Gov't determined to bring inflation lower by second half of 2023
The government is determined to bring down inflation so that by the second half of 2023, it will ''move to a higher growth trajectory by 2024,'' said National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan Thursday.
The Philippine Statistics Authority (PSA) announced that the economy grew 7.2 percent in in the fourth quarter, bringing full year growth to 7.6 percent to surpass the 2022 target of 6.5 to 7.5 percent.
''Among the major emerging economies in the region that have released their Q4 2022 real GDP growth, the Philippines grew the fastest, followed by Vietnam at 5.9 percent and China at 2.9 percent,'' said Balisacan.
National Statistician Dennis Mapa said the average growth of 7.6 percent was ''the highest since 1976 under the 2018 base year.''
For 2023, the government is forecasting a growth of six to seven percent. This forecast had been revised lower from 6.5 percent to 8 percent in late 2022, said Balisacan.
However, inflation, which averaged 5.8 percent for 2022 after December figures came at a 14-year high of 8.1 percent in December. To counteract this, the Bangko Sentral ng Pilipinas raised policy rates by 350 basis points.
''As global and domestic headwinds persist and keep commodity prices elevated, protecting the purchasing power of Filipinos and ensuring food security remain at the top of the government's priorities,'' said Balisacan.
Balisacan said the government will continue to support ''consumers and affected sectors through the extension of reduced tariffs on various products, facilitation of an accessible food supply chain, reduction of transport and logistics costs and other measures to cushion the impacts of inflation on the purchasing power of households,'' he added.
Balisacan said the effects of inflation will be felt during the first and second quarter.
“The truth is, that inflation has usually a lag effect. Maybe it will be around six months. So, the high inflation that we are seeing today will impact in the first quarter and second quarter,” he said.
The government recently approved imports of sugar and onions, which soared in December partly due to holiday season demand.
Balisacan also sees remittances remaining strong due to the more relaxed mobility restrictions.
“I would expect that remittances with the opening-up of many countries already, with the restrictions, mobility restrictions now much relaxed. I think remittances would remain strong,” Balisacan said.
But Balisacan, citing the Philippine Development Program for 2023 to 2028, said ''the focus is in creating jobs here so that our people would not have to see employment abroad as a forced situation for them, just to earn a decent income.'' DMS
