National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan announced that the Philippine economy has a potential growth rate of 6 percent for the current year and in the medium term.
This marks a significant improvement from the 4 percent potential growth rate observed from 2012 to 2016.
Balisacan emphasized that potential growth, as defined by the World Bank, represents the rate of expansion an economy can sustain at full capacity and employment, distinct from actual growth.
He attributed the projected growth to various factors including an improved labor market, higher employment rate, lower inflation, and positive performance across different industries.
Balisacan highlighted the importance of further enhancing the country’s potential growth by investing in infrastructure, upskilling and rightskilling the workforce, and improving the ease of doing business.
He cautioned against growing faster than the potential rate to avoid overheating and inflation. Balisacan expressed the government’s commitment to implementing measures to elevate the potential growth rate, aiming for a target of 7 to 8 percent.
Source: PhilNews24 | March 22, 2024
