The Philippine government has downgraded its economic growth target this year to between 6.8% and 7.8% from the previous 7% to 8% due to “challenging” external developments brought about by the slowing China economy and continuous decline in oil prices.
For 2017, the gross domestic product is expected to grow to 6.6-7.6%; for 2018, 7-8%; and for 2019, 6.9-7.9%, according to the Development Budget Coordination Committee (DBCC). A committee under the National Economic and Development Authority (NEDA), DBCC sets the government’s macroeconomic assumptions and fiscal program.
NEDA assistant director general Rosemarie G. Edillon said the revised targets took into account the slowing growth of the Chinese economy and the drop in oil prices. On the domestic side, Edillon noted risks include “climactic shocks”, the effects of the El Niño until May, and possible delays in the implementation of public infrastructure projects.
The government has also lowered its exports growth target to 5% from 6% and imports growth target to 10% from 12%. However, the government is keeping the P498.67-billion collection target for the Bureau of Customs despite the revision in targets.
“We are considering a lot of externalities that are going to put pressure on growth but there’s a lot of domestic-driven factors that will prop up growth on balance,” Budget Secretary Florencio Abad said.
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