‘6-7% growth achievable’

- Advertisement -

The target growth of between 6 and 7 percent this year is “very much achievable,” despite a less robust expansion of the world economy, according to Secretary Arsenio Balisacan of the  National Economic and Development Authority.

This developed as the policy-setting Development Budget Coordination Committee’s (DBCC) plans to review the growth target for the year.

Finance Secretary Ralph Recto said the DBCC is revisiting its medium-term fiscal framework.

- Advertisement -
BALISACAN

“We have been regularly reviewing our programs. What we are seeing is that since the beginning of the year, we are seeing that the world market is not growing as much as we or many development organizations think or had thought. In other words, it’s less robust.

It’s more anemic, the global growth than initially expected,” Balisacan said Tuesday.

“The decrease in interest rates in many countries has been slower than what many had anticipated in the last quarter, as early as the last quarter of last year. When we were preparing our assumptions and forecast and growth programs in that last quarter of last year, we were working on the assumption  the global economy would recover from its (decline) in 2023,” he added.

Balisacan said it is a “good case” to revisit numbers given that organizations like the International Monetary Fund have indicated the global economy is likely to slow down.

“In the domestic market, the El Niño issue persists (but) we have managed quite to get the inflation down. We had an uptick a bit, but we don’t think that it’s an aberration or a permanent departure from that trend that we have been experiencing since late last year.

The interest rates, at least the lag effects of (the increases) will continue to persist,” he said.

Balisacan said the first quarter figures will be a factor to consider if the DBCC will revise the targets.

“But even if we set it to, say, 6 to 7 (percent), that’s still, to us, a good range. And achieving 6.5 (percent) for the year would be a remarkable achievement compared to at least what we are seeing in most countries in Asia,” he noted.

“Achieving a growth of 6 percent would be, as I said, would be very impressive. And I think that 6 to 7 percent, if we can get that for this year, and as the global economy improves next year, hopefully that we go back to the 6.5 to 7.5 or even 6.5 to 8. For this year, I’m okay with the 6 to 7 (percent), it’s very much achievable,” he added.

Meanwhile, the Department of Labor and Employment (DOLE) yesterday shrugged off the increase in the country’s unemployment rate in January, saying it still falls within the target of the Philippine Development Plan 2023-2028.

In a statement, DOLE Secretary Bienvenido Laguesma said the 4.5 percent unemployment rate in January –   from 3.1 percent in December 2023 – is no cause for alarm.

He said this is lower when compared year-to-year of  4.8 percent  in January 2023.

“This decline is significant as it proves the continuous improvement of our economy,” said Laguesma.

Laguesma said DOLE is prepared to provide assistance to those who want to find jobs.

He said they are ready to assist in providing skills training to workers in a bid to increase their productivity at work.

The official said the Department is also encouraging jobseekers to access PhilJobNet (https://philjobnet.gov.ph) or visit their local Public Employment Service Office (PESO) in order to find available jobs.

Laguesma said unemployed youth may also apply to DOLE programs, namely Special Program for Employment of Students, Government Internship Program and JobStart Philippines.

- Advertisement -spot_img

According to the Philippine Statistics Authority, the number of unemployed individuals in January 2024 was estimated at 2.15 million. With Gerard Naval

Author

- Advertisement -

Share post: