DBCC keeps growth goals for 2015, 2016

GOVERNMENT economic managers have kept the 7-8 percent growth goal for this year, as they cited domestic risks, especially underspending, to be more pressing than external developments such as the Greek debt crisis.

They likewise kept the 7-8 percent economic growth target for 2016.

On the sidelines of the Cabinet-level, interagency Development Budget Coordination Committee (DBCC) meeting, Economic Planning Secretary Arsenio M. Balisacan told the Inquirer that the developments in Greece would have “very indirect” impact on the Philippines’ economic growth.

“The Philippine economy is relatively stable compared to our peers. Even when Japan and the US experienced economic slowdown, the Philippines was relatively less affected than other countries,” said Balisacan, who is also the Director-General of the National Economic and Development Authority (Neda).

The Neda chief said the country’s current account was “very diversified.”

“The economy is growing, our debt is going down. Because we are globally integrated there will be effects [on the domestic economy] but the highly indebted countries will be more affected,” Balisacan said.

According to Budget Secretary Florencio B. Abad, hitting the upper end of the 2015 economic growth target will be “challenging” even as the lower end “remains to be within the range.”

Abad noted that “many of the problems being encountered are domestic and therefore largely within the control of government to address,” such as underspending on public goods and services.

Economic growth slowed to 5.2 percent in the first quarter—the lowest since 2012, mainly because the government did not spend as much as it should.

Abad said the impact of recent policies aimed at reversing sluggish government spending would be felt by the third quarter.

The DBCC retained the growth projections of 7 percent for exports and 2 percent for imports in 2015.