Connect with us

Hi, what are you looking for?

News

Growth may surpass target this year

PHILIPPINE STAR/ EDD GUMBAN

THE PHILIPPINE ECONOMY likely saw strong growth in the fourth quarter, putting it on track to surpass the government’s full-year target, Socioeconomic Planning Secretary Arsenio M. Balisacan said on Monday.

“I think given the indications that we are seeing in the fourth quarter, it’s likely that we are going to exceed (the full-year target of 6.5-7.5%). We expect to see a robust growth in the fourth quarter,” he said at a briefing in Pasig City.

In the third quarter, gross domestic product (GDP) expanded by a better-than-expected 7.6%, bringing the nine-month average to 7.7%.

Mr. Balisacan earlier said GDP needs only to grow by 3.3-6.9% in the fourth quarter to achieve the full-year target.

Consumption, as well as more investments in construction, utilities, and mining, and increased productivity in agriculture, likely drove strong growth this year, he added.

The National Economic and Development Authority (NEDA) chief said GDP expansion would have been faster if not for rising inflation this year.

Headline inflation rose to a 14-year high of 8% in November, from 7.7% in October. For the 11-month period, inflation averaged 5.6%.

“But obviously in response to that inflation, our monetary authorities had to raise interest rates and the impact of that will be felt next year and will be felt even the year after,” Mr. Balisacan said.

The Bangko Sentral ng Pilipinas has raised its benchmark interest rate last week by 50 basis points (bps) to 5.5%. This brought the policy rate to the highest since November 2008 when it was at 6%.

Since May, the central bank has increased borrowing costs by a total of 350 bps.

For next year, Mr. Balisacan said the likely recession in major economies, persistent inflation, and the impact of BSP’s monetary tightening, may slow the Philippine economy’s growth.

The Development Budget Coordination Committee (DBCC) earlier this month revised its growth target for 2023 to 6-7%, a narrower range compared with 6.5-8%, previously.

“Despite the headwinds we face, the economic team of the Marcos administration remains confident of our prospects in the near term. A robust domestic economy, propelled by sustained consumption and investment, will be key to attaining the 6-7% growth target for 2023,” Mr. Balisacan said.

Meanwhile, NEDA said the Philippine Development Plan (PDP) 2023-2028 will address short-term issues and medium-term constraints to growth.

The NEDA Board, chaired by President Ferdinand R. Marcos, Jr., approved the PDP on Dec. 16.

Under the PDP, the government seeks to lower the unemployment rate to between 5.3% and 6.4% and bring inflation down to 2.5%-4.5%.

Mr. Balisacan said poverty incidence is also expected to drop to 16.2% in 2023 from 18.1% in 2021.

“The timely adoption of the PDP as the country’s development roadmap shall ensure the alignment of government resources, programs, projects, and activities along with the identified strategies that will enable us to achieve our desired socioeconomic objectives,” Mr. Balisacan said.

“The plan will address short-term issues such as protecting people’s purchasing power, mitigating the socioeconomic scarring in human capital, and ensuring that vulnerable population segments are provided targeted assistance,” he added.

Full of details of the PDP will be published by yearend.

MAHARLIKAMeanwhile, Mr. Balisacan urged the Senate to act on the proposed bill creating the Maharlika Investment Fund (MIF) “the earlier the better,” saying that it could support the newly approved socioeconomic development plan of the country.

“The Maharlika Investment Fund is just another source of funds that will support our priorities, particularly investment priorities, and we see the Maharlika as another vehicle for sources of funds and investments,” he said.

He added that the MIF would be another source of financing for the government’s major infrastructure projects, such as the official development assistance, public private partnerships and national budget.

“The more vehicles you have, the better,” he said. “That will ensure that we can ramp up, not only the infrastructure, but even the other development priorities of the government.”

Last week, the House of Representatives approved on third and final reading the bill creating the MIF just over two weeks after it was filed by Speaker Ferdinand Martin G. Romualdez. — Keisha B. Ta-asan

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> TSB’s 5,700 staff and executives are to share a 10% bigger bonus pot this year, after rising interest rates pushed the...

Editor’s Pick

<?xml encoding=”utf-8″ ??> NatWest is to shut another 23 branches in England and Wales, adding to a raft of high street banking closures already...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Shell has put more than 2,000 jobs in the UK at risk after launching a “strategic review” of its domestic energy...

Editor’s Pick

<?xml encoding=”utf-8″ ??> British taxpayers have become shareholders in a further 53 companies backed by a government rescue funding scheme. These firms include a...

News

REUTERS Smartphones were the most used devices among women last year based on a new survey by the Philippine Statistics Authority (PSA) and the...

Editor’s Pick

<?xml encoding=”utf-8″ ??> The chain announced last year that it would be selling nearly 40 of its pubs due to the combined impact of...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.