PH optimistic to hit economic growth, inflation targets for 2024

The Philippine economic team is still confident that the country will be able to hit its economic growth and inflation targets this year, though other short-term macroeconomic assumptions, particularly the peso-dollar exchange rate, may need to be revised.

According to Budget Secretary Amenah Pangandaman, economic growth is still expected to fall within the inter-agency Development Budget Coordination Committee’s (DBCC) estimate of 6.0% to 7.0%.

“As of now we’re still confident that we’ll be able to hit our targets, so we will see, but as of now we’re still trying to keep up,” she told reporters on the sidelines of the Philippine Islamic Finance Roadshow in Makati City on Tuesday.

The Philippine economy expanded by 5.2% in the third quarter, slower than the 6.4% in the second quarter. This brought the year-to-date average to 5.8%, below the government’s target range.

Pangandaman said inflation is also poised to fall within the 2.0% to 4.0% target range after clocking in at 2.3% in October.

She added that there may be revisions to macroeconomic assumptions during the next meeting of the DBCC in the first week of December to possibly take into account the leadership change in the United States with Donald Trump set to return to power in January.

“If ever, it's probably very minimal. Actually, I’m not sure if they can already take into consideration the new administration of President Trump, so I think it’s also nice to look at it,” she said.

One of the most likely changes, according to Pangandaman, will be for the peso-dollar exchange rate, which recently dropped to a record low of P59:$1, which was last seen in October 2022.

“Maybe because we saw the articles in the past few days, but pinag-aaralan pa natin (we are still studying). BSP (Bangko Sentral ng Pilipinas) is in charge of that, so we’ll see,” she said.

“The primordial recommendation will be the previous numbers that we saw, the new administration of President Trump, among others,” she added.

Pangandaman also said that the country has enough buffer to address the impact of the peso’s depreciation on payments.

“It’s already the end of the year, November, December. Most of ‘yung mga (our) payments natin, I mean the contracts have already been signed. Much of the projects (are already) completed, so we have elbow room in the budget,” she said. — VBL, GMA Integrated News