Philippine economic officials set a growth target of 7-9 percent in gross domestic product terms this year even as it faces inflation, the lingering effects of the COVID-19 pandemic and the Ukraine-Russia conflict

Bangko Sentral ng Pilipinas Governor Benjamin Diokno told Tuesday's Philippine Economic Briefing there is ''basis for the projection.''

Last year, the Philippine economy grew 5.6 percent as the country began opening up business centers after two lockdowns caused by COVID-19.

Finance Secretary Carlos Dominguez III said '' as the pandemic subsides, the economy is now well on its way to rapid recovery.'' '' This year, we expect our economy to grow by 7 to 9 percent.''

Dominguez said ''merchandise trade and remittances are already above pre-pandemic levels.''

He also cited the economic laws passed by Congress and record foreign direct investment of $10.5 billion last year.

He said the ''fiscal headroom'' allowed the country to borrow P3 trillion to finance its response vs COVID-19. He added ''external developments'' could affect the country's prospects.

Dominguez described the economy's state, quoting the famous Admiral Heihachiro Togo:'' The weather is fine but the waves are high.'' He said President Rodrigo Duterte as the captain of the ship who ''masterfully steered'' the economy.

Diokno said:''One of the key risks to domestic and global economic growth is the ongoing conflict between Russia and Ukraine. Its direct impact is inconsequential, yet its indirect impact through higher world oil prices and slower global growth could be significant."

Dominguez added the country has to deal with the ''volatilities produced by the Ukraine conflict.''

Diokno said '' as the Philippine economy recovers, the BSP’s pandemic exit strategy involves recalibration of monetary operations, unwinding of our liquidity provision, reducing monetary accommodation, and building our buffers in preparation for future crises."

''We will continue to assess demand & supply conditions to ensure that we are able to implement our exit strategy in a timely and orderly manner," he added. DMS