Philippines lowers growth target for 2024, raises deficit ceilings

MANILA – The Philippines has lowered its target growth range for this year and also turned slightly less optimistic about next year’s outlook due to high inflation and an anticipated slowdown in the global economy, its economic planning minister said on Thursday.

The Philippines now expects the economy to grow between 6.0% and 7.0% in 2024, from a 6.5%-7.5% projection last December, with the target range for next year narrowed to 6.5%-7.5% from 6.5%-8%, Arsenio Balisacan told a media briefing.

The 6.5%-8.0% growth projections for 2026 to 2028 were kept unchanged.

The government also raised its budget deficit ceilings for 2024 to 2028 to allow for greater flexibility so it could fund its infrastructure program.

Foreign exchange assumptions this year were narrowed to PHP 55 to PHP 57 against the dollar, but were kept at PHP 55 to PHP 58 against the greenback from 2025 to 2028.

Inflation targets were kept at 2% to 4% until 2028.

Next year, the government plans to propose to Congress a 7.5% increase in the national budget to PHP 6.2 trillion (USD 109.91 billion) from this year’s PHP 5.77 trillion. — Reuters