Finance Secretary Ralph Recto estimates that the economy grew by 5.8 percent to 6.3 percent in the first quarter of 2024.
These projections are slower than the 6.4 percent expansion recorded in the same period a year ago.
“Our target is at least six percent (for the full year). Anything higher than 5.5 percent is a win because last year we grew by 5.5 percent so if we grow by 5.8 percent, that’s good enough, that should be one of the highest in the region, if not one of the highest in the world. So based on our analysis, 5.8 percent to 6.3 percent for Q1,” Recto told reporters on the sidelines of an event in Makati held late Monday.
“I think first quarter last year we recorded a high growth (rate), so we’re starting from a high base. If we can achieve 5.8 percent that’s already good, (since we’re) starting from a high base,” he added.
The finance chief said inflation remains as the biggest concern.
“If we can reduce inflation, GDP (gross domestic product) growth will be higher. So we’re looking at that. Our next economic managers meeting, we will meet with the Department of Agriculture (so we can focus on) food inflation,” Recto said.
“Within the year we expect that (inflation) will still be within the range of two to four percent,” he added.
The Development Budget Coordination Committee (DBCC) recently recalibrated the government’s medium-term macroeconomic assumptions, fiscal program and growth targets for fiscal years 2024 to 2028 to reflect domestic and global developments.
The DBCC revised the economic growth targets to six to seven percent for 2024, from the previous estimate of 6.5 to 7.5 percent.
Meanwhile, the growth target for 2025 was narrowed to 6.5 to 7.5 percent from the previous range of 6.5 to eight percent, while retaining a 6.5 to eight percent growth target for 2026 to 2028.
