The Development Budget Coordination Committee (DBCC) on Monday revised its 2024 economic growth target, narrowing expectations to 6.0% to 6.5%, down from the previous 6.0% to 7.0% range.
Finance Secretary Ralph Recto acknowledged the revision, citing challenges in achieving the earlier high-end target of 7.0%, with the economy averaging 5.8% growth as of September.
Economic Performance and Outlook
- Growth slowed to 5.2% in Q3, down from 6.4% in Q2, prompting the adjustments.
- The DBCC remains optimistic about a recovery in Q4, citing increased holiday spending, disaster recovery efforts, low inflation, and a strong labor market.
The DBCC also expanded its 2025-2028 economic growth assumptions to 6.0% to 8.0%, up from previous narrower ranges.
Structural Reforms to Drive Growth
Economic managers attributed the updates to the potential effects of structural reforms and uncertainties in domestic and global markets.
“To achieve these targets, we remain committed to implementing reforms outlined in the Philippine Development Plan 2023-2028,” the DBCC said, emphasizing investments in infrastructure, ease of doing business, and national competitiveness.
Inflation Adjustments
The DBCC adjusted its 2024 inflation forecast to 3.1% to 3.3%, down from the earlier 3.0% to 4.0% range, aligning with the government’s 2.0% to 4.0% target.
For 2025-2028, inflation assumptions remain unchanged at 2.0% to 4.0%. The year-to-date inflation as of October stood at 3.3%, with the latest monthly figure recorded at 2.3%.
Commitment to Stability
The DBCC reiterated its dedication to maintaining price stability and implementing reforms to improve labor market conditions and productivity
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