Manila - The National Economic and Development Authority (NEDA) has expressed confidence that the Philippines is on track to achieve its economic growth target of 6 percent by the end of the year.
According to Philippines News Agency, speaking at the Saturday News Forum in Quezon City, the country is expected to reach or closely approach the low end of its growth target. This optimism is bolstered by the Philippines recording the strongest third-quarter growth among major Asian economies at 5.9 percent, culminating in a 5.5 percent gross domestic product (GDP) expansion for the first nine months of 2023. Comparative third-quarter growth rates include Vietnam at 5.3 percent, Indonesia and China at 4.9 percent, and Malaysia at 3.3 percent.
Edillon cited the Purchasing Manager's Index (PMI) and the recent decline in unemployment rates, which fell to 4.2 percent in October from 4.5 percent a year earlier, as indicators supporting the GDP forecast. She highlighted the positive employment numbers and the PMI's robust performance, expressing hope for the remainder of the year and beyond.
NEDA observed a job growth spurt in sectors such as accommodation, restaurants, transportation, and information technology-business process outsourcing. Additionally, Edillon pointed to the gradual recovery of industries heavily impacted by the pandemic, like tourism, which has already exceeded its target of 4.8 million foreign visitors. Before the pandemic, tourism contributed approximately 12.7 percent to the country's GDP.
Further positive news comes from the improving inflation rate, which eased to 4.1 percent in November, down from 4.9 percent in October. Notably, national-level food inflation decelerated to 5.8 percent in November from 7.1 percent the previous month, with key food items like pork, sugar, and vegetables showing price decreases. However, rice costs rose, attributed partly to a slowdown in importation due to global supply constraints and expectations of El Niño impacts.
Edillon mentioned President Ferdinand R. Marcos Jr.'s price cap imposition in September as a contributing factor to the lower inflation rate, alongside the harvest season in late September and October, which combined to influence the November pricing.