Gov’t sticks to 6.5-7.5% growth target for 2024

Despite global and domestic headwinds, the government is still aiming to attain a 6.5 to 7.5 percent economic growth for this year, according to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.

In a press briefing, Balisacan said a fullyear growth of 6.5 to 7.5 percent would generate economic opportunities, increase employment, raise per capita incomes and elevate the economy to upper middleincome country status by 2025.

“This growth will be supported by low and manageable inflation, a labor force with access to more and better jobs, stronger fiscal position in the form of lower deficit and debt as a share of gross domestic product, and an increasingly dynamic, innovative and competitive economy,” he said.

Expected to contribute to economic growth this year are the improvements in access to inputs and infrastructure in agriculture, services and the manufacturing sectors, the NEDA chief said.

He also noted the various economic reforms passed by the administration that are now operational.

Balisacan said the Public Services Act’s implementing rules and regulations are now being implemented, which would spur investments in areas like tollways, airports, digital and telecommunication services.

He said the implementing rules and regulations of the Public-Private Partnership Code, approved by Congress and signed by the President last year, are now being worked out and are likely to be released by March.

“With respect to infrastructure, again, despite the challenges, we’ll keep expanding our investment by ensuring that infrastructure development will get at least five to six percent of our GDP to sustain the momentum that we have already started,” he said.

However, Balisacan said controlling inflation remains a challenge for the government, particularly on food prices.

“We recognize in our efforts that inflation is still a challenge for us. We have made substantial progress, we’re moving into the target of two to four percent,” he said.

“Because of El Niño, there are areas of headline inflation where we need to work harder – for example, the food inflation,” Balisacan said.