NEDA Chief Balisacan: PH Far From Stagflation but Expect Delays in Gaining High-Income Target

Last Monday, July 4, 2022, NEDA’s new head, Secretary Arsenio Balisacan said that the country is far from being hit with stagflation. Stagflation is a term for the mix between inflation and recession. Despite this, Secretary Balisacan also says that the country’s goal of hitting high-income status by the year 2024 will be delayed due to the effects of the pandemic on the Philippine economy. 

The Japanese think tank, JCER, or Japan Center for Economic Research released a report that tags the Philippines’ weak peso and high inflation as part of the top economic risks for the subsequent 12 months. 

NEDA Sec Balisacan says that while Europe and the US economies can fall into an economic contraction or recession, the new Marcos administration predicts the national economic growth to be 6.5% – 8% annually in the coming six years. 

According to Sec Balisacan, President Ferdinand Marcos Jr.’s economic managers that are part of the Cabinet-level Development Budget Coordination Committee (DBCC) will be having a meeting on July 8, 2022, to discuss macroeconomic goals and assumptions. 

With JCER’s report, economists have increased their GDP consensus growth forecast to an average of 6.6% for the Philippines in 2022. This is an increase from the previous rate of 6.3%. The economists also report that inflation is the top risk to recovery for the economy. 

“Most economists are optimistic on the Philippine economy, which began reopening in February” but “amid the Ukraine crisis, inflation acceleration or asset bubbles became the top risk,” says the JCER report. 

Other risks for Philippine economics also mention the peso depreciation and the increasing prices of commodities.

Source: Inquirer