MANILA, June 27 (Xinhua) -- The Philippine government's economic team on Thursday revised the 2024 inflation target range to 3 to 4 percent from an earlier 2 to 4 percent forecast.
"The country's inflation reached 3.9 percent in May and is expected to settle between 3 and 4 percent by the end of this year," the Development Budget Coordination Committee (DBCC) said.
The interagency committee said the government is determined to achieve price stability and return to the target range of 2 to 4 percent from 2025 to 2028 "through the proactive implementation of monetary policy measures and well-targeted government interventions that address the primary drivers of inflation."
The measures include implementing the new Comprehensive Tariff Program for 2024-2028 to improve the affordability of essential commodities amid the rising global prices and the Food Stamp Program to mitigate the impact of elevated food prices on the poor and vulnerable sector.
Despite external headwinds, the DBCC expressed optimism that the Philippine economy will continue surpassing most emerging economies.
The committee projects the country's gross domestic product (GDP) will finish strong at 6 to 7 percent in 2024 and expand further to 6.5 to 7.5 percent in 2025, roughly consistent with the average growth forecasts of multilateral organizations.
"This robust growth momentum is expected to continue over the medium term, with GDP growth reaching 6.5 to 8 percent from 2026 to 2028 while considering anticipated domestic and external risks and the latest monetary and trade assumptions of the Bangko Sentral ng Pilipinas," the committee said.
The team said that the government commits to implementing growth-enhancing strategies to mitigate these risks, such as sustaining government efforts to address inflation, promoting and adopting digitalization to improve efficiency in government spending, accelerating infrastructure development, and strengthening inter-industry supply chain linkages.
"This growth trajectory puts us firmly on the path to becoming an upper-middle-income economy in less than two years and reducing the poverty rate to single-digit levels by 2028," the DBCC added. ■
