Philippines Targets Robust GDP Growth in 2023, Despite Current Shortfall

MANILA – The Philippine government, led by Finance Secretary Benjamin Diokno, remains optimistic about achieving its Gross Domestic Product (GDP) growth target for 2023, despite current trends suggesting a shortfall. The target for the year is set at a minimum of 6 percent growth, an ambitious goal considering the average GDP growth of 5.5 percent recorded in the first three quarters of the year.

Diokno has expressed that the government will consider the changing outlooks of various international financial institutions while reviewing their growth target, which currently stands at 6 to 7 percent for 2023. This consideration comes in the wake of the Asian Development Bank’s recent downward revision of its growth forecast for the Philippines.

The National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan has outlined that to meet the government’s target, the Philippine economy needs to grow between 5.9 percent to 7.2 percent in the subsequent three quarters. This target is part of the government’s broader fiscal strategy to ensure robust economic performance and mitigate inflation pressures, with consumer spending expected to remain strong as inflation eases.

Secretary Diokno is also banking on improved government spending, particularly in the second half of the year, to drive economic growth. He highlighted that infrastructure projects, which are usually concentrated in the fourth quarter, could play a significant role in bolstering the economy.

Looking at the medium-term fiscal framework (MTFF), the government aims for an annual economic growth of 6.5 percent to 8 percent from 2023 to 2028. This ambitious target follows a year of impressive economic performance in 2022, where the Philippines’ GDP expanded by 7.6 percent, surpassing expectations.

The Philippine government’s confidence in hitting its GDP growth target is a reflection of its strategic approach to fiscal management and economic planning. With a focus on infrastructure development, monitoring international economic trends, and maintaining strong consumer spending, the Philippines aims to achieve a sustainable and robust economic growth trajectory in the coming years.