MANILA - The Development Budget Coordination Committee (DBCC) on Tuesday revised its economic growth target for 2018 to 6.5 to 6.9 percent from 7 to 8 percent.

The gross domestic product (GDP) target has been adjusted to reflect worldwide difficulties, which include the escalating trade war and rising global crude oil prices, Finance Secretary Carlos Dominguez III said during a DBCC joint briefing.

"We realize that we are living in a different world now. Six months ago there were only rumors of trade war. Starting in May it began and has escalated adding large measure of uncertainty into the world economic picture," Dominguez said.

Economic growth slowed at 6.0 percent in April to June this year.

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The DBCC's medium-term macroeconomic assumptions projected Dubai Crude to average between $70 to $75 per barrel this year, $75 to $85 in 2019 and $70 to $80 in 2020.

Dubai crude oil price has already triggered the suspension of the second tranche of excise taxes on fuel, which was initially estimated to result in foregone revenue of P41 billion for 2019, Dominguez said.

However, the mid-term assumptions can now help the government compute the "net effect" of the suspension, he said.

The peso is also expected to hover between P52.50 to P53 to a dollar this year and P52 to P55 from P50 to P53 for 2019 to 2022, DBCC added.

The DBCC also adjusted the inflation forecast for 2018, which is projected to average between 4.8 to 5.2 percent from 4 to 4.5 percent.

Here is the updated table of the DBCC’s medium term assumptions. @ABSCBNNews @ANCALERTS pic.twitter.com/naohtFf29d

— Warren de Guzman (@wddeguzman) October 16, 2018

The administration remains confident that the "strong" economy can weather these storms, Dominguez said.

The government has been trying to address issues such as inflation that quickened to 6.7 percent in September. The rice tarrification bill is also expected to lower prices of rice in the market.

President Rodrigo Duterte has also “liberalized” rice importation which will allow the “unimpeded” flow of the staple to the market to tame inflation.

"We remain optimistic but we also tempered our optimism with prudence and good judgment in terms of reality," Socioeconomic Planning Secretary Ernesto Pernia said.

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-- with reports by Reuters and Warren De Guzman, ABS-CBN News