MANILA, Philippines — The Marcos administration’s growth goal for this year “remains achievable” despite the weak expansion seen in the second quarter, Finance Secretary Benjamin Diokno said Sunday.
To do this, an “aggressive catch up” plan that would boost government spending on infrastructure and expenditure of local government units is needed, Diokno said in a Viber message to reporters.
“The Philippine economy has to grow by 6.6% in the second half of the year to achieve the lower end of the 6-7 % growth target for 2023,” he said.
“While there are formidable external challenges, the prospect for achieving this lofty goal is largely in the hands of the current administration,” he added.
Gross domestic product expanded 4.3% year-on-year in the April-June period, a sluggish pace compared to the 6.4% growth recorded in the first quarter, the Philippine Statistics Authority reported.
The latest figure was below market expectations. The reading also put the government away from its target this year. In the first half, GDP growth averaged 5.3%, way below the Marcos administration’s goal of 6-7%.
Data showed consumer spending, a major growth driver, contracted by 1.0% quarter-on-quarter as spending on clothing and restaurants dropped.
Government spending, meanwhile, dropped 5.2% on a sequential basis.