NEDA says 6% GDP growth ''still doable'' despite inflation
By Robina Asido
National Economic Development Authority (NEDA) Secretary Arsenio Balisacan expressed optimism that a six percent growth target for this year is still achievable, but admitted the seven percent high end goal ''will really be difficult'' following the high September inflation rate.
"The 6 to 7 percent GDP target for this year, what we can say is the seven maybe, with the recent development it will really be difficult (to achieve) but 6 is still doable and I'm not giving that up," he said in an interview with reporters on Friday.
Balisacan noted that it is still not disappointing if the 2023 growth "target is reduced, from say 5.5 to 6.5 (percent)".
"It's not something that we have to cry about because that still makes us one of the best performing economies in the Asia Pacific region but of course, we would want it to be as high as possible because remember our ambition, in 2040 our economy must grow no less than six percent every year," he said.
"To achieve the targets there we will work as hard as possible to ensure that the growth momentum is sustained. And we'll get as close as possible to that ambition," he added.
Balisacan added that due to ''the weakening of the global market'', all the countries in the region have reduced their growth target.
"Our practice is that the Development Budget Coordinating Committee (DBCC) will revisit its targets and its performance, the economic performance globally especially in our region, in the Asia Pacific seeing that virtually all countries' growth targets have been reduced because of the weakening of the global market, particularly that of China," he added.
As he explained the effect of inflation to economic growth, Balisacan said that although last month's 6.1 percent inflation rate was "worrisome" the four percent higher end inflation rate target for 2023 may still be achievable.
"What we do know is that inflation has a negative effect on growth, so the inflation that we are seeing in September is of course worrisome ," he said.
"The four (percent) there may still be achievable. We still have three months now October, November, December from 6.1 (percent) to let say four still quite a challenge. I think what we want to see is really continued progression to that range of 2 to 4 percent," he added. DMS
