Philippines lowers 2022 economic growth target │ GMA News Online
The government’s economic cluster on Tuesday cut its economic growth target for the year, citing heightened external risks and the normalization of monetary policy.
Following its 181st meeting, the Inter-Agency Development Budget Coordination Committee (DBCC) reduced its gross domestic product (GDP) growth target range to 7.0% to 8.0% compared to the previously set range of 7.0% to 9.0%.
“Given heightened external risks such as the Russia-Ukraine conflict, China’s slowdown and U.S. monetary normalization, the full-year growth target has been revised slightly,” said Tina, head of of the Department of Budget and Management (DBM). said Rose Marie Canda during a virtual briefing.
The Philippines opened the year with faster than expected economic growth of 8.3%, compared to 7.8% in the fourth quarter and -3.8% in the first quarter of 2021.
“Moving the whole country to Alert Level 1, increasing the vaccination rate, especially for the elderly and children, and reopening all face-to-face classes are crucial to further strengthen domestic demand, cushion the impact of external events and achieve our growth objectives. “Canda said.
Metro Manila and several areas will remain under Alert Level 1 – the most relaxed form of COVID-19 restrictions – until the end of May.
Alert Level 1 allows intra- and inter-zonal travel regardless of age and co-morbidities, and all facilities, people or activities to be operated are working at full capacity on-site subject to minimum public health standards
The DBCC also expects inflation to be between 3.7% and 4.7%, possibly exceeding the government’s inflation target of 2.0% to 4.0%, citing the overseas developments.
Inflation is then expected to decelerate back to the target range between 2023 and 2025.
“The assumption for the average inflation rate for 2022 has been adjusted upwards and is expected to be between 3.7% and 4.7%, following the increase in food and energy prices resulting from tensions persistent geopolitics due to the Russian-Ukrainian conflict and the disruption of supply chains,” Canda said.
The economic hub also raised its Dubai crude oil price assumption per barrel for the year to $90 to $110 a barrel, due to potential supply disruptions caused by the conflict between Russia and Ukraine. .
This is expected to fall between $80 and $100 per barrel in 2023, and between $70 and $90 per barrel in 2024 and 2025. —RSJ, GMA News