DBCC may cut growth targets

MANILA, Philippines — The Development Budget Coordination Committee (DBCC) may slash its economic growth targets for next year, according to the National Economic and Development Authority (NEDA).

“The DBCC will meet on Friday this week to reassess the growth targets, especially for 2024, in light of recent developments, particularly the continuing weakness of the global economy,” NEDA Secretary Arsenio Balisacan said in a press chat yesterday.

When asked about the possibility of making adjustments to the 6.5 percent to eight percent growth target for next year, Balisacan said that the upper end of eight percent may already be beyond reach, and one proposal is to narrow the range.

“There’s no harm in reducing from eight to something lower to be realistic, but not to lower the 6.5 (percent) because then you’re surrendering too early,” he said.

He said there are persistent challenges in hitting the growth target for next year.

Among these challenges are elevated inflation because of the onset of El Niño, which is expected to persist until the second quarter of 2024 and may bring drought to as many as 65 provinces.

Balisacan said there are also external price pressures from geopolitical tensions and the imposition of export bans in other countries, which may drive global prices higher and raise uncertainties in the availability of food supplies.

In addition, the limited absorptive capacity of implementing agencies continues to pose a challenge to growth.

Balisacan said the NEDA board chaired by President Marcos will meet today, with the agenda to include the extension of Executive Order 10, which lowered the tariffs on swine meat, rice, corn and coal.

Under the EO, the reduced tariffs are in effect until the end of the year to make the commodities affordable amid high inflation.

“This is going to be seen as part of the preparation for the difficult months next year,” Balisacan said.

While growth targets are under review, Balisacan maintains that sustaining a 6.5 to eight percent growth for the medium term is essential to realizing the country’s long-term aspiration by 2040 – wherein Filipinos enjoy a life that is strongly rooted, comfortable and secure.

For this year, he is confident that the country will  achieve the lower end or, at the very least, hit a figure near the lower end of the six to seven percent growth target.

The economy grew by 5.5 percent in the first nine months.

To achieve the growth target for this year, the economy will have to post at least 7.2 percent growth in the fourth quarter.