Philippines lowers growth target for 2024, raises deficit ceilings

April 4, 2024 - 12:10 PM
Philippines GDP Interaksyon
A worker installs steel rods at a construction site in Paranaque city, metro Manila, Philippines May 29, 2018. (Reuters/Romeo Ranoco/File Photo)

 The Philippines has lowered its target growth range for this year and also turned slightly less optimistic about next year’s outlook due to high inflation and an anticipated slowdown in the global economy, its economic planning minister said on Thursday.

The Philippines now expects the economy to grow between 6.0% and 7.0% in 2024, from a 6.5%-7.5% projection last December, with the target range for next year narrowed to 6.5%-7.5% from 6.5%-8%, Arsenio Balisacan told a media briefing.

The 6.5%-8.0% growth projections for 2026 to 2028 were kept unchanged.

The government also raised its budget deficit ceilings for 2024 to 2028 to allow for greater flexibility so it could fund its infrastructure program.

Foreign exchange assumptions this year were narrowed to 55 to 57 pesos against the dollar, but were kept at 55 to 58 pesos against the greenback from 2025 to 2028.

Inflation targets were kept at 2% to 4% until 2028.

RELATED: BSP sees March inflation at 3.4% to 4.2%

Next year, the government plans to propose to Congress a 7.5% increase in the national budget to 6.2 trillion pesos ($109.91 billion) from this year’s 5.77 trillion pesos.

($1 = 56.4100 Philippine pesos)

— Reporting by Mikhail Flores and Neil Jerome Morales; Editing by Kanupriya Kapoor