Philippines Gives Up 8% GDP Growth Goal by End of Duterte Term

(Bloomberg) --

The Philippines will no longer target economic growth as high as 8% by the time President Rodrigo Duterte steps down in 2022, according to his economic managers.

The annual expansion goal is now as high as 7.5% for 2020-2022, according to the Development Budget Coordination Committee, which is led by Budget Secretary Wendel Avisado.

“Continuing unresolved trade tensions” were a key consideration for economic managers who reviewed targets and estimates, Avisado said at a briefing Wednesday.

The same day, the Asian Development Bank cut its growth outlook for developing Asia this year and next, as trade tensions continue to weigh on the region and domestic investment weakens.

Below are some of the previous and updated targets and forecasts:

20192019202020202021202120222022
LatestPreviousLatestPreviousLatestPreviousLatestPrevious
GDP growth target6%-6.5%6%-7%6.5%-7.5%6.5%-7.5%6.5%-7.5%7%-8%6.5%-7.5%7%-8%
Inflation forecast2.4%2.7%-3.5%2%-4%2%-4%2%-4%2%-4%2%-4%2%-4%
Exports forecast1%2%4%6%6%6%6%6%
Foreign exchange
assumption (peso/$)51-5251-5351-5451-5551-5451-5551-5451-55
Budget deficit cap
target (% of GDP)3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%

Philippine economic managers are pushing to scale back tax perks and additional levies on e-cigarettes and tobacco to help fund a major infrastructure push, aimed in part at boosting growth, the budget secretary said.

©2019 Bloomberg L.P.

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