Duterte’s economic managers revise lower 2018 GDP target

President Rodrigo Duterte’s economic managers, collectively as the inter-agency Development Budget Coordination Committee (DBCC), on Tuesday revised lower growth target for 2018, citing global uncertainties.

Committee chair and Budget Secretary Benjamin Diokno noted in a press conference that the gross domestic product (GDP) target of 7.0 to 8.0 percent was revised downward to 6.5 to 6.9 percent.

“The GDP growth target range has been adjusted from 7.0 to 8.0 percent to 6.5 to 6.9 percent for 2018, while the growth targets for 2019 to 2022 remain unchanged,” he said.

The DBCC earlier pegged the growth target from 2018 to 2022 at 7.0 to 8.0 percent.

“We have to all realize that we are living in a very different world now. Six months ago, there were only rumors or war, trade war,” said Finance Secretary Carlos Dominguez III.

“Starting in May, trade war has actually begun and escalated, adding a large measure of uncertainty into the world economic picture, therefore prices of oil have risen very steeply,” he said at the same press conference on Tuesday.

Higher interest rates could put a drag on economic growth, Dominguez noted.

“Interest rates, which factor in risks, have increased and the US normalization of their interest rate policy has continued. Looks like it will continue into the future—rising interest rates,” Duterte’s Finance chief emphasized. —VDS, GMA News