DBCC further narrows 2022 PH economic growth target to 6.5-7.5%


Posted at Jul 08 2022 08:51 PM

MANILA - Philippine economic managers on Friday said they remain optimistic on growth despite further narrowing the target for 2022.

For 2022, the gross domestic product (GDP) growth is expected to settle within the 6.5 to 7.5 percent range, which is lower compared to the revised target of 7 to 8 percent, according to the Development Budget Coordination Committee (DBCC). 

The Initial DBCC target for 2022 was a growth of 7 to 9 percent.

"We should be happy. Be optimistic. That's still the best among ASEAN + 3 , not only this year but also next year. That's the consensus of forecasters," Finance Secretary Benjamin Diokno said in a press briefing.

Revisions to the growth target was attributed to the rising oil and commodity prices brought by the ongoing conflict between Russia and Ukraine. 

Domestic pump prices largely contributed to Inflation, which accelerated to 6.1 percent in June.

The DBCC also projected annual inflation to average from 4.5 percent to 5.5 percent in 2022 due to the uptick in fuel and food prices and global supply chain disruptions, Budget Secretary Amenah Pangandaman said.

To counter uncertainties, economic managers are also planning new measures. One of these is to add new taxes, particularly on single-use plastics and online purchases. 

They said the government must also generate more revenue by improving tax collection. 

Diokno also added he is not in favor of abolishing the Rice Tarriffication Law as it has helped ease inflation.

Socioeconomic Planning Secretary Arsenio Balisacan said there is a need to revive partnerships with the private sector to boost growth. 

"We need to revive , enhance the PPP because of its potential for contributing to the big gap of our infrastructure….ease the pressure in our fiscal space so that we can have more resources for our social sector, particularly support for health, education, including agriculture," Balisacan said. 

The economy grew faster-than-anticipated at 8.3 percent in the first quarter of 2022.

-- with a report from Jekki Pascual, ABS-CBN News 


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