) Secretary Arsenio Balisacan on Thursday.

Balisacan said the revision was prompted by the country’s 2023 economic performance.

READ: Economic growth slowed in 2023, missed gov’t target

Last year,  the economy posted growth of 5.6 percent, short of the 6 percent to 7 percent target. It was also slower than the 7.6 percent expansion in 2022

READ: 2024 PH growth target ‘difficult to achieve’–Fitch unit

“While this growth is below our target, it keeps us in the position as one of the best performing economies in the region,” Balisacan said earlier.

Last December, the inter-agency Development Budget Coordination Committee (DBCC) trimmed its gross domestic product growth target for this year to 6.5 to 7.5 percent from the previous goal of a 6.5-to 8-percent expansion.

READ: DOF: Gov’t to set ‘more realistic’ growth targets

The continued slowdown in the global economy is making it difficult for the Philippines, as well as its regional peers,  to post stronger economic growth.

Adding to this are the impact of a prolonged El Nino dryspell on the economy and the high interest rate environment that may hurt consumption and investments.

“Furthermore, general elections in major economies could lead to political shifts that may disrupt trade and investment,” said Balisacan.

The Neda chief said inflation target remains at 2 to 4 percent from 2024 to 2028.

“For 2024, the economic team will strongly advocate for the enactment of much needed next-generation reforms to further enable the transformation of our economy and ensure sustained and inclusive growth,” Balisacan added.