The current administration may need to adjust its growth targets for the year to align with the economic realities of the country. Finance Secretary Ralph Recto expressed concerns about factors such as higher interest rates and supply chain disruptions due to geopolitical tensions.
During an event for the Economic Journalists Association of the Philippines, Recto mentioned that the 2024 growth target range of 6.5 to 7.5 percent may be too ambitious given the circumstances. He suggested that aiming for a 6-percent GDP growth would be more realistic for the government, although efforts will still be made to achieve a 6.5-percent expansion.
Recto emphasized the importance of setting achievable goals to avoid increasing deficits and debt-to-GDP ratio. The recent economic growth of 5.6 percent in 2023 fell below the government’s target range, prompting a reassessment of the 2024 target.
The Finance Secretary also mentioned concerns about geopolitical risks impacting the supply chain and inflation rates. He anticipated that interest rates would remain high for a longer period, affecting the consumption-based Philippine economy.
Looking ahead, Recto acknowledged the challenge of managing pandemic-related debts amidst a backdrop of high interest rates. He noted that his focus will be on fiscal responsibilities until the end of the current administration’s term, delaying his political plans for the time being.
