Too soon to revisit growth target – NEDA

Despite economic uncertainty

MANILA, Philippines — The government sees the need to revisit its growth target amid global economic uncertainty, but making changes would be premature for now, the National Economic and Development Authority (NEDA) said.

“There are many things happening especially with all this uncertainty in the global economy. We need to revisit (the growth target),” NEDA Secretary Arsenio Balisacan told reporters on the sidelines of the signing of the joint memo circular for strategic and efficient budget allocation.

However, he said it is too early to lower the growth target at this point.

In December last year, the Development Budget Coordination Committee revised the economic growth targets to reflect emerging domestic and global developments.

In particular, the economic growth target was revised to six to eight percent for this year from 6.5 to 7.5 percent, previously.

For 2026 until 2028, the gross domestic product growth target was adjusted to six to eight percent annually from the previous 6.5 to eight percent.

Balisacan said the government still believes the lower end of the growth target for the year is attainable.

“I think the trick for us is to adjust if it’s necessary, especially that we have a fiscal consolidation program, ensuring that we do not respond in a way that will complicate our policy responses in the future,” he said.

Given the easing inflation and robust labor market, he said there are indications that the economy would have “a good first quarter.”

Inflation slowed to 2.1 percent in February from 2.9 percent in the previous month, marking the lowest level since the 1.9 percent print in September last year.

“Economic growth, particularly, private consumption is quite sensitive to inflation,” Balisacan said.

He said inflation is expected to continue to remain within the government’s two to four percent target this year.

Exports, however, are a concern for the government amid new tariffs being imposed by the United States on its imports from certain markets.

Balisacan said the Philippines is expected to be indirectly affected by these new tariffs.

“No country will be spared from uncertainty caused by such changes because there may be retaliation and we don’t know when the other countries get also involved,” he said.

Given the uncertainties, he said there is a need to diversify the economy and be more active in export markets.