The National Economic and Development Authority (NEDA) expressed confidence on Friday that the Philippines can still achieve its economic growth target for this year.
NEDA Secretary Arsenio Balisacan stated that if government spending increases in the third and fourth quarters, the country can reach the lower end of its 6 to 7 percent growth range.
In the second quarter, the Philippine economy experienced a slower growth rate of 4.3 percent, primarily due to high inflation and interest rates.
Consequently, several multilateral agencies and market observers have revised their growth forecasts for the Philippines, citing these factors alongside weaker external demand.
However, Balisacan remains optimistic about growth being fueled by domestic demand.
He anticipates that the inflation rate for rice will slow down in September following the implementation of a controversial price cap on regular and well-milled rice varieties.
When asked about the timeline for lifting the price cap, Balisacan responded, “Very soon.”
Despite the challenges posed by inflation and interest rates, the NEDA’s positive outlook on achieving the growth target reflects optimism in the potential for increased government spending and the resilience of domestic demand.
Source: PhilNews24 | September 29, 2023
