Philippines Maintains Medium-Term GDP Target As 2022 Growth Beats Estimates

The government of the Philippines confirmed at the end of April the GDP growth targets for the period 2023 through 2028, following higher-than-expected economic growth for 2022. 

Increased domestic demand, higher tourism arrivals, and better labour market conditions helped the economy of the ASEAN member state grow by more than expected last year.

The Philippine economy grew by 7.6 percent in 2022, outperforming the economic growth target of 6.5 to 7.5 percent set by the Development Budget Coordination Committee (DBCC), the Department of Budget and Management said on 24 April.

“This high-growth performance is projected to continue until 2028, aligned with the Medium-Term Fiscal Framework,” the department said.

As a result, the Philippines maintained its economic growth targets at 6.0 percent to 7.0 percent for 2023, and at 6.5 percent to 8.0 percent for 2024 to 2028.

“In line with the Philippine Development Plan (PDP) 2023-2028, the strategies of the government will focus on modernizing agriculture, expanding agri-business, encouraging private sector participation in infrastructure development, promoting digital transformation, and enhancing the competitiveness of local industries, among others,” the department said in a statement.

Goods exports and imports growth projections for this year remain at 3.0 percent and 4.0 percent, respectively, following the trend in near-term global demand outlook and trade prospects. These are expected to stabilize at 6.0 percent and 8.0 percent, respectively, in the medium term.

Meanwhile, services exports are expected to perform better this year and next, following the recovery of the tourism sector and the continued resilience of the BPO sector, according to the Department of Budget and Management.