President Marcos Jr. on Tuesday said an 8 percent growth rate under his administration is “doable,” even if the government is not yet ready to cut interest rates due to the continuing high inflation.
The President, in an interview with Bloomberg, also expressed confidence the country would be able to achieve its yearend target of a 6.5 to 7.5 percent growth in 2024 as much of the fiscal policies adopted by the administration are intended to spur growth.
“We always plan for the ideal. We don’t plan for a mediocre result. We plan for a very good result. We just have to adjust along the way as we continue to transform the economy. But, yes, I think it is doable,” Marcos said when asked if an 8 percent gross domestic product (GDP) within his term is possible.
He noted the importance of achieving higher GDP to completely recover from the effects of the coronavirus disease 2019 pandemic.
The President, however, said the country is not ready to cut interest rates as the country is still battling with high inflation.
“We look at it almost every week to see if it’s time to bring down the rates. We are not yet there,” he said.
The President also said he is “comfortable” with the current peso-dollar exchange rate after the peso sank to below 56 to the dollar.
The country finished with a 5.6 percent growth in 2023 which is one of the strongest in the Indo-Pacific region.
The President highlighted this when he addressed the World Economic Forum (WEF) in Malacanang, also on Tuesday.
Marcos said the country’s stellar growth performance was largely driven by the resiliency of domestic demand, which is “an impressive feat against the backdrop of elevated prices and overlapping crises in the global market.”
He said investments, particularly in durable equipment and public construction, was a key driver in the full-year growth of the Philippine economy.
Marcos said the government is focused on attracting more investments, re-skilling and upskilling Filipino workers, and the adoption of new technologies to sustain the country’s current growth momentum and eventually make it stronger and possibly reach the $2 trillion economy.
The Philippines hosted the two-day 23rd WEF on East Asia, with discussions centering on the promise and potential of the country as the strongest-performing Southeast Asian economy in 2024.
