Marcos Econ Team Sets Growth Rates, Debt, and Poverty Reduction Goals

According to President Ferdinand “Bongbong” Marcos Jr’s economic team, the economy will be expected to grow annually by at least 6.5% during his entire term.

The Development Budget Coordination Committee (DBCC) is predicting 6.5% to 7.5% economic growth for the year 2022. For the incoming years under the Marcos administration, specifically, 2023-2028, a target growth of 6.5% – 8% annually was put in place.

The DBCC comprises the Department of Budget and Management (DBM), the Department of Finance (DOF), and the National Economic and Development Authority (NEDA).

The Marcos economic team says that the targets of growth would mean that the Philippines will attain the highest growth rate among the ASEAN Plus 3 in the next two years.

The ASEAN Plus 3 includes ASEAN countries namely Indonesia, Cambodia, Brunei, Laos, Vietnam, Thailand, Singapore, Myanmar, Malaysia, the Philippines,  and the three additional countries namely Japan, China, and South Korea.

The government’s goal is to lessen the deficit-to-GDP ratio to pre-pandemic levels of 3% from 2026 up to 2028 says DBM Secretary Amenah Pangandaman. The deficit-to-GDP ratio last 2020 was at 7.6% and the 2021 rate reached 8.6%.

The DBCC also released their 2022 higher inflation target band at 4.5 – 5.5% which is notably higher than the previous administration’s 3.7 – 4.7% range. This is due to the rise in prices of goods due to the Russia – Ukraine war and the disruption of the global supply chain.

The inflation rate is expected to average around 2.5% to 4.5% in 2023 before it goes back to the 2 to 4% target for 2024 which is expected to go on until the end of President Marcos’ term in 2028.

BSP Governor Benjamin Diokno has also stated that the government plans on reducing the debt to GDP ratio to 60% in 2025.

Source: CNN Philippines