Philippine Economic Growth Target for This Year Deemed Achievable, Says DOF Official

MANILA – The Philippine government’s economic growth target for this year is achievable, stated a Department of Finance (DOF) official this past weekend.

According to Philippines News Agency, during a business journalism seminar organized by San Miguel Corporation and the Economic Journalists Association of the Philippines, the target of 6 to 7 percent growth is within reach. Velasquez highlighted that the Philippine economy expanded by 5.7 percent in the first quarter of the year.

During this period, major economic sectors such as agriculture, forestry, and fishing; industry; and services reported growths of 0.4 percent, 5.1 percent, and 6.9 percent respectively. To meet the lower end of the annual target, the economy will need to grow by 6.1 percent in the remaining three quarters. Velasquez noted optimism for acceleration in the second quarter, driven by robust employment data and increases in manufacturing and exports.

The DOF official also pointed out that proposals under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) MORE (Maximize Opportunities for Reinvigorating the Economy) initiative, which aims to boost manufacturing through enhanced power cost incentives, could further fuel economic growth. Additionally, anticipated increases in household consumption and government spending are expected to contribute to economic momentum in upcoming quarters.

Velasquez emphasized that with stable inflation, these factors are likely to bolster growth, positioning the Philippines to potentially sustain a growth rate around 6 percent moving forward. This assessment follows remarks from the National Economic and Development Authority (NEDA), which noted that the Philippines’ first-quarter growth rates are competitive with, if not surpassing, those of other major economies in the region, including China, Indonesia, and Malaysia.