NEDA Secretary Anticipates Strong Economic Performance in Q4 2023

MANILA – The National Economic and Development Authority (NEDA) Secretary, Arsenio Balisacan, has expressed optimism for the Philippine economy’s performance in the fourth quarter of 2023, aiming to surpass the 5.9 percent growth recorded in the third quarter. Speaking at the annual reception for the banking community, Balisacan shared his positive outlook despite not having seen the final numbers yet.

According to Philippines News Agency, the anticipation of improved economic figures is based on promising leading indicators, particularly in the labor market. He highlighted his hope for the economy to achieve or closely approach the lower end of the government’s target growth range of 6 to 7 percent for the quarter. The Philippine Statistics Authority is slated to announce the detailed economic performance for the fourth quarter and the full year on Wednesday.

Balisacan pointed to several factors bolstering his confidence in the economy’s direction, including a steadily improving labor market and a significant decrease in inflation, which has hit its lowest point in 21 months. Despite a decline in exports and imports last year, domestic consumption remains a strong driver of growth, suggesting robust economic activity that could offset external trade weaknesses.

Further, the NEDA chief reassured that the government is vigilantly monitoring potential impacts from El Niño, with no major adverse effects observed so far. He expressed confidence in the country’s ongoing economic momentum, emphasizing growth, employment generation, and continued reduction in inflation rates.

Additionally, Balisacan voiced his support for constitutional amendments targeting restrictive economic provisions, advocating for a focused approach to minimize uncertainty. He underscored the necessity of such amendments to attract investments and enhance competition within the economy. Balisacan believes that easing economic restrictions, coupled with improvements in the ease of doing business and regulatory predictability, will create a more conducive environment for both local and foreign investments, ultimately fostering greater economic growth and development.

The NEDA Secretary’s comments reflect a comprehensive strategy to maintain economic stability and growth, emphasizing the importance of internal dynamics, regulatory reforms, and a cautious yet progressive approach to constitutional changes. Balisacan’s outlook underscores the government’s commitment to sustaining economic progress through strategic policy interventions and structural reforms.