English Articles
The National Economic and Development Authority (NEDA) remains optimistic that the growth target of 6.5 percent in 2024 is still attainable despite the inflationary impact of El Nino that is expected to persist until the second quarter of next year.
"I would not this early, give away this six and a half percent that's the target, but the eight (percent) might be already out of the way so, maybe, you know, way out reducing the range is one proposal, but we'll see once we get all the information," NEDA Secretary Arsenio Balisacan said in a yearend press chat in Pasig City on Wednesday.
The Development Budget Coordinating Committee will meet on Friday to ''re-assess the growth targets, especially for 2024 in light of recent developments, particularly the continuing weakness of the global economy.''
"I think that my experience is that you know, we do targets and so that you have something to work on, work on very hard. If, if it turns out that you miss it your response should not be to reduce your target but to work harder to get it back so that you get in. Otherwise, what's the point of doing targeting if you can change it anyway," he said.
Balisacan expressed belief that 6.5 percent GDP for 2024 is "very reasonable and it's not out of the blue".
"We have managed 6.3 percent average growth from 2010 to 2019 6.3 percent per year. So what's the big deal about 6.5?" he said.
The economic secretary also stressed that "the multilateral institutions have projected a comparatively strong growth performance for the Philippines in 2024"
"As we approach the New Year in a few weeks, we are keenly aware of the persisting challenges we confront as we aim to hit such a target. Elevated inflation remains a risk because of the onset of El Nino, which is expected to persist until the second quarter of 2024 and may bring drought to as many as 65 provinces and dry spells to six other provinces," he added.
Balisacan said ''external price pressures stemming from geopolitical tensions and the imposition of export bans in other countries remain, which may drive global prices higher and raise uncertainties in the availability of food supplies."
"Moreover, the limited absorptive capacity of implementing agencies continues to pose challenges, even as we seek to stick to our spending catch-up plans to drive growth," he added.
The NEDA board will meet on Thursday to examine the extension of Executive Order Nnumber 10 that extends the validity of reduced import duty rates
"If you have existing high tariffs for that (affected) commodities why can't we reduce it temporarily to reduce the impact of high global prices in the local market," he said.
Despite the challenges due to El Nino and the global economy, Balisacan expressed optimism that the country will "continue to drive and maintain our economic progress for the coming year and beyond."
"With our priorities in check, we remain hopeful that 2024 will bring us closer to achieving our cherished ambition," he said. Robina Asido/DMS
