The Philippine government’s economic managers on Tuesday announced the revision of some economic targets after factoring-in the impact of mostly external factors.
In a briefing, Budget and Management Secretary Benjamin Diokno said the gross domestic product (GDP) target for 2018 was cut to 6.5-6.9 percent from the original 7 to 8 percent, which is also the target until 2022.
In the first half this year, growth, as measured by GDP, it grew by 6.3 percent, with the first quarter figure at 6.6 percent and the second quarter at 6 percent.
The slowdown was traced partly to the government’s policy decisions like the six-month closure of Boracay Island, which decelerated the growth of the services sector; the imposition of excise tax on non-metallic and metallic minerals; and the stricter enforcement of aquaculture regulations in Laguna de Bay.
Aside from the GDP target, the average inflation assumption for 2018 was changed to 4.8-5.2 percent from 4 to 4.5. For 2019, the assumption is 3 to 4 percent.
The inflation target for 2018-20 is a range between 2 to 4 percent.
Average assumption for Dubai crude oil price was changed to USD70-80 per barrel for this year, USD75-85 per barrel for 2019, USD70-80 per barrel for 2020, and USD65-75 per barrel for 2021-22.
During the Development Budget Coordination Committee (DBCC) meeting last July, the average assumption for Dubai crude is USD55-70 per barrel for 2018 and USD50-65 per barrel for 2019-22. (PNA)
