Gov’t raises imports target

MANILA, Philippines - The government has revised its imports growth target from 2014 to 2016 because of the need to complete numerous infrastructure projects and post-Yolanda reconstruction efforts.

During the Development and Budget Coordinating Committee (DBCC) Friday evening, Socio-Economic Planning Secretary Arsenio M. Balisacan said the government has revised upwards its import  growth target for 2014 to nine percent from six percent, while the imports  growth target for 2015 has been revised upward to 10 percent from seven percent. For 2016, the imports target has been revised to 12 percent from nine percent.

“It will be a little faster than earlier assumed,” Balisacan added.

Exports growth assumption this year, however, remain unchanged, remaining at six percent (from seven in 2013). Exports are expected to grow by eight percent in 2015, and by 10 percent in 2016.

Balisacan said gross domestic product (GDP) growth rate would remain at 6.5 to 7.5 percent this year, and 7.5 to 8.5 percent in 2015.

“There were minor changes in the target. The (economic) growth and inflation projections are still the same,” he added.

Outlook for the peso to US dollar exchange rate was revised slightly to P42 to P45 from the earlier P41 to P44 range. For 2015 and 2016, it is a similar P42 to P45 range.

“This year’s growth target is still attainable. We expect consumption to be still bullish, government spending to speed up. Industry is expected to recover, services will continue to grow faster, and robust investments,” Balisacan, who is also the director general of the National Economic and Development Authority (NEDA), said.

The Philippines recorded a 7.2 percent GDP growth rate last year, from an strong 6.8 percent growth rate in 2012. It is the fastest two consecutive year growth rates since 1954 to 1955 according to Bloomberg.