GDP growth on track to reach 6-7% target

The country is still on track to meet the government’s gross domestic product (GDP) growth targets for this year and the next, the Department of Finance and Department of Budget and Management said.

“For growth, I think achievable, of course. This year, it may be nearer the lower end. For next year, it’s still achievable, 6.5%,” Finance Undersecretary and Chief Economist Domini S. Velasquez told reporters on the sidelines of the BusinessWorld Forecast 2025 forum on Tuesday.

The government is targeting 6-7% GDP growth this year and 6.5-7.5% expansion for 2025.

Separately, Budget Secretary Amenah F. Pangandaman said that the economic team is still confident that they can meet their growth goals.

“As of now, we’re still confident that we will be able to hit our targets, so we will see,” she told reporters on the sidelines of an event in Makati City.

The government is working to expedite the release of the budget and encourage agencies to spend for programs and projects, which would contribute to growth, she said.

In the first nine months, Philippine GDP growth averaged 5.8%. To meet the lower end of this year’s 6-7% target, the economy would need to grow by at least 6.5% in the fourth quarter.

The Development Budget Coordination Committee (DBCC) is set to have its next review in December.

The DBCC last met in June and kept its growth targets for this year up to 2028 but recalibrated its fiscal program.

Ms. Pangandaman said the DBCC will “most likely” revise its macroeconomic assumptions next month but noted that these changes would be “very minimal.”

“Actually, I’m not sure if they can take into consideration the new administration of President (Donald J.) Trump. I think it’s also nice to look at it. That’s what the technical working group is looking at.”

They are also studying the DBCC’s peso assumptions and may consider the incoming Trump administration’s proposed policies and its expected impact on the currency, she said.

“We’re studying that. The recommendation is the previous numbers we saw before. The new administration of President Trump, among others,” Ms. Pangandaman said.

On Tuesday, the peso slipped by a centavo to close at its record low of P59 per dollar, which it last hit on Nov. 21.

The peso sank to the P58 level in late October amid the greenback’s strength in the run-up to the US presidential election.

Mr. Trump’s win in the Nov. 5 vote caused the local unit to hit multi-month lows and eventually return to its all-time trough of P59 last seen in October 2022 as the dollar continued to soar on safe-haven demand as global markets await the new administration’s policy direction.

The DBCC expects the peso to range from P56-58 per dollar this year.

For her part, Ms. Velasquez said reforms such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will help drive investments and fuel growth.

Earlier this month, President Ferdinand R. Marcos, Jr. signed into law the CREATE MORE Act, which expands fiscal incentives and lowers corporate income tax on certain foreign enterprises.

Ms. Pangandaman said the economic team will likely conduct international roadshows to promote CREATE MORE to investors.

“We’re just finishing the implementing rules and regulations. By next year probably, we have a chance to go out and promote CREATE MORE.”

These roadshows will likely take place in the United States, Japan, Korea and the Middle East, she said.

“Maybe the US because there’s a new administration and then new policies in terms of their investment decisions,” Ms. Pangandaman added. — Luisa Maria Jacinta C. Jocson